Abstract

http://ssrn.com/abstract=2296626
 


 



Substance Over Form: An Alternate Tax Doctrine Approach to Reduce the Tax Revenue Losses Caused by the Misclassification of Employees as Independent Contractors in the Financial Services Industry


Jonathan R. Everhart


Thurgood Marshall Law Review - Editor-in-Chief

July 21, 2013


Abstract:     
The distinction between independent contractors and employees misclassified as independent contractors in the financial services industry is a complicated and critical tax issue. Misclassification is often the result of tax-savings measures instituted by financial services firms. Consequently, the federal, state, and local governments suffer revenue losses due to misclassification as financial services firms circumvent their tax obligations. This article will cover a range of issues surrounding the misclassification of employees as independent contractors in the financial services industry, including: the legal definition of an independent contractor, the tax reasons why a financial services firm would misclassify an employee as an independent contractor, the tax revenue consequences of employee misclassification, an overview of the financial services industry, and an application of the substance over form tax doctrine as an alternate approach to minimize the tax revenue losses resulting from employee misclassification.

Number of Pages in PDF File: 27

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Date posted: July 22, 2013 ; Last revised: September 20, 2013

Suggested Citation

Everhart, Jonathan R., Substance Over Form: An Alternate Tax Doctrine Approach to Reduce the Tax Revenue Losses Caused by the Misclassification of Employees as Independent Contractors in the Financial Services Industry (July 21, 2013). Available at SSRN: http://ssrn.com/abstract=2296626 or http://dx.doi.org/10.2139/ssrn.2296626

Contact Information

Jonathan R. Everhart (Contact Author)
Thurgood Marshall Law Review - Editor-in-Chief ( email )
3100 Cleburne Street
Houston, TX 77004
United States
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