Consultant Tax Compliance

In the current competitive economic environment, to obtain a specialized service, it is not necessary to employ a person having specialized knowledge; rather he may be appointed as a consultant for a specified fee for a specified duration. Although hiring a freelancer, consultant, or independent contractor provides opportunities to trim costs, it brings up new set of tax issues to consider. Businesses may need to ensure that the individual hired fulfills his tax obligations on time to avoid any fallback liabilities.