IRS Worker Classification Audit? We Defend Your Position
The IRS claims your contractors are employees. We navigate SS-8 determinations and negotiate the best outcome.
Critical Deadline
30 days to respond to audit findings or determination
Note: Strategy Sessions require a $250 analysis fee, applied 100% toward your final service.
Understanding Worker Classification
An employee vs. contractor (worker classification) audit occurs when the IRS challenges your treatment of workers as independent contractors, claiming they should have been classified as employees. If the IRS reclassifies workers, you could owe years of back employment taxes (Social Security, Medicare, federal unemployment), plus penalties and interest. This often happens when workers file SS-8 forms or the IRS identifies patterns during other audits.
IRS Authority: IRC § 3401, IRC § 3121, Rev. Proc. 85-18
What Happens If You Don't Act
How The Tax Pro Advisor Resolves This
Helping Austin and Leander business owners resolve worker classification issues with proven strategies and direct IRS representation.
IRS Forms & Documents We Prepare
Frequently Asked Questions
What is an employee vs. contractor audit?
It's an IRS examination of whether workers you treated as independent contractors (1099) should have been classified as employees (W-2), potentially resulting in back employment taxes, penalties, and interest.
How long do I have to respond to a classification audit?
You typically have 30 days to respond to initial inquiries, SS-8 determinations, or audit findings. Timely response is critical to preserve appeal rights and negotiate favorable outcomes.
Can I settle this for less than I owe?
Yes. Section 530 relief can eliminate liability entirely if you meet requirements. The Classification Settlement Program (CSP) offers reduced tax liability. We pursue the best available reduction.
Related IRS Issues
Don't Wait Until It's Too Late
The longer you wait, the fewer options you have. Get a free, confidential consultation to understand your situation and next steps.
Note: Strategy Sessions require a $250 analysis fee, applied 100% toward your final service.