Sample Independent Contractor Agreement

As a second part of the series I have provided below what a Sample Independent Contractor Agreement. Although a CPA is often the one who is best served to guide and direct an analytical and careful evaluation of the facts as presented. However care should be taken to have an attorney also be involved in drafting an Independent Contractor Agreement so that they might adequately address any intellectual property issues, confidentiality, ownership of all work products, etc.

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Determining if Your Workers are Employees or Independent Contractors

Tax law centers around proper classification of a worker as an employee or an independent contractor is often misunderstood exposing the employer/company at great legal and financial risk. The fact that you choose to pay someone as an independent contractor, when you treat them as an employee, will not preclude you from any and all payroll tax issues or those of a general liability nature. A careful review of the tax law, established guidelines, as well as a fair, independent and just review of your own facts and circumstances will more aptly enable you to correctly apply tax rules to the letter of the law and also its spirit. The issue of properly determining a worker's classification centers on several major areas:

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Preparing a Cover Letter for Your Offer in Compromise

I have always found it advantageous in include the Offer in Compromise Offer itself that includes Forms 433A (if an individual Offer), 433B (if a business Offer) and Form 656 (the Offer itself) a cover letter detailing and establishing both a rapport with the client, assertions on a client's behalf, and a basis for dialogue. Including in this letter it is critical to gain the confidence of both the IRS and the client, confirm an understanding of the rules and procedures of the Offer and any substantive changes/tax issues etc. Below is a sample letter that you might consider as a guide. To help illustrate I have added explanations in brackets (i.e., [ ]).

I am writing you in a good faith attempt to come to terms over the above taxpayers [I would use the same general language whether a corporate or personal Offer, while detailing in the opening salutations the client(s) and either their Federal ID number or SS#] present predicament and to process an Offer in Compromise on their behalf. I am willing/eager to supply you with any information that you might need in order to process the Offer. Read more

How to Address Unpaid Personal Income Taxes, Trust Fund Assessments and the 100% Penalty

A Layman's Guide to Understanding Tax Issues with the IRS

Understanding the tax issues a taxpayer has with the Internal Revenue Service is the best first step to beginning to address old personal tax returns that are either unfiled or unpaid. This is true regardless of whether you have old personal tax return issues or have unpaid payroll tax reports. As withheld payroll tax reports or sales taxes monies due to the state are essentially trust funds. In general terms this means that funds are really not that of your own. For example, if your business has employees and withholds from an employee's paycheck federal withholding, FICA or Medicaid taxes, these essentially "belong to the IRS" as they were deducted in trust and due to the IRS in accordance with rules and procedures relative to the payment of payroll taxes. Although initially these monies are initially solely due by the company only, these monies can be assessed by the IRS to the responsible signor, officer or authority who failed to collect and remit these monies to the Internal Revenue Service on a timely basis. When this process is activated by the IRS it is referred to as the 100% penalty as is assessable to the responsibility party or parties.

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Understanding & Utilizing Forensic Accounting Issues

Forensic accounting issues are not for the meek hearted or ill trained. As our world becomes more complex so should our procedures and internal controls. To protect your business, you will need much more than just a good business plan, but also fraud detection procedures, sound practices and procedures, adequate segregation of duties and the ability to look beyond the numbers for fraud detection issues and forensic accounting.

Learning what you can do to preclude both the likelihood and the furtherance of fraud against your company are critical components of the successful management of company assets and an integral way to help ensure assets "don't walk out the door." Although many of the purposes of internal controls are to preclude the likelihood of loss occurring, it is impossible to avoid all types of losses. However, a good system of internal controls will greatly assist in preclusion and early detection of losses.

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Offer in Compromise 101: Understanding the Process and Guidelines of Submitting and Acceptance of an Offer in Compromise

Working with the IRS, rather than against it, is both an art and a science. Part of the process requires good record keeping, good tax advice, the right entity set-up, proper tax returns, good internal controls and much, much more. Care should be exercised in all levels to be sure sound and proper business decisions are being reached on a daily basis along with making sure that you qualify for an Offer in Compromise is submitted. In general terms an Offer in Compromise is:

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2009 Tax Deadline News... Personal Income Tax Returns, LLC's, LLP's and Partnership Returns are Due April 15, 2009

The 2009 Tax Deadline for filing of your 2008 Personal Income Tax Return is April 15, 2009. Therefore all individual tax returns are due by that date. If for any reason you are not able to file your return by the due date both the IRS and state allows you to extend your return for six months. However don't let the extension "fool you." An extension to file is not an extension to pay as both the IRS and states require you to pay your taxes as you go. Individual taxpayers, as well as corporate ones, since World War II are required by tax law, to pay taxes as they make the money during the year. Read more

Financing 101 for Business Owners

Helping Business Owners Obtain Financing is an integral component of good financial advising. Working with a CPA who has the wisdom and insight to knowing what is in your best interests when looking to obtain financing. A good CPA/financial adviser will not necessarily help you obtain your dreams, but will do much to steer you towards financial options and considerations that will be best for you and your business  Read more

American Recovery and Reinvestment Act of 2009 (ARRA)

On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009 (ARRA), commonly known as the Economic Stimulus Act. The IRS and DOL continue to define its provisions but here are some key highlights known so far:
Increase in Payroll Checks.

