2020 – 12/30 When determining whether to classify a worker as an employee or an independent contractor, the IRS and the courts look at several factors. They include: 1) the degree of control exercised by the business over the work details; 2) which party invests in the facilities used in the work; 3) whether the worker has the opportunity for profit or loss; 4) whether the work is part of the regular activities of the business; and 5) the relationship’s permanency. No one factor is more important than the others, and all facts and circumstances are considered. The extent to which a business can exercise control over a worker is a critical factor in determining the nature of a working relationship.
Similar Posts
Higher Education Tax Credits
2021 – 07/26 Colleges, universities and trade schools will soon reopen. Whatever form a school takes, higher education is expensive. But the good news is, taxpayers, their spouses or dependents who take post-high school coursework in 2021 may qualify for one of two tax credits that can reduce their tax bills. The American Opportunity Tax…
PPP loans have reopened: Let’s review the tax consequences
2021 01/19 The Small Business Administration (SBA) announced that the Paycheck Protection Program (PPP) reopened the week of January 11. If you’re fortunate to get a PPP loan to help during the COVID-19 crisis (or you received one last year), you may wonder about the tax consequences. Background on the loans In March of 2020,…
Get a Federal Tax Refund Faster
2021 – 01/26 Did you know that eight out of 10 taxpayers receive their income tax refunds using direct deposit? The reason, according to the IRS, is that filing electronically and choosing direct deposit is the fastest way to receive a refund. In fact, the IRS uses the same electronic transfer system to deposit tax…
Bad Checks and the IRS
2020 – 08/24 Due to delays in processing, the IRS is providing relief from bad check penalties for dishonored checks it received between March 1, 2020, and July 15, 2020. The IRS says that if a taxpayer mailed a check (either with or without a tax return), it may still be unopened in the backlog…
American Rescue Plan
2021 – 03/08 On March 6, the $1.9 trillion American Rescue Plan was passed by the U.S. Senate by a 50-49 party-line vote. The bill now heads back to the U.S. House of Representatives for a final vote and if it passes, it goes to President Biden to sign into law. Among the many provisions…
FAQ: Child Tax Credit
2022 – 01/13 The IRS has issued updates to several FAQs that cover the 2021 Child Tax Credit (CTC). The FAQs are intended to help eligible families properly claim the credit when they prepare and file their 2021 tax returns. Recipients of advance CTC payments will need to compare the amount of payments received during…