The IRS Has Developed a Three-Prong Test to Determine an Agent's

question 53

Multiple Choice

The IRS has developed a three-prong test to determine an agent's status. Which of the following is not a prong in this test?

• A) whether the working relationship is written or oral
• B) behavioral aspects of the agency
• C) the type of working relationship between the principal and the agent
• D) the financial arrangements between the principal and the agent

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Definitions:

Performance Of A Contract

The execution of the duties and obligations as specified in a legal contract by the parties involved.

Compliance

The act of adhering to and following laws, regulations, standards, and ethical practices set by regulatory bodies or institutions.

Price Changes

Variations in the cost of goods or services over time, influenced by factors such as supply and demand, inflation, and market competition.

Implied Contract

A contract formed in whole or in part from the conduct of the parties (as opposed to an express contract).