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United States · Bill · HR

H.R. 4531 (97th)

Independent Contractor Tax Status Clarification Act of 1981

openUnited States· United States Congress· EN

Introduced

21 September 1981

Last action

11 June 1982 · Committee

Status

Subcommittee Hearings Held.

Sponsors

Rep. Conable, Barber B., Jr. [R-NY-30], Rep. Ford, Harold E. [D-TN-9], Rep. Barnard, Doug, Jr. [D-GA-10], Rep. Benedict, Cleve [R-WV-2], Rep. Bereuter, Doug [R-NE-1], Rep. Bliley, Tom [R-VA-7], Sen. Brown, Hank [R-CO], Rep. Broyhill, James T. [R-NC-10], Rep. Butler, M. Caldwell [R-VA-6], Rep. Campbell, Carroll A., Jr. [R-SC-4], Rep. Chappell, Bill, Jr. [D-FL-4], Rep. Coyne, James K. [R-PA-8], Rep. Corcoran, Tom [R-IL-14], Rep. Davis, Robert W. [R-MI-11], Rep. Duncan, John J. [R-TN-2], Rep. Erlenborn, John N. [R-IL-13], Rep. Forsythe, Edwin B. [R-NJ-6], Rep. Frenzel, Bill [R-MN-3], Rep. Gradison, Willis D., Jr. [R-OH-2], Sen. Gregg, Judd [R-NH], Rep. Hagedorn, Thomas M. [R-MN-2], Rep. Hansen, George V. [R-ID-2], Rep. Hartnett, Thomas F. [R-SC-1], Rep. Hiler, John Patrick [R-IN-3], Rep. Holt, Marjorie S. [R-MD-4], Rep. Hubbard, Carroll, Jr. [D-KY-1], Rep. Hyde, Henry J. [R-IL-6], Rep. Jenkins, Edgar L. [D-GA-9], Rep. Johnston, Eugene (Gene) [R-NC-6], Rep. Kemp, Jack [R-NY-31], Rep. Lee, Gary A. [R-NY-33], Sen. Lott, Trent [R-MS], Rep. Lujan, Manuel, Jr. [R-NM-1], Rep. Martin, James G. [R-NC-9], Rep. Michel, Robert H. [R-IL-18], Rep. Mollohan, Robert H. [D-WV-1], Rep. Neal, Stephen L. [D-NC-5], Rep. O'Brien, George M. [R-IL-4], Rep. Roth, Toby [R-WI-8], Rep. Sawyer, Harold S. [R-MI-5], Rep. Seiberling, John F. [D-OH-14], Rep. Sensenbrenner, F. James, Jr. [R-WI-5], Rep. Shumway, Norman D. [R-CA-14], Rep. Stanton, J. William [R-OH-11], Rep. Stump, Bob [R-AZ-3], Rep. Thomas, William M. [R-CA-21], Rep. Whitehurst, G. William [R-VA-2], Rep. Clinger, William F., Jr. [R-PA-5]

Subjects

Taxation

Source updated

29 August 2025

Taxation

Official sourceView documentsShare

Summary

Independent Contractor Tax Status Clarification Act of 1981 - Amends the Internal Revenue Code to specify standards for determining whether certain individuals qualify as independent contractors for purposes of the tax on employment income. Treats an individual as an independent contractor if such individual: (1) controls the total number of his work hours; (2) does not maintain a principal place of business, or, if he does, such place of business is not provided, or is not provided rent-free, by the person for whom such individual performs services; (3) has substantial investment in his business and earns income based upon sales or output rather than upon number of hours worked; (4) performs services pursuant to a written contract and is provided written notice of his responsibility with respect to income and self-employment taxes; and (5) the recipient of such individual's services files returns disclosing payments made to such individual. Provides that the criteria established by this Act shall not be applicable to agent-drivers, commission-drivers, full-time life insurance salesmen, home workers, and traveling or city salesmen who are statutorily designated as employees for purposes of social security taxation. Provides that the failure of an individual claiming independent contractor status to meet the criteria established by this Act shall not create an inference that such an individual is an employee or that the recipient of his services is an employer. Limits the applicability of the criteria established by this Act to questions of employment status arising under the Federal Insurance Contributions Act, the Federal Unemployment Tax Act, self-employment tax provisions, and withholding requirements under the Internal Revenue Code. Requires recipients of services performed by an independent contractor to file an information return with respect to payments made for such services in excess of $600 for the taxable year. Requires individuals who file such information returns to furnish written statements to persons with respect to whom such information is reported which indicate the amount of payment reported. Provides penalties for failure to furnish information returns or statements. Applies deficiency procedures for the assessment of unpaid taxes due to the reclassification of an individual as an employee who had been treated as an independent contractor. Treats as employees, for purposes of the withholding of income tax, certain traveling or city salesmen.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

  1. 21 September 1981

    Introduced

    Referred to House Committee on Ways and Means.

    Source: IntroReferral

  2. 21 September 1981

    Introduced

    Introduced in House

    Source: IntroReferral

  3. 21 September 1981

    Introduced

    Introduced in House

    Source: IntroReferral

  4. 23 September 1981

    Referred

    Referred to Subcommittee on Select Revenue Measures.

    Source: Committee

  5. 11 June 1982

    Committee

    Subcommittee Hearings Held.

    Source: Committee

Votes

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Versions

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Documents

1 official file

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Sources

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