As many of you are aware, there has been a marked increase in the emphasis on worker misclassification, not only by the Internal Revenue Service and U.S. Department of Labor (DOL), but by states. The IRS and U.S. DOL have signed a memorandum of understanding (In essence, an exchange of information agreement), and the U.S. DOL signed a similar agreement with the Alabama DOL last fall. The latter agreement, and its March 2015 amendment, is referred to as a “Partnership Agreement.”

Originally published in Alabama CPA Magazine - October 2015.