An Updated Review of Tax Administration Problems Involving Independent Contracto
An Updated Review of Tax Administration Problems Involving Independent Contracto
Consumer United States Congress House Committee On Gover
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" 2. Additional Precondition to Satisfaction of the Reasonable Basis Standard. Similarly, government attorneys have taken the position in litigation that a taxpayer who does not satisfy one of three explicit safe harbor provisions provided by Section 530(a)(2) cannot avail itself of the statutory relief with respect to reclassification of its workers unless its workers were reasonably classified as independent contractors under the common law. Contrary to the position advocated by the governmen...t's attorneys, the safe harbors are merely exemplary and not exclusive as to the satisfaction of the overall reasonable basis test of Section 530. The plain statutory language of Section 530 specifies that the safe harbors are "STATUTORY STANDARDS PROVIDING ONE METHOD OF SATISFYING THE REQUIREMENTS OF [SECTION 530(a) (1)] . " (Emphasis added. ) Thus, the safe harbors clearly are not the only method of satisfying the "reasonable basis" standard of Section 530. Nor, however, is there any language limiting the scope of the other methods that might satisfy Section 530.
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