Specializing in IRS and NYS Tax Representation. Workers Compensation Audits, Payroll, Sales and Income Tax representation for Businesses, Individuals, Restaurants and Construction Companies. Civil and Criminal Workers Comp Audit representation includes: NYSIF Examinations, Premium Disputes, Employee Misclassification, Underreporting, Unreported Income, and Failure to Keep Accurate Payroll Records.
The most Aggressive Tax Representation allowed by Law
The Internal Revenue Service today warned taxpayers to stay vigilant
against an increase of IRS impersonation scams in the form of automated calls
and new tactics from scammers demanding tax payments on iTunes and other gift
cards.
The IRS has seen an increase in “robo-calls” where scammers leave urgent
callback requests through the phone telling taxpayers to call back to settle
their “tax bill.”
These fake calls generally claim to be the last warning before legal
action is taken. Once the victim calls back, the scammers may threaten to
arrest, deport or revoke the driver’s license of the victim if they don’t agree
to pay.
“It used to be that most of these bogus calls would come from a
live-person. Scammers are evolving and using more and more automated calls in
an effort to reach the largest number of victims possible,” says the Big Cheese
“IRS Commissioner John Koskinen”.
“Taxpayers should remain alert for this summer surge of phone scams, and
watch for clear warning signs as these scammers change tactics.”
In the latest trend, IRS impersonators are demanding payments on iTunes
and other gift cards. The IRS reminds taxpayers that any request to settle a
tax bill by putting money on any form of gift card is a clear indication
of a scam.
Some examples of the varied tactics seen this year are:
•Demanding payment for a “Federal Student
Tax.” See IR-2016-81.
•Demanding immediate tax payment for taxes
owed on an iTunes or other type of gift card
•Soliciting W-2 information from payroll and
human resources professionals. See IR-2016-34.
•“Verifying” tax return information over the
phone. See IR-2016-40.
•Pretending to be from the tax preparation
industry. See IR-2016-28
Since these bogus calls can take many forms and scammers are constantly
changing their strategies, knowing the telltale signs is the best way to avoid
becoming a victim.
Aggressive Selig & Associates provides the most
aggressive tax representation allowed by law. Specializing in payroll,
income and sales tax controversies for individuals, contractors,
restaurants, bodegas and professional practices.
Mission Statement Our
mission is to win every tax case; to bring all of our tax, advocacy and legal
expertise to every fight, and to serve our clients with integrity, honesty and perseverance.
Effective We settle contested tax audits, compromise
tax debts and can resolve all marital tax issues including innocent spouse
relief and separation of liability.
Reasonable-Rates All tax representation is provided by a
Federal Tax Practitioner and Licensed Attorney. To schedule a FREE
face-to-face consultation, contact Selig & Associates today.
Employer misclassification of employees as independent
contractors is a widespread phenomenon in the United States. The Internal
Revenue Service estimates that employers have misclassified millions of workers
nationally as independent contractors.While
some employers misclassify their workers as independent contractors in error,
often employers misclassify their employees intentionally in order to reduce
labor costs and avoid paying state and federal taxes. The distinction between
genuine independent contractors and employees misclassified as independent
contractors, while complicated, is a crucial matter. While the definition of
misclassification is a function of a complex set of statutes and policies set
forth by federal and state agencies, the effect on employees is
straightforward. Misclassified employees lose workplace protections, including
the right to join a union; face an increased tax burden; receive no overtime
pay; and are often ineligible for unemployment insurance and disability
compensation. Misclassification also causes federal, state, and local
governments to suffer revenue losses as employers circumvent their tax
obligations.
Defining Independent
Contractor
An independent contractor provides a good or service to another
individual or business, often under the terms of a contract that dictates the
work outcome, but the contractor retains control over how they provide the good
or service.The independent contractor is not subject to the
employer’s control or guidance except as designated in a mutually binding
agreement. The contract for a specific job usually describes its expected
outcome. Essentially, independent contractors treat their employers more like
customers or clients, often have multiple clients, and are self-employed.
For some professionals, the line between employee and
self-employed independent contractor is often blurred, and employers can
classify workers as either. There are several different standards used to
determine if an individual is legally an independent contractor. While the
intricacies of contracting are too numerous for a comprehensive treatment and
the applicability of the test depends on the specific workplace situation,
generally, the independent contractor tests employed by the IRS and the
Department of Labor (DOL) offer useful guidelines as to who is and who is not
an independent contractor.