• The IRS issued revised federal withholding tables and Advanced Earned Income Tax Credit tables that will lower the amount of federal income tax withholding, and businesses are to utilize them no later than April 1, 2009. Read more

Understanding Back Taxes, IRS Tax Liens and Assessed Income Taxes

A Practical Guide to Understanding Tax Issues with the IRS

Knowing and understanding the tax issues a taxpayer has with the Internal Revenue Service is the best first step to beginning to address old tax issues satisfactorily and to get back into the system. As a Body of Believers we are taught that fear is the beginning to understanding, and that understanding leads to opportunities to turn from our problems, repent and then to move forward. Though we might want to be beyond our problems, like in our lives, we have to deal with the consequences of our action and to be able to aggressively work to address problem areas and to put them behind us. I believe in the axiom that either "we are to aggressively deal with tax problems or know that the IRS and their collection process will aggressively deal with us." Read more

Heifer International - "Ending Hunger; Caring for the Earth"

Heifer International is busy doing great things around the globe. Taking the idea of passing a gift along to a new level. Heifer is busy changing the world. Working with community leaders and families in over fifty countries and over 180 on-going projects Heifer continues to give a hand up and not a hand out. Though many believe the saying "Give a man a fish, feed him for a day; Teach a man to fish, feed him for a lifetime," is in the Bible, it is actually a old Chinese proverb. Heifer is making that dream come true by helping millions of improvised families being their own agricultural farm or the raising of livestock to help those who otherwise could not help themselves. Read more

Utilizing the IRS Offer in Compromise Program to Get Your Taxes Back on Track

The Internal Revenue Service's Latest Changes to the their Offer of Compromise Program is more detailed than it has been in the past. The IRS Offer of Compromise Program was initially established decades ago and the latest changes do much to strengthen and formalize their program. Read more

The 9th Day - You Are Uniquely Poised - Taking Christianity Into the World

Habakkuk 2:1
I will stand at my watch and station myself on the ramparts; I will look to see what he will say to me, and what answer I am to give to this complaint.

You have just completed a eight day program geared towards radically changing the way you do "church." God desires for our lives to be one of great joy, peace, growth and accomplishment. As you graduate from this program the below steps will do much to help keep you on task as the 9th day (the rest of your life) is lived for the One Purpose You Were Intended. Read more

Bearing Fruit - Taking Christianity Into the World

Matthew 7:15-20 "Watch out for false prophets. They come to you in sheep's clothing, but inwardly they are ferocious wolves. By their fruit you will recognize them. Do people pick grapes from thornbushes, or figs from thistles? Likewise every good tree bears good fruit, but a bad tree bears bad fruit. A good tree cannot bear bad fruit, and a bad tree cannot bear good fruit. Every tree that does not bear good fruit is cut down and thrown into the fire. Thus, by their fruit you will recognize them.

It is time to get out of our church pews, our youth groups and the comforts of our surrounding. It is time to "Take Christianity Into the World." Read more

I Double Dog Dare You!! - Taking Christianity Into the World

Dare to Attempt Something so Great for the Kingdom of God that it is doomed to failure, lest Christ be in it!

Frequently Try Something so BIG, that you will fall flat on your face, unless God helps you and provides a way. Read more

Being Still - Taking Christianity Into the World

"The LORD will fight for you; you need only to be still." Exodus 14:14

In our human frailty we most often do exactly what is not needed. We strive to fix and address life issues in our own right. I have learned, through God's grace, that my first charge in the face of adversity is to be still; for it is only by our inactivity are we able to see what God might have us do. During my time of stillness I have learned to look to the Heavens and to ask God, if he needs me; for I worship a God of great power who does not need me to affect His will. Only if God needs me, do I need to respond to trials and tribulations about me as often these are events well beyond either my control or influence. Also I worship a God who will fight for me, and frequently all I am required to do is to listen and be still.

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Made for a Purpose - Taking Christianity Into the World

"So you are no longer a slave, but a son [daughter]; and since you are a son [daughter], God has made you also an heir." Galatians 4:7

Discovering your destiny, who you are in God and what exactly you were made for is the mark of an active and mature Believer. Our Christian walk is full of special divine moments that only we can fulfill but there is a much greater vision for our lives that only He can fulfill. By seeking daily His purpose for our lives are we best able to learn and discover the many miraculous things we can do through and with His name. Read more

Be Like God - Taking Christianity Into the World

"Do not conform any longer to the pattern of this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what God's will is-his good, pleasing and perfect will." Romans 12:2

Do you have "Statusitis?" Do you care more about the world or about God? We are told in the New Testament in Romans 12:2 we are told to not be like the world but to conform our mind and ways to His. Living in the way of the world is a recipe for failure, while living for the Kingdom offers immediate peace and eternal awards.

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Knowing God - Taking Christianity Into the World

"Blessed is the man who does not walk in the counsel of the wicked or stand in the way of sinners or sit in the seat of mockers. But his delight is in the law of the LORD, and on his law he meditates day and night." Psalm 1:1-2

If we love God, we will want to do what we can to learn who he is, how to talk to him and how to use His word to guide our thoughts and actions. By surrendering our will to his, letting go of the world and grabbing hold of Biblical truth allows us to be best prepared for what life will bring.

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The Non-Negotiables - Taking Christianity Into the World

There are many tenants to our Faith but there are some must haves that are essential to accepting the standard Jesus laid out for us. Understanding, Endorsing, and Sharing these are critical to you own spiritual walk as well as the furtherance of the Kingdom. By focusing on what that unites us, Believers across the world can unite for the benefit of all and the glory of God.

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