April 15 is coming at us faster than we realize. It’s a good time to discuss one of the big bugaboos in the entertainment business: the status of the freelance worker. The term “freelance” translates in IRS-speak to “independent contractor,” a category that has undergone significant revision and clarification over the last decade because, in an age when few people stay at one job more than a few years, the notion of self-employment has gotten fuzzy around the edges. Back in 1996, the Internal Revenue Service redefined what constitutes an independent contractor, establishing a complex set of 20 common-law factors plus interpretations of numerous tax court cases. A useful FAQ list can be found at www.irs.gov/govt/tribes/article/0,,id=134976,00.html.
– From Dan Daley’s The Biz column in the March issue of PLSN
