Worker Classification Issue Can Be Worse Than Disallowed Deductions
Whether someone is an employee or an independent contractor is a question of facts and circumstances. Basically this case has almost nothing that leans in favor of independent contractor status. I am citing it more as a cautionary tale for people who think they are all set for an income tax audit and get blindsided from another direction. Many of the IRS audit manuals for different industries emphasize the employer independent contractor issue which can sometimes create a larger deficiency than simply disallowing deductions.
Easy To Trip Up On Alimony Deduction
Here comes another annoying alimony decision. This one has a real gotcha to it. James Chiavacci was paying $500 per month in alimony. After about 13 years of that he...
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.