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Are You Exposed? New IRS Rules Threaten Your Contractor Classifications

May 24, 2025

“New IRS Guidance Makes It Harder
to Claim Section 530 Safe Harbor”

To get my complete article
with all the details…

Are you confident you’re classifying your workers correctly?

If you’ve been treating independent contractors as non-employees, you could be walking a fine line — and the IRS is watching. Misclassification can cost you big: payroll tax assessments plus penalties that can reach 40% of gross payroll or more.

But here’s the lifeline: the Section 530 safe harbor.

For decades, Section 530 has protected hiring firms from IRS penalties, even if workers technically meet the employee definition. But new IRS guidance makes qualifying for this protection more difficult than ever.

This article breaks down:

  • The three must-meet requirements for Section 530 relief
  • New IRS criteria that could disqualify you
  • Practical steps to protect your business

Don’t leave your company exposed: Read the full article now and safeguard your worker classifications.

CLICK HERE to read my completely new article titled:

“IRS Makes It Harder to Use
the Section 530 Safe Harbor”

Filed Under: Audits, Employees, Filing tips, Form 1099, Independent Contractor, Payroll, Records, Tax Planning, Tax Policy

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