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A specialized tax service for employees who receive both W-2 wages and 1099 compensation during the tax year.
This service includes a detailed reconciliation of W-2 and 1099 income streams to ensure proper classification, reporting accuracy, and compliance with IRS worker classification and related-party rules. All contract income is reviewed for legitimacy, scope, and separation from employee duties to reduce misclassification risk.
The engagement also covers expense allocation between W-2 and 1099 activities, optimization of allowable business deductions, self-employment tax analysis, and multi-state considerations where applicable. Additional attention is given to documentation and audit-defense positioning due to the elevated scrutiny associated with dual-status arrangements.
This service goes beyond standard tax preparation and is designed to protect the client from reclassification exposure, penalties, and future compliance issues while maximizing lawful tax benefits.
A specialized tax service for employees who receive both W-2 wages and 1099 compensation during the tax year.
This service includes a detailed reconciliation of W-2 and 1099 income streams to ensure proper classification, reporting accuracy, and compliance with IRS worker classification and related-party rules. All contract income is reviewed for legitimacy, scope, and separation from employee duties to reduce misclassification risk.
The engagement also covers expense allocation between W-2 and 1099 activities, optimization of allowable business deductions, self-employment tax analysis, and multi-state considerations where applicable. Additional attention is given to documentation and audit-defense positioning due to the elevated scrutiny associated with dual-status arrangements.
This service goes beyond standard tax preparation and is designed to protect the client from reclassification exposure, penalties, and future compliance issues while maximizing lawful tax benefits.