Sometimes it’s the littlest things that can trip you up down the road, if you’re not careful. We’re working very closely with our clients at DKTaxServices right now to make sure they can pass the wave of IRS audits that are expected.
One simple little thing the auditors are probably going to want to see is an IRS Form W-9 completed for each Independent Contractor. This is a form that you can download here.
Get each Independent Contractor to sign this before they start work or at least before you pay them anything. It’s hard to track them down later and get the signature. And without it, you might have a harder time proving they are really Independent Contractors. Remember that you also need to pass one of two tests: Section 530 or the “20 Question” test and that you need to have a signed Independent Contractor Agreement.
We’ve got all that included, plus more tips on growing your business with Independent Contractors safely so that the IRS doesn’t challenge you later. That’s part of Winning the Independent Contractor Agreement.