The IRS is gunning for you if you still use Independent contractors. The number of audits are increasing and they go back 6 years. You’re twice as likely to get the audit if you have had over $100,000 in revenue. Unfortunately, almost all limo companies can not meet the 20 point criteria in the IRS CODE. The Department of Labor has hooked up with the IRS this year and are sharing a data base and helping each other not only with the audits in the transportation industry but many other industries. All bad news!
HOWEVER THERE IS STILL GOOD NEWS: The amnesty program is still AVAILABLE till December 31,2012. Fill out Form 8952 (Application for Voluntary Classification Settlement Program (VCSP). Pay around 1% penalty of last years compensation paid to them and if all other requirements are met, the IRS will give you a signed amnesty agreement that the IRS can not go back on you for back payroll taxes, interest and penalties. Limopreneurs, DO THIS TODAY, if you are still operating with independent contractors. It’s a no brainer!
We will discuss in the next issue, employee compensation and the very best options for you to consider. NOW YOU CAN STOP WORRYING!
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