Larken Rose in Trouble Again

[aitchel]

I am sure that many employers have wrestled with the employee/independent contractor question. But most of these would be settled after they file their tax paperwork the first time. The Tax Man may disagree with the employer's position, but he probably won't suspect criminal activity if the employer files honestly. The employer's liability would be limited to the first year. Not filing either 1099s or withholding employee taxes makes you a little more suspicious. Not filing for many years makes a criminal.

[Randall]

Partly true, but not filing 1099s is not by itself suspicious. Some business don't have independent contractors - granted most do and simply do not file them by honest ignorance of the filing requirement. Where many businesses get caught is when an 'independent contractor' gets terminated and subsequently files for unemployment compensation.

[jkeeb]

Most businesses get caught when the "contractor" files their return and either the SE tax is included and the contractor doesn't feel as though they should be responsible for it, or they don't include the SE tax and IRS underreporter catches it.

[AFTP]

So what do you think will happen to Larken this time?

[LPC]

one forum comment has Rose twisting the code section to say "to" rather than "on", his argument being that since the transcribers return the materials unaltered, they are not statutory employees.

What forum? Where?

I'd like to see what he has to say, and I haven't been able to find the comment through Google.

[LPC]

one forum comment has Rose twisting the code section to say "to" rather than "on", his argument being that since the transcribers return the materials unaltered, they are not statutory employees.

What forum? Where?

I'd like to see what he has to say, and I haven't been able to find the comment through Google.

Never mind. I found the comments to the YouTube video.

[The Observer]

One other thing: I am not sure if this has been discussed before, but I am curious about whether the "independent contractors" were always treated as such by the Roses. I seem to remember that the transcription business had been started by Larken's wife (Tess?) prior to her marriage to him; if that is the case, it would be interesting if she had treated them as employees before Larken started sticking his nose into her business.