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The IRS has been signaling hard the past few years -- to all employers, big and small -- that the "contractor" category only works if you meet a bunch of tests.
by GCA10 3y ago
The IRS has been signaling hard the past few years -- to all employers, big and small -- that the "contractor" category only works if you meet a bunch of tests. Anyone with a Gusto account, or a working HR department, knows this.
From a social-equity standpoint, I'd rather see FTX depositors get some cash, instead of having the IRS book the biggest recoveries. But in terms of what the law is, if we're looking at total FTX contempt for the right way to classify people on its payroll, it's hard to argue against the IRS coming down hard on this one.
- phone8675309 3y agoMaybe if they break FTX's finances and spirit with this enforcement action it will both give the people willing to pull shenanigans like this pause to do so and also give investors pause from putting their money into obvious scams.
- thesausageking 3y agoYou can't paint it with such a broad brush. Employment laws are very fact specific and differ state to state. California was pretty sure Uber drivers were contractors, they brought an action, and the courts found against them. You really can't say unless you drill into a number of hairy specifics. Not to mention, FTX was in the Bahamas and Alemada Research was based in Hong Kong, so people working there may not even be covered by US employment law. This claim is the IRS to making up the biggest plausible number it can and then using that to review the facts and make a case to the bankruptcy judge.