Fixing independent programmers’ no-win scenario

“The actions of Joe Stack, the disgruntled software developer
who committed suicide by flying his airplane into the Internet
Revenue Service building in Austin, Texas, last week, were callous,
selfish, and inexcusable. While in no way condoning his actions,
programmers may nonetheless hear a familiar ring in his frustration
with a country that seems to actively discourage self-reliance and
entrepreneurship, especially in the software industry.

“Among the litany of complaints in his articulate (if rambling)
suicide note, Stack gave special mention to Section 1706 of the
1986 Tax Reform Act, an obscure law that he claimed reduced him to
“a criminal and noncitizen slave.” Under the law, certain classes
of workers, including anyone who engages as a “computer programmer,
systems analyst, or other similarly skilled worker engaged in a
similar line of work,” are considered de facto employees for tax
purposes, regardless of whether they claim to operate their own
businesses as independent contractors. The IRS can impose
significant tax penalties on companies who hire such workers as
contractors rather than full employees, a fact that can make it
extremely difficult for self-employed programmers to find
work.”

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