BUSINESS CONSULTANTS UNDER THE MICROSCOPE.The IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. is encouraging audits of business consultants and has recently published a new audit techniques guide to assist examiners with their audits of these individuals. Under scrutiny are an individual's status as an independent contractor A person who contracts to do work for another person according to his or her own processes and methods; the contractor is not subject to another's control except for what is specified in a mutually binding agreement for a specific job. or employee and tax returns to determine unwarranted expense deductions for business travel as well as the separation of business and personal travel. Also under the microscope is the proper classification of meal and entertainment expenses. Businesses that hire consultants will be examined to determine if the consultants are actually employees who should be subject to tax withholding by their employers. A PDF (Portable Document Format) The de facto standard for document publishing from Adobe. On the Web, there are countless brochures, data sheets, white papers and technical manuals in the PDF format. version of the guide is available at http://ftp.fedworld.gov/pub/irs-mssp/a9buscon.pdf. You will need Acrobat Reader The former name of Adobe Reader. See PDF. to view the document. |
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