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September 2014 Archives

Tax Resolution Expert, Attorney Lance Drury Tells Companies How to Get The Attention of Six Government Agencies

St Genevieve, MO, September 22, 2014:Tax resolution attorney Lance Drury, founder of the Law Firm of Lance R. Drury, and best selling author of “Successonomics” posted a new article on the LANCE DRURY LAW website entitled “Employee or Independent Contractor? One Mistake Could Draw Six Government Agencies Gunning for Your Business.” While businesses strive to be in the spotlight, they do not want to be under the glaring lights of six government agencies. According to Lance Drury, misclassifying a regular employee as an independent contractor is a sure way to get lots of unwanted attention. Drury advises business owners to “Remember that it is in the government’s best interest to have workers classified as employees. Taxes are withheld by the employer and it is not as easy for employees to under report or hide income.” Making the determination can be confusing because, as Drury states, “Each government agency has its own list of rules to determine whether a worker qualifies as an independent contractor.”From the IRS to the U.S. Department of Labor, from each individual state’s unemployment compensation boards to the state’s workers compensation board, there can be slight distinctions that could compel companies to give in to temptation. Drury makes it clear businesses are not alone saying, “The savings in payroll taxes and benefits can be very tempting. No one is immune to trying to get away with misclassifying workers. Both, small businesses and large corporations, attempt to reap the rewards.” As agencies go, it appears the one to be most wary of is the State Tax Department. Drury elaborates, “Many independent contractor audits begin with a state tax agency and state tax agencies are often more aggressive about independent contractor audits than the IRS.”The entire article can be found at http://www.lancedrurylaw.com/employee-independent-contractor-one-mistake-draw-six-government-agencies-gunning-business/.About Lance DruryTax Attorney Lance Drury, founder of the Law Firm of Lance R. Drury, has been practicing law since 1984 and began representing individuals and businesses in disputes with the Internal Revenue Service in 2006. With offices located in Ste. Genevieve and Columbia, Missouri, Drury has positioned himself as a leading attorney in the state for IRS tax resolution issues. He is able to evaluate the unique situation of clients and provide them with honest answers and a specific plan to best resolve their tax problemsAbout The Lance Drury Law FirmSince 2006, the Law Firm of Lance R. Drury has been representing individuals and businesses in disputes with the Internal Revenue Service and State of Missouri Tax Commission. With offices located in Ste. Genevieve and Columbia, Missouri, we’re proud to be your local choice for Missouri tax services.###

Employee or Independent Contractor? One Mistake Could Draw Six Government Agencies Gunning For Your Business

Most business owners would be thrilled if they could classify all workers as independent contractors. It would make their bottom line look much better. The savings in payroll taxes and benefits can be very tempting. No one is immune to trying to get away with misclassifying workers. Both, small businesses and large corporations, attempt to reap the rewards. If you are looking into the distinctions between classifying workers as employees or independent contractors, proceed with caution. An incorrect classification could result in having as many as six government agencies coming after your business for back taxes, back salary, fines and benefits. Risky BusinessRemember that it is in the government’s best interest to have workers classified as employees. Taxes are withheld by the employer and it is not as easy for employees to under report or hide income.Each government agency has its own list of rules to determine whether a worker qualifies as an independent contractor. To avoid problems make it your business to learn them before you hire a worker. The Internal Revenue Service (IRS): According to the IRS, workers are considered employees if the employer has the right to direct and control the way they work, including the details of when, where, and how the job is accomplished. In contrast, the IRS will consider workers independent contractors if the company they work for does not manage how they work, except to accept or reject their final results.The U.S. Department of Labor: A worker who is an independent contractor is not covered by the Fair Labor Standards Act (FLSA). This means, among other things, that the worker would not be entitled to minimum wage or overtime.. Your State Unemployment Compensation Board: Companies often get in trouble when a worker classified as an independent contractor decides to apply for unemployment compensation. If this happens, it could be your company’s word against the workers and you must be prepared to prove your assertion that they had independent contractor status. You must pay unemployment insurance for all workers classified as employees.Your State Workers’ Compensation Agency: If a worker meets your state workers’ compensation agency definition of independent contractor, your company does not have to pay for workers’ compensation coverage for that worker. However, if an independent contractor is injured on the job and applies for workers’ compensation, your company might face an audit.Your State Tax Department: If the worker qualifies as an independent contractor under your state tax department, your company does not need to withhold state income taxes. Contact your state tax board for details. This is especially important because many independent contractor audits begin with a state tax agency. And, be aware that state tax agencies are often more aggressive about independent contractor audits than the IRS.Your State Department of Labor: This agency looks into minimum wage and overtime abuse. If your worker is misclassified as an independent contractor, this agency could come after your business pay back wages.True DesignationBusiness is stressful enough without having the added risk of six government agencies breathing down your neck for misclassifying employees as independent contractors. If you can legally make the designation of workers as independent contractors, go for it. If the line is fuzzy, stay on the side that is going to cause you less stress.

Tax Resolution Expert, Attorney Lance Drury Warns Against Misclassifying Employees as Independent Contractors.

