New York and Houston Team Represents Group Fitness Client Qualifying for Section 530 Safe Harbor Relief

Richard Reibstein (New York) and Buddy Sanders (Houston) secured a determination in favor of a national group fitness client from the IRS that the client qualified for Section 530 safe harbor relief in connection with the client’s treatment of its trainers as independent contractors paid on a Form 1099 basis. The IRS initially presented the client with a $4 million assessment attributable to allegedly unpaid employment and payroll taxes for two prior years, but after obtaining the examiner’s file under FOIA and making a presentation for Section 530 relief, the IRS reversed course and issued a favorable determination. Janet Barsky (New York) provided additional assistance.
Posted on August 6, 2019