Treasury Addresses Employee Classification

Be on the look out for increased IRS enforcement in the area of employee classification. On February 4, the Treasury Inspector General for Tax Administration issued its audit report recommending that the IRS develop and implement an agency-wide employment tax program to address the issue of worker classification. It also recommended that the IRS consider conducting a formal National Research Program study to measure the impact of worker misclassification on the employment tax gap. In their response to the report, IRS officials agreed with the recommendations. So, it's more important than ever to make sure workers are properly classified as employees or independent contractors. For information on this topic, you can visit our FAQ page at http://ty-llp.com/about_faq.html.