7.50.1 Form SS-8 Processing Handbook

Manual Transmittal

August 19, 2016

Purpose

(1) This transmits revised IRM 7.50.1, Form SS-8 Worker Classification Determinations, Form SS-8 Processing Handbook.

Background

IRM 7.50.1, Form SS-8 Worker Classification Determinations, Form SS-8 Processing Handbook, provides guidance for processing Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, submitted by a firm or worker requesting a determination of worker status for federal employment taxes and income tax withholding.

Material Changes

(1) Various editorial changes have been made throughout this IRM.

(2) IPU 15U0665 issued 04-09-2015 IRM 7.50.1.5.12 - Added language for a no reply and a reply to Letter 5367 mailed to the firm.

(3) IPU 15U0767 issued 04-27-2015 IRM 7.50.1.2 - Added language for SS8ICP database reports will include a Personally Identifiable Information (PII) banner.

(4) IPU 15U1380 issued 09-03-2015 New flags added to Exhibit 7.50.1-17

(5) Added IRM 7.50.1.7.2, Protective Claims Liaison Report.

(6) Added IRM 7.50.1.9.4.5, Processing Expedited Protective Claims Cases.

(7) Added Exhibit 7.50.1-25, Protective Claims Liaison Report Quarterly Dates.

(8) Subsection 7.50.1.6, Placeholder for Reading Room Overview, Exhibit 7.50.1-1, Placeholder for Index (UILC#) Number, and Exhibit 7.50.1-2 , Placeholder for IRS.gov Landing Page for Form 14430-A, have been removed.

Effect on Other Documents

. This IRM supersedes IRM 7.50.1 dated November 3, 2014.

Audience

Employees in the Brookhaven Campus and all other employees dealing with Form SS-8.

Effective Date

(08-19-2016)

John D. Caggiano,
Acting Director, Examination Field and Campus Policy

Overview

  1. IRM 7.50.1, Form SS-8 Processing Handbook, is to provide procedures to Brookhaven Campus employees who are responsible for handling determinations of employee-independent contractor status when Form SS-8 is filed with the Service.

  2. The SS-8 program is under the jurisdiction of the Small Business/Self-Employed (SB/SE) Division. Operations fall under the responsibility of the Director, Campus Examination, with Examination Field and Campus Policy providing oversight to the SS-8 processing IRM. Employment Tax Policy, under the Director, Specialty Examination Policy , has a role in providing guidance and direction on the interpretation and application of employment tax laws and processes, when necessary.

Scope of the SS-8 Program

  1. The SS-8 program issues determination letters to firms and workers on the proper classification of a worker for purposes of federal employment taxes and income tax withholding. An SS-8 technician applies the law to the facts and circumstances submitted with Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, to determine whether the worker is performing services as an employee or independent contractor. See IRM 4.23.2.5, SS-8 Program , for more information. Determination letters are binding on the Service based on the facts presented. Once a determination letter is issued, it may be modified or revoked for various reasons. Additionally, the SS-8 program may issue an information letter when the taxpayer's request for a determination letter is not in the best interests of tax administration. The information letter is advisory only and has no binding effect on the Service. The SS-8 program may also issue a courtesy letter instead of a determination letter in circumstances that meet certain criteria to assist a worker in meeting personal tax filing requirements. The conclusion in a courtesy letter is binding on the Service based on the facts presented.

  2. The SS-8 program handles all requests, other than requests involving federal agencies, submitted on Form SS-8 for the entire United States and its Possessions. The rules for determining worker status in the U.S. Possessions are the same rules for determining worker status in the United States. Determination requests for federal agencies are handled by the Associate Chief Counsel (Tax Exempt and Government Entities) in Washington, D.C., and are not part of this manual section. See IRM 4.23.2.6, Coordination Between the Operating Divisions, for more information.

    Note:

    Form SS-8 determination requests for federal agencies that are received by the SS-8 program are mailed to the following address:
    Internal Revenue Service
    Attn.: CC: TEGE
    Ben Franklin Station
    P.O. Box 7604
    Washington, DC 20044

  3. All SS-8 requests are processed by the Exam Field Support Operation located at the Brookhaven Campus.

  4. SS-8 determinations relate to IRC Title 26 Subtitle C-Employment Taxes, and include taxes under Chapter 21, Federal Insurance Contributions Act (FICA), Chapter 22, Railroad Retirement Tax Act (RRTA), Chapter 23, Federal Unemployment Tax Act (FUTA), and Chapter 24, Federal Income Tax Withholding.

  5. The first annual revenue procedure provides procedures for issuing rulings, determination letters, and information letters. See Rev. Proc. 2013–1 for more information.

  6. SS-8 program determinations may affect Wage and Investment Division (W&I), Small Business/Self Employed Division (SB/SE), Large Business and International Division (LB&I), and Tax Exempt and Government Entities Division (TE/GE) taxpayers.

SS-8 Integrated Case Processing Database

  1. The SS-8 program uses the SS-8 Integrated Case Processing (SS8ICP) database to maintain electronic case files and track various actions on a case. The SS8ICP database assigns each case a unique identification number (ID) that stores and maintains various items including the following:

    • Taxpayer names, Taxpayer Identification Numbers (TINs), addresses, and telephone numbers

    • Tax years involved in the case

    • Job title

    • Name of assigned SS-8 technician

    • Case status

    • "Flags" that describe the case

    • End result of each case

  2. The SS8ICP database has the ability to attach certain documents to a specific case file including:

    • Contact memorandums

    • Case notes

    • Letters used to process the case

    • Certain commonly used IRS forms

  3. A physical case file should only contain the original documents submitted by the taxpayer, and any relevant research prints completed by the SS-8 technicians.

  4. Information reports extracted from the SS8ICP database show trends on:

    • Worker classification

    • SS-8 program accomplishments

  5. The SS8ICP User Guide (Rev. 03-2009) is available locally to assist with the functionality of the SS8ICP database.

  6. The SS-8 program uses status codes to show steps taken when processing a case. Status codes assist in determining who has control of the case, and how it is progressing through the process. See Exhibit 7.50.1-2, SS-8 Status Codes, for more information.

  7. Case flags provide general information about a case. Examples: who requested the determination, or if a party has a valid Form 2848 , Power of Attorney and Declaration of Representative (POA) on file. See Exhibit 7.50.1-3 , SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

    Note:

    For cases started after October 1, 2014, see Exhibit 7.50.1-15 , SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

    .

  8. Each SS-8 case has a result that indicates the type of employment in question. Results are tracked in the SS8ICP database and are shown in SS-8 Case Findings. See Exhibit 7.50.1-4 , Form SS-8 Case Findings, for more information.

  9. The SS8ICP database provides three formats to record case activity and developments. The following are considered the work papers for an SS-8 case:

    • Activity log

    • Contact memo

    • Case notes

  10. Work papers support the case determination. The work papers document the procedures applied, information reviewed, and conclusions reached. Work papers summarize case findings in a clear and understandable manner. Work papers should be thorough, but only include relevant information, without any personal comments or opinions.

  11. The SS8ICP activity log documents the activities and delays encountered during case development. The activity log shows actions taken on the case, regardless of who takes them, as follows:

    • Research performed. Examples: Westlaw, Lexis, or IDRS.

    • Communication with taxpayers and other parties related to the case.

    • References to other case documentation.

    • References to related cases.

    • Letter and document preparation.

    • Other actions taken by the SS-8 technician.

  12. SS-8 technicians use contact memos to document all telephone conversations and discussions about the case. Contact memos should cover all points in sufficient detail to clarify the discussion, but need not be a word-for-word transcript of the conversation.

    Note:

    If the first direct contact is a phone call with the taxpayer, the SS-8 technician must verify that the taxpayer has received the technician's name, telephone number, and badge number. After this is verified, the SS-8 technician will record this in the SS8ICP case activity log.

  13. The case notes should contain documentation of the technical analysis, as well as general information specific to the case. Case notes should include, but are not limited to, the following, if applicable:

    • Analysis of any Form SS-8 issue.

    • IDRS Research. See Exhibit 7.50.1-5 , Form SS-8 Case Research for Firms, for research on firms. See Exhibit 7.50.1-6 , Form SS-8 Case Research for Workers, for research on workers.

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • Freeze codes relevant to the SS-8 case. See Exhibit 7.50.1-7 , Freeze Codes, for additional information.

    • Analysis of the three evidentiary areas or a discussion of statutory law, whichever is applicable.

    • Description of areas needing additional development.

    • Description of research done and its relevance to the case.

    • Determination and its basis. Example: Explain how the SS-8 technician reached the conclusion under common law, statute, or both.

    • Recommendation for possible referral. See IRM 7.50.1.8.5 , Referrals, for more information.

    • Notation of whether any fraud indicators were identified, what they are, and a description for each item. See Exhibit 7.50.1-10 , Fraud Checklist, for more information.

  14. The following reports are obtained from the SS8ICP database:

    • Federal, State, and Local Government (FSLG) Closed Case List Report.

    • Integrated Production Model Data Store (IPM DS).

    • Any other reports that are obtained from the SS8ICP database.

    Note:

    All SS8ICP database reports must contain the following banner header as of April 10, 2015:"This Report Contains Personally Identifiable Information (PII)."

SS-8 Program New Documents Processing

  1. The SS-8 clerical staff processes various documents received by the SS-8 program. Based on incoming volumes, all documents are date stamped and batched in blocks of up to 25 documents.

  2. Prior to batching the mail in blocks of up to 25 documents, the clerical staff will process the following documents:

    • Forward AUR cases to appropriate SS-8 team. See IRM 7.50.1.8.4.1 , Processing Expedited Automated Underreporter (AUR) Cases, for more information.

    • Forward live documents that need further processing. Examples include: Form 1040, U.S. Individual Income Tax Return, Form 1040-X, Amended U.S. Individual Income Tax Return, or Form 8919, Uncollected Social Security and Medicare Tax on Wages.

    • Forward mail addressed to SS-8 technicians. See IRM 7.50.1.3.2, Processing Correspondence, for more information.

    • Forward misrouted mail. See IRM 7.50.1.3.3, Misrouted Mail, for more information.

    • Research and forward protective claims.

    • Validate POA's. See IRM 7.50.1.4.1, Verify and Enter Case Data to the SS8ICP Database , for more information.

New Form SS-8 Receipts: First Read Screening Process

  1. The first read screening process was developed to allow the SS-8 program clerical staff to quickly and effectively return documents to the originator, when information is incomplete on Form SS-8, or sent to the SS-8 program in error.

  2. The SS-8 clerical staff screens new Form SS-8 receipts to ensure the documents are complete, accurate, and meet the SS-8 program criteria. The SS-8 clerical staff sorts the Form SS-8 receipts into one of the following categories:

    • Processed

    • Returned to Requester

    • Referred to SS-8 Technician

  3. Processed. Processed Form SS-8 receipts are accurate, complete, and meet the SS-8 program criteria.

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. Returned to Requester for Incomplete Information.Form SS-8 receipts are returned to the requester when the Forms SS-8 are incomplete because they do not meet one or more of the following SS-8 program criteria:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    7. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  5. Returned to the Requester for Cause.Form SS-8 receipts are also returned to the requester when the Forms SS-8 state the following:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  6. Referred to SS-8 Technician. When a Form SS-8 is submitted that meets specific criteria, it is referred to an SS-8 technician for a review to determine acceptability. Forms SS-8 that meet one or more of the following specific criteria will be referred:

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    6. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  7. SS-8 technicians should screen Forms SS-8 on the date received, and return them to the clerical staff with a decision whether to accept or reject the SS-8 request. This decision should be entered on the SS8ICP database activity log.

    Note:

    SS-8 technicians will annotate the SS8ICP database activity log with details of all contacts made with either the firm or the worker.

  8. SS-8 technicians will call the requester when a Form SS-8 is referred under Paragraph 6(e) above to obtain the missing information, or explain why a determination cannot be made. The technician will document this call in the SS8ICP activity log

  9. The clerical staff will refer to the table below to take the appropriate actions on the new Form SS-8 receipts based on each category.

    If ... Then ...
    Processed
    1. Review Integrated Data Retrieval System (IDRS) to verify worker or firm information is valid and correct.

      Note:

      If the information cannot be verified, the clerk will refer the case to an SS-8 technician for additional IDRS research. If the TIN cannot be verified, the Form SS-8 must be returned to the submitter.

    2. Enter Form SS-8 case data to the SS8ICP database using standard guidelines found in the SS8ICP User Guide.

    Returned to Requester
    1. Using the SS8ICP User Guide, enter Form SS-8 into the SS8ICP database with the following information only:

      • Firm name and EIN

      • Worker name and SSN

        Note:

        If the SSN listed on the Form SS-8 does not match IDRS research and this has been verified by the SS-8 technician, the SSN listed on Form SS-8 will be entered in the SS8ICP database with an "*" at the end of the SSN.