Internal Revenue Service
Test
The IRS has a stake in identifying the misclassification of
employees because it typically results in lost tax revenue. However, the IRS
does not have one set of qualifications that it uses to determine the status of
“employee” or “independent contractor.” Instead, the IRS looks at a number of
factors that help it determine whether an employer has the right to control the
details of how the worker(s) performs the services. Generally, if the employer
controls the services the worker performs, then the worker is an employee, not
an independent contractor. According to the IRS, the facts that provide
evidence of the degree of control and independence fall into three categories:
Behavioral
Does the company control or have the right to
control the worker as well as how the worker does his or her job? For example,
if a company provides training for the worker, this signals an expectation to
follow company guidelines and therefore indicates that the worker is likely an
employee.
Financial
Are the business aspects of the worker’s job
controlled by the payer? (These include things like how a worker is paid,
whether expenses are reimbursed, who provides tools, supplies, etc.). Only an
independent contractor can realize a profit or incur a financial loss from his
or her work.
Type of Relationship
Are there written contracts or employee-type
benefits (i.e. pension plan, insurance, vacation pay, etc.)? Will the
relationship continue, and is the work a key aspect of the business?
The issue of who has the right to control is often not clear-cut
and the tax code does not define “employee.” Businesses must weigh all these
factors when determining whether a worker is an employee or independent
contractor.
The DOL Economic Reality
Test
The DOL has an interest in ensuring accurate classification
because only employees receive Fair Labor Standards Act (FLSA) benefits
(Federal minimum wage, overtime pay, etc.). The DOL uses an “economic
reality test” to determine who is an employee and, thus,
eligible for FLSA benefits, by trying to establish whether the worker is
economically dependent on the supposed employer. According to the DOL, “an
employee, as distinguished from a person who is engaged in a business of his or
her own, is one who, as a matter of economic reality, follows the usual path of
an employee and is dependent on the business which he or she serves.”
The DOL derives its position from judicial precedent. As the
U.S. Supreme Court has not established a single rule or test for determining
whether an individual is an independent contractor or an employee, the DOL
stresses seven factors the Court has considered significant:
1.The extent to which the services
rendered are an integral part of the principal’s business.
2.The permanency of the
relationship.
3.The amount of the alleged
contractor’s investment in facilities and equipment.
4.The nature and degree of
control by the principal.
5.The alleged contractor’s opportunities
for profit and loss.
6.The amount of initiative,
judgment, or foresight in open market competition with others required for the
success of the claimed independent contractor.
7.The degree of independent
business organization and operation.
These seven factors of the economic reality test aim to assist
employers in determining employee or independent contractor status, but in most
cases, common sense judgments are sufficient. An employee who only invests time
in one enterprise and who sells his or her services to only one “customer,” the
employer, is economically dependent upon that work. An independent contractor
is in business for him or herself, invests in his or her own equipment and
supplies, and has a broad customer base.
Tax Fraud occurs when individuals working and earning income knowingly and intentionally fail to file their income tax return or falsify information on a tax return.
Failing to state the correct amount of earned income, overstating deductions and exemptions and falsifying documents are all possible elements of tax fraud and are punishable in both criminal and civil jurisdictions.
The process of concealing or transferring income and reporting personal expenses as business expenses are also examples of tax fraud and are actual violations of the law.
IRS Criminal Investigations ("CI") is the law enforcement branch of the IRS. CI’s are conducted on taxpayers who willfully, knowingly and intentionally violate their legal requirement to file their tax returns and pay their taxes every year.
Tax Crimes and IRS Charges
Criminal Investigations can charge individuals with a number of crimes, all of which fall into four major crime categories:
Legal Source Tax Crimes
Illegal Source Financial Crimes
Narcotics-Related Financial Crimes
Counterterrorism Financing
Many of the crimes within the jurisdiction of CI have criminal and civil liabilities attached. Crimes that individuals can be charged with include (but are not limited to):
If an individual is caught cheating on their taxes, they will have to deal with the civil and criminal consequences. For more information, call us at (212) 974-3435
When it comes to sales tax collections,
most Restaurateurs are frustrated with the New York State Department of
Taxation and Finance.
Q.) When it comes to restaurants, is the New York State Department
of Taxation and Finance unreasonable and
aggressive?
A.) Yes. The New York State Department of Taxation and Finance
will use all legal means (both fair and foul) to collect sales taxes from
Restaurateurs.
FYI Like it or not, the New York State Department of Taxation
and Finance is harder to deal with than the IRS.
In fact, New York
State Enforcement Agents will come to your restaurant, demand full payment;
issue ultimatums; seize property, and inflict as much pain as possible. And if
you’re not careful, the New York State Department of Taxation and Finance will
close you down.
