05/29/2026
Worker Misclassification
The IRS doesn't care what you call someone. They care how the relationship actually works.
They look at three things, behavioral control, financial control, and the relationship itself.
Who controls the work? Who provides the tools? Is the person economically independent? Do they have other clients? Is there a contract?
You can have a perfectly drafted independent contractor agreement and still lose, because the facts don't match the document.
Classification is not a form decision. It's an operational decision. And if your operations don't support your classification, you're exposed.
Save this if you have contractors working for you.
#1099