State Farm Insurance Companies have committed perjury to the IRS. This perjury allows State Farm to avoid state and federal payroll taxes on approximately $3 Billion of annual payroll and has been occuring since 1998.
State Farm has told the IRS, under penalty of perjury, its agents are independent contractors and attend meetings at their option and there are no penalties for not attending meetings. Yet State Farm terminated the contracts of 4 agents for the specific reason of not attending a mandatory meeting and still requires all of its agents to attend mandatory meetings.
By telling this lie to the IRS, among other incorrect statements to them, State Farm continues to show its agents as independent contractors (which the contract indicates the agent is supposed to be) and thus avoid the payroll taxes they would have to pay if the agent were declared an employee. State Farm also claims the ability to terminate the agent's contract at will (another indication of employee status) and requires the agent to do State Farm's bidding or suffer the consequences.
By continuing with these lies to the IRS State Farm is also able to avoid workmen's compensation as well as all of the employee benefits that would be required if State Farm told the IRS the truth.
State Farm has also been found to have breached the contract of its agents (Calif. Appellate Court, Third District, Case #C050591) in another litigation
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