Joint Committee on Taxation Reports
- Contingent Workforce: Size, Characteristics, Earnings, and Benefits (GAO-15-168R, 5/20/15)
- Employee Misclassification: Improved Coordination, Outreach, and Targeting Could Better Ensure Detection and Prevention, GAO-09-717, August 10, 2009
- Employee Misclassification: Improved Outreach Could Help Ensure Proper Worker Classification, GAO-07-859T, May 8, 2007
- Employment Arrangements: Improved Outreach Could Help Ensure Proper Worker Classification, GAO-06-656, July 11, 2006
- Issues in Classifying Workers as Employees or Independent Contractors, T-GGD-96-130, June 30, 1996
- Issues Involving Worker Classification, T-GGD-95-224, August 2, 1995
- Tax Administration: Improving Independent Contractor Compliance with Tax Laws, T-GGD-94-194 (8/4/94)
- Approaches for Improving Independent Contractor Compliance, GGD-92-108, July 23, 1992
- Senate Bill 2369, Independent Contractor Tax Classification and Compliance Act of 1982, 118202, April 26, 1982
- TIGTA, Expansion of the Gig Economy Warrants Focus on Improving Self-Employment Tax Compliance, 2/14/19
- TIGTA, Trust Fund Recovery Penalty Actions Were Not Always Timely or Adequate (May 2014)
- TIGTA, Employers Continue to Classify Workers as Independent Contractors, Despite IRS Determinations to the Contrary, July 29, 2013
- TIGTA, Employment Tax Compliance Could Be Improved With Better Coordination and Information Sharing, March 23, 2010
- TIGTA, While Actions Have Been Taken to Address Worker Misclassification, an Agency-Wide Employment Tax Program and Better Data Are Needed (2/04/2009)
- PERAB Tax Reform report includes tax gap proposal on Worker Classification – page 60
National Taxpayer Advocate Reports
- NTA 2003 page 256 - suggesting a modified withholding approach for certain contractors
- NTA 2008 page 375 - proposals for simplification
- NTA 2013 page 197 - problems with SS-8 processing and repeat of simplification suggestion for classification
- UK Classification Tool mentioned by NTA
Information from the Department of Labor & NLRB
Legislative Proposals and Hearings
- S. 1687 and H.R. 4611 (113th Congress) - Payroll Fraud Prevention Act
- S. 1706 and H.R. 4503 (113th Congress) - Fair Playing Field Act
- H.R. 6128 (111th Congress) - Fair Playing Field Act of 2010 - "to permit the Secretary of the Treasury to issue prospective guidance clarifying the employment status of individuals for purposes of employment taxes and to prevent retroactive assessments with respect to such clarifications."
- H.R. 3408 (111th Congress) - Taxpayer Responsibility, Accountability, and Consistency Act of 2009 - "to modify the rules relating to the treatment of individuals as independent contractors or employees, and for other purposes."
- Senate HELP Committee hearing on June 17, 2010 - Leveling the Playing Field: Protecting Workers and Businesses affected by Misclassification
Table of Contents
This web page contains the following major sections. I regret that the WebsiteBuilder tool does not allow me to insert links to the individual sections.
- Information from the IRS and Congress
- Joint Committee on Taxation Reports
- GAO Reports
- Treasury Department
- National Taxpayer Advocate Reports
- Information from the Department of Labor & NLRB
- Legislative Proposals and Hearings
- Selected State Information
- Modern Economy Matters
HOMECopyright © 21st Century Taxation. All rights reserved.
If an employer has the right to control the worker's work - how and what he does, the worker is an employee. If not, generally, the worker is an independent contractor. The employer's tax treatment of each is different and the workers have different tax rules that apply to them. For example, a contractor can deduct her business expenses against her business income while an employee must treat them as miscellaneous itemized deductions only deductible to the extent that category of deductions exceeds 2% of AGI.
This website, created and maintained by Professor Annette Nellen, includes links to information from the IRS and other government agencies on worker classification matters. There are also links to legislative proposals to improve the worker classification rules.