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If you wrongly classify an employee as a contractor the IRS will go after you for back payroll taxes. It's not extortion, its collecting taxes you illegally av

If you wrongly classify an employee as a contractor the IRS will go after you for back payroll taxes. It's not extortion, its collecting taxes you illegally avoided.

bilekas 6y ago
Think about what you just said.. If it was okay to be classed as a contractor in FY2018, then the legislative said no you need to backpay. FY2018 is no longer valid.. Even though, they approved it, IRS accepted. See my point ? You cant retrospectively change the status of their work status. You didn't wrongly state your status at the time..
- zepto 6y ago
  The IRS doesn’t ‘approve’ anything by accepting your tax return. They accept your statement as a fair representation. They can always go back and change things if you made a misrepresentation. Typically in the US both individuals and businesses are expected to keep records for 7 years, in case the IRS wants to check things.
  - bilekas 6y ago
    1) You're wrong, whoever you return your taxes through if not direct to the IRS (which is rare) needs approval of schema and structure. Their workflow engine is not deisigned to retroactively change you from a contractor to an employee. Also Who cares about the IRS, this is Italy. Get over yourself. 2) > They accept your statement as a fair representation. Yup.. At the time, see above, FY2018 you were supposed to register as a self employed, now you need to register as employed, cool.. But Wait you need to pay last years tax as an employed too. Nonsense. Whoever you filed with owes you in this case, but I don't know why they would pay based on a retro change. 3) > They can always go back and change things if you made a misrepresentation. There was no misrepresentation at the time. That's the point. > Typically in the US both individuals and businesses are expected to keep records for 7 years, in case the IRS wants to check things. It's called audits and its out of the scope or concern for this discussion.
    - zepto 6y ago
      > Also Who cares about the IRS, this is Italy. Get over yourself. You were talking about the IRS in the comment I responded to. > Get over yourself This is against HN guidelines. Please be civil. 2) > They accept your statement as a fair representation. > Yup.. At the time, see above, FY2018 you were supposed to register as a self employed, now you need to register as employed, cool.. But Wait you need to pay last years tax as an employed too. Nonsense. Whoever you filed with owes you in this case, but I don't know why they would pay based on a retro change. No. You sign your own return even if you have a tax preparer. Misfilings are your responsibility. If it’s just a good faith error, usually there won’t be a fine, but if you owe more taxes you will have to pay them. Re-fillings to correct errors are a normal procedure. 3) > They can always go back and change things if you made a misrepresentation. There was no misrepresentation at the time. That's the point. The article says there was. > Typically in the US both individuals and businesses are expected to keep records for 7 years, in case the IRS wants to check things. It's called audits and its out of the scope or concern for this discussion. What an odd thing to say. An audit is the process of checking and correcting errors in tax filings when problems are suspected.
    - gamblor956 6y ago
      A tax authority accepts your tax return. It does not approve it. That only happens if they audit your tax return for correctness...which is what happened here. The Italian tax authorities audited the returns and determined that the delivery services had made mistakes on them in the way they mischaracterized employees as contractors. 2) False. The delivery companies told drivers to register as self-employed, which was incorrect legal advice at the time it was given, under the laws governing contractor/employee classification (for tax purposes) of the U.S. and the E.U. 3) Absolutely false. The delivery companies misrepresented the tax classification of their employees and failed to pay the appropriate taxes on them. Full stop. 4) You brought this up. You keep claiming that filing a tax return automatically means its correct, which it does not. It merely means that you filed a tax return. The tax authority will audit returns randomly selected (or in cases like these, deliberately selected) for correctness and assess back taxes, penalties if appropriate.

If you wrongly classify an employee as a contractor the IRS will go after you for back payroll taxes. It's not extortion, its collecting taxes you illegally avoided.

bilekas 6y ago

Think about what you just said.. If it was okay to be classed as a contractor in FY2018, then the legislative said no you need to backpay. FY2018 is no longer valid.. Even though, they approved it, IRS accepted. See my point ? You cant retrospectively change the status of their work status. You didn't wrongly state your status at the time..

zepto 6y ago
The IRS doesn’t ‘approve’ anything by accepting your tax return. They accept your statement as a fair representation. They can always go back and change things if you made a misrepresentation. Typically in the US both individuals and businesses are expected to keep records for 7 years, in case the IRS wants to check things.
- bilekas 6y ago
  1) You're wrong, whoever you return your taxes through if not direct to the IRS (which is rare) needs approval of schema and structure. Their workflow engine is not deisigned to retroactively change you from a contractor to an employee. Also Who cares about the IRS, this is Italy. Get over yourself. 2) > They accept your statement as a fair representation. Yup.. At the time, see above, FY2018 you were supposed to register as a self employed, now you need to register as employed, cool.. But Wait you need to pay last years tax as an employed too. Nonsense. Whoever you filed with owes you in this case, but I don't know why they would pay based on a retro change. 3) > They can always go back and change things if you made a misrepresentation. There was no misrepresentation at the time. That's the point. > Typically in the US both individuals and businesses are expected to keep records for 7 years, in case the IRS wants to check things. It's called audits and its out of the scope or concern for this discussion.
  - zepto 6y ago
    > Also Who cares about the IRS, this is Italy. Get over yourself. You were talking about the IRS in the comment I responded to. > Get over yourself This is against HN guidelines. Please be civil. 2) > They accept your statement as a fair representation. > Yup.. At the time, see above, FY2018 you were supposed to register as a self employed, now you need to register as employed, cool.. But Wait you need to pay last years tax as an employed too. Nonsense. Whoever you filed with owes you in this case, but I don't know why they would pay based on a retro change. No. You sign your own return even if you have a tax preparer. Misfilings are your responsibility. If it’s just a good faith error, usually there won’t be a fine, but if you owe more taxes you will have to pay them. Re-fillings to correct errors are a normal procedure. 3) > They can always go back and change things if you made a misrepresentation. There was no misrepresentation at the time. That's the point. The article says there was. > Typically in the US both individuals and businesses are expected to keep records for 7 years, in case the IRS wants to check things. It's called audits and its out of the scope or concern for this discussion. What an odd thing to say. An audit is the process of checking and correcting errors in tax filings when problems are suspected.
  - gamblor956 6y ago
    A tax authority accepts your tax return. It does not approve it. That only happens if they audit your tax return for correctness...which is what happened here. The Italian tax authorities audited the returns and determined that the delivery services had made mistakes on them in the way they mischaracterized employees as contractors. 2) False. The delivery companies told drivers to register as self-employed, which was incorrect legal advice at the time it was given, under the laws governing contractor/employee classification (for tax purposes) of the U.S. and the E.U. 3) Absolutely false. The delivery companies misrepresented the tax classification of their employees and failed to pay the appropriate taxes on them. Full stop. 4) You brought this up. You keep claiming that filing a tax return automatically means its correct, which it does not. It merely means that you filed a tax return. The tax authority will audit returns randomly selected (or in cases like these, deliberately selected) for correctness and assess back taxes, penalties if appropriate.