IRS taking close look at hospital-based, 'independent' doctors

The Internal Revenue Service (IRS) is studying the income tax returns of physicians who call themselves independent contractors but work at hospitals. The IRS is comparing hospitals' reporting forms with earnings reports for doctors who funnel their incomes through private corporations. Clues to employee status include payment of wages, hospital billings and collections for physicians' services, and provision of liability insurance. The IRS may disqualify the private corporations' status, which would bar physicians from the corporation's tax-free benefit plans amd deferred earnings.
The Internal Revenue Service is taking a long, hard look at double-dipping doctors who function as hospital employees, yet reap the tax benefits of owning their own corporations. In fact, [...]