AgencyL.docx

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Mary, a manager at Big Software, Inc, hired Chris to do general clerical work for her. She maintained control over his work, gave him day-to-day instructions regarding his duties, paid him on an hourly basis, and furnished all equipment he needed. Big Software, Inc for tax purposes claimed Chris as an independent contractor. Big was audited by the IRS who took the position that Chris was an employee. Is Chris an independent contractor, why or why not, and what is the effect of a finding of employee or independent contractor as far as the IRS is concerned?

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