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Question

we are being audited by Washington State labor and industries...according to RCW 51.08.195 the 4th statement "on the effectie date of the contract, the induvidual is responsible for filing a schedule of expenses with the IRS on the next applicable filing date for the type of business under contract." We only have subcontractors not employees...is it our responsibility to make sure our subs file a schedule C with the federal government? the auditor wants me to make sure that our subs have filed a schedule C for the three years of the audit. Do I legally have the right to check someone elses personal taxes? I need an answer asap.

Submitted: 405 days and 20 hours ago.
Category: Employment Law
Value: $15
Status: CLOSED
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Bellevue, United States

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Just talked to our business owners.

Accepted Answer

Thank you for contacting Just Answer. I look forward to assisting you.

 

There can sometimes be a delay of an hour or more in between my answers because I may be researching the answer to your question, helping other customers, or taking a break. If we're writing late in the evening, I may need to get some sleep and resume helping you the following morning.

 

Answer: As you probably know, L&I gets carried away from time to time. I think they've lost every suit by business owners. :)

 

No, you have no right to check your subs' taxes. Ask the L&I person auditing you whether a written and signed statement from your subs will be sufficient.

 

If not, get help from your business organization, if you belong to one. Or talk with your auditor's supervisor, and keep working your way up the chain of command to the Governor's Office if you have to. The request is way off base.

 

You have zero responsibility for your subs' taxes. That's one of the reasons I bet you use subs, instead of employees, so you don't have to hassle with all that. That's the reason I use them!

 

 

I'd be happy to answer follow-up questions.

 

Before giving me poor feedback, write to me. "Bonus" = "tip"

 

Next time, ask for "Jane Doe Deer."

 

I wish you the best.

 

Jane Doe Deer

 

 

 

 

 

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Expert: Jane Doe Deer
Pos. Feedback: 99.1 %
Accepts: 
Answered: 10/13/2008

Employment Lawyer

Atty. 22 years; Plain English - Discrimination, Fire/Hire, Non-Compete, etc.

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