Attorneys as Temporary Employees: The Silver Lining to the

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Attorneys as Temporary Employees: The Silver Lining to the Clouded Hiring of Contract Lawyers

by Todd H. Harrison

Legal Staffing Solutions, 1999

It's no way to start your day...

But it happened one stormy morning last spring to a prominent Dallas personal injury firm. Known nationally, the firm is highly regarded by both plaintiff and defense bars for turning out the highest quality legal work. Its partners enjoy longstanding repute as honest, hardworking lawyers. The firm is results-driven...at the top of its class. Unfortunately, its legal prowess is no match for the Internal Revenue Service.

The first telephone call to the firm that day was from the IRS. An agent was attempting to collect unpaid federal income tax from an attorney whom it believed to be an employee of the firm. In reality, the attorney was one of almost a dozen contract attorneys engaged by the firm to help maintain its huge litigation practice. For two years, the contract attorney had failed to make estimated quarterly tax payments to the IRS – a requirement of all independent contractors. The IRS was seeking to collect the unpaid debt through whatever means it could – liens, levies, and even an action against the attorney's purported employer.

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