Todd McIndoo is a Vice President at Speedy - National Association ...

al for either the purchase or sale of anagency• Any other information that insultsyour sensibilities as a professional independentbusiness owner.IRS Form 3949 A can be completedonline at www.irs.gov. To access theform, enter 3949 A in the search box andclick on the “search” button. The formwill come up online, and you’ll be able tocomplete it and print it. Once you havecompleted and printed it, mail the formalong with any supporting documents tothe following address:Internal Revenue ServiceFresno, CA 93888As mentioned previously, followingthis article you will find a hypotheticalexample of IRS Form 3949 A. The responseson the sample are what we believemay represent predictable answersbased on information sent to NAPAAby agents regarding the employee-typecontrols agents are subjected to on adaily basis.This “Information Referral” form allowsindividuals to send pertinent informationto the IRS directly. If you wantto submit copies of emails, communicationsor directives that support the misclassificationof the agency force, youshould submit any documentation withIRS Form 3949 A. The process is easy;complete and print the form, attach theproof, and drop it in the mail.When should Allstate agents stop reportinginappropriate behavior by Allstatemanagers? The answer is simple – whenthe following creed becomes a reality:I Am An IndependentContractor…1. I am an independent contractorand business owner of an insuranceagency offering Allstate insurance productsto consumers in my community.2. The operation of my agency issubject only to my own professionaljudgment.3. I am free to determine the hoursof operation for my office, as well as theholiday schedule for my office.4. It is my decision to offer 24 hourservice to my customers through the AllstateCIC, or not to.5. I will produce insurance applicationsin compliance with Allstate’sguidelines, but will establish my ownbusiness practices regarding how, when,and where the work will be done.6. I am not subject to quotas or minimumproduction standards.7. I am not subject to supervision,direction, or performance reviews fromAllstate managers.8. I do not provide reports to thecompany, outside of premium remittancereports.9. I am available to meet with companymanagement from time to time ata mutually agreed place and time, butattendance of company meetings andtraining sessions are at my option.10. I may staff my agency with workersof my choosing. Allstate will providebinding authority approval subject tolicensing requirements and backgroundcheck information only. All hiring, trainingand evaluation of my staff are at mysole direction.11. I am afforded the ability to contractwith other insurance providers of mychoosing for the purpose of securing coveragewhere Allstate has refused applicationfor coverage (right of first refusal).12. Having made significant investmentto acquire prospect and lead information,all personal information andquotes prepared for prospective buyers bymy agency are the property of my agencyand may not be shared with call centersor others for any purpose.13. I own the policy renewals for accountsin my agency, and have the rightto transfer any such business to other insurancecarriers at policy renewal upontermination of my agent contract withAllstate.14. My contract with Allstate may notbe terminated by Allstate without cause,except in the event that Allstate no longeroffers insurance in my state. “Cause”is specified in my contract and not subjectto change without prior consent ofboth parties to the contract.15. As an Allstate agent in goodstanding, I am an approved buyer for thepurchase of additional Allstate agencies,or books of business.16. I am free to sell my agency withoutunreasonable interference from Allstate.No buyer may be denied approval to purchasemy agency without cause. “Cause”is specified in writing in my contract andnot subject to change without prior consentof both parties to the contract.Until then…As long as Allstate continues to wieldextensive control over the agency force,then we, as employees, will demand restorationof all the benefits enjoyed by othercompany employees, including healthinsurance, 401k plans, pensions, paidvacations, protection from age or otherforms of discrimination, workers’ comp,employer-paid Social Security, Medicare,unemployment benefits, and all otherbenefits that were misappropriated fromagents at the time of the sham conversionto IC status nearly ten years ago.In conclusion:Regardless of your political persuasion,the time for this action is now. There maynever be another time in your Allstate careerswhen you have the opportunity toachieve and preserve your independentcontractor rights. That is why it is criticalthat every Allstate agent participateby sending in the petitions from our lastmagazine, completing IRS Form 3949 A,which can be found on the next page of thismagazine, and by completing and sendingin a letter to the attorney general in yourstate, such as the sample that is included inthis issue of Exclusivefocus magazine.Remember, there is nothing to fearbecause documents such as these can besent anonymously.NAPAA has provided this article forinformational purposes only. The contentsshould not be construed as legal advice fromNAPAA or its attorneys or accountants,and NAPAA expressly disclaims any suchadvice. NAPAA recommends that agentsconsult with their professional advisorsbefore taking any action that could affecttheir tax or legal status. NAPAA encouragesagents to read IRS Notice 989, CommonlyAsked Questions When IRS DeterminesYour Work Status is “Employee.” Beaware that the consequences of reclassificationmay include tax ramifications fromprior years.26 — Exclusivefocus Winter 2009/2010