Gaining a foothold in state and local 1099 compliance while all eyes focus on closing the tax gap

SALT Trends

A General Accounting Office report estimates that the federal and state governments lose $20 billion each year to employees who are misclassified as independent contractors. The IRS estimates only 15% of independent contractors pay the proper amount of tax due, while 90% of W-2 employees properly report the amount they owe. Accordingly, there is intense scrutiny on contractor arrangements as well as the proper and timely reporting of the related compensation (Form 1099-MISC) paid by US companies.



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