The Tax Exchange - January 2016
Mark Zuckerberg, the 31-year-old co-founder of Facebook and billionaire, and his spouse, Priscilla Chan, pledged recently to donate 99 percent of their Facebook stock to charity. Instead of immediately funding a private foundation with Facebook stock and beginning to make charitable gifts from the foundation, the couple opted to transfer the Facebook stock to a wholly owned LLC, which is disregarded for tax purposes.
It is the age-old conundrum for a small business owner: making the determination as to whether your worker is an independent contractor or an employee. Recently, the IRS has renewed its efforts to identify misclassified workers and collect associated tax liabilities. How do you know if your worker is properly classified?