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As an employer, are you classifying your workers as independent contractors?
Are they actually employees?
This crucial worker classification decision is usually made early on in the business.
It's done to save money when deciding to hire someone or give them a 1099-MISC.
The income they receive is deductible to the business.
So does it really matter how they're paid?
Well, the IRS and the State care.
In fact, it's only a matter of time until you end up in a trust fund audit.
However, due to recent law changes and internal developments, the IRS has softened its stance against employers who have made the mistake. If the decision to classify an employee as an independent contractor wasn't done willfully to evade paying taxes, the IRS might offer you or your business some relief.
If so, we have a program that can help you qualify to voluntarily reclassify them.
If the IRS approves our work, you won't have to pay federal payroll taxes for the past! ...as long as you start designating your workers as employees for future tax periods.
The IRS calls it the Voluntary Classification Settlement Program or VCSP.
I can help you get approved for this program by helping you prepare the package to send into the IRS.
To qualify for the program, you must meet certain eligibility requirements such as:
Then when you're ready, set up an appointment with me.
I’ll check your eligibility according to the tax code, go over your research with you, then we’ll fill out the required paperwork and submit it to the IRS. We'll take it from there and help you with the rest of the process of getting those back payroll taxes figured out.
For a complete list of the eligibility requirements see the instructions for Form 8952.
To find out more about the program just go to irs.gov/vcsp
or go to Authoritax.com for more information on setting up an appointment.
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