PPT Slide
* IRS 1706 : a Rider passed w/ 1986 Tax Act by special interests
* Designed to force all IT workers to : Be employees
* To enhance role of CP Firms
* Easier for IRS to collect taxes
* Allows IRS to “reclassify” IC as an “employee” !
* Burden of proof & penalties are on the “Employer”
* Practical result -- (1) Many companies will not do
business w ICs (1099s and S-Corps)
(2) Brokers / CP Firms flourish !!
(3) Approved Vendor Lists (AVLs)