News Briefs (0607)
July 2006
IRS TO PROBE FREELANCER PAYMENTS
The Internal Revenue Service Small Business/Self-Employed Division will be studying the independent contractor issue in the coming year as part of the agencys emphasis on closing the tax gap, an agency official said. Marie Cashman, special counsel for employment tax, told a meeting of the American Bar Association Section of Taxation that abusive transactions among SB/SE taxpayers include nonfiling, misclassifying employees as independent contractors, and mischaracterizing wages as expense, she said.




