(c) For purposes of this chapter, the term “employee” includes an officer, employee, or elected official of the United States, a State, or any political subdivision thereof, or the District of Columbia, or any agency or instrumentality of any one or more of the foregoing. The term “employee” also includes an officer of a corporation.
Basically, anyone working for a private business or Corp. should not have a W-2 federal form filled out or any of their "non-taxable" earnings reported to the IRS. Private businesses are committing fraud in that they are reporting earnings to the IRS are are not taxable thus committing fraud. Now that the IRS has received these 3rd party submissions, unless they are rebutted by way of a Form 4852, the IRS will assume they are legitimate and assess a tax. Our government and the IRS are in bed together and have concocted this scheme to fleece the American people. The problem is, the American have no idea what the tax code says and that includes the CPA's and anyone involved with taxes. It's one BIG sham.