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Originally Posted by GarthB
Due to a lawsuit against the local basketball association, we conferred with the IRS about our status. We will be making a fewchanges, including having all umpires sign an independent contractor agreement, disavowing any prohibition against working for other associations or directly for leagues and not providing any benefits to the contractors other than available work for a mutually agreed upon compensation. We've been told by the IRS and and our tax attorney that we're good to go.
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It's worth observing that, based on Tee's account, the situation in Oregon is unusual, and that it is the result of state legislation, not IRS policy. In other words, Oregon seems to be legislating that the official/assignor is de jure an employee/employer relationship for state tax purposes. This would affect only state income tax, workers comp, and other state and local tax programs.
Although this development does not in itself affect the IRS or its code, legislators at every level always seek new forms of "revenue enhancement" that are difficult to label "tax increases." We should not expect that developments in Oregon will go unnoticed, either by other states or by the IRS.