Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Path: utzoo!mnetor!seismo!lll-lcc!well!elliot 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(Elliot Fabric) Newsgroups: misc.legal,misc.jobs,comp.edu,talk.rumors Subject: Re: Tax law section 1706 to be repealed?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?