Is your worker an independent contractor or an employee? You want to get this right at the beginning. But if you improperly classified an employee as an independent contractor, the IRS has a tax penalty relief program for you. Should the IRS plan not have the best relief for you, consider the Section 530 employer protection plan.

Learn what is 1099 income and why that often causes an incorrect 1099, which in turn can lead to an IRS audit. Often, correcting an incorrect 1099 on Schedule C compounds the problem. In this article, you learn how to 1099 correctly and what is 1099 income. The definition of “what is 1099 income” may surprise you.

The courts have determined that the alternative minimum tax (AMT) cheats many commissioned W-2 employees out of their rightful deductions. To fix this problem, the courts have allowed certain commissioned W-2 employees to move their employee business expenses from the IRS Form 2106 itemized deduction category to the tax-advantaged sole proprietorship on Schedule C.

You are not self-employed for tax purposes just because your employer says so. This is true even when your employer is the British consulate general.

New law retroactively repeals, as if never enacted, the 2010 law that required three new types of 1099 reporting: (1) 1099 reporting by owners of rental real estate, (2) 1099s for payments to corporations, and (3) 1099s for purchases of property.

Learn why it is important to get the independent contractor classification correct. If your supposed contractor status is in reality employee status, you suffer major penalties.

If you are thinking of hiring your workers as 1099 independent contractors, this article is for you. The article shows you how the rules work and helps you understand what you need to properly classify your workers as independent contractors.

The dreaded alternative minimum tax (AMT) taxes the regular tax deductions claimed for employee business expenses. These taxpayers said, “enough” and took their cases to court where they won their deductions by claiming employee business expenses on Schedule C.

Meals served to your employees and independent contractors at training sessions and incentive award trips are subject to the 50 percent cut that applies to entertainment and meals. To qualify for a 100 percent deduction, you need to include the meal as compensation to the employee or independent contractor. That’s what many Fortune 500 companies do.

The IRS fulfilled its promise and audited twice as many Form 1040-Schedule C taxpayers and S corporation returns. Your odds of audit vary by both choice of entity and gross receipts in that entity.