Fresh Start Tax LLC          IRS Tax Experts          Affordable  Professional Tax Firm         “A” Rated by the BBB             Since 1982

 The IRS recently announced a voluntary settlement program, offering a “Fresh Start” to businesses  that have misclassified  employees as independent contractors.

These usually are related to 941 payroll tax issues.

Employers that accept the new program offered by the IRS would pay 10 percent of the amount of employment taxes that would otherwise have been due on compensation paid for the most recent tax year to the workers.

 The IRS stepped up  several types of tax audits of income, partnerships,  and corporate businesses. This particular PROGRAM ( called Fresh Start ) IRS is looking at whether workers were being misclassified in 2010.

You can find employer/ employee relationships on our website.

Some employers have misclassified employees as independent contractors, which avoids the withholding of payroll taxes. This has been a wide spread area of abuse especially in transient areas  and in the construction industry.

If you have more questions and need professional tax help, call us today.