Quote:
Originally Posted by GMAN
The IRS could care less as long as they get their tax money. The problem with a 1099 is that the worker may not always pay their taxes and when the tax evader is caught tries to lay blame on the carrier or company. You will never have a problem paying on a 1099 unless a contractor who is EVADING his taxes, turns in the company in an effort to evade paying his taxes. Someone who does that is really scum. They take the extra money that they receive and instead of paying their taxes, they blow the money. Everyone should be responsible for their own taxes. The reason that congress originally set up the rules for employers to deduct taxes from workers pay is that they thought that most people would not pay their income taxes unless forced to do so. Most people who are paid on a W2 receive a refund on their taxes. That means that they paid the IRS too much tax. Essentially, when you receive a refund you have given the government a interest free loan. You could have invested that extra money or put it in a savings account. It is unfortunate that there are so many people in this country who avoid personal responsibility. If you are not a responsible person, then continue working under a W2 and let others control your money.
This is simply incorrect regarding the IRS. They really do have a definition of what hoops one must jump through to be a 1099 vs. an employee on a w-2. Most people, emphasis on most, who think they are independent contractors don't really qualify under the IRS's definition.
From the IRS's website:
You are not an independent contractor if you perform services that can be controlled by an employer (what will be done and how it will be done). This applies even if you are given freedom of action. What matters is that the employer has the legal right to control the details of how the services are performed.
Link to site:
http://www.irs.gov/Businesses/Small-...ractor-Defined