IWLA Washington Representative Pat O’Connor and members of the Coalition to Promote Independent Entrepreneurs met April 18 with the U.S. House Ways and Means Tax Counsel to review the worker-classification proposals contained in House Ways and Means Committee Chairman Dave Camp’s (R-Mich.) proposal for tax reform, the Tax Reform Act of 2014.

The proposal would for the first time require federal income-tax withholding on payments to independent contractors and marginally increase the risk for a potential repeal of Section 530 of the Revenue Act of 1978, better known as the common law rules for worker classification for federal tax purposes.

“Tax counsel listened politely to us, but clearly was not convinced. He made it clear that he was not a strong supporter of Section 530 and the status quo,” O’Connor says.

The likelihood for Chairman Camp’s tax reform proposal to pass is poor but the mere mention of worker-reclassification and tax reform can bring unnecessary attention to the issue. Read the coalition’s letter to Chairman Camp, which IWLA signed. Read the Tax Letter Coalition Independent 2014, which IWLA signed. IWLA is staying on top of this issue and will initiate action if needed.