read the prompt carefully

Writing Assignment Due 11/05/2019 In Class

Research Problem / Writing Assignment Fall 2019 ACCT 308

Sam, a resident of California, has been a driver for Blue Delivery Service for the past six years. For this purpose, he leases a truck from Blue, and his compensation is based on a percentage of the income resulting from his pickup and delivery services. Blue allows its drivers to choose their 10-hour shifts and does not exercise any control on how these services are carried out (e.g., the route to be taken or the order in which parcels are delivered or picked up). Under Blue’s operating agreement with its drivers, Blue can terminate the arrangement after 30 days’ notice. In practice, however, Blue allows its truckers to quit immediately without giving advance notice. The agreement also identifies the drivers as independent contractors. Blue maintains no health or retirement plans for its drivers, and each year it reports their income by issuing Forms 1099–MISC (and not Forms W–2). Blue requires its drivers to maintain a commercial driver’s license and be in good standing with the state highway law enforcement division.

An IRS agent contends that Sam is an independent contractor and, therefore, is subject to the self-employment tax. Sam disagrees and contends that he is an employee (i.e., not self-employed). Who is correct? Why?

Use the tax resources available to by the University on Titanium (CCH and/or RIA Checkpoint), also include a review of news groups and general reference materials, practitioner sites, primary sources of the tax law, chat rooms and discussion rooms and any other opportunities. Use the tax memorandum format in Chapter 2 Exhibit 2.9

Your assignment should be at least 500 words (not this a minimum). Please type and double space your work. Please reference all outside sources. No credit will be given without a proper bibliography.

Spelling and grammar are part of your grade.

This assignment is worth 50 points and is due on 11/05/2019 in class. DO NOT email unless you have prior approval. Late papers will not be accepted.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *