Question

4) Under the common law test, the IRS examiners are to group the evidence they gather into three general types or "categories" Which of the following is not one of them?

A. Behavioral control
B. Financial control
C. Location of work
D. Relationship of the parties

Answer 1

In the common law test by the IRS, evidence is grouped into three categories - Behavioral control, Financial control, and Relationship of the parties, to determine a worker's employment status. Location of work is not one of these categories. Therefore, correct option is c.

Step-by-step explanation:

Under the common law test, the IRS examines evidence related to the control and independence of a worker to determine their employment status. Examiners group evidence into three categories:

• Behavioral control refers to facts that show whether there is a right to direct or control how the worker does the work.
• Financial control includes facts that show whether the business has a right to control the economic aspects of the worker’s job.
• Relationship of the parties indicates how the workers and the business perceive their interaction with one another.

The option that is not one of the categories under the common law test by the IRS is C. Location of work. This is not a category that the IRS typically examines to determine employment status under the common law rules.