Op-Ed Contributor - ThE I.R.S. vs. Tech Workers

“The immediate effect of these audits is to force individual programmers ... to abandon their dreams of getting rich off their high-technology skills,” reported an article in The Times on Section 1706 more than a decade ago. “But the broader impact is that small businesses started by one entrepreneur do not have a chance to grow into mighty enterprises that can create jobs and generate more taxes.”

I agree that this is a terrible law, both in its enactment (special treatment for IBM at our expense) and its results.

However, what's to prevent an individual from selling a product or service, growing that business into a multi-partner/employee business, and then if they want, contracting out? Their contracting focus could be related to their base business, or just raw general talent.