If you misclassified your independent contractors, the IRS will come after you.
Here’s how to avoid serious problems.
Watch out!
If the IRS audits your business and decides that you misclassified your independent contractors as employees, you could be in the soup. And deep in the soup.
You see, the IRS will assess years of back
employment taxes, plus penalties and interest. Yikes!
Yes. Maybe you meet the three requirements needed to qualify for Section 530 safe harbor relief. If so, well and good.
But if you don’t, you get a second chance to solve your employment tax problems…
The IRS’s Classification Settlement Program (CSP).
The CSP is an offer from the IRS that lets you settle your employment tax assessment. Typically for an amount less than, or equal to, a single year’s tax assessment.
The bottom line? Think of the CSP as a very effective way to come out in good shape, even if you misclassified your independent contractors.
My advice? Get the facts about the CSP before you’re sitting in an IRS auditor’s office. It’s easy to do.
CLICK HERE to get my complete article…
If the IRS Says Your Independent Contractors
Are Employees, Use the CSP
