Hiring "Independent Contractors"

Perhaps you failed Reading 101.

I never questioned the need to collect taxes. And it was not "his" taxes that were in question. The issue was did the IRS have the right to tell a business man how he should run his business. The tax LAWS you claim he ignored, do not define independant contractors. These definitions are IRS interpretations of the intent of Congress. I blame Congress, not the IRS for the complexity of our tax code. Congress held hearings two years ago suggesting to the IRS that tax payers were being bullied and abused. Since then, I think the IRS has improved. I have found them very helpful on some recent issues I had with them. However they can only help you if they understand the code themselves. Money magazine's annual calls to the IRS for help, proves they do not.

I still feel that the IRS harshly defines independant contractors, because they are addicted to businesses collecting their taxes and they don't want a bunch of truck drivers fumbling though a Schedule C.

> "They (our wonderful government)
> disallowed his claim that these individuals
> were independant contractors on the basis
> that he controlled their time. They fined
> him a hefty sum and made him pay all the
> back taxes on their earnings. He had to buy
> the trucks back and put everyone back on the
> payroll.

> ******Actually "they" didn't
> disallow his claim. The Law did.
> "They" were simply doing their
> jobs and applying the Law. That is what
> "they" get paid to do.

> Who says we live in a "free"
> society? We need to have another tea
> party."

> *****Anyone who says we live in a "free
> society" obviously slept through US
> Government 101. ;) Considering the amount of
> taxes we pay, it's hardly free. However, the
> taxes we pay fund our defense systems, our
> roadways, our Social Security program, our
> judicial system (which we don't hesitate to
> use when we feel someone has grievously
> wronged us), etc... We might pay taxes but,
> in general, the taxes pay for things we use
> so really, we're rewarding ourselves when we
> pay taxes. All we have to do is hand over
> the cash (or simply have it deducted from
> paychecks) and we get lots of benefits from
> those taxes except we don't have to build
> our own freeways or arrange for court
> proceedings or monitor businesses to make
> sure they are complying with federal
> environmental laws or organize rescue
> missions and monetary bailouts in areas
> declared a national disaster area or.......

> Further, the man in your story had the
> **freedom** and **legal right** to check
> with his federal government and state
> government to determine what constitutes
> independent contracting and how it affects
> his taxes and his business. Since he didn't
> do his homework he risked his business by
> making assumptions. "They" can't
> force him to seek information.

> The government (all levels) is MORE than
> happy to help business owners/newbie learn
> the Law so the business owner/newbie doesn't
> end up in this sort of pickle. However, like
> so many people, the man in your story either
> didn't know he could meet with his tax paid
> public servant and get the info OR has a
> resentful attitude towards our government OR
> didn't want the hassle of filling out
> paperwork OR simply was too lazy to make an
> effort to get the necessary information
> before deciding how to classify the people
> who work for him.

> The man in your story screwed himself.
> "They" had nothing to do with the
> choices he made. "They" simply did
> the job the rest of us tax paying citizens
> require them to do. If this guy didn't pay
> up on the taxes, we'd be pitching a fit that
> he got away with not complying with the Law
> and that our taxes went even higher to make
> up for it. "They" aren't perfect
> but "they" do what they can to
> make sure we have a fairly even playing
> field regarding responsibility and
> accountibility.

> And them's my 4 cents......don't spend them
> all in one place. ;)

> :)
> EM