The IRS Is Conducting an Investigation of the Construction Industry

question 49

Multiple Choice

The IRS is conducting an investigation of the construction industry because contractors routinely classify carpenters,dry-wallers,and plumbers who work on all of their projects as independent contractors.These craftsmen report for work on different jobs,but all of the jobs are managed by the same contracting firm.Which of the following will be most important in determining whether the craftsmen are employees rather than independent contractors?

• A)That they bring their own tools.
• B)That they determine which jobs they will work on and which they will not.
• C)That they are told to report for work on which days and at what time.
• D)That they work for other contractors.

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Definitions:

Profit Area

A segment of a business or a market where the income earned is more than the expenses incurred, resulting in a financial gain.

Price Per Unit

The cost of a single unit of a product or service.

Government-Granted Exclusive Right

A privilege or authority granted by the government to an individual or organization, typically giving them the sole right to produce, use, or sell a particular good or service.

Willingness to Pay

The maximum amount that a consumer is prepared to spend on a good or service.