IRS and DOL Sharing Information on Independent Contractors

A Memorandum of Understanding (MOU) between the IRS and the United States Department of Labor (DOL) sets forth the agreement of the parties with respect to a joint initiative to improve compliance with laws and regulations administered by the IRS and DOL. The sharing of information and collaboration between the parties allowed by the MOU will help reduce the incidence of misclassification of employees as independent contractors, reduce abusive employment/unemployment tax schemes, and improve compliance with federal labor and tax laws.