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April 12, 2022
2022-0605

Tax Court holds home healthcare company erred in changing classification of nurses from employees to independent contractors

In Pediatric Impressions Home Health, Inc. v. Commissioner, the Tax Court has held that a company providing at-home nursing care improperly classified 99 individuals as independent contractors for the tax years at issue. The Court also held that the company is not eligible for IRC Section 530 relief, and is liable for certain penalties and additions to tax. The company had treated the same individuals as employees for the tax years preceding those at issue and then shifted to treating them as independent contractors with no explanation or change in how the nurses worked.

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Pediatric Impressions Home Health

 

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