The IRS recently launched a new voluntary compliance program that allows employers to prospectively reclassify—as employees—those workers they have treated as independent contractors incorrectly. The program contains generous settlement terms and provides audit relief for previous years. The IRS determined…
Individuals who are self-employed may deduct their health insurance premiums in the calculation of self employment income on 2010 tax returns. Self-employment income is taxed at 15.3% so this will be a major benefit to self-employed individuals. -EAE
Substantiation of certain business expenses is a requirement in order to have proof if ever requested by the IRS. Many independent contractors lose valuable expenses (travel for example) because they do not have the proper documentation to support the expense…