Independent contractors and the IRS : an honors thesis (HONRS 499)

Abstract

The Internal Revenue Service has become increasingly concerned with the classification of individuals as independent contractors or employees. The IRS is now moreaggressive in pursuing workers they believe to be misclassified. Taxpayers may still be eligible for relief but there must be evidence to back up the classification. This discussion includes the criteria used to determine worker's status. Also included are the benefits of contractor classification and the penalties for misclassification.