SS-8

[cpabsd]

Client received correnspondence from IRS regarding the decision after they were required to complete the form ss-8. Of course, as I had originally advised, the individuals have been reclassed by the IRS as employees not sub contractors. The SS8 division does not send a tax bill. You need to calculate first and take care of yourself. Then the bill will come. My question is will the IRS catch up with this. Meaning, the client does not want to file the forms. For 2009, they are doing it correctly. I recommended the client have me prepare the forms to make things correct for 2006 and 2007. If the emplyment forms are never filed, will the IRS ever catch up with it?

Thanks,

Bonnie

[jainen]

>>will the IRS ever catch up with it? <<

Naw, probably not. I'm sure the whole worker reclassification thing is just some bureaucrat's idea for impressing Congress. The IRS isn't serious about it.

Of course, if the IRS does figure out that they have already made a ruling against your client, he will be PERSONALLY liable for paying the bill even if the employee already paid. And by the way, better treat that employee pretty nice now, because he can cause a whole lot more hurt by something as simple as a phone call to the unemployment insurance office.

Your client is an idiot. He's already been nailed for violating the employment tax laws, which is pretty much the sacred heart of the system. He still doesn't feel any obligation to comply so he'll probably blame somebody else, like you. Tell him to get lost.

[kcjenkins]

Bonnie, could you clear up my confusion? Is your client the employer or the employee?