Chips-R-Us is a computer technology corporation that designs hardware and software for use in large businesses. The
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In the current year the IRS challenges the corporation that it has failed to remit FICA taxes and income taxes that should have been withheld with respect to Simone’s employment. Chips-R-Us refuses to pay the amount, stating that it is not required to do so because Simone is not an employee of the corporation. What will be the likely outcome of the IRS’s challenge concerning Simone’s status as an employee or independent contractor? Who may be liable for payment of the employment taxes, interest, and penalties to the government? What ethical responsibilities should be followed in the remittance of withheld employee taxes?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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