At Appraiser Working As A Independent Contractor?

[Steve Owen]

I bow out since I'm not an accountant or attorney nor do I work for or like the IRS - they don't send me any work - they just want to take my money.

That's the statement that makes the most sense! Even after reading their web site I couldn't be sure. If Sue actually got them to confirm her IC status she's got one up on most people I know. I've never heard of them confiming much of anything. Personally, they should simply be abolished - there has to be a better way for the American people to tax themselves than by letting the government stick its nose into every single aspect of your business.

 

[Pamela Crowley (Florida)]

Originally posted by Steve Owen@Sep 23 2004, 08:31 AM

I bow out since I'm not an accountant or attorney nor do I work for or like the IRS - they don't send me any work - they just want to take my money.

That's the statement that makes the most sense! Even after reading their web site I couldn't be sure. If Sue actually got them to confirm her IC status she's got one up on most people I know. I've never heard of them confiming much of anything. Personally, they should simply be abolished - there has to be a better way for the American people to tax themselves than by letting the government stick its nose into every single aspect of your business.

 

[Terrel L. Shields]

The IC must have his own clients in his own shop

A subcontractor's "client" is the supervisor. So long as you CAN (not necessarily do) have any number of such supervisor's you are independent.....i.e.- IC does not have to bring his own work [client in the sense of bank, etc.] with him. A supervisor can and should send the IC work (fee splits). That is a normal business practice, and it helps to have a formal contract. In fact, if the trainee is bringing clients, he should be referring them to the Supervisor. Otherwise, the Supervisor is co-signing them as a subcontractor to the trainee.....If the trainee is selling his own work, he is not a subcontractor. If he is selling the work on behalf of a supervisor, it would be making the case for the IC being not Independent. He should only be pointing the potential client in the direction of his supervisor/contractor.

Client > contractor [supervisor] > subcontractor [trainee] > whomever [helper, secretary, etc.] If the contractor attempts to restrict the subcontractor from using help, he is not treating the subcontractor as a subcontractor but as an employee.

If an appraiser has an overload of work, he might consider taking on a trainee to handle that overload. If the appraiser is expecting the trainee to bring along clients and assignments with him, he is just an appraisal mill, imho.

Remember, too, that 99% of the time, the IRS will not become involved unless the IC arrives on April 15th with no money to pay his taxes, has not filed any quarterly taxes, and tells the IRS he "works for" so-and-so when they ask why he cannot pay taxes. And likely, 99% of the time that supervisor did not send any 1099's or other evidence that he treats the IC as an IC and not an employee, and, importantly did not council the IC newbie to pay quarterly taxes and keep good records.

I have on several occasions seen appraisers who do not keep auto records, have no idea how many miles they drive in the course of business; pay cash for copies at the courthouse, buy supplies etc. cash or undifferentiated with other purchases at Wal-Mart on a credit card, and otherwise underreport their expenses by bunches. Even when they do report it, they often lack proper documentation.

 

[Mike Garrett RAA]

It seems to me that being an independent contractor is almost impossible as a trainee, not just from the IRS standpoint, but from a practical point. You would have to operate on my time schedule...not yours.

 

[Wally Jones]

Andy,

You don't say what state you're in, but are you able to work for more than one company? Most trainees are limited to working for one company/one supervisor (and perhaps a secondary supervisor in the same company). If you're not free to work for more than one company, there's a good chance the IRS would not consider you an independent contractor.

As Ms. O'Rourke said, as long as your taxes are paid, no one will probably care what you're called.

I highly recommend you consult an attorney who is current with IRS regulations. You need to know your legal position within your state and what your obligations and liabilities might be. Don't put this off. It can be a very expensive mistake for either you or your supervisor.

 

[Steve Owen]

FYI, Mike. When I did this in the past, we operated on a cooperative time frame. I would call the sub-appraiser and get her free times, then I would call the borrower and schedule an appointment, then I would call the sub back and set the time. After the inspection, she did all the work on her own schedule, then delivered the job to me for review. I made corrections and sent it back to her. She prepared it and brought it to me. We printed and copied together (that was before the days of e-mail). She was always free to turn down any job order and was also free to work for anyone else (in fact, was working as an independent contractor in another industry). What do you think? Would that pass muster? Who knows.

 

[DTB]

Mike,

How does that differ from a rent a chair hairdresser in a shop with fixed hours of business, or a painter, electrician etc. is only allowed access to the property on certain days and at certain times?

I don't think this is a very critical part of the equation.

 

[DTB]

Terrell,

In Illinois a real estate salesperson must work under a broker, in essence similar to appraisal trainees.

 

[Terrel L. Shields]

Mike - the IRS allows sales persons, even brand new ones, to be treated as subcontractors. RE brokers in my area do not have to pay salary or take out taxes from commissions. Some brokers pay salary, but it is quite low compared to commission work. Some allow you to draw against future commissions ...to a point.

 

[Ann O'Rourke]

NAR obtained special classifications for agents working for brokers many years ago. In California they are classified as statutory employees and some benefits must be paid. Im not sure what it is but may be workers comp.

It doesn't matter to the person being paid how you are classified - employee or independent contractor. The IRS is not going to come after you. They will go for the company who paid you. If the company wants to classify you as an IC, that's their problem, not yours. Many people like the IC arrangement as they get "gross" checks with no deduction.