I've been asked to administer an existing plan of an S-Corp. Here's the rub: its a rock and roll band. The CPA has been treating the band members as Independent Contractors.

I've been mulling this over and more and more am coming to his way of thinking. Looking for any input.

Is there a written IC contract between the corp and band members?

This may be a little off the wall, but can you have an affiliated service group? If you look at the PBGC definition of a professional service organization, it specifically includes performing artists. 414(m)(3) defines service organization as an organization the principal business of which is the performance of services. If they are professional service organizations, can they be considered as joining together to provide services to third parties (the listening public)? Anybody else have some thoughts?

Also need to know WHO are the shareholders of the S Corp., and if the band members, how much do they own. Offhand, I would definitely say ASG if the band owns the S Corp.

I also have a significant problem with IC status unless the members of the band regularly perform gigs with other groups.

Remember Limberg - pigs get fat, hogs get slaughtered.