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Section 530 is a relief provision that terminates a taxpayer’s employment tax liability with respect to an individual not treated as an employee if three statutory requirements are met: 1) reporting consistency; 2) substantive consistency; and 3) reasonable basis.
Section 530 of the Revenue Act of 1978 (“section 530”) generally allows a taxpayer to treat a worker as not being an employee for employment tax purposes (but not income tax purposes), regardless of the worker’s actual status under the common-law test, unless the
Through the safe-harbor provisions of Section 530 of the Revenue Act of 1978, Congress sought to provide relief for taxpayers that had consistently treated workers as independent contractors and exercised good faith in making the decision to do so, even though under common law the workers might be considered employees. 23 Congress’s ...
Section 530 of the Revenue Act of 1978 provides employers with relief from federal employment tax obligations if certain requirements are met. It terminates the employer's, not the worker’s, employment tax liability under IRC Subtitle C:
1 lis 2017 · For Section 530 relief to apply, the taxpayer must meet three requirements: (1) The taxpayer did not treat an individual or others with a substantially similar position as an employee; (2) the taxpayer must have filed all federal tax returns in a manner consistent with the individual not being treated as an employee (i.e., Form 1099-Misc ...
1 lip 2016 · Section 530 of the Revenue Act of 1978, P.L. 95 - 600, is a relief provision for employers that unintentionally misclassify employees. Perhaps most notably, if Section 530 applies, a business may continue to treat workers as independent contractors, and the IRS cannot retroactively classify certain individuals as employees.
This paper presents a brief history of Section 530 of the Revenue Act of 1978, which addresses the Internal Revenue Service (IRS) retroactive reclassification of independent contractors as employee...
