But some unemployment benefits are paid to people who truly were independent contractors and who probably should not be recharacterized in this way.

FORBES: 'Tis The Season For Unemployment (Benefits)

Though the District court in Watson recharacterized significant distributions as salary, it permitted Watson to withdraw significant distributions in both 2002 and 2003.

FORBES: Significance of Watson

Frequent reasons the IRS notices are not correct is that the IRA distribution is not taxable because it is an indirect rollover, a recharacterized Roth conversion, a previously taxed excess contribution or deferral, or even a correctly reported Qualified Charitable Distribution or one to a Public Safety Officer.

FORBES: IRS Notices & Letters: It's Stop the Machine Time Again