Related Practices
Hale E. Sheppard article on New Rules in 2022 for Litigating Worker Classification and Section 530 Relief Cases in Tax Court
Battles between taxpayers and the Internal Revenue Service (“IRS”) regarding
whether certain workers should be treated as employees or independent contractors are constant. The procedures applicable to such disputes change with some
frequency, though. For example, Congress and the IRS have modified the rules
related to particular types of employment tax fights in the Tax Court several times
over the past two decades, with the most recent adjustment coming in February
2022. This article explains the four main categories of workers, effective strategies
that taxpayers can raise during IRS audits or administrative appeals, evolution
of the rules under Code Sec. 7436 concerning litigation of select employment
tax issues before the Tax Court, and taxpayer-favorable issues absent from recent
IRS guidance about the Tax Court disputes.