      • Submitter's address

    2. Prepare and mail Letter 4949, SS-8 Return Letter, or Letter 4949 (SP), SS-8 Return Letter (Spanish), with the original Form SS-8 and any attached documents.

      Note:

      For cases where the SSN listed on Form SS-8 does not match IDRS research, the Letter 4949, SS-8 Return Letter , will have the following or similar language in the Other box: "The Social Security Number submitted on Form SS-8 and on Form 1099-MISC do not appear to belong to you. A determination will not be made on the Form SS-8 request." A copy of the Form SS-8 and any attachments will be given to the SS-8 lead or manager. The SS-8 lead or manager will forward all documents to SS-8 Classification.

    3. Input applicable case flags in the SS8ICP database. See Exhibit 7.50.1-3 , SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for additional information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15 , SS-8 Case Flags For SS8ICP Database After October 1, 2014, for more information

      .

    4. Close case to "Z" status on the SS8ICP database with an "undetermined" finding. See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

    Referred to SS-8 Technician
    1. Take actions as stated above for Processed or Returned categories based on the SS-8 technician's decision.

      Note:

      The SS-8 technician will use the second screening process to aid in determining the Form SS-8 is properly prepared. See IRM 7.50.1.5, Second Screening Process , for more information

      .

Processing Correspondence

  1. Incoming correspondence, including faxes, may come from various sources. Examples include:

    1. Response from firm or worker with a completed Form SS-8.

    2. Response from firm or worker with additional information about the case.

    3. Response from firm or worker to a request for additional information.

    4. Response from firm or worker to Notice 441 , Notice of Intention to Disclose.

    5. Resubmission of a previously rejected Form SS-8.

    6. Response from firm or worker for a reconsideration of a prior determination.

    7. Request to rescind Form SS-8 determination case.

    8. Response from firm reclassifying a worker as an employee (Firm Complies).

  2. The SS-8 clerical staff will screen the incoming correspondence to determine the type of action to take based on the table below.

    If ... Then ...
    Response from firm or worker with completed Form SS-8.
    1. Associate response with case file.

    2. Update the SS8ICP database activity log indicating a response was received.

    3. If expedited case, remove Purge Date (PD) from the SS8ICP database. See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

    4. Update case to next status on the SS8ICP database, if applicable. See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

    Response from firm or worker with additional information about the case.
    1. Update the SS8ICP database activity log indicating response received.

    2. Forward response to assigned SS-8 technician, or if case is not assigned, place correspondence in case file.

      Note:

      Responses of this type must be processed within 3 days of receipt.

    Response from firm or worker to request for additional information.
    1. Update the SS8ICP database activity log indicating a response was received.

    2. Forward response to assigned SS-8 technician.

    Response from firm or worker to Notice 441, Notice of Intention to Disclose.
    1. Update the SS8ICP database activity log indicating a response was received.

    2. Forward response to assigned SS-8 technician.

    Resubmission of a previously rejected Form SS-8 .
    1. If all requested information is now included, process the Form SS-8. See IRM 7.50.1.4, Accepted Case Processing ("Processed" ) and IRM 7.50.1.4.1, Verify and Enter Case Data to the SS8ICP Database, for more information.

    2. If information is still missing, refer resubmission to a SS-8 technician for review to determine acceptability.

    3. Accept or return case based on the SS-8 technician's decision.

    4. Update the SS8ICP database activity log with actions taken.

    5. Update the SS8ICP database for the appropriate status code. See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

    Response from firm or worker for a reconsideration of a prior determination.
    1. Update the SS8ICP database activity log "on the original case " indicating a request was received.

    2. Add Reconsideration (R) flag to the case on the SS8ICP database. See Exhibit 7.50.1-3, SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for additional information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15 , SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

      .

    3. Assign for second screening.. See IRM 7.50.1.5, Second Screening Process, for more information.

    Request to rescind Form SS-8 determination case.

    Note:

    The requester is the only person who can rescind a determination request.

    1. Retrieve case from files.

    2. Close case on the SS8ICP database to "Z" status with "undetermined" finding. See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

    3. Add Request Rescinded (RR) flag to case on the SS8ICP database. See Exhibit 7.50.1-3 , SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15 , SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

      .

    4. Update the SS8ICP database activity log of actions taken.

    5. If the other party to the Form SS-8 was contacted, prepare and mail Letter 5236, Rescind Request for Determination, or Letter 5236 (SP) , Rescind Request for Determination (Spanish), to inform them the case has been closed.

    6. Prepare and mail Letter 5236, Rescind Request for Determination, or Letter 5236 (SP), Rescind Request for Determination (Spanish) to the submitter of Form SS-8 granting the rescind request.

    Response from firm reclassifying a worker as an employee (Firm Complies).
    1. Retrieve case from files.

    2. Close case on the SS8ICP database to "Z" status with "undetermined" finding. See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

    3. Add Firm Compliance (FC) flag to case on the SS8ICP database. See Exhibit 7.50.1-3 ,SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15 , SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

      .

    4. Update the SS8ICP database activity log of actions taken.

    5. Prepare and mail the internal Firm Compliance--Worker Letter to inform the worker the case has been closed. See Exhibit 7.50.1-17 , Internal Firm Compliance--Worker Letter Language, for more information.

    6. Prepare and mail the internal Firm Compliance--Firm Letter to inform the firm the case has been closed. See Exhibit 7.50.1-18 , Internal Firm Compliance--Firm Letter Language, for more information.

    .

Misrouted Mail

  1. At times, the SS-8 clerical staff will identify incoming receipts that are internally or externally misrouted to the SS-8 program. When these receipts are identified as misrouted mail, the clerk will take the following actions:

    1. Research available IRMs or applications to identify the correct recipient. Examples of applications are: IDRS, SERP, and IRS Intranet.

    2. Forward misrouted mail to the recipient using the SERP Mail Routing Guides. See http://serp.enterprise.irs.gov/databases/local-sites-other.dr/local.dr/mrg.dr/mrg_all_campus.htm, SERP Campus Mailing Addresses , for more information.

Accepted Case Processing ("Processed" )

  1. The following actions are taken on an accepted Form SS-8 to prepare it for processing:

    1. Verify and enter case data to the SS8ICP database.

    2. Set up the physical Form SS-8 case file.

    3. Complete second screening process.

Verify and Enter Case Data to the SS8ICP Database

  1. The SS-8 clerical staff will take the following actions to verify the accepted Form SS-8 case data, and will enter the information into the SS8ICP database.

    1. Research IDRS to verify the name, address, and the Taxpayer Identification Numbers (TINs) of the parties involved in the case, as well as other data.

      Note:

      Use the most current address for the requester from Form SS-8 or IDRS research.

      Note:

      Refer case to an SS-8 technician for additional research if taxpayer information cannot be verified. The SS-8 technician needs to review the TIN to see if a simple error has occurred (transposed number, one digit off, etc.). The SS-8 technician should call the submitter to clear this type of error.

      Note:

      If the SS-8 technician is unable to resolve the TIN as stated in the above note, the SS-8 technician will return the Form SS-8 to the submitter if the TIN on the form or payer document cannot be verified per the Return to Requester procedures. See IRM 7.50.1.3.1, New Form SS-8 Receipts: First Read Screening Process, for more information. SS-8 technicians will document all research completed in the SS8ICP database activity log.

    2. Validate Power of Attorney (POA) forms.

      Note:

      Ensure this form includes "Form SS-8" in the Tax Form Number section, and all years involved with the Form SS-8 in the Year(s) or Period(s) section of the POA form.

      Note:

      For more information on validating POA forms, see IRM 21.3.7.5.1, Essential Elements for Form 2848 and Form 8821, for more information.

    3. Complete the new case set up on the SS8ICP database using the guidelines in the SS8ICP User Guide.

    4. Update the SS8ICP database activity log with all actions taken.

    5. Input the appropriate flags and update the case status to "H" , Hold. See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

    6. Assemble the physical case file using the "Form SS-8 Physical Case File Assembly" as in IRM 7.50.1.4.2, Form SS-8 Physical Case File Assembly, below.

Form SS-8 Physical Case File Assembly

  1. The SS-8 clerical staff will place the accepted Form SS-8 and related case documents in a colored folder assigned by the month that corresponds to the Form SS-8 received date. The assigned colored folders are shown in the table below.

    Month Case Received Folder Color Month Case Received Folder Color
    January Blue July Pale Blue
    February Red August Pink
    March Green September Pale Green
    April Orange October Pale Orange
    May Yellow November Pale Yellow
    June Purple December Lavender
  2. The SS-8 clerk will prepare the case folder as follows:

    1. Place the ED/Z (Earliest Received Date/Closing Date) stamp on the outside right of the folder.

    2. Write the SS-8 case number on the top tab on the right side of folder, and down the right side of the folder.

  3. The SS-8 clerk will attach a physical activity record to the inside left of the folder. This document includes prompts for actions including, but not limited to:

    • Tax years involved

    • ED date

    • Letter mail out dates

  4. The SS-8 clerk will place applicable documents in the folder. Examples are:

    • IDRS prints

    • Other research performed

    • IRS correspondence

    • Worker correspondence and documentation submitted

    • Firm correspondence and documentation submitted

    • Closing letters and documents

    • Valid POA forms

Second Screening Process

  1. With the development of various guidelines for Form SS-8 cases meeting specific criteria, SS-8 technicians will perform a second screening on "processed" cases and will separate them into the categories listed below.

    • Streamline Process

    • Related Cases

    • Open Audit, Appeals, or Criminal Investigation (CI) Cases

    • Misclassification of Employment or Wage Cases

    • Government Entities

    • Three Party Arrangements

    • Home Care Service Workers

    • Professional Employer Organizations (PEO)

    • Prospective Employment Status Requests (Workers not yet hired)

    • Reconsiderations. See IRM 7.50.1.5.13.1, Requests for Reconsideration , for additional information.

    • Full Determination Cases

  2. SS-8 technicians will complete the Second Screening Checklist sheet for the above categories. See Exhibit 7.50.1-16 , Second Screening Checklist, for more information.

  3. SS-8 technicians will use the specific guidelines described below to process each case.

    Note:

    The SS-8 technician can call the requester to resolve or clarify issues on Form SS-8 .

Streamline Processing Overview

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    • ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Streamline Processing Guidelines
  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. ≡ ≡ ≡ ≡ "≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. ≡ ≡ ≡ ≡ ≡ "≡ ≡ ≡ " ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    5. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    Note:

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡

Related Cases

  1. A Form SS-8 case is considered to be a related case when:

    • The same worker is making determination requests for multiple firms.

    • A previous SS-8 determination was issued to the firm for the same class of workers.

    • The firm had a prior Employment Tax audit.

      Note:

      This note is for bullets two and three above only. If the determination request is submitted by the worker, no contact is made to the firm on cases received after October 1, 2013, meeting the related case criteria. Cases received prior to October 1, 2013, are included in the related case criteria if the firm did not respond to the information request, or if the request was returned as undeliverable.

    • Multiple workers are requesting determinations for the same firm.

Processing Form SS-8 Cases when a Previous SS-8 Determination was Made on a Class of Worker
  1. When a worker submits Form SS-8 for an occupation for a specific firm, and the SS-8 program has already issued a determination letter with regard to that occupation for the firm, the SS-8 technician will compare the cases to determine whether the facts are the same (even if for different years).

    Note:

    This includes submitted requests for additional years concerning a previous request that can be worked as a related case.

  2. Based on the above comparison, the SS-8 technician will refer to the table below to process the case.

    If ... And ... Then ...
    The facts are the same or similar. The determination is an employee. Update the SS8ICP activity log to document the related case findings.
    1. Prepare Form 14430, SS-8 Determination Analysis, with analysis of the facts and circumstances that led to the employee determination.

    2. Prepare and mail Letter 4991, SS-8 Employee Determination, or Letter 4991 (SP), SS-8 Employee Determination, and Form 14430, SS-8 Determination Analysis, to the worker.

    3. Prepare and mail Letter 4991-A, Notice to Firm - Determination Employee, or Letter 4991-A(SP) , Notice to Firm - Determination Letter (Spanish), and Form 14430, SS-8 Determination Analysis, to the firm.

    4. Close case to status "Z" on the SS8ICP database using the related cases findings (employee). See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

    5. Input Related Case (RC) flag on the SS8ICP database. See Exhibit 7.50.1-3 , SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15 , SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

      .

    6. Update the SS8ICP database activity log with all actions taken.

    The facts are the same or similar. The determination is an Independent Contractor (IC).
    1. Update the SS8ICP activity log to document the related case findings.

    2. Prepare Form 14430, SS-8 Determination Analysis , with analysis of facts and circumstances that led to IC determination.

    3. Prepare and mail Letter 5246, Contractor Determination - Worker, and Form 14430, SS-8 Determination Analysis, to the worker.

