Tax
Aug. 31, 2011
IRS cracks down on independent contractor misclassification
Misclassifying workers as independent contractors is becoming a dangerous game of roulette.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
Like many other businesses, law firms often make mistakes in classifying workers. Say you hire people for a short special project. It seems simpler and cleaner to hire them as "independent contractors" so you don't need to put them on payroll and deal with tax withholding. You may avoid various employment laws too.
But increasingly, this can be a dangerous game of roulette. What if five years later these workers are worki...
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