http://www.fivecentnickel.com/2006/02/27/five-tips-for-fighting-an-audit/ personal finance tips, tricks, and commentary Sat, 21 Nov 2009 22:51:28 -0500 http://wordpress.org/?v=abc hourly 1 http://www.fivecentnickel.com/2006/02/27/five-tips-for-fighting-an-audit/comment-page-1/#comment-2024 jim Mon, 27 Feb 2006 19:02:35 +0000 http://www.fivecentnickel.com/2006/02/27/five-tips-for-fighting-an-audit/#comment-2024 My fraternity had a problem a while back regarding the cook we had hired. We thought he was 1099 but he didn't officially qualify as an independent contractor (he didn't fit all three rules) so we had to pay back taxes. As an organization with little reserve funds, we had to negotiate (and did successfully) with the IRS to reduce the penalties. If you did nothing wrong, they're more likely to reduce penalty charges. My fraternity had a problem a while back regarding the cook we had hired. We thought he was 1099 but he didn’t officially qualify as an independent contractor (he didn’t fit all three rules) so we had to pay back taxes. As an organization with little reserve funds, we had to negotiate (and did successfully) with the IRS to reduce the penalties. If you did nothing wrong, they’re more likely to reduce penalty charges.

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