Tax Administration:

Improving Independent Contractor Compliance

T-GGD-92-63: Published: Jul 23, 1992. Publicly Released: Jul 23, 1992.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed its report on improving independent contractor tax compliance, focusing on the Internal Revenue Service's (IRS) Employment Tax Examination Program (ETEP). GAO noted that: (1) the classification rules for determining if a worker is an employee or an independent contractor need to be clarified; (2) since fiscal year 1989, IRS has found that 90 percent of the businesses audited under ETEP misclassified one or more workers; (3) IRS studies have shown a lower tax compliance level for independent contractors than for employees; (4) requiring businesses to withhold taxes from contractor payments and improving business compliance with the requirement to file information returns on contractor payments would improve compliance; (5) requiring withholding on contractor payments would present some administrative problems; and (6) information returns significantly improved voluntary compliance.

Oct 12, 2017

Oct 11, 2017

Oct 10, 2017

Sep 29, 2017

Sep 28, 2017

Sep 27, 2017

Looking for more? Browse all our products here