From Bloomberg Tax (subscription required) Andrés Alejo reports that the IRS will take corrective action to clarify the process under Section 530 following an audit. Section 530 provides businesses with relief from federal employment tax obligations if certain statutory requirements are met. Andrés writes:
The IRS Small Business/Self-Employment Division has agreed to improve its internal procedures for granting safe harbor relief for employee misclassification, following an audit by the Treasury Inspector General for Tax Administration. SB/SE has agreed to implement a series of corrective measures to clarify the process used to grant employers relief under Section 530 of the Revenue Act of 1978, with changes expected by Nov. 15, 2023.
Read the full story at IRS to Clarify Guidelines for Misclassification Safe Harbors