Can the IRS override an agreement that classifies a worker as an independent contractor?

The correct answer highlights that the IRS has the authority to override an agreement classifying a worker as an independent contractor if they determine that the arrangement does not meet the legal standards for independent contractor status. The IRS uses specific criteria, including behavioral control, financial control, and the relationship of the parties, to assess how a worker should be classified. If an agreement lacks sufficient evidence supporting independent contractor status based on these criteria, the IRS can reclassify the worker, potentially leading to tax implications for both the individual and the employer.

This reflects the IRS's role as a federal agency responsible for the enforcement of tax laws, which can take precedence over agreements made between private parties regarding worker classification. In essence, the classification must adhere to established legal definitions rather than simply rely on mutual agreements.