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Re: Illegals are marching, and why we don't

The procedural amendment to Section 530 of the Revenue Act of 1978 enacted under Section 1122 of the Small Business Job Protection Act of 1996 (H.R. 3448) seeks to clarify the interpretations of these safe harbor definitions; it does not supplant either the common-law test or the Twenty Factor Test defined in the IRS Training Manual. The highlights of this amendment stipulate:

The IRS is to advise the taxpayer of the provisions of Section 530 prior to any audit inquiry;
The practice of at least 25 percent of an industry shall constitute a "significant segment" of the industry;
A "long-standing recognized practice" need not "have continued for more than 10 years" (and this is foreshortened for "new" industries) or to have begun prior to 1978;
A defined basis for shifting the "burden of proof" from the taxpayer to the IRS;
The applicability of the findings of prior IRS audits as precedent in employee versus independent contractor disputes; and
Subsequently treating a worker as an employee does not necessarily jeopardize the worker’s status as an independent contractor during prior periods.
This is CABL.com posting #165383. Tiny Link: cabl.co/mRbD
Posted in reply to: Re: Illegals are marching, and why we don't by Trey9007
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