Misclassification of workers as independent contractors is a pretty widespread problem, according to a report released earlier this month by the Government Accountability Office (GAO). The precise extent of misclassification is unknown but, for example, in 1984, the Internal Revenue Service estimated that 3.4 million workers were misclassified by employers resulting in a revenue loss [...]
The Labor Department is hostile to self-employment, largely because it concerns itself with workers who are employees. Employees have certain rights that are protected by the Labor Department. Independent contractors and those self-employed types take work away from employees, when employees ought to have first dibs on it.
Well, after all, it is the Labor Department.
Treasury, and in particular, the IRS, has no such biases. All they care about is that everybody pay their taxes.
In fact, I have come across taxpayer advice on the IRS web site instructing people who accept bribes, commit fraud, and rob people of their property not to forget to pay their taxes. Who knew the IRS was such a tolerant bunch?
You can also subscribe to the Microbusiness News Briefs via RSS
from The Journal Blog