Independent Contractor Tax Fairness Act of 1995

Independent Contractor Tax Fairness Act of 1995 - Amends the Internal Revenue Code to provide for determining the employment status of individuals as employees for purposes of employment taxes. Requires a written qualified agreement in order for an individual who performs services for another (the service-recipient) to not be treated as an employee and sets forth the following conditions, of which at least one must be met, for the individual to not be treated as an employee and the service-recipient to not be treated as an employer: (1) the individual can realize a profit or loss as a result of services performed for the service-recipient; (2) the individual maintains a separate principal place of business and has a significant investment in facilities or tools, which are not typically maintained by employees, used to perform services; (3) the services performed by the individual are available to the general public and the individual has performed such services other than as an employee for at least one other service-recipient during the year or the preceding calendar year; or (4) the individual is paid exclusively on a commission basis and maintains his or her principal place of business other than at the service recipient's place of business or pays fair market rental value for his or her principal place of business if such place is the service-recipient's place of business. Requires the qualified agreement to specify, among other things: (1) which services will be provided, the duration of such services, and the remuneration to be paid for such services; (2) that the service provider is aware of his or her Federal tax obligations; and (3) that the service-recipient will maintain a separate accounting of the income and expenses related to such agreement.

Codifies section 530 of the Revenue Act of 1978, with revisions.

Increases the penalty on service-recipients for failure to furnish information returns on services performed by independent contractors.

Requires the Secretary of the Treasury to propose legislation to the Congress which specifies objectively measurable criteria for determining whether an individual is an employee. Declares the intent of the Congress that such criteria allow taxpayers maximum latitude in determining employment status.

Requires the Secretary to report to the Congress on efforts being made to give taxpayers such latitude.