The IRS is coming to get you Independent Contractor Scofflaws

Don't do something that will attract the IRS' attention.
Don’t do something that will attract the IRS’ attention.

I have written a number of times about the dangers of improperly classifying independent contractors. You can find two such posts here and here. The dangers of doing so have increased in early May.

More enforcers

The IRS announced on May 5th that they have “found” money in their budget to hire between 600 and 700 new enforcement agents. They said “Each enforcement position typically returns almost $10 to the U.S. Treasury for every dollar spent—and in many instances, much more.”
There is no guarantee that all these agents will focus on misclassification, but with the attention that has been paid to this area, along with the Memorandum of Understanding signed with the U.S. Department of Labor and various states it is a sure bet that some of these agents will be assigned to this area.
By the way, did you know that there is a form, the SS-8, that allows workers to initiate a review of their independent contractor status if they feel they have been misclassified.

Do the right thing

The best way to avoid meeting one of these new enforcement agents is to make sure you have not inappropriately mislabeled a worker as an independent contractor. You can find the rules in this post Using Independent Contractors just got riskier!

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