St Genevieve, MO, September 18, 2014:Tax resolution attorney Lance Drury, founder of the Law Firm of Lance R. Drury, and best selling author of “Successonomics” posted a new blog on the LANCE DRURY LAW website entitled “Are You Inviting IRS Troubles by Misclassifying Employees as Independent Contractors?” Businesses are always looking for tax loopholes and ways to legally avoid paying taxes. Classifying employees as independent contractors is tempting and may work temporarily, but the IRS is always looking for employers trying to evade taxes this way.Lance Drury says, “The IRS does not like to lose money. So when they see workers designated as independent contractors, it is like an open invitation to initiate an audit.” He continues advising employers, “Be very careful before deciding who is and who is not an independent contractor. It could cost you tens of thousands of dollars or more in heavy penalties, fines and back taxes owed to the IRS.”Drury recommends business owners to get copies of the IRS 20-Factor Analysis and Safe-haven Rule before deciding who is or is not an employee. He elaborates on the Safe-Haven rule saying, “This rule establishes that an employee who has consistently not been treated as an employee during any period of time after 1977, will not be reclassified as an employee if, you, the employer has filled all required federal tax returns, including information returns (Forms 1099-MISC), and if you had a reasonable basis for not treating the individual as an employee.”“As tempting as it may be to avoid paying payroll taxes,” says Drury, “the consequences of getting audited by the IRS and found guilty simply isn’t worth it.”The entire blog can be found at http://www.lancedrurylaw.com/inviting-irs-troubles-misclassifying-employees-independent-contractors/.About Lance DruryTax Attorney Lance Drury, founder of the Law Firm of Lance R. Drury, has been practicing law since 1984 and began representing individuals and businesses in disputes with the Internal Revenue Service in 2006. With offices located in Ste. Genevieve and Columbia, Missouri, Drury has positioned himself as a leading attorney in the state for IRS tax resolution issues. He is able to evaluate the unique situation of clients and provide them with honest answers and a specific plan to best resolve their tax problemsAbout The Lance Drury Law FirmSince 2006, the Law Firm of Lance R. Drury has been representing individuals and businesses in disputes with the Internal Revenue Service and State of Missouri Tax Commission. With offices located in Ste. Genevieve and Columbia, Missouri, we’re proud to be your local choice for Missouri tax services.###

Are You Inviting IRS Troubles by Misclassifying Employees as Independent Contractors?

Don’t do it. This happens to be one of the most common mistakes many business owners make today. In an attempt to get away with not paying payroll taxes they intentionally misclassify certain people who do work for their businesses as independent contractors. Be very careful before deciding who is and who is not an independent contractor. It could cost you tens of thousands of dollars or more in heavy penalties, fines and back taxes owed to the IRS. The IRS does not like to lose money. So when they see independent contractors, it is like an open invitation to initiate an audit.20-Factor Analysis and Safe-Haven RuleBefore determining whether your workers will be classified as employees or independent contractors, make it your business to get a copy of the IRS 20-factor analysis to help in making your decision. Also, look into the safe-haven rule. This rule establishes that an employee who has consistently not been treated as an employee during any period of time after 1977, will not be reclassified as an employee if, you, the employer has filled all required federal tax returns, including information returns (Forms 1099-MISC), and if you had a reasonable basis for not treating the individual as an employee.As tempting as it may be to avoid paying payroll taxes, the consequences of getting audited by the IRS and found guilty simply isn’t worth it. If you find yourself being audited by the IRS for misclassification of employees and independent contractors, the IRS must provide you with a copy of the 20-Factor Analysis as well as the Safe-Haven Rule. Do not try to resolve the issues on your own. Take action immediately. Seek the services of the best tax resolution attorney in your area.

Don’t Miss Your Last Best Chance for Leniency With The IRS

We’ve all heard that, “Denial is a river in Egypt!” When it comes to denying the fact that you’ve received a Final Notice of Intent to Levy from the IRS, you might wish you were on a river in Egypt. We all know denial doesn’t work. However some people just insist on continuing to try it. Be deadline driven when you receive a Final Notice of Intent to Levy Think of the IRS Final Notice of Intent to Levy as the last invitation to the ball. Think of it as your last chance to breathe freely. Think of it as your last opportunity to step up to the plate and “man up.” Think of it in any way that will make you take action. Why? If you miss the 30-day deadline, you can expect everything to go from bad to worse. First Things First  Hire the best local tax resolution attorney you can find. Sign a Power of Attorney form that will give the IRS permission to speak directly to your attorney. What Happens When You Respond On or Before The Deadline

When you take action before the deadline your attorney can file a request for a Collection Due Process hearing. The good news is that this stops all collection activity. The clock stops running on the statute of limitations and your attorney can propose a variety of other courses to resolve the tax issue including: 

  • Collection alternatives, such as an Offer in Compromise or an Installment Agreement
  • Subordination or discharge of the Federal Tax Lien
  • Withdrawal of Notice of Federal Tax Lien
  • Innocent Spouse Relief
  • The existence of the amount of tax (only if taxpayer did not receive a notice of deficiency or otherwise was not afforded an opportunity to dispute the tax liability)

What Happens When You Respond After The Deadline You really don’t want to find out. But, for starters, the only thing the attorney can do is to file a request for an Equivalency Hearing. Unlike with the CDP hearing, there is no suspension of collection activity and the clock continues to run on the statute of limitations. The attorney cannot propose any other course of action. In addition, the fear, anxiety and stress you already experience will multiply. The IRS has the legal right to freeze and seize everything you own. The IRS Has Given You Sufficient Notice Don’t blow your chance to make things right. However you got into tax troubles, you cannot deny that they exist. You can, however, take a deep breath and decide to face the Final Notice of Intent to Levy with all the integrity you can muster. In the long run you will look back and know that meeting the 30-day deadline was the best decision.

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The Law Firm of Lance R. Drury
150 Merchant Street
Ste. Genevieve, MO 63670

Phone: 314-200-0003
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