Worried About An IRS Payroll Audit?

Many film productions have been paying their employees as independent contractors. Some have been issuing 1099’s, others haven’t. The IRS has been searching through industry looking for such employers, and have very smartly come up with a program to have businesses come to them voluntarily.

See this link to an IRS publication explaining the concept. Here’s a quote from the last paragraph:

“Employers accepted into the program will generally pay an amount effectively equaling just over one percent of the wages paid to the reclassified workers for the past year. No interest or penalties will be due, and the employers will not be audited on payroll taxes related to these workers for prior years. Employers applying for the temporary relief program available for those who failed to file Forms 1099 will pay a slightly higher amount, plus some penalties, and will need to file any unfiled Forms 1099 for the workers they are seeking to reclassify.” – http://www.irs.gov/uac/IRS-Expands-Voluntary-Worker-Classification-Settlement-Program

Some of you may be interested in consulting with your tax consultant. It could be a cool way to segue into the IRS’s good books.

Cheers,

John

Advertisements

About filmproduction
I have worked in the film production industry since 1985, working on over 50 different productions of every size in 6 different countries. My self-published book, "Walk The Talk" is written in an easy to read manner for film students and working professionals who haven't had the chance to learn how to 'Direct the Money'.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: