Your Business And The IRS Employment Tax Initiative
You may have heard on the news about one of the major issues the IRS focuses on: businesses that treat employees as contractors. This problem is not limited to the gig economy. Many businesses bring on contractors who perform all the same roles, duties and functions of employees, taking advantage of the category difference when they do their taxes.
Over the past few years, the IRS implemented the Employment Tax Initiative, which puts increased scrutiny on businesses that use contractors and incentivizes businesses to make corrections to misclassifications with minimal tax penalties. Get advice on this program and others at 818-224-7935.
Can You Take Advantage Of This Opportunity?
According to the IRS, the new Voluntary Classification Settlement Program (VCSP) “is designed to increase tax compliance and reduce burden for employers by providing greater certainty for employers, workers and the government.” Many businesses take advantage of this program, particularly if they have misclassified employees as contractors in the past, are not under audit and otherwise comply employment and tax laws.
Before you apply, you should have a comprehensive review of your business’s employment practices. It may be that your current contractor usage is fine or that there are other issues you should address in the course of this process. The only way to be certain is to obtain experienced and knowledgeable legal advice from a qualified attorney.
Get Your Business On The Right Path
At the Law Offices of Robert T. Leonard, APC, our Woodland Hills-based team offers comprehensive legal counsel for businesses dealing with the IRS. Our seasoned lawyer can offer you in-depth, personalized advice. Send us an email to get started.