Thread regarding Chesapeake Energy Corp. layoffs

Intentional Misclassification of employees as independent contractors.

If employee misclassification is causing tax fraud, workers can anonymously report their employers to the IRS by filing Form 3949-A. If workers would like the IRS to make a determination about their worker status, they can file the non-anonymous Form SS-8.

The penalty can range between $5,000 and $15,000 per violation – and if an employer has been proven to engage in a pattern of willful misclassification, the courts can fine them an additional $10,000 to $25,000 per misclassified employee.

So in addition to seeking back taxes, interest and penalties the IRS will fine an offending employer up to $50,000 per misclassified employee.

There is no statute of limitations and anyone who was misclassified in the last 10 years should definitely form 3949-A.

If you worked for Purple Land Management, Holland Land, Percheron, Western Land Services; TS Dudley, Honor Resources you have a slam dunk case. Complainants are entitled to a percentage of any recovery.

by Anonymous
| 1931 views | | 3 replies (last October 11, 2021) | Reply
Post ID: @OP+1dgc7jXM
Comment! It's anonymous!

3 replies (most recent on top)

This post is correct. If a broker controlled ANY part of your workday and classified you as an independent contractor you were a victim of the fraud and should notify the IRS. If you’re an independent contractor, the employer can accept or reject the finished product but is prohibited from prescribing the manner, method or time for performing the work. Misclassification of an employee as an independent contractor is illegal under state law and state tax authorities should be informed. Independent means independent and they knew that but didn’t care. Disgusting.

by Anonymous
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Post ID: @jzk+1dgc7jXM

Not this company, but I know of a company here in the SouthEast that has been doing this for at least 20 years. They do all sorts of construction and renovations for various transportation outfits and report most of their regular employees as independent contractors, when they're absolutely not. The guy supplies tools and materials, has you meet him at his location each morning to drive in, directs all work, micromanages every step in some cases, etc... Clearly these are employees.

This is really rampant in some smaller to midsized companies, and the owners or crew foremen rule with an iron fist. Bullying and belittling, threats of bodily harm or death, you name it. The target workers are 18-24-ish, just getting started in the world, not sure how everything works yet, but knowing they want to keep their jobs... so most just go along with it as long as they can, then are too afraid to say anything about it after they leave. Sad really.

by Anonymous
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Post ID: @anm+1dgc7jXM

The last post just mentioned the civil penalties.

This type of repetitive tax fraud carries SEVERE criminal penalties too. In addition, the fraud was per a broad-based conspiracy stretching from the Pacific to the Atlantic, from the Gulf to the Canadian border.

The penalties for conspiracy are 2 to 3 times as severe as the penalty for the substantive offense.

The dollar amount of the fraud and the broad basis of the conspiracy to commit the fraud will demand a minimum of 10 to 20 years in prison for the ring leaders.

All of the brokers were acting as Agents of the Shalers so all of the liability is readily imputable to the Shalers.

Many people staffing the Shalers will get a close look from the Feds. They thought they made a clean getaway per the bankruptcy. The may have a few surprises coming.

by Anonymous
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Post ID: @fda+1dgc7jXM

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