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IRS Plans to Audit More S Corporations for Worker Misclassifications

According to a June 19, 2014 Tax Notes Today article (Elmore, Wesley, “IRS Eyeing S Corps for Worker Misclassification Issues,” 2014 TNT 119-7), the IRS will be auditing more S corporations due to misclassifying employees as independent contractors.  The article referred to statements made by Gerry Kelly-Brenner, senior stakeholder liaison for the IRS Small Business/Self-Employed Division, at the IRS-San Jose State University Small Business Tax Institute on June 18, 2014.

Kelly-Brenner said that a corporate officer is always classified as an employee, whether  the officer is full or part time.  Nevertheless, a member of a corporation’s board of directors could be either an employee or independent contractor.

 

Want to further discuss these issues?  Contact me at 954-944-3929 or nrumbak@rumbaklaw.com.

*This document contains legal information, but does not contain legal advice.

 

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