What are the 20 factors that the irs uses

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Reference no: EM133327726

Case: Ms. Meloni is the owner of the Appellant, Sabre Tooth Trucking Inc. In January of 2019, the Appellant hired 2 individuals, Mr. Pattinson and Mr. Lambert, as drivers. These individuals would be driving trucks owned by Sabre Tooth Trucking Inc., which is based out of Boise, Idaho. Ms. Meloni maintains that the individuals were hired as contract drivers, i.e. independent contractors. The drivers maintain that they believed themselves to be employees.

When Ms. Meloni's company began to expand, she decided she needed to hire more drivers. She posted an ad on LinkedIn searching for "highly qualified and experienced contract drivers," preferring experienced drivers as no training would be provided. Ms. Meloni testified that she told the new hirees that they were allowed to work jobs for other trucking companies outside of their scheduled hours for Sabre Tooth Trucking Inc. Ms. Meloni provided them with their schedules, albeit the drivers were able to indicate their preferred hours to assist Ms. Meloni in making the schedule. Additionally, the drivers were able to decline shifts before the schedule was finalized. The drivers are offered up to 35 hours a week in shifts, they can however work less than that if they decline certain shifts proposed by Ms. Meloni. The routes were planned by Ms. Meloni and drivers were required to follow the predesignated routes displayed through their GPS system.

Ms. Meloni provided them with Sabre Tooth Trucking Uniforms, although they were optional. Ms. Meloni allowed the drivers to use the trucks for other jobs, but she did not allow the drivers to subcontract their work, or the use of the truck, to other people. Sabre Tooth Trucking Inc. reimbursed the drivers for the gas purchased for the scheduled hauls. Drivers had to submit receipts for the purchased gas and were thus required to pay for any gas used outside of the scheduled hauls for Sabre Tooth Trucking Inc. In exceptional cases when the routes were longer and required an overnight stay, Sabre Tooth Trucking Inc. would pay for the hotel expenses for the drivers. In addition to providing receipts for the travel expenses, the drivers had to submit invoices after each completed haul.

Question 1: Find relevant IRS guidance on employee v. independent contractor status. There are two authorities you should find which are most important, one Treasury Regulation and one Revenue Ruling. (Provide the citations for these authorities).

Question 2: Based on that authority, what are the 20 factors that the IRS uses to determine if a worker is an employee or independent contractor?

Reference no: EM133327726

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