Independent Contractor Tax Act of 1982

Summary

Independent Contractor Tax Act of 1982 - 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) has a principal place of business which is not his principal residence or which is not provided by the service recipient; (3) provides service, more than one-third of which is attributable to tangible property furnished by the individual providing the service; (4) is an insurance, real estate, or consumer salesperson; (5) risks income fluctuation because more than 90 percent of the remuneration for the performance of the service is directly related to sales or other output rather than to the number of hours worked; and (6) performs services pursuant to a written contract and is provided written notice of his responsibility with respect to income and self-employment taxes. Requires the recipient of services performed by an individual claiming independent contractor status to file 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 businessmen who make direct sales of consumer goods to individuals for resale on a buy-sell basis or a deposit-commission basis to file information returns for sales in excess of $3,000. 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. Requires recipients of services performed by an independent contractor to withhold ten percent of the payment made for such services. Sets forth exceptions to such withholding requirement. Provides a penalty for failure to comply with withholding requirements. Treats as employees, for purposes of the withholding of income tax, certain traveling or city salesmen.

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1 official file

• Introduced in House

  summary · EN · 17 March 1982

  Open at official source

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