Changes

==Reclassification==

==Reclassification==

IRS reclassification as an employee occurs where persons claimed as (or claiming to be) independent contractors are recategorized by the Internal Revenue Service (IRS), or by state tax authorities, as W-2 employees. The reclassification can result in the imposition of fines, penalties, and back-taxes for which the employer is generally liable. These amounts could cost a business large sums of money. The U.S. Government Accountability Office (GAO) (formerly known as the General Accounting Office) reports that the IRS claims to lose millions of dollars in uncollected taxes because of misclassification of independent contractors by taxpayers.[1] According to IRS Commissioner Mark W. Everson in a statement made November 3, 2005, IRS audits of small business organized as corporations increased from 7,294 in 2004 to 17,867 in 2005. [2]

IRS reclassification as an employee occurs where persons claimed as (or claiming to be) independent contractors are recategorized by the Internal Revenue Service (IRS), or by state tax authorities, as W-2 employees. The reclassification can result in the imposition of fines, penalties, and back-taxes for which the employer is generally liable. These amounts could cost a business large sums of money. The U.S. Government Accountability Office (GAO) (formerly known as the General Accounting Office) reports that the IRS claims to lose millions of dollars in uncollected taxes because of misclassification of independent contractors by taxpayers. According to IRS Commissioner Mark W. Everson in a statement made November 3, 2005, IRS audits of small business organized as corporations increased from 7,294 in 2004 to 17,867 in 2005.

==Those Exempt==

==Those Exempt==

===[[keyword:=527 groups|527 Groups]]===

===[[keyword:=527 groups|527 Groups]]===

A 527 group is a type of tax-exempt organization named after a section of the United States tax code, created primarily to influence the nomination, election, appointment or defeat of candidates for public office. Although candidate committees and political action committees are also created under Section 527 of the Internal Revenue Code, the term is generally used to refer to political organizations which are not regulated by the Federal Election Commission or a state elections commission and not subject to the same contribution limits as PACs.

A 527 group is a type of tax-exempt organization named after a section of the [[Directory:United States of America|United States]] [[keyword:=tax code|tax code]], created primarily to influence the nomination, election, appointment or defeat of candidates for public office. Although candidate committees and political action committees are also created under Section 527 of the Internal Revenue Code, the term is generally used to refer to political organizations which are not regulated by the Federal Election Commission or a state elections commission and not subject to the same contribution limits as PACs.

===[[keyword:=501c|501(c)]]===

===[[keyword:=501c|501(c)]]===

*501(c)(14) - Credit Unions

*501(c)(14) - Credit Unions

*501(c)(19) or (23) - U.S. Veterans' posts and auxiliaries

*501(c)(19) or (23) - U.S. Veterans' posts and auxiliaries