    4. Prepare and send Letter 5246–A, Contractor Determination - Firm , and Form 14430, SS-8 Determination Analysis, to the firm.

    5. Close case to status "Z" on the SS8ICP database using the related case findings (IC). See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

    6. Input RC flag on the SS8ICP database. See Exhibit 7.50.1-3 , SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15 , SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

      .

    7. Update the SS8ICP database activity log with all actions taken.

    Facts are not the same or similar. Follow guidelines for processing a full determination case. See IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases, for more information.
Processing Form SS-8 Cases with Prior Employment Tax Audits
  1. While reviewing IDRS CC BMFOLZ, SS-8 technicians may identify a prior employment tax audit was performed on the firm involved in the SS-8 case.

  2. When an employment tax audit is identified, the SS-8 technician must attempt to obtain the written results of the audit by requesting the return and audit results from files.

    Note:

    Use CC ESTAB when requesting the return and audit results from files.

  3. SS-8 technicians will refer to the table below to process a Form SS-8 with a prior employment tax audit.

    If ... And ... Then ...
    Audit results are secured and worker classification issue was addressed. Facts are the same or similar for the same worker classification as entered on the Form SS-8.
    1. Uphold worker classification decision made by employment tax audit.

    2. Prepare and mail a letter to the worker and to the firm of prior results that applied to their case using the language prepared in Exhibit 7.50.1-12 , Letter Language When Processing Form SS-8 Cases With Prior Employment Tax Audits.

    3. Summarize the similar facts from the audit results that led to the determination into the SS8ICP database activity log.

    4. Maintain a copy of the workpapers addressing the worker classification issue.

      Note:

      If possible, load and attach copies of the appropriate workpapers in the electronic case file on the SS8ICP database.

    5. Update the SS8ICP database activity log with all actions taken.

    6. Close case to "Z" status using the findings from the prior case. See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

    7. Add applicable case flags to the case on the SS8ICP database. See Exhibit 7.50.1-3 , SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15 , SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

      .

    Audit results are secured and the worker classification issue was addressed. Facts are not the same or it’s a similar worker classification as entered on the Form SS-8 .
    1. Maintain a copy of the workpapers addressing the worker classification issue.

    2. Summarize the difference into the SS8ICP database activity log.

    3. Update the SS8ICP database activity log with all actions taken.

    4. Follow guidelines for processing a full determination case. See IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases, for more information.

    Audit results are secured but the worker classification issue was not addressed.
    1. Maintain a copy of the workpapers showing that the worker classification issue was not addressed.

    2. Update the SS8ICP database activity log with all actions taken.

    3. Follow guidelines for processing a full determination case. See IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases, for more information.

    Audit results could not be secured, but IDRS research indicates the worker classification issue was addressed.

    Note:

    Worker classification issue will be indicated on IDRS with Transaction Code (TC) 424 and worker classification project code 0975.

    1. Update the SS8ICP database activity log with all actions taken.

    2. Follow guidelines for processing a full determination case. See IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases, for more information.

    Audit results could not be secured and there is no indication the worker classification issue was addressed.
    1. Follow guidelines for processing a full determination case. See IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases, for more information.

Processing Related Cases (Multiple Workers or Multiple Firms)
  1. Based on the type of request, the SS-8 program will process the case using the procedures listed in the table below.

    If ... Then ...
    Request by worker is for multiple firms and each firm is for a separate and distinct work relationship.

    Note:

    A separate Form SS-8 must be included for each firm. If only one Form SS-8 is included, then only work the case for that firm.

    1. Create case files for each firm but work case as a package using Master Case File Method.

      Note:

      Master File Case Method: create one case file that incorporates a list of firms including TINs and all case development information involved in the case.

    2. If only one Form SS-8 is included, process the case for the firm listed in the top left of Form SS-8. Prepare and mail Letter 3891, Acknowledgement Letter, notifying taxpayer which case will be processed.

      Note:

      The SS-8 technician can notify taxpayer in this letter to submit a separate Form SS-8 for each firm.

    3. Follow guidelines for processing a full determination case. See IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases, for more information.

    Request by worker on one firm, using multiple TINs to pay the worker when only one work relationship exists.

    Note:

    Case review reflects that in some situations, an entity may use more than one EIN. Example: John Smith Construction and John Smith Plumbing has two different EINs, and the worker provides services to both or John Smith.

    1. Create a single case file using the most recent TIN of the firm.

    2. Update the SS8ICP database activity log with all TINs used by the firm.

    3. Follow guidelines for processing a full determination case. See IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases, for more information.

    Request by worker when the firm has been involved in an acquisition or merger, and the worker receives a Form 1099-MISC from the old firm and the new firm.
    1. Create a new case under the new firm.

    2. Process case using streamline criteria, if applicable. See IRM 7.50.1.5.1, Streamline Processing Overview, for more information.

    3. If case does not meet streamline criteria, follow guidelines for processing a full determination case. See IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases, for more information.

    Request by worker when the firm has been involved in an acquisition or merger, and the worker receives a Form W-2 from the old firm and a Form 1099-MISC from the new firm.
    1. Create a new case under the new firm.

    2. Process case using streamline criteria, if applicable. See IRM 7.50.1.5.1, Streamline Processing Overview, for more information.

    3. If case does not meet streamline criteria, follow guidelines for processing a full determination case. See IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases, for more information.

    Request by worker when the firm has been involved in an acquisition or merger, and the worker receives a Form 1099-MISC from the old firm and a Form W-2 from the new firm.
    1. Create a new case under the old firm.

    2. Since the old firm no longer in business, process case following streamline criteria. See IRM 7.50.1.5.1, Streamline Processing Overview, for more information.

    Requests by firms that include multiple classes of workers.
    1. Create one case file per class of worker.

    2. Secure a list of workers from the firm, if necessary.

    3. Issue a request for information to workers.

      Note:

      Contact should not be made to more than 10 workers for all classes involved with this determination.

    4. Create and maintain one list of workers for each class.

    5. Follow guidelines for processing a full determination case. See IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases, for more information.

Processing Form SS-8 Cases with Open Audit, Appeals, or Criminal Investigation Involvement

  1. SS-8 technicians will review IDRS to identify if freeze codes are present on the worker or the firm account. A freeze code may indicate there is an open audit, the case is in Appeals, or there is Criminal Investigation (CI) involvement in the case. Relevant freeze codes are as follows:

    • -L: Audit Indicator (Status Code 10 or Higher)

    • -W: Litigation Pending (Handled by Appeals)

    • Z-, -Z, or -T : Criminal Investigation

  2. The SS-8 technician will contact the appropriate area to determine whether the worker classification issue is being addressed. Contacts can be found by using the contact link on SERP under the Who/Where tab at http://serp.enterprise.irs.gov/homepage.html, Welcome to SERP, SERP WHO/WHERE TAB.

    Note:

    Contact should be made by the SS-8 case worker, if the freeze code is discovered after the second screening is completed.

  3. If an open audit, Appeals, or Criminal Investigation involvement exists, the SS-8 technician will refer to table below to process the case.

    If ... Then ...
    Open Audit (-L Freeze). Follow guidelines in IRM 4.23.18, Coordinating Worker Classification Determinations Between SS-8 Program and Exam, to process the case.
    Appeals Involvement (-L or -W Freeze).
    1. Contact Appeals to determine whether worker classification issue for the same class of worker is being addressed.

      1. If yes, go to Paragraph 2.

      2. If no, work the case.

    2. Prepare and mail Letter 3865, Closing Letter, to the worker, or a letter to the firm with the language shown in Exhibit 7.50.1-13 , Letter Language When Processing Form SS-8 Cases With Appeals or Criminal Investigation Involvement.

    3. Suspend case on the SS8ICP database to status "DC" . See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

    4. Prepare a Memorandum to Appeals that includes all relevant information. See Exhibit 7.50.1-11 , Memorandum Language When Transferring Form SS-8 to Appeals or Criminal Investigation, for more information.

    5. Input District Office (DO) flag in the SS8ICP database. See Exhibit 7.50.1-3 , SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15 , SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

      .

    6. Update the SS8ICP database activity log with all actions taken.

    Criminal Investigation (CI) Involvement (-T, Z-, and -Z freeze codes).

    Note:

    You must receive approval from CI before issuing any correspondence to the taxpayer.

    1. Secure approval from CI to notify taxpayer that case is out of the SS-8 program jurisdiction.

    2. If CI gives approval, prepare and mail Letter 3865, Closing Letter, or a letter to the firm with the language shown in Exhibit 7.50.1-13 , Language When Processing Form SS-8 Cases With Appeals or Criminal Investigation Involvement .

    3. Suspend case on the SS8ICP database to status "DC" . See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

    4. Prepare a Memorandum to CI that includes all relevant information. See Exhibit 7.50.1-11 , Memorandum Language When Transferring From SS-8 to Appeals or Criminal Investigation, for more information.

    5. Input District Office (DO) flag in the SS8ICP database. See Exhibit 7.50.1-3 , SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15 , SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

      .

    6. Update the SS8ICP database activity log with all actions taken.

    Note:

    Rev. Proc. 2013-1 , Section 6.01 prohibits the SS-8 program from issuing a formal determination when the worker classification issue is the subject of an open audit or is in Appeals.

  4. If the issue is not worker classification, the SS-8 technician should process the case using the appropriate guidelines.

Processing Misclassification of Employment or Wage Cases

  1. When a firm issues a worker a Form 1099-MISC (Independent Contractor) and a Form W-2 (Employee) during the same tax year, the SS-8 technician must review the case to determine whether:

    • The firm treated the worker as an employee, then changed them to an independent contractor, without a change to duties in the work relationship.

    • The firm voluntarily reclassified the worker from an independent contractor to an employee.

    • The worker performed two distinct jobs for the firm; one as an independent contractor and one as an employee.

    • The Form 1099-MISC is for a supplemental wage (SW) issue.

      Note:

      The clerical staff will return SW cases to the requester during the first read screening process. However, there are times when a SW case may not be obvious during the first read screening process.

      If ... And ... Then ...
      The firm treated the worker as an employee, then changed them to an independent contractor. There is no change to the worker's duties or the work relationship. Follow guidelines for processing a full determination case. See IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases, for more information.
      The firm treated the worker as an employee, then changed them to an independent contractor. There is a change to the worker's duties or the work relationship. Follow guidelines for processing a full determination case. See IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases, for more information.
      The firm voluntarily reclassified the worker from an independent contractor to an employee. The firm was contacted.
      1. Follow streamline processing guidelines. See IRM 7.50.1.5.1.1, Streamline Processing Guidelines, for more information.

      The firm voluntarily reclassified the worker from an independent contractor to an employee. The firm was not contacted.
      1. Follow streamline processing guidelines. See IRM 7.50.1.5.1.1, Streamline Processing Guidelines, for more information.

      The worker performed two distinct jobs for the firm; one as an employee and one as an independent contractor. Follow guidelines for processing a full determination case. See IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases, for more information.
      The Form 1099-MISC is for a supplemental wage (SW) issue.
      1. Prepare and mail Letter 4949, SS-8 Return Letter, or Letter 4949 (SP) , SS-8 Return Letter (Spanish), with original Form SS-8 and any attached documents to the initiator.

      2. Input "SW" flag on the SS8ICP database. See Exhibit 7.50.1-3 , SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

        Note:

        For cases started after October 1, 2014, see Exhibit 7.50.1-15 , SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

        .

      3. Closed case on the SS8ICP database to "Z" status with an "undetermined" finding. See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

Cases Involving State and Local Governments Overview

  1. In general, the common-law rules for determining worker status, as described in IRM 4.23.5.6, Common Law Standard, apply on the same basis to employees of state and local governments and their instrumentalities, as they do to private-sector employees.

  2. Workers for state or local governments and for interstate instrumentalities may be covered by a Section 218 Agreement. A Section 218 Agreement is a written, voluntary agreement between the State Social Security Administrator and the Social Security Administration. All 50 states, Puerto Rico, the Virgin Islands, and approximately 60 interstate instrumentalities have Section 218 Agreements extending social security coverage to specified employees. The determination that a position is covered by a Section 218 Agreement establishes that the position is subject to social security and Medicare, regardless of what the determination may indicate under the common-law rules.

  3. The SS-8 determination only addresses whether the individual worker is an employee, either by applying common-law rules or based on a statute specific to the work category. A determination that a worker is an employee does not conclusively indicate the applicability of social security or Medicare coverage for that individual. Whether a state or local government employee is subject to social security and Medicare tax depends on which of the following three categories the employee falls into:

    1. Subject to social security under a Section 218 Agreement.

    2. Subject to social security under mandatory coverage provisions.

    3. Excluded from social security because this is no Section 218 Agreement and the employee is covered by a qualified retirement plan.

