DOL Tax Audit Attorney Atlanta
If you are being audited by DOL, it is most likely because you are a business based out of Illinois with at least a handful of independent contractors. The DOL will look at whether these independent contractors are truly contractors or employees.
The problem starts with the DOL’ broad definition of employee v contractor. Once upon a time, the IRS would audit companies for 941 payroll tax and gave a definition of an independent contractor that was actually somewhat logical. As long as the person did not have a permanent office space at the company where they were contracting, did not have a continuous relationship with general duties and a standard work week, the individual would be deemed a contractor.
That is not the case with the DOL.
Service performed by an individual for an employee unit, whether or not such individual employs others in connection with the performance of such services, shall be deemed to be employment unless and until is proven in an y proceeding where such issue is involved that —
1. Such individual has been and will continue to be free from control or direction over the performance of such services, both under his contract of service and in fact; and
2. Such service is either outside the usual course of the business for which such service is performed or that such service is performed outside of all the places of business of the enterprise for which such service is performed; and
3. Such individual is engaged in an independently established trade, occupation, profession, or business.
DOL Tax Audit Attorney Atlanta
