231 Front Street, Lahaina, HI 96761 info@givingpress.com 808.123.4567

Tag: Risks

New ‘Buy American’ Rules Bear Risks For Prime Contractors

By Amy Conant Hoang and Erica Bakies

Law360 is providing free access to its coronavirus coverage to make sure all members of the legal community have accurate information in this time of uncertainty and change. Use the form below to sign up for any of our daily newsletters. Signing up for any of our section newsletters will opt you in to the daily Coronavirus briefing.

Law360 (September 24, 2020, 6:11 PM EDT) —

Amy Conant Hoang
Amy Conant Hoang
Erica Bakies
Erica Bakies

On Sept. 14, the Federal Acquisition Regulatory Council published a long-delayed proposed rule implementing Executive Order 13881, “Maximizing Use of American-Made Goods, Products, and Materials.”[1] The proposed rule will affect all contractors subject to the Buy American Act, or BAA, with the most significant impact to contractors supplying iron or steel end products.

Here are the major takeaways:

  • The proposed rule increases domestic content requirements from 51% to 55% for all supplies
Read More

Independent Contractors Or 1099 Employees – The Risks

The Independent Contractor status of workers is being seriously challenged by the IRS. Between 1988 and 1992 the IRS reclassified more than 400,000 Independent Contractors to employees and collected over $52.5 Million ($52,500,000) in back taxes. In 1992 alone the IRS conducted 1,700 audits of businesses, reclassified 90,000 workers and collected $19 Million ($19,000,000) in tax assessments. (Statistics from US Chamber of Commerce, 1993). If you are a businessman who utilizes Independent Contractors during the year, your business could be in jeopardy. Do not be lulled into a false sense of security by the IRS’s October 25, 1995 announcement that “Due to federal spending cutbacks, we will discontinue our long time practice of random tax return audits.”

Our subject here is NOT about “random audits.” It’s about a specific, identifiable targeted group. These audits have been very profitable to the US Treasury. It’s a hot issue and not about to … Read More