    In general, the SS-8 determination of whether an individual is a common-law employee is made without regard to which of the above categories would apply to the worker. They only differ in their liability for social security and Medicare tax. The only exception occurs when a Section 218 Agreement specifically states that the position is covered by the Agreement. In this case, the common-law rules should not be applied. The applicant should be informed that he or she is an employee, as provided by the Section 218 Agreement, and is subject to social security coverage.

    Note:

    All government employees hired after March 31,1986, are subject to Medicare tax.

  4. If the question of whether the position is covered under a Section 218 Agreement has not been addressed prior to making the determination, then when a state or local government worker is notified of the result of an SS-8 determination, the worker should be advised to determine from his or her state or local government entity whether a Section 218 Agreement is in effect for the government entity, and, if so, whether it specifically includes or excludes the position from coverage. If it is excluded, then the SS-8 determination will establish whether the individual is an employee in that position.

    Note:

    This only applies to reconsideration cases in which the original determination did not take the Section 218 Agreement into account.

  5. If the worker is uncertain whether the state or local government entity is covered by a Section 218 Agreement, he or she should contact the entity. If the entity is uncertain about whether a Section 218 Agreement covers the position in question, the entity should contact the State Social Security Administrator.

  6. If the entity has a Section 218 Agreement, but the position is specifically excluded from it, then a common-law analysis should be conducted to determine whether the individual is an employee.

Provisions Affecting the Determination for Government Employees
  1. In general, the tests to determine whether an individual is a common-law employee are the same for government as for other workers. However, there are two common situations for which common-law analysis does not apply.

    1. Under IRC 3401(c), an officer, employee, or elected official of government is an employee for income tax withholding purposes.

    2. Under Regulation 1.1402(c)-2(b), a public official is not in a trade or business, and is not subject to self-employment tax. Therefore, an individual recognized as a "public official" is an employee.

  2. If there is a question regarding whether a position is that of a public official, first determine whether a Section 218 Agreement covers that position.

Office of Federal, State, and Local Governments
  1. The TE/GE office of Federal, State, and Local Governments (FSLG) is responsible for all compliance activity involving units of government. In general, it is not necessary to consult with or refer Form SS-8 requests to FSLG. Most cases can be addressed based on the same criteria applicable to other workers. However, questions involving the following circumstances should be referred to the FSLG Compliance and Program Management (CPM) SS-8 Coordinator:

    Note:

    If the FSLG CPM SS-8 Coordinator needs to be contacted, the contact will be made by the SS-8 manager or lead.

    1. A case involving an open examination.

    2. A case involving current litigation.

    3. The payer has at least 20 workers in this classification.

    4. A case with fraud potential.

    5. The firm is found to be in violation of a CSP or 906 Closing Agreement.

  2. For an SS-8 request made on behalf of a large group of workers (20 or more), the SS-8 technician will advise their manager or lead. The manager or lead will contact the FSLG CPM SS-8 Coordinator.

  3. If the position is not covered by a Section 218 Agreement, then the SS-8 program is responsible for determining whether the worker is an employee or independent contractor. Specific statutes, regulations, and other published guidance have addressed the employment status of individuals holding specific positions. Examples include:

    • Individuals who may be public officials under IRC 3401(c),

    • Home Care Service workers,

    • Charter school workers, and

    • Off duty law-enforcement personnel.

    In these areas, FSLG should be contacted for technical assistance.

Processing Cases Involving State and Local Governments
  1. The SS-8 technician will take the following actions when the Form SS-8 identifies the firm as a state or local government entity:

    1. Determine whether the worker advises they are covered under a Section 218 Agreement.

      Note:

      If the worker advises there is no Section 218 Agreement for their occupation, then the case will be processed following IRM 7.50.1.5.5.2, Office of Federal, State and Local Governments.

      Note:

      If the worker advises the position is covered by a Section 218 Agreement, or if the worker does not state anything about a Section 218 Agreement, then the case will be processed as in IRM 7.50.1.5.5.3, Processing Cases Involving State and Local Governments.

    2. Prepare and mail the FSLG local letter to the submitter and include the original submitted Form SS-8.

    3. Update the SS8ICP database activity log with all actions taken.

    4. Input case flags to the SS8ICP database, if applicable. See Exhibit 7.50.1-3 , SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15 , SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

      .

    5. Close case to "Z" status with an "undetermined" finding. See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

      Note:

      SS-8 technicians will not do any additional research to find out if there is an existing Section 218 Agreement. The worker is responsible for knowing if the position is covered by a Section 218 Agreement.

Processing Cases Involving an Indian Tribal Governments (ITG)

  1. In general, the common law rules for determining worker status, as described in IRM 4.23.5.6, Common Law Standard , apply on the same basis to employees of Indian Tribal Governments (ITG) and their instrumentalities, as they do to private sector employees. However, the SS-8 technician must contact the ITG CPM Manager at (202) 317-8900 prior to processing the case to determine whether there are any specific sensitivities concerning the involved tribe, or if there is a factual concern that would necessitate that office to remain involved. The fax number for ITG is 1-855-243-4024 (toll free).

  2. If the ITG CPM Manager advises the SS-8 technician that it will remain involved, the SS-8 technician will process the case, and ITG will provide a general management function to oversee the case. ITG will not provide a review function, i.e., it will not review a SS-8 determination letter for its concurrence.

  3. See IRM 7.50.1.8.5 , Referrals, for referrals to ITG regional contacts of non-compliant Indian tribes, so that ITG can evaluate the facts as a potential employment tax examination.

Definition and Identification of Three Party Arrangements

  1. Form SS-8 requests may include situations involving three party arrangements. Generally, a three party arrangement exists when a worker performs services for one firm, but is paid for those services by another firm. The two firms may or may not be related.

  2. Three party arrangements often present unique factual questions that affect the employment tax liability of the firms as follows:

    1. There are issues related to determine which firm directs and controls the performance of services of the workers as the common law employer.

    2. The firm that is determined to be the common law employer may not be liable for employment taxes, if the other firm is in control of the payment of wages within the meaning of IRC Section 3401(d)(1). Under IRC 3401(d)(1), if the common law employer does not have control of the payment of wages, the third party that has control of the payment of wages is liable to withhold and pay employment taxes.

  3. In a three party arrangement, an SS-8 determination that Firm A is the common law employer of the worker, without a further determination regarding whether Firm B has control of the payment of wages, infers that Firm A is liable for employment taxes, which may not be the correct employment tax liability result.

  4. The determination of whether a firm is in control of the payment of wages is a legal conclusion that is beyond the scope of the SS-8 program.

  5. A case where a worker is performing services for a firm but receives payment from another firm constitutes a three party arrangement subject to the procedures described in IRM 7.50.1.5.7.1, General Procedures for Handling SS-8 Requests with Three Party Arrangements.

  6. Form SS-8 requests should be carefully reviewed to determine whether the request involves a three party arrangement.

General Procedures for Handling SS-8 Requests with Three Party Arrangements
  1. Part of the objective of the SS-8 program, in issuing determination letters to firms and workers on the proper classification of a worker for purposes of federal employment taxes, is to advise the parties of their tax obligations.

  2. However, to advise the firms of their employment tax obligations in a three party arrangement would involve a determination of which firm is liable for the employment taxes.

  3. The determination of which firm is liable for employment taxes is beyond the scope of the SS-8 program.

  4. SS-8 Technicians will follow the procedures described below to provide information the worker can use to help fulfill his or her tax obligations:

    Note:

    A three party arrangement which involves an IRC Section 501(c)(3) organization should be processed using the procedures described in this section.

    1. Determination letters will not be issued in three party arrangements.

    2. When the Form SS-8 request involves a three party arrangement, either an information letter or a letter with a no rule paragraph listed in c) below will be issued to the worker in lieu of a determination letter.

    3. If the Form SS-8 request is asking for a determination as to who is the employer, use Letter 4949, SS-8 Return Letter. The SS-8 technician would check the "Other" box in the Letter 4949, SS-8 Return Letter and insert the following language in the note below:

      Note:

      Since your SS-8 request asks for a determination of who is the employer and not a determination of worker status, no determination can be provided. The IRS does not make determinations as to which of two entities, under the common law rules, is the employer when one entity is treating the worker as an employee.

    4. If the Form SS-8 request is asking for a determination of the worker's employment status, then an information letter will be issued as stated below:

      Note:

      Use Letter EE to send an information letter to a worker who appears to be an employee.

      Note:

      Use Letter IC to send an information letter to a worker who appears to be an independent contractor.

    5. If an information letter is issued, the conclusion will be based solely on the information submitted on the worker's Form SS-8.

    6. The SS-8 technician should not contact either firm in a three party arrangement, because no determination will be made with regard to the status of either firm as an employer.

      Note:

      An information letter is advisory only and is not binding on the Service. The worker may use the information letter to assist in filing his or her Federal income tax return for the period stated.

    7. A copy of the information letter should not be sent to either firm.

    8. If a three party arrangement is identified after the case is started as a regular determination case, either a no rule or an information letter will be issued to the worker.

      Note:

      For cases in which the firm was contacted, provide a copy of the no rule letter or information letter to the firm. This pertains to cases started before October 1, 2012, but can include any case where the firm was inadvertently contacted.

Specific Guidance on Common Three Party Arrangements

  1. There are arrangements below where a worker performs services for a firm, but receives payment from another firm that constitutes three party arrangements:

    • Couriers. See IRM 7.50.1.5.8.1, Couriers, for more information.

    • Home Care Services. See IRM 7.50.1.5.8.2, Home Care Services, for more information.

    • Off-Duty Police Officers. See IRM 7.50.1.5.8.3, Off-Duty Police Officers, for more information.

    • Professional Employer Organizations (PEO). See IRM 7.50.1.5.8.4, Professional Employer Organizations (PEO), for more information.

    • Related Firms. See IRM 7.50.1.5.8.5, Related Firms, for more information.

    • Temporary Staffing Services (TSS). See IRM 7.50.1.5.8.6, Temporary Staffing Services, for more information.

Couriers
  1. Individuals who work in the courier or same day/next day delivery service business frequently file Form SS-8 requests asking for a determination of worker status. Three party arrangements are common because the service recipient often arranges with a third party to provide significant financial services including payment to the couriers for services rendered. The relationships established among the parties can be complex.

  2. Form SS-8 cases where the service recipient is performing services for a private firm constitutes a three party arrangement because questions will arise as to which party directs and controls the worker as the common law employer. If the private firm is determined to be the common law employer, the delivery service may be in control of the payment of wages to the courier.

  3. Under IRC Section 3401(d)(1), if the party that is the common law employer (i.e. the private firm) does not have control of the payment of wages, the party that has control of the payment of wages is liable to withhold and pay employment taxes.

  4. If the private firm or delivery service treats the courier as an employee, and the worker submits a Form SS-8 request asking for a determination as to who is the employer, the SS-8 Technician will send a no rule letter to the worker per IRM 7.50.1.5.7.1, General Procedures for Handling SS-8 Request with Three Party Arrangements.

  5. The Service ordinarily does not issue a determination letter on which of two entities is the employer, when one entity is treating the worker as an employee. See Section 6.04 of the first annual Revenue Procedure and Section 4.01(64) of the third annual Revenue Procedure.

  6. If the worker submits a Form SS-8 requesting a determination of the worker's status, then an information letter will be issued per IRM 7.50.1.5.7.1, General Procedures for Handling SS-8 Requests with Three Party Procedures.

Home Care Services
  1. A Home Care Service Recipient (HCSR) is an elderly individual, or an individual with a physical, intellectual, or developmental disability who receives home care services while enrolled in a program administered by a federal, state, or local government agency, or administered by another entity on behalf of the government agency.

  2. Generally, home care services are funded in whole or in part by the federal, state, or local government program. Home care services include health care and personal attendant care services rendered to the HCSR.

  3. Cases where a worker is performing home care services for a HCSR, but receives payment from a federal, state, or local governmental agency, or from another entity on behalf of the government agency, constitutes a three party arrangement.

  4. Questions will arise as to which party directs and controls the worker as the common law employer. If the HCSR is determined to be the common law employer, the government agency or other entity that pays the worker may be in control of the payment of wages to the worker.

  5. Under IRC Section 3401(d)(1), if the party that is the common law employer (i.e., the HCSR) does not have control of the payment of wages, the party that has control of the payment of wages is liable to withhold and pay employment taxes.

  6. Cases involving HCSRs should be coordinated with the Headquarters Analyst through FSLG. FSLG will advise whether a no rule letter or an information letter should be issued in these cases.

  7. If the HCSR, government agency, or other entity treat the worker as an employee, and the worker submits a Form SS-8 request asking for a determination as to who is the employer, send a no rule letter to the worker per IRM 7.50.1.5.7.1, General Procedures for Handling SS-8 Requests with Three Party Arrangements.

  8. The Service ordinarily does not issue a determination letter on which of two entities is the employer, when one entity is treating the worker as an employee. See Section 6.04 of the first annual Revenue Procedure and Section 4.01(64) of the third annual Revenue Procedure.

