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@TiredFarmer wrote:

They said it was given when they were talking about their tax debt among each other.

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Without much context, this is how I interpret that "memo":

The client is a Statutory Employee, and should be filing as such (including Form 8919 to pay Social Security and Medicare if there is no W-2).  They employer was erroneously treating them as Independent Contractor, but they were provided "relief" from the IRS via 530 so the IRS won't retroactively make the employer fix things.  But the client is still a Statutory Employee and should be filing as such.