Under the reasonable basis test, which of the following does not support a worker being treated as an independent contractor?

The reasonable basis test is used to determine whether a worker can be classified as an independent contractor rather than an employee. This classification has significant tax implications and affects the rights and benefits available to the worker.

The correct answer indicates that the "place of work" does not inherently support the classification of a worker as an independent contractor. This is because the place where the work is completed can vary widely regardless of the worker's status. For example, an independent contractor may work from a home office, on-site at a client's location, or in a designated workspace. The mere location of the work does not provide sufficient evidence to classify a worker as an independent contractor or an employee.

On the other hand, past IRS employment tax audits, published IRS rulings, and private letter rulings are all sources that can provide a reasonable basis for treating a worker as an independent contractor. These sources can demonstrate that similar positions have been classified as independent contractor status in the past, thereby reinforcing the rationale behind the classification.

Understanding this distinction is crucial as it directly impacts tax withholding, benefits entitlements, and compliance with employment laws. Thus, while the place of work is a significant factor in how work is performed, it is not a determining criterion under the reasonable basis test for