Successful reversal of $450,000 employment tax assessment for work performed by independent contractors
Bullivant Houser Bailey prevailed in reversing an incorrect $450,000 tax assessment by the Oregon Employment Department. The Employment Department levied the taxes against our client for work performed by independent contractors hired by the client. The Employment Department asserted that these independent contractors worked under the direction and control of the client and therefore were considered employees subject to employment tax. After a week-long hearing with live testimony of witnesses and full briefing of legal argument, the Administrative Law Judge ruled that the tax assessment was incorrect and reversed it in its entirety.