Independent broker-dealers may have to reclassify independent FA’s as “employees” if the “Taxpayer Responsibility, Accountability and Consistency Act of 2009” is passed by Congress.

Not only would this affect the livelihood of over 178, 000 registered reps, but it could lead to high costs including back taxes, penalties and interest for the independent broker-dealers. For over three decades, the reps, classified as independent contractors, have been in compliance with applicable rules and have met all required regulations of the IRS.

Read more on Will Advisors Lose Their Independent Contractor Status?…