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From: elliot@well.UUCP (Elliot Fabric)
Newsgroups: misc.legal,misc.jobs,comp.edu,talk.rumors
Subject: Re: Tax law section 1706 to be repealed? (rumor)
Message-ID: <2320@well.UUCP>
Date: Thu, 8-Jan-87 02:21:17 EST
Article-I.D.: well.2320
Posted: Thu Jan  8 02:21:17 1987
Date-Received: Thu, 8-Jan-87 06:37:49 EST
References: <21147@styx.UUCP>
Reply-To: elliot@well.UUCP (Elliot Fabric)
Organization: Whole Earth Lectronic Link, Sausalito CA
Lines: 31
Keywords: subcontracting
Xref: mnetor misc.legal:542 misc.jobs:209 comp.edu:37 talk.rumors:132


According to the CCH Standard Fed)Kral Tax Reports - Taxes On Parade, No. 57, 
Page 4, December 30, 1986 --

    Independent Contractor Status Under '86 TRA to Be Clarified

An IRS spokesman confirmed December 23, 1986 that the Service will issue 
a news release "by the end of the year" aimed at clarifying a provision 
of the 1986 Tax Reform Act concerning the independent contractor status 
of technical specialists.  The provision has met with controversy and a 
variety of possible interpretations.

Pursuant to Act Sec. 1706, as of January 1, 1987, technical specialists 
such as engineers, designers, drafters, computer programmers, systems 
analysts or "other similarly skilled workers(s) engaged in a similar line 
of work," who contract through a third party for their services will no 
longer be protected from classification as employees under the provisions 
of Sec. 530 of the Revenue Act of 1978.  Individuals reclassifieds as 
employees would become subject to withholding taxes, and their 
broker/employers would be liable for payroll taxes.

In response to concerns expressed to Sen. Daniel Patrick Moynihan, the 
author of the provision that effectively lifts a 1978 moratorium 
prohibiting IRS issuance of regulations to remove the independent 
contractor status of taxpayers who had a reasonable basis for claiming 
that status, a task force has been convened to develop guidelines on 
the issue.  The key question is whether the provision covers all 
technical personnel, only those engaged in third-party arrangements, 
or some more restricted group of taxpayers.

note: Has anyone seen the IRS release referred to in Paragraph 1?