SECTION 2. SCOPE

This notice addresses only the treatment of TANF payments under certain income and employment tax provisions of the Internal Revenue Code. Because this notice is based on the “general welfare doctrine” (see section 4.01, below), which is unique to the determination of federal tax liability, this notice does not determine the treatment or effect of TANF payments (or determine whether an employment relationship exists) under any other provision of law, including the Fair Labor Standards Act and other federal and state employment laws. For purposes of the analysis set forth herein, however, it is assumed that the recipient of the TANF payments is a common law employee. This notice does not reach a determination as to whether the recipient of TANF payments is a common law employee or is selfemployed.