Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 07-22-2008, 11:57 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
Providing employees a W-2 and 1099-Misc in same year will raise a Red Flag!

Expect an extra scrutiny from the IRS if you give a W-2 and a 1099 to the same worker in one year during the payroll tax audits.

Providing an employee both a W-2 and a 1099-Misc in the same tax year will raise a red flag with the IRS. This will raise suspicion with the IRS that maybe perhaps there was a misclassification of employees as contractors.

The Service is skeptical of cases which involve retired workers returning to a firm doing the same job, however, as a contractor.

If you are perhaps considering to rehire employees as consultants, you need to properly document the circumstances of the rehire condition and this should not be due merely to circumvent payment of payroll taxes!

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
What can I do if some prior year 1099-MISC income was omitted from a 2006 tax return? Pearl Income 2 05-14-2008 09:54 PM
Corrected 1099 Misc strelbert02 Income 3 04-30-2008 09:59 AM
how do you amend a 1099 misc? llbcsbiggs Miscellaneous 1 04-06-2008 04:05 PM
1099-Misc Income and IRA sirscott IRA/Sep 2 03-02-2008 02:35 AM
1099-misc Jaduexclens Income 1 02-22-2008 07:23 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.