Assignment Instructions:

1. The IRS Investigator's Question: You are the IRS Investigator writing a brief in memo format for your manager, the IRS District Director. You must answer the question: Is Sofie an employee or an independent contractor?
2. Draft a brief in memo format, using the fact scenario below
3. Structure your brief by using the GIRAC method to identify and describe the Goal, Issue, Application of the Facts, Rule, Conclusion.
4. Best Practices: After analyzing the scenario with the GIRAC method, take your advice to the next level. Include a section in your brief that answers the question: What best practices did or should Millicent undertake to minimize the company's legal risk?

Analysis-GIRAC Method:

• Goal of your client: Identify your client or audience and his/her goal or question
• Issue/Problem: Identify the issue(s) or problem(s) that your client is experiencing
• Rule: Cite the applicable case law, statutes, or common law
• Analysis (Apply the facts to the rule): Summarize how the rule applies to the specific facts in the scenario
• Conclusion: State your opinion as to whether your client is likely to accomplish his/her goal

Fine Print: In your brief,

• Cite at least 1 case and 1 other source.
• Use Headings- they provide structure to your brief and help you ensure that you cover each of the required elements;

Fact Scenario- Independent Contractor versus Employee

Millicent's House of Fashion is having a crisis caused by a new, aggressive competitor's entry into the market. Millicent's hires Sofie who has training and experience in merchandising campaigns in the fashion industry.

At Sofie's interview, Elise, Millicent's Vice President of Merchandising tells her:

• I don't care how you do the job; I just want you to be sure it gets done
• Elise then turns her over to Alfonso, the Merchandising Director, who informs her that she will be an independent contractor, and the company will not deduct the normal payroll deductions from her compensation.

Alfonso gives Sofie the following list of instructions:

• Report for work at 8:00 a.m. each morning and work on premises until 5:00 p.m.
• Call into Alfonso's assistance when you are going to be late or absent from work.
• Submit a weekly work plan for approval to Alfonso each Friday for the following week.
• Review comments by Alfonso on the weekly work plan on Mondays, and follow any revisions in the plan.
• Submit a written report of work performed and results accomplished monthly to Alfonso for review and approval.
• Requests for overtime shall be submitted to Alfonso in advance for approval.
• Comply with all company rules in the Millicent's Enterprises Employees Handbook.

After six months an IRS investigation questions whether Sofie is an independent contractor or an employee

file:///C:/Users/binta/Downloads/ACC%2020-factor%20test-Independent%20Contractor%20Determination-1.pdf

file:///C:/Users/binta/Downloads/20%20factor%20test-Worker%20Classification%20Memo.pdf