Discussion:Employee or IC??
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Revision as of 22:33, 13 April 2009
Discussion Forum Index --> Basic Tax Questions --> Employee or IC??
Discussion Forum Index --> Tax Questions --> Employee or IC??
Rgtaxservice (talk|edits) said: | 13 April 2009 |
| New client came to me with a 1099Misc bx 7 income. He claims he's an IC but it just doesn't smell right. A glance at last years return shows a 1099misc from the same company. Client is in the trades, he's a mason. In '07, he was working as an employee (mason) for a company, collected unemployment for a while, be began working for Company 'X'. Company 'X' issued a 1099isc in '07. His last preparer reported the income on SCH C but allowed business miles.
Company 'X' issued another 1099Misc for '08. This is the client's only income. He works with the owner of the company as a mason. The other company is just a contractor. The client has no interaction with the contractor's customers. He just does the masonry work installation...with the contractor/owner. He does not provide any material, although he does have is own tools. He's not on the hook for anything. Personally, I think he's an employee and company 'X' just taking the easy way out. I'm not hungup on reporting the income, it's writing off the business miles that's gnawing at me. These are all local miles. I'm going to review the 20 factors with the client - his wife was here - not him. I'm thinking of having the client provide written proof from the contractor/company that the client is in fact an I/C. Maybe something stating that "After reading the 20 factors, company 'X' maintains that client meets the criteria of an Independent Contractor". I want to do this for my protection as well as the client's. | |
