Tax Guru-Ker$tetter Letter

Thursday, January 15, 2004

Who didn't see this coming?
Tax Withholding Proposed for Independent Contractors - Here is the other shoe dropping after the recent tax gap propaganda. If this plan to deputize more people as government tax collectors doesn't encourage more use of the corporate form, people are less intelligent than I thought. I have already seen plenty of businesses refuse to work with any service that isn't incorporated just to avoid the potential for the workers being classified as employees. This new rule, if enacted, would push more business owners to the same conclusion because payments to corporations are not subject to the same 1099 reporting or tax withholding rules that apply to payments to unincorporated individuals and businesses.
- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 1/15/2004 01:59:00 PM Send this post: