More work recommended on worker misclassification initiative

Posted 2/27/2018

A TIGTA report into the IRS’s implementation of an independent worker classification scheme has found that the agency needs to be doing more to meet its goals. The Joint Worker Misclassification Initiative, set up with the Department of Labor in 2011, aimed to combat the misclassification of employees as independent contractors; however, the two agencies have failed to develop the robust information exchange system set out in an early Memorandum of Understanding. The IRS cited staff turnover, resource limitations, and other competing priorities as reasons why the memorandum has not been more of a priority.

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