  9. If the worker submits a Form SS-8 requesting a determination of their employment status, then an information letter will be issued per IRM 7.50.1.5.7.1, General Procedures for Handling SS-8 Requests with Three Party Arrangements.

Off-Duty Police Officers
  1. A law enforcement officer may provide services to a private firm during his or her off-duty hours. The private firm may request the services of off-duty law enforcement officers through a program administered by the officers' law enforcement agency. The off-duty employment may entail police-type activities or unrelated activities. The private firm may pay the law enforcement officer for the off-duty services directly, or the pay may be routed through the law enforcement agency, to be paid to the law enforcement officer.

  2. A case where a law enforcement officer is performing services for a private firm during his or her off-duty hours, but is paid by the law enforcement agency for which he or she is employed, constitutes a three party arrangement. Questions will arise as to which party directs and controls the worker as the common law employer. If the private firm is determined to be the common law employer, the law enforcement agency may be in control of the payment of wages to the law enforcement officer.

  3. Under IRC Section 3401(d)(1), if the party that is the common law employer (i.e., the private firm) does not have control of the payment of wages, the party that has control of the payment of wages is liable to withhold and pay employment taxes.

  4. The Headquarters Analyst should coordinate cases involving off-duty law enforcement officers through FSLG. FSLG will advise whether a no rule letter or an information letter should be issued in these cases.

  5. The SS-8 Technician will issue a no rule letter to the worker per IRM 7.50.1.5.7.1, General Procedures for Handling SS-8 Requests with Three Party Arrangements, when:

    1. the private firm or law enforcement agency treats the law enforcement officer as an employee, with respect to the pay received for the off-duty services performed by the private firm, and

    2. the worker submits a Form SS-8 request asking for a determination as to who is the employer.

  6. The Service ordinarily does not issue a determination letter on which of two entities is the employer, when one entity is treating the worker as an employee. See Section 6.04 of the first annual Revenue Procedure and Section 4.01(64) of the third annual Revenue Procedure.

  7. If the worker submits a Form SS-8 requesting a determination of the worker's status, then an information letter will be issued per IRM 7.50.1.5.7.1, General Procedures for Handling SS-8 Requests with Three Party Arrangements .

Professional Employer Organizations (PEO)
  1. A Professional Employer Organization (PEO), sometimes referred to as an employee leasing company, is a business entity that contracts with employers (e.g. clients) to manage some or all of the following functions on behalf of the clients:

    1. Perform Federal employment tax withholding, reporting, and payment functions related to its clients workers using the Employer Identification Number (EIN) of the PEO.

    2. Manage human resources for its clients, such as:

    • providing employee benefits such as health or retirements plans,

    • processing workers compensation claims, or

    • processing unemployment insurance claims.

    Note:

    The PEO typically charges clients a percentage of payroll or other fee for the services it provides.

  2. The Internal Revenue Code (IRC) does not define PEO.

  3. There are state statutes that define PEOs for state law purposes. However, state law is not determinative for Federal employment tax purposes.

  4. Cases where a worker is performing services for a client of a PEO, but receives payment from a PEO, constitutes a three party arrangement, because in unique circumstances, a PEO may be in control of the payment of wages to the worker performing services for its client.

  5. Under IRC Section 3401(d)(1), if the party that is the common law employer (i.e., the client), does not have control of the payment of wages, the party that has control of the payment of wages is liable to withhold and pay employment taxes.

  6. If the PEO or service recipient treats the worker as an employee, and the worker submits a Form SS-8 request asking for a determination as to who is the employer, send a no rule letter to the worked as noted in IRM 7.50.1.5.7.1, General Procedures for Handling SS-8 Requests with Three Party Arrangements .

  7. The Service ordinarily does not issue a determination letter on which of two entities is the employer, when one entity is treating the worker as an employee. See Section 6.04 of the first annual Revenue Procedure and Section 4.01(64) of the third annual Revenue Procedure.

  8. If the worker submits a Form SS-8 requesting a determination of their status, then an information letter will be issued as noted in IRM 7.50.1.5.7.1, General Procedures for Handling SS-8 Requests with Three Party Arrangements.

  9. For further information on PEOs, see IRM 5.1.24.6, Professional Employer Organization (Employee Leasing Company).

Related Firms
  1. Firms are considered "related firms" ; if one firm is considered the owner of the other firm, or the firms have common ownership. In general, one of the following designations refers to related firms:

    • Parent/Subsidiary -- A parent/subsidiary relationship exists where one firm is the majority owner of the other firm through stock holdings or partnership interest. For example, if Corporation P owns 100% of the stock of Corporation S, the corporations are related firms. Corporation P is considered the parent corporation and Corporation S is considered the subsidiary corporation.

    • Brother/Sister -- A brother/sister relationship exists where two or more firms have the same majority owner through stock holdings or partnership interest. For example, if Corporation P owns 100% of the stock of Corporation X and Corporation Y, the corporations are related firms. Corporation X and Corporation Y are considered related brother/sister corporations. Corporation P is considered the parent of both Corporation X and Corporation Y.

  2. Cases where a worker is performing services for a firm, but receives payment from a related firm, constitutes a three party arrangement, because, in unique circumstances a related firm may be in control of the payment of wages to the worker performing the services.

  3. Under IRC Section 3401(d)(1), if the party that is the common law employer does not have control of the payment of wages, the party that has control of the payment of wages is liable to withhold and pay employment taxes.

  4. If one of the related firms treats the worker as an employee and the worker submits a Form SS-8 request asking for a determination as to who is the employer, send a no rule letter to the worker per IRM 7.50.1.5.7.1, General Procedures for Handling SS-8 Requests with Three Party Arrangements.

  5. The Service ordinarily does not issue a determination letter on which of two entities is the employer, when one entity is treating the worker as an employee. See Section 6.04 of the first annual Revenue Procedure and Section 4.01(64) of the third annual Revenue Procedure.

  6. If the worker submits a Form SS-8 requesting a determination of the worker's status, then an information letter will be issued per IRM 7.50.1.5.7.1, General Procedures for Handling SS-8 Requests with Three Party Arrangements.

Temporary Staffing Services (TSS)
  1. A Temporary Staffing Service (TSS) provides workers to a firm to supplement the firm's workforce for a short or indefinite period to address conditions, such as:

    • Employee absences,

    • Temporary skill shortages, or

    • Seasonal workloads.

  2. Typically, a TSS recruits and, in some cases, trains workers and assigns them to a firm/client on a non-permanent basis. In addition, the TSS typically pays the workers' wages and may provide the workers with other benefits.

  3. The IRC does not define a TSS.

  4. There are state statutes that define TSSs for state law purposes. However, state law is not determinative for Federal employment tax purposes.

  5. Cases where a worker is performing services for a firm, but receives payment from a TSS, constitutes a three party arrangement. Factual questions may arise as to which party directs and controls the workers as the common law employer.

  6. If the firm is determined to be the common law employer, the TSS may be in control of the payment of wages to the worker.

  7. Under IRC Section 3401(d)(1), if the party that is the common law employer (i.e., the firm) does not have control of the payment of wages, the party that has control of the payment of wages is liable to withhold and pay employment taxes.

  8. If the TSS or service recipient treat the worker as an employee and the worker submits a Form SS-8 request asking for a determination as to who is the employer, send a no rule letter to the worker per IRM 7.50.1.5.7.1, General Procedures for Handling SS-8 Requests with Three Party Arrangements .

  9. The Service ordinarily does not issue a determination letter on which of two entities is the employer, when one entity is treating the worker as an employee. See Section 6.04 of the first annual Revenue Procedure and Section 4<01(64) of the fourth annual Revenue Procedure.

  10. If the worker submits a Form SS-8 requesting a determination of their status, an information letter will be issued per IRM 7.50.1.5.7.1, General Procedures for Handling SS-8 Requests with Three Party Arrangements.

  11. For further information on TSSs, see IRM 5.1.24.4.1, Temporary Staffing Service.

Statutory Non-Employees

  1. In general, statutory non-employees are workers in three occupations that are not treated as employees for FICA, FUTA, or federal income tax withholding purposes provided they meet certain qualifications. The three occupations for statutory non-employees are as follows:

    1. qualified real estate agents,

    2. direct sellers, and

    3. qualified companion sitters.

  2. The SS-8 technician needs to verify statutory non-employee status before considering common law factors.

  3. For more information on statutory non-employees, see IRM 4.23.5.6.5, Statutory Non-Employees.

  4. Send internal statutory non-employee letter Exhibit 7.50.1-19 , Internal Statutory Non-Employee Letter Language and Form 14430 with language from Basic Employment Taxes - Phase 1 (Student Guide), Lesson 11, pages 11-1 to 11-4.

Statutory Employees
  1. In general, if a worker is not an employee under the usual common law rules or a corporate officer, the worker and the taxpayer may nevertheless still be subject to employment taxes. IRC 3121(d)(3) lists individuals in four occupational groups who, under certain circumstances, are considered employees for FICA tax and, in some instances, employees for FUTA tax, but not for federal income tax withholding. These workers are referred to as statutory employees and the list of the four occupational groups are listed as follows:

    1. agent-drivers or commission-drivers,

    2. full-time life insurance salespersons,

    3. home workers, and

    4. traveling or city salespersons.

  2. For more information on statutory employees, see IRM 4.23.5.6.4, Statutory Employees.

  3. Send internal statutory employee letter Exhibit 7.50.1-20, Internal Statutory Employee Letter Language and Form 14430 with language from Basic Employment Taxes - Phase 1 (Student Guide), Lesson 10, pages 10-3 to 10-4.

Corporate Officers

  1. In general, corporate officers are specifically included within the definition of employee for purposes of FICA, FUTA, and federal income tax withholding.

  2. The common law standard does not apply to corporate officers.

  3. In general, the regulations provide that an officer of the corporation is an employee of the corporation.

  4. For more information on corporate officers, see IRM 4.23.5.6.3, Corporate Officers.

  5. Send internal corporate officer letters to the firm Exhibit 7.50.1-21, Internal Corporate Office--Firm Letter Language, and to the worker Exhibit 7.50.1-22, Internal Corporate Officer--Worker Letter Language, along with Form 14430 with language from Basic Employment Taxes - Phase 1 (Student Guide), Lesson 9, pages 9-1 to 9-3.

Processing Form SS-8 Cases for Prospective Employment Status of Workers

  1. Under Rev. Proc. 2013–3, Section 3.01(73), the SS-8 program will not make determinations of prospective employment status of workers.

    Note:

    These types of cases typically come from firms.

  2. The SS-8 program will take the following actions to process these Form SS-8 cases:

    1. Prepare and mail Letter 5007, Firm - Advise on Future Workers, or Letter 5007 (SP), Firm - Advise on Future Workers (Spanish), to the firm.

    2. Update the SS8ICP database activity log with all actions taken.

    3. Update the SS8ICP database case status to "Z" with an "undetermined" finding. See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

Preparation of Full Determination Cases for Assignment

  1. The SS-8 clerical staff will take the following actions to prepare the full determination case for assignment to the SS-8 technician:

    If... Then...
    Worker Request
    1. Prepare and mail Letter 3891, Acknowledgement Letter, to the taxpayer that submitted the request notifying them of receipt, and notifying them of the 180-day time frame for completion.

      Note:

      If the case cannot be closed within the 180-day time frame, an interim letter must be issued to the taxpayer giving a new case completion date. Continue to issue interim letters every 180 days until case is assigned.

    2. Prepare and mail Letter 5367, Notification to Firm, to the firm with a blank Form SS-8. Allow 45 days for the firm to complete and submit the Form SS-8.

    3. Update the SS8ICP database status to "H" for all cases except an expedite. If the case is an expedite, update the SS8ICP database status to "PD" . See Exhibit 7.50.1-2 , SS-8 Status Codes, for more information.

    4. Update the SS8ICP database activity log to document actions taken.

    5. File the physical case file in the holding area.

    6. If there is no reply to Letter 5367 sent previously, then refer the received Form SS-8 as a streamline case for processing per IRM 7.50.1.5.1.1, Streamline Processing Guidelines.. Update the flag to "OP" .

    7. If a reply is received to the above Letter 5367, refer the received Form SS-8 as a full determination case per IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases.

    8. Assign cases to the SS-8 technicians as needed, based on the earliest received date (first in, first out).

    Firm Request
    1. Prepare and mail Letter 3891-A, Acknowledgement Letter, to the firm.

    2. Prepare and mail Letter 5367, Notification to Firm, to the worker with a blank Form SS-8. Allow 45 days for the worker to complete and submit the Form SS-8.

    3. Update the SS8ICP database status to "H" for all cases except an expedite. If the case is an expedite, update the SS8ICP database status to "PD" . See Exhibit 7.50.1-2, SS-8 Status Codes, for more information.

