Section 1706

Section 1706 of the 1986 Tax Reform Act has been the source of much discussion. What it did was remove "safe harbor" presumption from workers, i.e., computer consultants, in the "technical services" industry, thereby creating uncertainty whether one was a contactor or employee, and opening the way to abusive collection actions against anyone who engaged computer consultants, either directly or through an agency.

•   Section 1706: Background and Impacts. Summary of the situation.
•   NACCB Plenary: Impact of Section 1706. Transcript of discussion among leading computer consultants. Recorded: March 29, 2007 Mountain View, California.
•  Text of Section 1706 and Conference Committee Report. Scene of the crime.
•  Our Low-Tech Tax Code, NYT Op-ed by Harvey J SHulman, Feb. 20, 2010.
•  TechServ Alliance. Formerly NACCB. Trade association for computer consultants.