List of 2001 Articles
The Independent Contractor Report

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1. Firms That Misclassify Corporation Officers May Qualify For Safe-Harbor Relief [January 2001 Report]
2.  Jurisdiction of United States Tax Court Concerning Employment Tax Matters Has Limits [January 2001 Report]
3. Truck Drivers Held Employees For Federal Employment Tax Purposes [February 2001 Report]
4. Bakery Deliveryman Not Statutory Employee For Federal Employment Tax Purposes [February 2001 Report]
5. Air Conditioning Firm Not Guilty of Fraud For Classifying Workers as Independent Contractors [March 2001 Report]
6. IRS Warns of Illegal Scheme to Evade Employment Tax on Employees [March 2001 Report]
7. Regulation Allowing Interest Free Adjustment May Be Amended. Proposal Deals With The Affect of a Notice of Determination Under Section 7436. [April 2001 Report]
8. Independent Contractor or Employee Test Under Employee Retirement Income Security Act (ERISA) Is Traditional Agency Law. In 1992 The U.S. Supreme Court Dealt With The Status of an Insurance Agent. [April 2001 Report]
9. State Officials May Be Employees or Independent Contractors. Employment Status Depends on Whether The Officials Were Elected or Appointed. [May 2001 Report]
10. Ms. Zacharias Felt She Did Not Owe Income Tax On Her Pay. The Tax Court Disagreed. There Was No Issue As To Her Employee Status. Court Said She Was Liable For Income Tax When The Employer Did Not Withhold. [May 2001 Report]
11. Independent Contractor Status Not Challenged But 20 Percent Backup Withholding Assessed. Firm, a Remodeling Contractor, Provided IRS Copies of Form 1099s. IRS Found That 1099s Had Not Been Filed. [June 2001 Report]
12. IRS Form SS-8 Cannot Be Used To Determine Partner Status. Form SS-8 Is Entitled, “Determination of Employee Work Status For Purposes of Federal Employment Taxes And Income Tax Withholding.” If Any Party Claims Worker Is “Bona Fide Member of a Partnership," Then Ruling Cannot Be Issued. [June 2001 Report]
13. Use of Bona Fide Independent Contractor Serves as Liability Shield.  As a General Rule, the Hirer is Shielded Against Injury or Death Claims By an Employee of the Contractor. Exceptions Exist Where There is Direct Negligence by the Hirer Causing the Injury. [July 2001 Report]
14. University Professor Paid on Course-By-Course Basis is an Employee For Federal Employment Tax Purposes. IRS Disagreed With Use of Schedule C. Universities Issued Form W-2s and Designated Employee Status in Written Contracts. [July 2001 Report]
15. Nursing Agency, IRS Says, Has Duty to Pay Employment Taxes. Agency Provides Nurses to City-Owned Board. Agency Paid Nurses' Wages. [August 2001 Report]
16. Who is the Employer of a Personal Cook? Whoever Has the Right to Control the Daily Activities is an Employer.  If Another Pays the Cook, That Party Can Be Considered a Section 3401(D)(1) Employer. [August 2001 Report]
17. IRS Says Section 530 Safe-Harbor Tested On Entity-By-Entity Basis and Not On Consolidated Basis. Parent Corporation and Each Subsidiary Looked At Separately. Violation by One Member of Corporate Family Will Not Destroy Safe – Harbor For Other Members. [September 2001 Report]
18. Dental Assistant, IRS Says, Is Employee For Federal Employment Tax Purposes. Worker Was Paid by Federal Agency. Agency Determined Schedule, Provided Her With All Tools And Supplies, She Was Under Direction of Staff Dentist. [September 2001 Report]
19. IRS Held Non-Wage Payments Were Dividends and Not Loan Repayments. Doctor’s Corporation Paid Certain Personal Expenses For His Benefit. IRS Ruled, and the Court Agreed, That the Payments Were Taxable Dividends. [October 2001 Report]
20. Are Oilfield Rig Welders Independent Contractors? IRS Said In This Field Service Advice That There Was Not Enough Information To Tell. However, If the Workers Were Employees, Then Rig Rental Payments Were Wages For Employment Tax Purposes. [October 2001 Report]
21. Courier and Messenger Firm Assessed Over $450,000 For Unpaid Employment Taxes. IRS Disagreed With Two-Check Method Splitting Payments Into Wages and Non-Wage Vehicle Reimbursement. On Appeal, Firm Was Only Able Establish a Right To Trial On Penalty Issue. [November 2001 Report]
22. Payments To Former Shareholder Are Wages. Corporation Provided Pilot Services To Vessels In City Ports. IRS Said Payments Were For Past Services Performed For The Corporation. [November 2001 Report]
23. Town Tax Collector an Employee for Federal Employment Tax Purposes. The Collector Kept an Office, Employed Two Clerical Employees, Paid Rent, Utilities and Office Equipment. As a “Public Official” The Collector Was a Statutory Employee Under Internal Revenue Code for Income Tax Withholding Purposes. [December 2001 Report]
24. Owner of Subchapter “S” Drywall Construction Corporation Held to Receive Wages and Not Dividends. No Regular Payments Were Made to President Who Withdrew Money From the Corporation at His Discretion. Corporation Did Not Issue Form 1099-MISCs or Form W-2s for the Three Years in Question. [December 2001 Report]

[ Page updated: April 29, 2008 ]