    4. Update the SS8ICP database activity log to document actions taken.

    5. File the physical case file in the holding area.

    6. If there is no reply to Letter 5367 sent previously, then refer the received Form SS-8 as a streamline case for processing per IRM 7.50.1.5.1.1, Streamline Processing Procedures.. Update the flag to "OP" .

    7. If a reply is received to the above Letter 5367, refer the received Form SS-8 as a full determination case per IRM 7.50.1.5.12.1, Processing Guidelines for Full Determination Cases.

    8. Assign cases to the SS-8 technicians as needed, based on the earliest received date (first in, first out).

Processing Guidelines for Full Determination Cases
  1. SS-8 technicians will use guidelines in IRM 4.23.5.6, Common Law Standard, to process a full determination case. SS-8 technicians will apply the common law standards, and rules for corporate officers and statutory employees, to determine whether the worker is an employee or an independent contractor.

    Note:

    The SS-8 technician needs to verify statutory non-employee status before considering common law factors. See IRM 7.50.1.5.9, Statutory Non-Employees, for more information.

    Note:

    If the firm is an IRC Section 501(c)(3) organization, the SS-8 technician will process the case following the guidelines in this section

    .

  2. After the SS-8 technician has determined the worker's status, the SS-8 technician will refer to the table below to close the case.

    If Determination is... Then ...
    Employee
    1. Prepare Form 14430, SS-8 Determination Analysis, to provide the facts and circumstances that led to the employee determination.

    2. Prepare and mail Letter 4991, SS-8 Employee Determination, or Letter 4991 (SP), Employee Determination (Spanish), and Form 14430 , SS-8 Determination Analysis to the worker.

    3. Prepare and mail Letter 4991-A, Notice to Firm - Determination Employee, or Letter 4991-A(SP) , Notice to Firm - Determination Letter (Spanish), and Form 14430, SS-8 Determination Analysis, to the firm.

    4. Close case on the SS8ICP database to "Z" status with employee finding. See Exhibit 7.50.1-2, SS-8 Status Codes, for more information.

    5. Input applicable flags to the case on the SS8ICP database. See Exhibit 7.50.1-3, SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15, SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

      .

    6. Update the SS8ICP database activity log with all actions taken.

    Independent Contractor (IC)
    1. Input the case history on the SS8ICP database activity log to record the findings.

    2. Prepare Form 14430, SS-8 Determination Analysis, to provide the analysis of the facts and circumstances that led to the IC determination.

    3. Prepare and mail Letter 5246, Contractor Determination - Worker, and Form 14430 to the worker.

    4. Prepare and mail Letter 5246–A, Contractor Determination - Firm and Form 14430 to the firm.

    5. Close case on the SS8ICP database to "Z" status with IC findings. See Exhibit 7.50.1-2, SS-8 Status Codes, for more information.

    6. Input applicable flags to case on the SS8ICP database. See Exhibit 7.50.1-3, SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15, SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

      .

    7. Update the SS8ICP database activity log with all actions taken.

Form SS-8 Reconsiderations

  1. If a taxpayer disagrees with a determination made by the SS-8 program, the taxpayer may request reconsideration of the determination letter.

  2. There is no time limit for a taxpayer to request a reconsideration of a determination letter.

    Note:

    To accept the reconsideration request, the statute does not have to be open and can be based on issue.

Requests for Reconsideration
  1. If a taxpayer requests a reconsideration, the second screener will take the actions as shown in the table below. The SS-8 technician and reviewer assigned to the reconsideration will be different than the one who worked the case during the initial determination process.

    Note:

    If either party contacts the SS-8 program and disagrees with the original determination, the SS-8 technician that worked the original case will explain the SS-8 process, and make clear that information not previously considered needs to be submitted with documentation or documentation that identifies facts that were part of the original submission that the requester thinks were not fully considered in order to set-up a case for reconsideration. If the requester does not provide any new information, the requester will need to provide a clear, concise analysis explaining the alleged error in the determination.

    If ... And ... Then ...
    Worker or firm submits reconsideration request. No additional or supporting information was submitted.
    1. Prepare and mail Letter 5083, Reconsideration Letter - No Additional Information to Consider, to the submitter denying the request.

    2. Update the SS8ICP database activity log with all actions taken.

    Worker or firm submits reconsideration request. Additional or supporting information was submitted.

    Note:

    This can include an analysis from the worker explaining their reason why they believe the SS-8 determination is not correct.

    1. Review prior case and new information received. The second screener will refer to independent reviewer within the SS-8 program..

      Note:

      If the case is referred to independent reviewer, the independent reviewer will follow the next steps below.

    2. Perform additional research to determine result, as needed.

    3. Prepare and issue a letter to the taxpayer with the language shown in Exhibit 7.50.1-14, Letter Language When Processing Form SS-8 Reconsideration Cases. Include Form 14430, SS-8 Determination Analysis, to taxpayer with reconsideration results.

    4. Update the SS8ICP database activity log with all actions taken.

    5. Input case flags in the SS8ICP database, if applicable. See Exhibit 7.50.1-3, SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15, SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

      .

    6. Close case on the SS8ICP database to "Z" status with appropriate findings. See Exhibit 7.50.1-2, SS-8 Status Codes, for more information.

SS-8 Program Reports Overview

  1. The SS-8 program generates various reports to assist with planning, budgeting, and evaluation of the SS-8 program. The SS-8 program generates the following reports:

    • Weekly inventory report.

    • Monthly referral activity report.

    • Monthly reconsideration report.

  2. The SS-8 program will consolidate the reports and the report to Examination Field and Campus Policy Headquarters based on the applicable time frames.

SS-8 Program Reports

  1. To summarize activity, inventory, and closure dispositions occurring each week, the SS-8 units must prepare weekly inventory reports to show volumes of the following:

    1. Receipts

    2. Rejects

    3. Closures

    4. Pending cases

    5. Aged cases

    6. Status of cases

    7. Closure dispositions

  2. Weekly reports cover activity from Sunday through Saturday of the prior week.

  3. SS-8 will receive a report from Planning and Special Programs (PSP) and SS-8 will forward the requested information to PSP.

  4. To summarize reconsideration case activity, the SS-8 units prepare monthly reports to show volumes and results of closed reconsideration cases.

Protective Claims Liaison Report

  1. The SS-8 Program receives notification of Protective Claims cases from quarterly reports from the Protective Claims Coordinators. See Exhibit 7.50.1-23, Protective Claims Liaison Report Quarterly Dates, for more information.

  2. The SS-8 Protective Claims Liaison reviews the consolidated quarterly report to determine if the case is on the SS8ICP database. The Liaison will refer to the table below on how to expedite the Protective Claims cases.

    If... And... Then...
    There is no SS-8 case on the SS8ICP database.
    • Email the corresponding Protective Claims Coordinator to advise there is no SS-8 case.

    There is a SS-8 case on the SS8ICP database. The case is open and in "H" Status.
    • Pull the case file and assign it to a technician as an expedited case.

    There is a SS-8 case on the SS8ICP database. The case is open and in "B" or "C" Status.
    • Email the technician assigned the case file to advise the case now meets expedited procedures.

      Reminder:

      Include the technician’s manager and lead on the email.

    There is a SS-8 case on the SS8ICP database. The case is closed as undetermined.
    • Email the corresponding Protective Claims Coordinator to advise the case has been closed and no determination was made.

    There is a SS-8 case on the SS8ICP database. The case is closed with a determination.
    • Email the corresponding Protective Claims Coordinator to advise the case has been closed and the determination.

Coordination Between the SS-8 Program and Other Areas

  1. Pursuant to IRC 6103(d) and (l)(1)(C), the SS-8 program coordinates with other programs to facilitate the sharing of information to assist in strengthening and enhancing compliance with federal and state laws and regulations. The SS-8 program coordinates with the following programs:

    • Railroad Retirement Board (RRB)

    • State Tax Agencies

Coordination with the Railroad Retirement Board (RRB)

  1. The RRB and the IRS signed an agreement to share SS-8 determination results to assist in the examination of entities within RRB's respective regulatory jurisdictions.

  2. The agreement is pursuant to IRC 6103(l)(1)(C) and Section 7(b)(3) of the Railroad Retirement Act (RRA).

  3. IRC 6103(l)(1)(C) authorizes disclosure of Federal tax returns and return information to the RRB for administering the RRA.

  4. When the SS-8 technician has completed its determination regarding the status of railroad workers with respect to Forms SS-8, filed by either a firm or a worker, the determination and Form SS-8 will be sent to the SB/SE Employment Tax Policy Program Manager. The SB/SE Employment Tax Policy Program Manager will provide a copy of the determination and Form SS-8 to the RRB Chief Financial Officer (CFO) (provided such determination and Form SS-8 relate to the Railroad Retirement Tax Act (RRTA).

Coordination with the State Tax Agencies

  1. Pursuant to IRC 6103(d), various state tax agencies coordinate with Governmental Liaison (a function of Privacy, Governmental Liaison, Disclosure and Safeguards) to obtain results of SS-8 determinations for state tax purposes. Establishment of a Secure Data Transmission (SDT) process assists the SS-8 program with providing results to the participating states.

  2. Each month, the SS-8 program completes an extraction of state reports from the SS8ICP database using the Business Objects (BO) application. BO extracts closed SS-8 determination cases by state that have a determination. SS-8 employees will use local guidelines and reports developed with Governmental Liaison Headquarters Policy to prepare and forward cases using the SDT process. See Exhibit 7.50.1-1, Coordination with Government Liaison Local Guidance for Processing SS-8 Cases for Secured Data Transfer (SDT), for more information.

  3. To summarize the volume of cases forwarded to each participating state, the SS-8 program will prepare a monthly SS-8 Disclosure Accounting Report. This report will be forwarded to:

    • Governmental Liaison Headquarters Policy, Program Analysts

    • Headquarters Disclosure Policy, Tax Law Analyst

    • BSC EFS Department 3 Manager

    • Examination Field and Campus Policy Headquarters Program Analyst

Miscellaneous Items

  1. Sometimes Form SS-8 cases are involved with the following miscellaneous items:

    1. Informant Cases

    2. Undeliverable Mail

    3. Whistleblower Cases

    4. Expedited Cases

    5. Referrals

    6. Telephone Contact or Disclosure

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    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Undeliverable Mail

  1. Undelivered (UD) mail is any letter, SS-8 letter, or notice sent to the taxpayer or firm and returned with an indication the address is not valid.

  2. When there is receipt of UD mail, the clerk will sort each piece by the letter type. The clerk will complete IDRS research to identify a more current address. Examples: CC INOLES or CC ENMOD.

  3. When UD mail has a United States Postal Service (USPS) "yellow label address sticker" attached, the clerk will complete IDRS research to confirm which address is most current.

  4. The clerk will refer to the table below to process the UD mail.

    If UD Mail is... And ... Then ...
    • Determination Letter

    • Opinion Letter

    • Incomplete Form SS-8

    • Information Letter

    Research identifies new address.
    1. Reissue letter to current address.

    2. Update the SS8ICP database activity log with all actions taken.

      Note:

      The activity log should be notated with both the old and new addresses to avoid resending to old address.

      Note:

      Update the new address in the "Taxpayer Data" section of the SS8ICP database.

    • Determination Letter

    • Opinion Letter

    • Incomplete Form SS-8

    • Information Letter

    Research did not identify a new address.
    1. Contact firm or worker by phone for an updated address. If new address provided, re-send letter to new address.

      Note:

      During this telephone contact, the SS-8 clerk must verify the taxpayer's name, TIN, and address.

    2. File letter in case file.

    3. Update the SS8ICP database activity log with all actions taken.

    • Determination Letter

    • Opinion Letter

    • Incomplete Form SS-8

    • Information Letter

    • Undeliverable Form SS-8

    Phone call did not identify new address or unable to contact taxpayer by phone. .
    1. File letter in case file.

    2. Update the SS8ICP database activity log with all actions taken.

    3. A case file will not be maintained for an incomplete or undeliverable Form SS-8.

    • Acknowledgement

    • Interim letter

    Research identified a new address and the letter date is less than 240 days from our mailing date.
    1. Re-send letter to new address.

    2. Update the SS8ICP database activity log with all actions taken.

      Note:

      The activity log should be notated with both the old and new addresses to avoid resending to old address.

      Note:

      Update the new address in the "Taxpayer Data" section of the SS8ICP database.

    • Acknowledgement

    • Interim letter

    Research did not identify new address and letter date is less than 240 days from our mailing date.
    1. Attempt telephone contact to taxpayer to secure new address.

      Note:

      During this telephone contact, the SS-8 clerk must verify the taxpayer's name, TIN, and address.

      If new address is received, re-send the letter.

    2. File letter in case file.

    3. Update the SS8ICP database activity log with all actions taken.

    • Acknowledgement

    • Interim letter

    Letter date is more than 240 days from our mailing date.
    1. Destroy letter.

