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How do you prevent thin wrapper organizations that just contract out “services”?


If we're hypothesizing, then the thin wrapper organizations should or would bear those same taxation and penalty costs when outsourcing and their prices would also be going up.


Not if they are based in a different country


What would be the point? If the outsourced devs are based in another country and the thin wrapper shell company selling outsourced devs as a service are based in another country, the expenses to either are likely be to reported to the IRS and State governments identically.


You don't, you get turtles all the way down the same way they avoid taxes.




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