IRS to Audit Large Companies on Tax, Independent Contractor Issues

By | November 3, 2009

  • November 3, 2009 at 7:29 am
    Darwin says:
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    Another example of the fact that the cheats are smarter than the regulator. This issues has been talked baout for decades, and the IRS is just now going to focus on employee missclassification? WOW! Our highly paid government officals at work!

  • November 3, 2009 at 12:20 pm
    Bill says:
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    The independent contractor also will get audited who is a small business and possibly laid off as the tax burden will come down on the employer.

    This administration thinks it is going to hurt big business but the only ones who are hurt are the small business people.

  • November 3, 2009 at 1:28 am
    ed calderon says:
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    More goverment in our lifes…are we surprised? The Companies that I represent do no want to hire me as an employee and I don’t want to be their employee. Why does the goverment have to interfere in this. I’m still paying my taxes

  • November 3, 2009 at 1:30 am
    Danny Boone says:
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    The IRS should audit the politicians and not business, not at this time when the economy is horrific.

  • November 3, 2009 at 2:33 am
    Any wonder says:
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    Why bother to audit the politicians. We already know they cheat on their taxes. Why not just collect what they owe and we could go a long way toward clearing the deficit.

  • November 3, 2009 at 3:25 am
    Bill Wilson says:
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    This move has been LONG overdue and if I recall it’s not the Federal Government’s Job to A) make the insurance world a better place, B) make sure that you get to run your business however the heck you want and C) arrange for commerce enforcement that heavily tilts the power in our nations economy to the few conglomerates that reside upon mountains of highly aged money.

    The fact of the matter is simple. We’re supposed to be a “free market” that is based on “capitalism” but this nation lost that concept decades ago.

    You think that smaller regional company down the street can compete against the national giant? Never. The national giant, through it’s division of staff attorney’s take huge liberty in interpretation of tax laws and, as a result, operate with much higher profit under much lower overhead.

    Think CD Swaps and sub-prime were issues created by the lower level players? Got to be out of your minds.

    They were created as new revenue streams by the top wall street banks who were watching their market share sag as more and more American’s fell into the “sub-prime” lending category. The sub-prime lenders started eating their market share so the big boys drove down into a game they had no right playing in when they were so heavily involved in packaging and selling their loans with an AAA Rating. Would have been fine if they hadn’t fraudulently continued to sell lending vehicles with AAA Rating when they were, at best, a B-. Greed kept that from happening.

    They cheated the system and put us in the position we are now. UPS is doing the same with their classification of drivers as independent contractors. So are numerous other companies around the US.

    I personally know several large business owners who not only do what UPS is doing but they actually pay for their drivers to secure their CDL, own the trucks the drivers are “leasing” from them under statement deduct, direct and supervise all of their work but yet classify them as independent contractors.

    Can the trucking company who actually employs their drivers, pays for their workers compensation and pay’s payroll taxes on their earnings ever compete against that large firm that avoids all of these costs via their own personal interpretation of the law? Not a chance.

    The entire country, especially now during these economic times, is focused on one thing……money. The smaller guys just cannot compete due largely to the illegal operating methods of their larger competitors.

    Some here say “don’t do this now with the economy in the state it’s in”.

    In response I’ll say this. We have a young son at home. I’d rather lose my cars, move into an efficiency apartment, go on food stamps and welfare, educate him at home and feed him pasta 7 nights a week than leave behind a world for him and his children where the only employers to work for are there not because of their own ingenuity but because of criminal activity that helped them destroy their competition and threatened our entire nations economy.

  • November 4, 2009 at 10:26 am
    Batman says:
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    Thank you Mr. Wilson for adding those comments; hopefully they will generate more thought instead of more emotion. That’s why IJ discussions end up in political swag, because the issues get clouded with emotion-filled gripes, carps and name-calling instead of well-crafted debate-style points of arguement. Most refreshing but it is a little disconcerting when you realize that ethics have nothing to do with the “kicka$$ and take names” type of free markets we have now. Making money is the only concern; damn everyone else and damn the future. Whatever happened to earning money? Level playing field? Not on your life; my 401(k) is just a fund for someone elses greed.

  • November 4, 2009 at 11:17 am
    me!!!!!!!! says:
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    You are gonna love this one.

