Friday, February 19, 2010
Following up on this morning's post on the Austin pilot's grievance against the IRS over the treatment of independent contractors: New York Times, U.S. Cracks Down on ‘Contractors’ as a Tax Dodge:
Federal and state officials, many facing record budget deficits, are starting to aggressively pursue companies that try to pass off regular employees as independent contractors.
President Obama’s 2010 budget assumes that the federal crackdown will yield at least $7 billion over 10 years. More than two dozen states also have stepped up enforcement, often by enacting stricter penalties for misclassifying workers.
(Hat Tip: Ann Murphy.)