Registered: 1331384452 Posts: 187
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With automatic sequester cuts kicking in more as time passes its understandable that the government would use the IRS to find under-reported and un-reported tax revenues. The IRS is examining small business tax filings in a special effort to find those who are misreporting their employees as independent contractors. Many in the pet grooming field are still incorrectly identifying employees as I.C.s. Some are doing this to avoid paying payroll taxes, Social Security, Medicare, and unemployment insurance. I don't remember how many older groomers I have interviewed during my career that have claimed they have been grooming for decades that cannot produce any tax return showing proof of any of those years of pet grooming experience. Some claimed they were I.C.s and did not know they needed to file a tax return , others claimed as owners they only accepted cash payments or as employees were paid under the table by their employers to avoid taxes. Some believe they win and that the employer wins when they work as I.C.s. and are only paid cash under the table. The truth is no one really benefits from such an arrangement ..........or so one use to think....but ..... " the expanded allows small-business owners to properly re-classify workers as employees. Participants may receive partial relief from federal employment taxes and an IRS promise not to audit how the business classified its workers in prior years." IRS - Voluntary Worker Classification Settlement Program Why is it that those of us that do do it right from the start don't get some kind of a Tax exemption/relief from time to time? The reward of doing it right ends when others get immunity from Local, State & Federal Governments for not doing it right!