IRS Charging Large Fines Reclassifying Independent Contractors as Employees within Home Businesses

Rick Barron
February 22, 2011 — 371 views  


Who's most likely to suffer the implications of independent contractor reclassifications? The answer's you, the independent small business entrepreneur. In the event the IRS demands your independent contractor is really an employee, they might come after you for back Social Security, Medicare, as well as Unemployment taxes. Furthermore, if they feel you intentionally misclassified the contractor you might be defending yourself against criminal prosecution. Doing battle with the IRS will bankrupt a lot of independent entrepreneurs.

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