Friday, February 27, 2009

HEADS UP - IRS TO START INDEPENDENT CONTRACTOR EXAMS

The IRS just announced that they will start random exams of employment tax returns next year. The goal is to get a better idea of how much misclassification of workers and other employment tax errors contribute to the tax gap. The current estimate that payroll tax mistakes cost the Service $15 billion is more than 20 years old.

IRS is still in the early planning stages, so look for exams to start around April 2010.