Independent Tax Audits can be Defeated

It’s celebration day here at LOONY (Law Office Of Nina Yablok). I now have 3 ½ wins out of 4 independent contractor employee tax audits defenses. 2 of the wins are in California, another in Washington.

I used to handle a lot of these audits but stopped when in California they became virtually impossible to win.

Then, several years ago, I handled one for an old client whose operations I knew very well, and I thought, if I front load things – maybe we can shift the odds. We won. But I still wouldn’t handle them routinely.

Then, two years ago a CPA friend asked me to help with one of her clients. We lost in part, and won in part. But I realized that the front loading of the work was helpful. Normally employers submit the documentation that the taxing authority asks for, perhaps with some minimal explanations; they lose; and at the end if they choose to fight, they bring in an attorney.

By front-ending I mean I submit a full brief with the requested documentation. Of course, it helps that I had handled so many of these cases in the past, and in spite of all of the bruhaha, the concepts are the same. You just need to know what’s a weed and what’s a flower.

I also do a fairly extensive (and expensive) analysis first, so I’m only taking on winnable cases. But I firmly believe the appropriate use of independent contractors contributes to a growing economy and is an American tradition that’s been used in an attempt to bolster sagging tax revenues without adding any new taxes. But I’ll climb off my soap box now. Suffice to say I’m open to handling IC tax audits again, or consulting with accountants and attorneys who have clients facing one.