IRS clarifies the parameters of Section 530 relief

Way back in the dim mists of antiquity, the IRS embarked on a campaign to reclassify independent contractors as employees, sticking employers with huge tax bills. In response, Congress added Section 530 to the Revenue Act of 1978. As a result, the IRS was forbidden from publishing regulations or revenue rulings with respect to the employment status of any individual for purposes of payroll taxes. But this doesn’t mean the IRS can never issue guidance interpreting Section 530.