A new bill would make it tougher to use independent contractors and ramp up penalties for violations of the tax regs.
It’s called the Taxpayer Responsibility, Accountability and Consistency Act, and it was introduced to the House of Representatives in the middle of April. If passed, the law would:
- repeal the safe harbor for companies that misclassify employees based on previous IRS audits or long-standing industry practices
- shift the burden of proof to employers, making it harder for them argue their cases in court, and
- increase penalties for violations of the tax code.
We’ll keep you posted on the legislation’s progress. You can the read the entire text of the bill here.