That is a very good point.  I believe that if audited, many of these large VMC's would be looking at very steep fines.  If the IRS found that they were actually employees the would be liable for all of the employer's portion of the taxes, plus interest and penalties. 

That is, of course, IF the IRS determined that they had an employee relationship.  In my opinion, they are getting very close with the way they operate.

Good post.

Best,
Robert A. Franco
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