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PREPARATION GUIDE / UNITED STATES

Employee or contractor: facts for a classification review

Describe the actual working arrangement rather than relying only on the contract's label. Gather facts about how work is controlled, paid and organized so classification questions can be assessed with the relevant rules.

Preparation resource. Editorial review: November 3, 2026. This guide helps organize records and questions; it does not determine your tax position. Use the agency instructions for the relevant year and obtain advice for your circumstances.

Records to organize

Prepare the records that relate to your situation and keep the original supporting statements. Use the same filing year or clearly labelled periods so the reviewer can follow the history.

  • Agreements and actual work-practice descriptions
  • Payment and benefits records
  • Control, equipment and business-relationship facts

How to use these records

Document who controls the work, the financial arrangement and the ongoing relationship. The IRS considers the actual facts rather than a label alone. State or other employment-law obligations may require a separate review beyond the federal tax classification.

The question to resolve before filing

What does the working relationship show beyond the words used in the agreement?

Start with the facts you can support. Identify missing statements, corrections and earlier filings instead of filling a gap with an estimate that has not been discussed. Tell the team which countries, tax years and agencies are involved so the engagement can cover the right work.

A mistake to avoid

Do not treat issuing a 1099 or signing a contractor agreement as a complete classification decision.

A clear handoff to your preparer

  1. Label the evidence. Keep each record with its relevant year, account or activity.
  2. List open questions. Share missing information and anything that differs from the prior return.
  3. Confirm the scope. Ask which returns, disclosures and follow-up work are included before preparation begins.

Do not enter identity numbers, account numbers, verification codes or tax-document copies in a public enquiry. Use your private client portal for requested records after onboarding.

Official starting points

Use the current agency guidance and the instructions for the applicable filing year. A source link is not confirmation that a particular rule, election or claim applies to your circumstances.

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