Medical Emergency Care Associates, S.C., An Illinois Corporation - Page 7

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                    basis consistent with the taxpayer’s                              
                    treatment of such individual as not being an                      
                    then, for purposes of applying such taxes for                     
                    such period with respect to the taxpayer, the                     
                    individual shall be deemed not to be an                           
                    employee unless the taxpayer had no                               
                    reasonable basis for not treating such                            
                    individual as an employee.                                        
               Congress enacted section 530 to “alleviate what it perceived           
          as the ‘overly zealous pursuit and assessment of taxes’” against            
          employers who had, in good faith, classified their workers as               
          independent contractors.  Ewens and Miller, Inc. v. Commissioner,           
          117 T.C. 263, 276 (2001)(quoting Boles Trucking, Inc. v. United             
          States, 77 F.3d 236, 239 (8th Cir. 1996)).  Section 530 was                 
          enacted both as an interim solution to the problems inherent in             
          increased enforcement by the Internal Revenue Service (IRS) of              
          the employment tax laws and in response to complaints by                    
          taxpayers that proposed reclassifications by the IRS involved a             
          change of position by the IRS in interpreting how the common law            
          rules apply to their workers or industry.  See Joseph M. Grey               
          Pub. Accountant, P.C. v. Commissioner, 119 T.C. 121, 133                    
          (2002)(citing H. Rept. 95-1748 (1978), 1978-3 C.B. (Vol. 1) 629,            
          631-632).  The purpose of section 530 was to “provide an interim            
          solution to controversies over common law employment status by,             
          in part, allowing taxpayers who had a reasonable basis for not              
          treating workers as employees under the traditional common law              
          tests to continue to do so”.  Id. at 133.  This interim solution            

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