Ch09 DISCUSSION QUESTIONS1. LO.
1, 9 Sophia and Jacob are married and file a joint return. The return for 2012included a Form 2106 for each of them. The return for 2013, however, included aForm 2106 and a Schedule C. In terms of employment status, what could havechanged?
2. LO.1, 9 Yolanda is employed but is not reimbursed by her employer for her job-related expenses. If Yolanda always claims the standard deduction, she can neverdeduct any of these expenses. Do you agree with this conclusion? Explain
.3. LO.1 Mason performs services for Isabella. In determining whether Mason is anemployee or an independent contractor, comment on the relevance of each of thefactors listed below.a. Mason performs services only for Isabella and does not work for anyone else.b. Mason sets his own work schedule.c. Mason reports his job-related expenses on a Schedule C.d. Mason obtained his job skills from Isabella’s training program.e. Mason performs the services at Isabella’s business location.f. Mason is paid based on time worked rather than on task performed.
4. LO.1 Bernard operates a hair styling salon as a sole proprietor. Because his shophas several extra workstations that are not being used, he is considering rentingthese to other stylists, but he wants to avoid any employer-employee relationshipwith them.Advise Bernard on the type of working arrangement he should set up to ensure thatany new stylists will be classified as independent contractors and not as employees.5. LO.1, 11 In mid-2013, Madison goes to work for Knot Corporation. In January2014, she receives a Form 1099 from Knot reflecting her classification as anindependent contractor.Madison disagrees with this classification.a. Why does she disagree?b. Does Madison have any recourse on the issue of her employment status?Explain.6. LO.1 In terms of characteristics, how are statutory employees similar to commonlaw employees? To independent contractors?7. LO.1 The IRS presumes that two types of workers should be classified asindependent contractors. Who are these workers, and why is the automaticclassification justified?8. LO.2 Milton is a resident of Mobile (AL) and is employed by Scaup Corporation.Because Scaup closed its Mobile office, Milton no longer has any nondeductiblecommuting expenses although he continues to work for Scaup. Explain why.