Misclassification of employees as independent contractors - intentional or otherwise - is a national issue that affects millions of workers and results in billions of dollars in lost tax revenue.rnRecent studies conducted by both the Treasury Inspector General for Tax Administration and the U.S. Government Accountability Office indicate that the employee codification problem is a growing contributor to the $345 billion tax gap, and the Internal Revenue Service intends to make the issue a significant part of its National Research Program audits slated for early next year.rn"This is a natural progression in using the NRP to take a limited sample of returns to get a data measurement as to where they should be focusing their audits in the future," said Benson Goldstein, senior technical manager for tax at the American Institute of CPAs. "Since small business has been one of the areas of concern with respect to the tax gap, small business will be a significant focus of the employment tax initiative."
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