Employee or Independent Contractor?

The IRS is working to close the $345 billion "tax gap" -- the difference between what taxpayers actually pay and what they are legally obligated to pay. A significant part of the tax gap is from underpayment of employment taxes, so the IRS is increasingly focused on employers misclassifying employees as independent contractors. So how do you decide whether a worker is an employee or an independent contractor? For the answer to this and other tax questions, please visit our new Frequently Asked Questions page at http://www.ty-llp.com/about_faq.html. We welcome suggestions for new FAQs, which can be emailed to TaxCPA@rocketmail.com.