Child Support/Independent Contractor?
This is the problem, the barber tells me out of no where that he has not filed for taxes the entire 6 years he has worked for at the shop as an independent contractor. As an independent contractor he is supposed to be resposible for his own taxes, etc.
In a couple of weeks he is suppose to go to court with at least 3 W2's from the last 3 years. Guess what, he has no documents?
I'm afriad there going to come after my business for his back taxes even know he is an independent contractor. I fear the state and IRS tax people are going to be sniffing around my business soon?
What should I do ?
Answer:
Where are the 1099's you filed with your business return?
If YOU don't have a problem you shouldn't worry about it.
Next week pay him cash...
If he is truly an independent you have nothing to worry about. However IRS rules a pretty strict on this issue I would check with a lawyer or CPA before you answer any questions. Independent and employee classification are sometimes a fine line The IRS website can has a test and rules. But if there is really any Question talk to a tax lawyer for a consultation. and I would suggest you do it soon so as to avoid a possible problem. With taxes it is always better to handle it early.
There are many people out there that do independent contracting jobs, however, they themselves are responsible for their own taxes. He has to somehow do his taxes. He has to. They want to see his 3 years of taxes because they need to decide how much money he has made and is making so that they can figure out his weekly/monthly child support. Nothing will happen to you. If you want to know more about this situation, go to your state's superior or supreme court websites and look through the Statuates. It the statuates you will find administrative codes. There are many codes that correlates with your situation in the tax sections. Look it up and see what happens to the employer in a situation like this and if there's ever been one.
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