In Uncategorized on 05/25/2012 at 12:29

Nobody in the World?

Well, those were the words of the immortal Keith Richards, with an assist from Mick (The Mouth) Jagger, in their 1967 hit, so entitled. But yesterday’s papers (or rather blogs, e-blasts and sundry cybernetic emanations) did have one piece of news some people might fall upon with glee.

As long as IRS has not nailed the alleged employer for IC-ing an EE, that person or entity can participate in the Voluntary Classification Settlement Program, if  the employer has consistently treated the now-to-be reclassificados as ICs until now, has filed all the 1099s for whatever he/she/it/they paid the reclassificados for the last three years, and  is not currently under audit by State or Federal agency, or if audited in the past, is in 100% compliance with the results of such audit currently.

And it’s not all or nothing: the putative employer can volunteer for some, and await the draft for the others. If asked, I would strongly suggest, in Jack Lawrence’s immortal words in the Frank Sinatra 1939 hit, “All or Nothing At All”, that the employer reclassify the whole corps de ballet. You have placed yourself on the radar; and note the extended SOL in Form 8952, so be well advised.

Query-If a putative employee has dropped an SS-8, SSA has asked for information in response but time for responding has not yet run out,  is the alleged employer “under audit”?  Stay tuned.

State and municipal governments and not-for-profits can apply, if otherwise eligible (and a Form 990 audit knocks you out of the box, so beware).

The good news is that the volunteer gets a bye on past years’ FICA-FUTA indiscretions, if they pay the last year’s tax at a special discounted rate (for special friends of Doug Shulman, they have a special discount; see IRC §3509(a) and instructions to Form 8952). They must agree to keep open the SOL for each of the three years going forward, so IRS can see that they’re being good children and not backsliding.

Check out Announcement 2011-64. And Prime West, who made a guest shot on my blogpost “The Wichita Linewoman”, 5/23/12, please copy; you might want to join in now. Even if there is a rush.

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