Hiring "Independent Contractors"

You failed to mention the congressional hearings a couple years ago where the IRS was called to task on their strong arm tactics involving taxpayers.

Seems I remember congress told them they had better shape up.

> "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