Discussion:SS-8 and independant contractor - IRS
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Revision as of 02:40, 30 October 2009
Discussion Forum Index --> Advanced Tax Questions --> SS-8 and independant contractor - IRS
Discussion Forum Index --> Tax Questions --> SS-8 and independant contractor - IRS
| 29 October 2009 | |
| I checked previous forums and did not see my situation addressed.
Client is an S corporation - single owner and had one "independent contractor" for period 2003 - 2006. Ind contractor filed SS-8 with IRS and she is being reclassifed as an employee. Reading through the letter from IRS, some of the years might be closed due to statute of limitations. Client did pay herself a salary and filed 941, 940, W-2/-3 for her S-corporation. Also, she did issue 1099's to her now re-classified employee. Question: Are the older years in fact closed? How about W-2/W-3 for the "new" employee? Are these year closed...never filed a W-2 for the new employee? Thanks. | |
| 30 October 2009 | |
| The instructions on the 941C say the statute of limitations on a 941 that was filed is 3 years from the April 15th following the year of the payroll. That means 2003 SOL ran out 4-15-07, 2004 SOL ran out 4-15-08, 2005 SOL ran out 4-15-09, leaving you with the 2006 SOL which runs out 4-15-2010. You only have an SOL if in fact a 941 was filed for each affected quarter.
I did not go on and look for 940, W-2 SOL. They most likely are similar. I had to amend payroll once for a similar situation. You must gross up from the net amounts paid to calculate the gross pay and the tax that you should have withheld. There are some relief provisions for those rates of tax but I don't remember what they were. Don't over look amending state returns as well if that applies. | |
| 30 October 2009 | |
| The statute for a Form 940 is different than for a Form 941. It runs 3 years from the January 31 due date (instead of April 15.) | |
