IRS, DOL to share data on worker misclassification
The U.S. Department of Labor reached an agreement with the Internal Revenue Service, Connecticut and several other states to share data on companies that might be improperly classifying employees as independent contractors.
Critics say the practice allows companies to avoid paying taxes and other expenses by claiming workers are freelancers with multiple employers, when in practice they work on a full-time basis for a single employer.
“This agreement takes the partnership between the IRS and Department of Labor to a new level,” said IRS Commissioner Doug Shulman, in a prepared statement.
“In this new phase of our relationship, we will work together more efficiently to address worker misclassification issues and better serve the needs of small businesses and employees.”
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Amazon to collect sales taxes in California
Months after terminating relationships with affiliates in Connecticut over a new law forcing it to collect sales taxes, Amazon.com Inc. agreed to collect sales taxes in California, with Gov. Jerry Brown giving the company a one-year reprieve there.
The Seattle-based company did not immediately say whether it would reconsider its stance on affiliate relationships in states like Connecticut and New York with similar Internet sales tax collection statutes on the books, but said it would press for a national standard.
Under a new law in Connecticut, dotcoms must pony up sales tax if they have a physical presence in the state; while Amazon does not, until the law was passed it sold through a network of locally based affiliates giving it access to a broader array of products on its website.
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George charged with running Ponzi scheme
Federal prosecutors in New Jersey charged former University of Connecticut basketball star Tate George with running a Ponzi scheme through his real estate development company The George Group.
George”™s attorney said he is innocent of the charges.
The George Group is developing Seaview Plaza in Bridgeport, a proposed 150,000-square-foot retail and residential complex adjacent to Derecktor Shipyards, in partnership with West Hartford-based Simon Konover Co.
George, 43, lives in Newark, N.J., and was a former NBA first-round draft pick for the New Jersey Nets. Authorities allege George solicited $2 million from unnamed former pro athletes and other investors for projects in Connecticut, New Jersey, Florida and Illinois, then used the money to pay off other investors and for personal expenses.
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State hires Xerox for justice IT system
Connecticut hired a subsidiary of Norwalk-based Xerox Corp. to build a criminal justice information system to allow various agencies to share files and information.
This initial contract with Xerox unit Affiliated Computer Services is for $14.2 million, while the estimate for the total project is $24 million.
Connecticut”™s criminal justice community consists of 11 agencies with 52 information systems. The new system will allow instantaneous sharing of audio, video, graphic and text files.
