The IRS Targets Independent Contractors
Small companies are likely to see the greatest scrutiny as government agencies crack down on permalancers ....

http://www.businessweek.com/smallbiz...421_463331.htm

I found this article as I was skulking around the web looking for new ways to present my business.

Knowledge is power,

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Joy Wilder
Wilder Office Approach

I've done a lot of looking into the rules for independent contractors, because I don't want to be considered an employee. I'm a business owner, and with all clients and contracts that I have, I'm very careful to make sure the client knows the rules for independent contractors and follows them. The slightest slip up could cause problems for both of us.

What bothers me about this article is that the IRS seems to be targeting small businesses, while starting to ignore big ones. Haven't we had enough problems with big business being allowed to do whatever it wanted?

Smaller businesses are easier to target, probably don't know the rules as well (in the IRS's opinion), and can less afford to fight the IRS, so let's go get the small businesses. Also, I'm guessing they will also start to target the subcontractor relationship to the main small business, making sure THAT doesn't look like an employer/employee relationship as well.

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Pam Deyerle - Transcriptionist in the Richmond, Virginia area
The Perfect Word Transcription Services

Originally Posted by The Perfect Word

I'm guessing they will also start to target the subcontractor relationship to the main small business, making sure THAT doesn't look like an employer/employee relationship as well.

There is a great deal of confusion regarding the whole 'employer vs subcontractor' question. In fact, there is a whole thread regarding this issue here on VAF.

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Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"