Enter to open, tab to navigate, enter to select
IRS Updates Voluntary Classification Settlement Program FAQ
Practical Law Legal Update 5-515-1369 (Approx. 3 pages)
IRS Updates Voluntary Classification Settlement Program FAQ
by PLC Labor & Employment
| Published on 02 Dec 2011 • USA (National/Federal) |
The IRS updated its Frequently Asked Questions page on the Voluntary Classification Settlement Program (VCSP). The VCSP allows employers to voluntarily reclassify current non-employees as employees and is meant to increase tax compliance and improve certainty among employers, employees and the government.
The IRS recently added several more questions and answers to its Voluntary Classification Settlement Program (VCSP) Frequently Asked Questions page. The VCSP program allows employers to voluntarily and prospectively reclassify non-employee workers as employees at a lower settlement amount in exchange for restricted employment tax audit activity. In the additional questions, the IRS states that:
- It will not share data on VCSP applicants with the DOL and state agencies.
- Applying to the VCSP will not automatically open an employer to an audit.
- It will allow employers to apply to the program even after the IRS contacted the employer on an SS-8 determination letter.
For more information on the VCSP, see Legal Update, IRS Begins Voluntary Classification Settlement Program for Employers.
For more information on proper worker classification and related federal and state law issues, see Practice Note, Independent Contractor Classification.