Prevent And Solve Independent Contractor Problems With Knowledgeable Tax Representation
When an independent contractor’s job ends and he or she applies for unemployment, California’s Employment Development department can take that as a sign, and the company that hired him or her can be in trouble if he or she is deemed to actually be an employee. The state of California is currently auditing many companies, reclassifying former contractors as employees and charging employers for the contractor’s income tax and other taxes, plus penalties. This in turn can lead to the federal government entering the picture and collecting on Medicare and other obligations.
Many existing businesses have structured independent contractor relationships based on past rules relating to the provision of tools and supplies, work scheduling and other guidelines. The state of California and the IRS are looking for new ways to increase tax exposure and collections. Many employment situations that were previously considered by most parties to be “independent contractor” relationships have been re-classified by California and the IRS, resulting in large sums of back taxes and penalties. The attorneys at Janathan L. Allen, APC and the business advisors at Allen Barron, Inc. work to keep their clients well informed in new developments relating to California taxation authorities and the IRS.
As with other tax and employment matters, poor planning now can lead to a world of trouble later. The tax attorneys of Janathan L. Allen, APC can help you address problems — and prevent problems — related to employee contracts. We have extensive experience with state, federal and international tax matters that affect businesses.
Business Dissolution And Tax Debt: Protect Yourself With Careful Planning
If a company is not properly dissolved, and/or all of its tax obligations have not been fulfilled by the end of the dissolution, the company’s former shareholders can be held liable for its state and federal tax debt. If a company files bankruptcy and its tax liability has not been determined, the tax liability survives the bankruptcy. These difficulties can arise months or years after the company has been dissolved.
Janathan L. Allen, APC can help you protect yourself from unnecessary exposure to taxes, penalties and interest. Our lawyers understand how the Internal Revenue Service (IRS) and California tax authorities handle these matters. Through proper planning, smart entity formation or, when necessary, responsive representation in the face of a tax controversy, we can assist you in keeping yourself whole.
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Our firm is based in the San Diego area. We offer a free initial consultation. Contact Janathan L. Allen, APC to learn more.