I have a client who works as a traveling salesman for a well-known manufacturer of athletic shoes and apparel.
He was paid as an independent contractor through 2017.
Beginning in 2018, he was paid through the company’s payroll and issued a W-2 form. My client was unclear about why this was done.
After preparing his 2018 return, it dawned on me that he qualified as a statutory employee under the “traveling and city salesperson” rules.
I filed an amended return, and the IRS responded ... Log in to view full article.