Many employers simply do not want employees. There are numerous reasons or justifications for the classification but the question is whether it is correct or justified. There are legal consequences either way.
In order to avoid problems, secure and report all Forms W-2 on your tax filing. IRS does what is called a matching report 12-18 months after the tax season. Any missing 1099s or W-2s will be part of a proposed adjustment. Forgetting to report income could result in penalties and interest being assessed. Here are a few tips to achieving an accurate tax return.