    These are from a book called ‘Disorder in the American Courts’ and are things people actually said in court, word for word, taken down and now
    published by court reporters that had the torment of staying calm while these exchanges were actually taking place.

    ____________________________________________

    ATTORNEY: This myasthenia gravis, does it affect your memory at all?
    WITNESS: Yes.
    ATTORNEY: And in what ways does it affect your memory?
    WITNESS: I forget.
    ATTORNEY: You forget? Can you give us an example of something you forgot?
    __________________________________________

    ATTORNEY: Now doctor, isn’t it true that when a person dies in his sleep, he doesn’t know about it until the next morning?
    WITNESS: Did you actually pass the bar exam?
    _________________________ ___________

    ATTORNEY: The youngest son, the twenty-year-old, how old is he?
    WITNESS: He’s twenty, much like your IQ.
    ________________________ ___________________

    ATTORNEY: Were you present when your picture was taken?
    WITNESS: Are you shitting me?
    _________________________________________

    ATTORNEY: So the date of conception (of the baby) was August 8th?
    WITNESS: Yes.
    ATTORNEY: And what were you doing at that time?
    WITNESS: getting laid
    ____________________________________________

    ATTORNEY: She had three children, right?
    WITNESS: Yes.
    ATTORNEY: How many were boys?
    WITNESS: None.
    ATTORNEY: Were there any girls?
    W ITNESS : Your Honor, I think I need a different attorney. Can I get a new attorney?
    ____________________________________________

    ATTORNEY: How was your first marriage terminated?
    WITNESS: By death.
    ATTORNEY: And by whose death was it terminated?
    WITNESS: Take a guess.
    ____________________________________________

    ATTORNEY: Can you describe the individual?
    WITNESS: He was about medium height and had a beard.
    ATTORNEY: Was this a male or a female?
    WITNESS: Unless the Circus was in town I’m going with male.
    _____________________________________

    ATTORNEY: Is your appearance here this morning pursuant to a deposition notice which I sent to your attorney?
    WITNESS: No, this is how I dress when I go to work.
    ______________________________________

    ATTORNEY: Doctor, how many of your autopsies have you performed on dead people?
    WITNESS: All of them. The live ones put up too much of a fight.
    _________________________________________

    ATTORNEY: ALL your responses MUST be oral, OK? What school did you go to?
    WITNESS: Oral.
    _________________________________________
    ATTORNEY: Do you recall the time that you examined the body?
    WITNESS: The autopsy started around 8:30 p.m.
    ATTORNEY: And Mr. Denton was dead at the time?
    WITNESS: If not, he was by the time I finished.
    ____________________________________________

    ATTORNEY: Are you qualified to give a urine sample?
    WITNESS: Are you qualified to ask that question?
    ______________________________________

    And the best for last:

    ATTORNEY: Doctor, before you performed the autopsy, did you check for a pulse?
    WITNESS: No.
    ATTORNEY: Did you check for blood pressure?
    WITNESS: No.
    ATTORNEY: Did you check for breathing?
    WITNESS: No.
    ATTORNEY: So, then it is possible th at the patient was alive when you began the autopsy?
    WITNESS: No.
    ATTORNEY: How can you be so sure, Doctor?
    WITNESS: Because his brain was sitting on my desk in a jar.
    ATTORNEY: I see, but could the patient have still been alive, nevertheless?
    WITNESS: Yes, it is possible that he could have been alive and practicing law..

  • November 9, 2009 at 2:43 am
    Work4ALiving says:
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    When you put a tax cheat in charge of the IRS, watch out!
    Geithner has played the game, and knows every angle.
    You want someone to check the safety of your network, hire a hacker.
    You want to have the IRS get tough on IC interpretations, hire a tax cheat!

    It’s all about the revenue.

  • November 9, 2009 at 2:55 am
    Work4ALiving says:
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    Bill,
    While I share your concerns that large companies hire legal and financial talent to seek advantages over its competitors, I don’t buy the presumption that a traditional employer-employee relationhsip is the only way to economic security.
    Companies compete for labor just as fiercely as they compete for markets; a well run company will be rewarded with good and loyal employees no matter the precise structure of the relationship. I have two kids in college myself, and fully expect them to make their own way in a world that will be very different from the one we are used to. It will be up to them to make decisions on the best economic opportunities for them. It’s called freedom.



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