A payroll tax problem generally arises when the IRS or the California Employment Development Department asserts that you improperly treat your workers as independent contracts. The IRS and the EDD use a complicated 20-factor test in evaluating whether a worker is an employee or an independent contractor. Our tax lawyers have in-depth understanding of the worker classification test, and can help you to gather evidence necessary to convince the IRS or the EDD that your workers were properly treated as independent contractors. If you cannot agree with the tax auditors, our tax litigation lawyers can represent you before the IRS Appeals Office or in court.
We also can help you to determine if you qualify for a safe harbor provision known as Section 530 relief. This Section 530 relief is available for employers who have consistently treated their employees as independent contractors and had reasonable basis to do so.
Our tax attorneys can also help you to resolve your employment tax debts. If you or your business owes payroll taxes, you may qualify for an offer in compromise or an installment agreement. Our attorneys can negotiate the best possible deal on your behalf.