      Note:

      The clerical staff would have issued an interim letter prior to the expiration of the 240 day period for response to SS-8 request. Address verification is required before issuing an interim letter.

    • POA letter

    Research identified new address.
    1. Re-send letter to new address.

    2. Update the SS8ICP database activity log with all actions taken.

      Note:

      Update the new address in the "Taxpayer Data"

      Note:

      section of the SS8ICP database.

      Note:

      Update the new address in the "Taxpayer Data" section of the SS8ICP database.

    • POA letter

    Research did not identify new address.
    1. File letter in case file.

    2. Update the SS8ICP database activity log with all actions taken.

    • Additional information request

    Research identified new address.
    1. Re-send letter to new address

    2. Update the SS8ICP database activity log with all actions taken.

      Note:

      Update the new address in the "Taxpayer Data" section of the SS8ICP database.

      Note:

      Update the new address in the "Taxpayer Data" section of the SS8ICP database.

    • Additional information request

    Research did not identify new address.
    1. Process case with the information in the case file.

    2. File letter in case file.

    3. Update the SS8ICP database activity log with all actions taken.

    • Incomplete Form SS-8

    Research did not identify new address and unable to obtain new address
    1. A case file will not be maintained for an incomplete Form SS-8.

    2. Discuss with the SS-8 manager or lead.

    3. The SS-8 manager or lead will review to confirm a new address is not available.

    4. If a new address is not available, the incomplete Form SS-8 will be placed in classified waste (CW'd)

    5. Update the SS8ICP database activity log with all actions taken.

    An explanation for each letter in the above table can be found in Exhibit 7.50.1-8, Published Forms and Letters Used in the SS-8 Program.

Whistleblower Cases

  1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

  2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    3. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    4. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      Note:

      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

      ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
      ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡
    1. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    2. ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

    ≡ ≡

Expedited Cases

  1. In accordance with Rev. Proc. 2013-1 Section 7.02(4), the SS-8 program processes determination requests in order of received dates. The granting of expedited requests occurs only in rare and unusual circumstances. This is out of fairness to prior requests already received in the SS-8 program, and because the SS-8 program seeks to process all requests as expeditiously as possible.

  2. The SS-8 program expedites the following specific cases:

    1. Automated Underreporter (AUR)

    2. Congressionals

    3. Management Requests

    4. Taxpayer Advocate Service (TAS)

  3. When the SS-8 program identifies a case with an expedited handling request for other than a case described above, the SS-8 program will forward the case to the SS-8 manager or SS-8 work leader for review. Upon receipt of the case, the SS-8 manager or SS-8 work leader will take the following actions:

    1. Review the expedited request using guidelines in Rev. Proc. 2013-1 Section 7.02(4).

    2. Update the SS8ICP database activity log with a detailed explanation of the decision made.

    3. Forward the expedited case to the clerical staff for processing.

Processing Expedited Automated Underreporter (AUR) Cases
  1. The SS-8 program receives AUR cases as follows:

    • AUR sends a case to the SS-8 program via Form 3210, Document Transmittal and/or Form 4442, Inquiry Referral with Form SS-8 attached.

    • The SS-8 has been notated with "AUR" on the top of the form.

    An SS-8 clerk screens the Form SS-8 to determine whether the case will be processed, returned to AUR, or if the case was previously established on the SS8ICP database.

  2. After the SS-8 clerk has screened the Form SS-8, the SS-8 clerk will refer to the table below to process the Form SS-8 received from AUR.

    If to be... And ... Then ...
    Processed There is no existing Form SS-8 case entered on the SS8ICP database
    1. Prepare and attach the internal AUR sheet to the Form SS-8 and submit it to the SS-8 work leader for review.

    2. The SS-8 work leader reviews the Form SS-8 to determine whether the case is open in AUR and requires expedite processing.

    3. If the SS-8 is an AUR case that needs to be expedited, the clerk will set-up the case based on expedited procedures.

    4. Place the "A" flag on this case in the SS8ICP database. See Exhibit 7.50.1-3, SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15, SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

      .

    5. Prepare and send Letter 3891, Acknowledgement Letter, to the worker and send Letter 5367, Notification to Firm, to the firm. .

      Note:

      The firm's letter has 15 days to respond with the completed Form SS-8 . The worker's letter will acknowledge receipt and indicate the expedited nature of their case (letter states we understand the request is submitted due to another tax matter and we hope to conclude the determination within 60 days).

    Processed There is an existing Form SS-8 case entered on the SS8ICP database
    1. Pull the existing case file.

    2. Prepare and attach the internal AUR sheet to the Form SS-8 and submit it to the SS-8 work leader for review.

    3. Place the "A" flag on this case in the SS8ICP database. See Exhibit 7.50.1-3, SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

      Note:

      For cases started after October 1, 2014, see Exhibit 7.50.1-15, SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

      .

    4. The SS-8 work leader determines the next actions to take.

      Note:

      The SS-8 work leader will review to determine when the SS-8 case was set-up on the SS8ICP database. If it was within the prior 30 days, the case will need to be placed into purge status to allow for the firm to respond to the initial letter.

    Returned to AUR Has not been returned previously
    1. Research Discovery Directory to locate the AUR employee and/or Manager.

      Note:

      If unable to locate the AUR employee and/or manager, return the Form SS-8 to the requester.

    2. Set-up "return" case as normal, except no return letter will be sent to the worker.

    3. Complete Form 3210, Document Transmittal, to return case back to AUR.

      1. Include the worker's name and last four digits of their SSN.

      2. Annotate: Case returned to AUR due to (state reason for return to AUR). Please resubmit once completed and/or corrected.

        Note:

        If the AUR case is being returned due to a non SS-8 issue, follow the steps above. However, the explanation notated on Form 3210 will be as follows: Case returned to AUR due to (Non SS-8 reject reason). This case does not meet the SS-8 program criteria and is not handled by the SS-8 unit. Please advise the taxpayer to contact the IRS Help Line at 1–800–829–1040 for further assistance.

    Returned to AUR Case was previously returned

    Note:

    This should only be for missing signatures or cases that don't meet the SS-8 program criteria.

    1. Prepare and attach the internal AUR sheet indicating why the case was not accepted by the SS-8 program, and submit to the SS-8 work leader for review.

    2. The SS-8 work leader will contact the AUR employee to explain why the case does not meet the SS-8 program criteria.

      Note:

      If the Form SS-8 is missing an original signature, the SS-8 work leader will establish a follow-up date when a revised Form SS-8 will need to be received.

  3. Determinations should be made within 60 days from the received date on existing cases, or 60 days from the purge date for new cases. AUR must be contacted if either of these time frames cannot be met.

Processing Expedited Congressional Request Cases
  1. Congressional request cases are Form SS-8 cases received through the e-trak system. These SS-8 cases are expedited and time frames for completion are determined by the SS-8 program management.

Processing Expedited Management Decision Cases
  1. Management decision cases are Form SS-8 cases when the SS-8 program management determines that a case needs to be worked immediately. The SS-8 program manager will set the time frames for completion.

Processing Expedited Taxpayer Advocate Service (TAS) Cases
  1. TAS submits a Form 12412, Operations Assistance Order (OAR) to the SS-8 program to expedite an existing Form SS-8 case. The TAS request should be on cases that are over 180 days in the SS-8 program inventory. The OAR is reviewed by an SS-8 manager before assigning it to an SS-8 technician to determine whether the time frame is appropriate based on the current status of the case. The SS-8 program management works with TAS to ensure the requested time frames meet time requirements to complete the case.

  2. The SS-8 program management will assign the OAR to an SS-8 technician. If the case cannot be closed by the agreed completion date, the SS-8 technician will contact the TAS representative to obtain a revised completion date. The revised completion date should be obtained at least three business days prior to the existing completion date.

    Note:

    There may be instances when the SS-8 program will accept a new filed Form SS-8 case from TAS. In these instances, the cases will be set-up per expedited procedures, and a "P" flag will be input on the SS8ICP database for this case.

    See Exhibit 7.50.1-3, SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

    Note:

    For cases started after October 1, 2014, see Exhibit 7.50.1-15, SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

    .

Closing Taxpayer Advocate Service (TAS) Cases
  1. When closing a TAS case, the SS-8 technician will:

    1. Complete the OAR.

    2. Return the completed OAR, a copy of the activity record, a copy of the firm letter, and a copy of the worker letter to the SS-8 TAS Liaison.

    3. E-mail the TAS liaison, the SS-8 unit work leader, the SS-8 unit manager, and any others as designated by the SS-8 program advising them the TAS case has been completed. In this E-mail, the SS-8 technician will include the following:

    • Taxpayer Advocate Management Information System (TAMIS) number

    • OAR number

    • Taxpayer's name control

    • Form SS-8 case number

    • Taxpayer Identification Number (i.e. SSN or EIN)

Processing Expedited Protective Claims Cases
  1. Determinations should be made within 60 days from notification by the Protective Claims quarterly report. If the case cannot be determined within this timeframe, the SS-8 technician must contact the SS-8 Protective Claims Liaison.

  2. When closing a Protective Claims case, the SS-8 technician will email the appropriate Protective Claims Coordinator, the SS-8 Protective Claims Liaison, the SS-8 technician’s lead, and the SS-8 technician’s manager. In this E-mail, the SS-8 technician will include the following:

    • The SS-8 case number.

    • The worker’s SSN.

    • The worker’s Name Control.

    • The SS-8 case result.

    • Copy of the letter issued to the worker.

Referrals

  1. Form SS-8 is a potential source of leads for employment tax examinations. After completing all actions related to issuance or non-issuance of the determination letter, the assigned SS-8 technician will determine whether audit potential exists for the following Business Operating Divisions (BODs):

    • Small Business/Self-Employed (SB/SE)

    • Tax Exempt/Government Entities (TE/GE) - Exempt Organizations (EO)

    • TE/GE - Federal, State, and Local Governments (FSLG)

    • TE/GE - Employee Plans (EP)

    • TE/GE - Indian Tribal Governments (ITG)

    • CRC - Fraud Coordinator

  2. SS-8 technicians will use the guidelines in Exhibit 7.50.1-9, Field Referral Criteria, to identify cases meeting referral criteria for the following Business Operating Divisions (BODs):

    • Small Business/Self-Employed (SB/SE)

    • Large Business and International (LB&I)

    • Tax Exempt/Government Entities (TE/GE) - Exempt Organizations (EO)

    • TE/GE - Federal, State, and Local Governments (FSLG)

  3. For SB/SE referrals, the SS-8 technician will take the following actions:

    1. Review years covered in the determination request. If the requested years are greater than four years from the current calendar year, do not forward a referral, even though other criteria are met.

    2. Reviews IDRS to identify whether the firm is still in business. If business is closed, do not forward referral, even if other criteria are met.

    3. For all cases not falling under "a" and "b" above and meeting established referral criteria above in Paragraph (2), Form SS-8 , a copy of the determination letter, and case notes are forwarded to the Centralized Workload Selection and Delivery (CWSD) Unit at the Cincinnati Campus for consideration.

  4. Once the Form SS-8 is assigned for audit, the assigned examiner must contact the SS-8 technician who worked the Form SS-8 case to obtain copies of any pertinent documentation in the Form SS-8 case file.

    Note:

    Field examiners must follow the guidelines in IRM 4.23.18.5, Employment Tax Examination Determinations that Differ from SS-8 Determination Letters, if they disagree with the SS-8 determination.

  5. For TE/GE - EO referrals, the SS-8 technician will complete Form 3449, Referral Report, and attach Form SS-8, a copy of the determination letter, and case notes, and mail to the following address:
    Internal Revenue Service
    TE/GE EO Examinations
    Classification-Referrals
    MC 4910 DAL
    1100 Commerce St.
    Dallas, TX 75242

    Note:

    TE/GE - EO will notify the SS-8 program of any non-selected cases and the reasons for non-selection through secured E-mail.

  6. For TE/GE - FSLG referrals, the SS-8 technician will complete Form 5666, TE/GE Referral Information Report, will attach Form SS-8, a copy of the determination letter, and case notes, and mail to the following address:
    Internal Revenue Service
    Austin Federal Office Building
    300 E. Eighth Street
    Austin, TX 78701–3233

    Note:

    TE/GE - FSLG will notify the SS-8 program of any non-selected cases and the reasons for non-selection through secured E-mail.

  7. SS-8 technicians will use the check sheet in IRM 4.23.3–2, Employee Plans (EP) Referral Checksheet, to identify cases meeting referral criteria for TE/GE - EP cases.

  8. For TE/GE - EP referrals, the SS-8 technician will complete Form 3449, Referral Report, attach Form SS-8, a copy of the determination letter, and a copy of the case notes, and mail to the following address:
    IRS - EP Classification
    McCaslin Industrial Park
    2 Cupania Circle
    Monterey Park, CA 91755-7406

  9. For TE/GE - Indian Tribal Governments (ITG) Referrals, the SS-8 technician will complete Form 3449, Referral Report, attach Form SS-8, a copy of the determination letter, and a copy of the case notes, and mail to the following address:
    IRS
    TE/GE SE:T:GE:ITG:CPM
    NCA-5th Floor
    1111 Constitution Ave NW
    Washington, DC 20224-0002.

