IRS foregoes new tax rules for independent contractors. (Internal Revenue Service, independent insurance contractors)

National Underwriter Life & Health-Financial Services Edition, October, 1994 by Friedman, Amy S.

The Internal Revenue Service has made a decision to not implement new tax rules for independent insurance contractors. The new rules would have established whether independent contractors, who conduct their securities activities through broker/dealers, are employees of the broker/dealer or self-employed. The IRS erroneously assumed that because the independents were supervised by a broker/dealer's compliance department that they were employees. If the new tax rules had been approved, broker/dealers would have had to pay three to five years of back taxes, including interest and penalties.

Generating a sigh of relief from the independent broker/dealer community, the Internal Revenue Service has decided not to issue the coordinated issue paper it was preparing for its field...

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