IRS forcing minimum wage and site income tax charges for workampers?

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Pat

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Mar 17, 2005
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Payson AZ
I have a couple in here who workamp over there by Quartzsite.  They said the IRS is starting to force campgrounds to pay at least minimum wage and to charge income tax on the rent value of site and utilities comped to workampers.  Anybody know any websites with more precise info on this?  These folks are still confused on the issue.  They said IRS.  I don't think they meant AZ Dept Revenue.

--pat
 
I found this information on another website.  I am not sure it will be helpful or not.

http://www.rv-dreams.com/workamping-taxes.html

Paul
 
Excellent site.  Sounds like I'm safe.  Imagine turning volunteer jobs into minimum wage taxable businesses.  What next?  Soup kitchens? 

The site mentions a couple pros for volunteer workamping.  It's in the spirit of fulltiming, and it provides a sense of fulfillment.  It's what I've felt all along but didn't know how to put it into words. 

--pat
 
If you are required to live in the park as part of your job, then the value of your campsite is taxable and tax deductible, or a wash. You don't have to bother claiming it. If you are not required to live in the campground, then the value of a free campsite is taxable.

Wendy
 
Can you believe it...Fed agents tracking down Camp Hosts and their employers to make sure they're making contributions to the Federal Treasury...

I'm willing to bet the farm that the costs associated with making sure these 'hosts' are paying up, are probably OVER 10 times the amount of any 'revenue' gained!!!!

Just another example of another government entity making life more complicated for we tax paying citizens...Yeah, I know these reg's are written into law somewhere, but give me a break - camp hosts being accused as tax cheats!  And some people still can't understand why the Tea Parties are so popular these days!

Ray
 
I don't think the IRS is actually out there "tracking down camp hosts" to collect from them. Especially since camp hosts who trade work for a free campsite don't have taxable income. And I don't think I saw anything accusing camp hosts of being "tax cheats." I do suspect that there are a lot of volunteers out there who really don't know if they're getting anything taxable or not which makes the link Paul & Ann posted very helpful.

Wendy
Occasional camp host, used-to-be accountant
 
The example I heard where this happened, a retired IRS agent happened to camp in the park and collected a fee for reporting some small violations.

--pat
 
I'm guessing by chatting informally with workampers.  I'm sure there are many situations where people don't realize they're being interrogated.
 
The IRS has to AUDIT the person or business first.

They can't just show up and say they heard a rumor from some retired agent, that you might be paying less than your lawful share of taxes.
 
This isn't a new thing - it has always been the law.  Some campgrounds have strictly enforced the rules concerning minimum wage and taxes, but some private campgrounds have skated around them, either ignoring or claiming exemptions that may or may not apply. As Wendy explained, the value of the campsite is taxable, but it is also tax deductible in many situations.

If you work 9-6 in the campground store or office, it is pretty tough to claim that you are "required" to live in the campground to do the job, but many campgrounds have used that exception to justify excluding it from taxable income. It probably wouldn't hold up in an audit, though. But if any nighttime security or after normal business hours responsibilities were part of the job, it would probably be ok.

The individual workamper might be asked to provide the IRS with an official statement from the employer that they were "required to live in the campground". A cautious worker would ask for one up front rather than trying to get it when the IRS audit happens 6-18 months later. Obviously, the taxable nature of the site has a significant impact on the workamper's income, so best to know up front.  But the IRS could still deny the employers claim that you were required to live onsite, so even having the written statement is not 100% foolproof.

I think the new healthcare provisions going into effect are causing a much closer look at a lot of small businesses that in the past may have skated around some regulations. There are requirements to provide health insurance for a lot of people who may not have been covered before, and this leads to formal scrutiny by several gov't agencies.
 
Interesting issue on the healthcare. 

On the issue of requiring a workamper to be onsite, I don't think official work hours for a workamper relate to how much they're really on call.  This is a people service business.  I wouldn't dream of turning off the phone extension in my RV at night.  I've dealt with several emergencies during non-business hours.  At least one required the maintenance workamper's immediate assistance.

--pat
 
When we worked for and then volunteered for the National Park Service, we were required to live on-site so that there was an official presence in the campground at all times, also in case of emergency. So the "required to live in the campground" as a condition of employment is a pretty easy one.

Wendy
 
If "on call" is any part of the job description, then living onsite is pretty much a given. "Camp host" jobs, for example.  But many workamper jobs are not like that at all, and have regular hours and well defined responsibilities. They may not have any people responsibilities either. Mowing the grass or cleaning fireplaces, for example.

The point is that the job responsibilites (not what you volunteer to do after hours), as defined by the employer, are the determining factor.
 
It's pretty easy to justify a workamper needs to live on site whether they work full or part time. Since they are required to own and live in a motorhome, there may not be another campground around to live in, and besides, they can't very well require you to live with a competitor, for obvious conflict of interest reasons.

I haven't represented clients before the IRS in a few decades, but that is pretty much how the scene would play down.
 
Just because it is the only campground around does not mean the value of the site has to be non-taxable. It's still remuneration for the workers services. In any case, the point is that it has to be a stated requirement of the job to be available onsite.
 
I can't imagine why a campground would find it so hard to require the camper to live on site, especially if their pay is based on the fact they get a complimentary site and utilities. 

I could see the IRS backing themselves into a quick corner on this one, if they are going to insist the camper doesn't have to live on site.  It then makes it impossible for the camper to collect his compensation.  It also negates the fact that the campground even needs the camper to live anywhere near the place.

But I suppose you've done more battle with the IRS than I ever did representing clients, which thank goodness, I no longer do that thankless chore for a living anymore.

Living in an RV fulltime, doesn't automatically forgive one of taxes, but the deductions against income earned, can be fantastic. 
 
But I suppose you've done more battle with the IRS than I ever did representing clients,

Not at all - I'm just an accomplished amateur at tax regs, but the IRS pubs are fairly specific about this sort of thing. And they aren't forbidding workampers to live onsite - they just want to collect taxes on the workamper's remuneration unless it qualifies for an exception.
 
IR Publication 525 makes things pretty clear,and it benefits the  workampers.  I am quoting the publication here, because it is not copyright material.


Meals and Lodging

You do not include in your income the value of meals and lodging provided to you and your family by your employer at no charge if the following conditions are met.

The meals are:

Furnished on the business premises of your employer, and

Furnished for the convenience of your employer.

The lodging is:

Furnished on the business premises of your employer,

Furnished for the convenience of your employer, and

A condition of your employment. (You must accept it in order to be able to properly perform your duties.)
 
I am 55 years old and my wife and I are thinking of selling our house and going full time. If the government taxes us for work camp that will kill out dreams. When money gets tight and they dig deep and they keep spending and spending. They will tax everything.
 

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