Registries are required by the IRS to notify caregivers of their tax responsibilities and to annually issue 1099 forms which are used to report annual earnings to IRS. Per industry leaders, past IRS data demonstrates that Independent Contractors who receive a form 1099 have a 97% compliance rate. Employees who receive a W-2 have a 99% compliance rate.*
*IRS data indicates that employees who receive Forms W-2 generally report 99 percent of the income appearing on those forms. E.g., IRS National Headquarters Office of Research, Interactive Tax Gap Map for Year 2001,22-23 (Feb. 24, 2004).
With respect to Forms 1099, the Government Accountability Office testified that: Past IRS data have shown that independent contractors report 97 percent of the income that appears on information returns.