  10. Any type of SS-8 case listed above could have fraud indicators. SS-8 technicians use IRM 25.1, Fraud Handbook, and Fraud Checklist to identify and develop SS-8 cases meeting Fraud Criteria. See Exhibit 7.50.1-10, Fraud Checklist, for more information.

  11. The SS-8 technician will forward the fraud referral, along with Form SS-8 and all supporting documentation based on the taxpayer's BOD type, to the appropriate address listed in this IRM section above. Example: If the SS-8 case has fraud indicators and the taxpayer is considered an SB/SE taxpayer, the SS-8 case would be forwarded to Centralized Workload Selection and Delivery at the Cincinnati Campus as outlined in Paragraph 3(c) above.

Telephone Contact

  1. During the determination process, it may be necessary for an SS-8 technician to contact a firm or a worker by phone. All contacts should be conducted in a professional manner.

  2. When making or receiving phone calls, the SS-8 technician must follow IRM 21.1.3.2.3, Required Taxpayer Authentication, to ensure they are speaking to the appropriate taxpayer, and to prevent unauthorized disclosure of tax information.

    Note:

    If a taxpayer calls in and leaves a message, the return call must be made within one business day. The exception is during the filing season of February - May, the return call must be made within three business days.

  3. The SS-8 technician should take the following actions for any telephone contact.

    1. Provide the taxpayer with contact information and employee identification number in accordance with RRA 98 Section 3705(a).

    2. Verify taxpayer's current address.

      Note:

      If the taxpayer's current address is different than the address of record, the SS-8 technician should inform the taxpayer to file Form 8822 Change of Address, to update their address of record.

    3. If the SS-8 technician receives a difficult phone call (push back from a taxpayer or firm), the SS-8 technician will notify the manager. The manager is required to return these types of phone calls within 24 hours.

    4. If the taxpayer requests to speak to a manager, the SS-8 technician will notify the manager of this request. The SS-8 technician will notify the taxpayer that a manager will call them back within 24 hours of the taxpayer's request.

    5. Update the SS8ICP database activity log with important points derived from the telephone conversation in a clear, concise manner.

Clerical Guidelines for Retrieving Phone Calls from SS-8 General Information Telephone Line
  1. The SS-8 program established a general information phone line for taxpayers to call. This phone number is included on various letters issued by the SS-8 program. Examples include:

    • Letter 3891, Acknowledgement Letter

    • Letter 4949, SS-8 Return Letter

    • Note:

      A complete listing of published SS-8 letters can be found in Exhibit 7.50.1-8, Published Forms and Letters Used in the SS-8 Program.

    Taxpayers leave a voice mail on this telephone line with questions on their case. The SS-8 clerical staff monitors the telephone line on a daily basis.

  2. The assigned clerk takes the following actions to ensure timely responses to telephone inquiries received.

    1. Extracts voice mails from the generic telephone line on a daily basis.

    2. Researches each request to identify the appropriate SS-8 employee to return the call.

    3. Forward all information to appropriate SS-8 employee for call back.

    4. If necessary, return calls to taxpayer to secure additional information. Example: The taxpayer did not provide enough information to look up a case. The SS-8 clerk would have to contact the taxpayer to secure enough information to process the telephone call.

      Note:

      When making phone calls, the SS-8 clerk must follow IRM 21.1.3.2.3, Required Taxpayer Authentication, to ensure they are speaking to the appropriate taxpayer, and to prevent unauthorized disclosure of tax information.

    5. If the clerk receives a difficult phone call (push back from a taxpayer or firm), the clerk will notify the manager. The manager is required to return these types of phone calls within 24 hours.

    6. If the taxpayer requests to speak to a manager, the clerk will notify the manager of this request. The clerk will notify the taxpayer that a manager will call them back within 24 hours of the taxpayer's request.

    7. Update SS8ICP activity log to record the call and all actions taken.

Coordination with Governmental Liaison Local Guidelines for Processing SS-8 Cases for Secured Data Transfer (SDT)

1. The assigned SS-8 technicians require permissions to the following common drive, reports, applications, and documents to prepare and forward reports to the state tax agencies using the Secured Data Transmission (SDT) process:

  • Business Objects Application.

  • DET0190CPFPP2\Common\EFTU\SBSE\BrookhavenCampus\SS8 folders.

  • The Zip Code listing will be updated annually and shared with the SS-8 Reports Coordinator in January. As new agreements are implemented with PGLD, new updates will be provided to the SS-8 Reports Coordinator.

  • SS8ICP database.

  • SS-8 SDT File Names and Instructions.

2. The assigned SS-8 employee generates an SS-8 Referral Report from the Business Objects Application during the first week of the current month to extract data from the prior month cases. Example: During the first week of April, 2013, the assigned employee runs a report for March 1 - March 31, 2013.

3. The assigned SS-8 employee takes the following actions to generate the "SS-8 Referral" report for each state tax agency:

  1. Access Business Objects Application.

  2. Select SS-8 Referral Report located under public folder\SS-8\Referral.

    Note:

    This folder contains report templates that must be run for each state.

  3. Update the start and end dates on the report.

  4. Run query.

  5. Convert report to Excel by selecting the document drop down box, the save report to my computer option, and then choose Excel.

  6. Save each report to DET0190CPFPP2\Common\EFTU\SBSE\BrookhavenCampus\SS8, and rename it using the SS-8 SDT File Names and Instructions provided by Governmental Liaison Headquarters Policy.

    Note:

    Using the appropriate naming convention is crucial for this process.

  7. Open each report and remove any "X's" from the occupation column.

4. The assigned SS-8 employee prints the "SS-8 Disclosure Accounting Report" located on the DET0190CPFPP2\Common\EFTU\SBSE\BrookhavenCampus\SS8 drive. This report lists current state tax agencies authorized to receive information from the SS-8 program. The SS-8 employee uses this report as a check sheet to notate volumes of cases and tax periods extracted for each state agency from the SS-8 Referral reports.

5. There are specific zip codes identified on the "SS-8 Zip Code for Cities" report to identify which determinations cities are authorized to receive. Examples: Ohio and Kentucky. To create reports for cities, assigned SS-8 employees will:

  1. Copy the state report and use the SS8ICP database to look up applicable cases identified on the "SS-8 Referral" report.

  2. Add the authorized case zip codes to the "State" column and make copies based on the number of participating city agencies.

  3. Delete the unauthorized cases according to zip codes from the reports.

6. The assigned SS-8 employee copies the text document template (TemplateSS8E001MMDDYYYY.cntl.txt) located in the SS-8 folder on the DET0190CPFPP2\Common drive and takes the following actions:

  1. Pastes the text document template to the DET0190CPFPP2\Common drive folder.

  2. Renames the template to match the SS8E001MMDDYYYY portion of the saved report file name.

  3. Opens the text document.

  4. Enters the naming convention of the SS-8 file in the open text document.

  5. Enters the number of records on the SS-8 Referral report into the "Number of Records" field.

  6. Saves and closes the document.

  7. Completes the same actions for all required reports.

    Note:

    Each report must have a corresponding text document.

7. The assigned SS-8 employee reviews the completed report and text documents to ensure accuracy. If the file names are not correct, corrections must be made for the files to be sent via SDT.

8. If the completed report and text documents are accurate, the assigned SS-8 employee will move these documents to the "SS8_to_State" folder located on the DET0190CPFPP2\Common drive.

9. The assigned SS-8 employee updates the "SS-8 Disclosure Accounting Report" located on DET0190CPFPP2\Common drive with the data from the printed report. The SS-8 employee forwards the completed report via E-mail to the following recipients:

  • Governmental Liaison Headquarters Policy, Program Analysts.

  • Headquarters Disclosure Policy, Tax Law Analyst.

  • BSC EFS Department 3 Manager.

  • Examination Field and Campus Policy Headquarters Program Analyst.

SS-8 Status Codes

Status Code Definition Who Maintains Physical Control of File Additional Information
A New SS-8 Case to Program Clerical Staff Status date is the date case is loaded to the SS8ICP database.
AC SS-8 Technician Case SS-8 Technician New SS-8 case assigned to an SS-8 technician but not started.
B Assigned to SS-8 Technician SS-8 Technician SS-8 case assigned to SS-8 technician but not started.
C Case in Process SS-8 Technician SS-8 case started, but not completed on the same day.

Note:

SS-8 cases started and completed on the same day can bypass this status.

D 6110 Review Pending SS-8 Technician 6110: redacted copy of Form 14430, SS-8 Determination Analysis, is under local review.
DC Suspense SS-8 Technician Awaiting guidance for disposition.
ED Earliest Receipt Date Clerical Staff This represents the earliest receipt date of the SS-8 in any IRS office, and is used for tracking purposes only.
H Holding Bin Clerical Staff SS-8 is ready for assignment.

Note:

Expedited cases can bypass this status when immediately assigned to an SS-8 technician.

OD SS-8 Office Receipt Date Clerical Staff This represents the date case is received by the SS-8 program, and is used for tracking purposes only.
PD Purge Date Clerical Staff This status represents the response deadline by the second party to the SS-8 case.

Note:

Removal of status PD occurs when a new status is input prior to the related purge date.

Z Closed. Clerical Staff or SS-8 Technician See Exhibit 7.50.1-3, SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014, for more information for cases started before October 1, 2014.

Note:

For cases started after October 1, 2014, see Exhibit 7.50.1-15, SS-8 Case Flags for SS8ICP Database After October 1, 2014, for more information

.

SS-8 Case Flags for SS8ICP Database Used Prior to October 1, 2014

FLAG DEFINITION USE FLAG WHEN/FOR
A Automated Underreporter (AUR) Case AUR requests are expedited processing due to an open AUR case which may be affected by the SS-8 determination.
AL Alien Worker is a foreign citizen working in the U.S.
C Home Care Service Worker/State Government Worker paid with State funds. Example: Medicaid program. Typically used for home care of disabled or elderly.

Note:

Do not use flag for workers paid for child care services through welfare programs, unless specific to children with disabilities.

CG Congressional Case Case resolved using the e-trak system.
DI Third Party Payer Payer is a separate entity from the firm for which services were provided.
DO Field Audit Referral Case is eligible for an IRS field office referral for audit consideration.

Note:

Use flags RA, RJ, and RS, if applicable, as stated in the table below..

E 6110 Processing Case is subject to IRC 6110 processing requiring Form 14430, SS-8 Determination Analysis, to be made available for public inspection.
EC Erroneous Classification of Employment Cases Case involved erroneous classification of employment rather than worker classification, and the Form 1099-MISC income is not a supplemental wage.
EH Expedite Handling Case has a pink expedite flag on it.
EO EO/TEGE Case Firm is an exempt organization.
F Firm Requester Firm initiated the Form SS-8 process.
FB Family Business Firm is a family run business.
FC Firm Compliance There is evidence the firm voluntarily reclassified the worker from an independent contractor to an employee.

Note:

Cases with a FC flag should reflect "undetermined" as the case result if the firm complied prior to the determination letter issuance.

FD Firm No Response Firm did not reply with Form SS-8.
FF Frivolous Filer Argument Referral Case referred to Ogden Campus when frivolous filer argument is included.
FI Firm Involved Firm replied to Form SS-8.
FR Fraud Referral Case referred to examination when indicators of tax avoidance, evasion, or fraud are included.

Note:

Use flags RA, RJ, and RS, if applicable, as stated in the table below.. Do not use a DO flag.

FW Proposed Transaction Case or "Prospective Employment Status of Worker" Case is for a proposed transaction or prospective employment status of worker.

Note:

Cases with a FW flag should always reflect "undetermined" as a result.

GL Governmental Liaison Referral Referring a case for information sharing with a state tax agency.
HS Other Federal Agency Referral Referring a case to another Federal agency.

Note:

The Disclosure staff must consider and approve the issue prior to referral.

IN Informant Case Taxpayer provides information about a Federal tax violation and does not request an award. Taxpayer advised to complete and send Form 3949–A, Information Referral to Fresno, CA.

Note:

Do not use RA, RJ, or RS flags in conjunction with this flag.

IT Indian Tribal Governments/TEGE Case The firm's BOD is Indian Tribal Governments/TEGE.
K KITA (Killed in Terrorist Action)/Disaster/Combat Zone Taxpayer is in a KITA/Disaster/Combat Zone.

Note:

Describe which party is impacted (firm or worker), the cause of the impact, and any special handling in the case notes.

L Bilingual Case Spanish language skills needed to process the case.
LE Leasing Company/Leased Employees Case involves leased employees and a third party is involved, other than a payroll company.
LM LB&I Case The firm's BOD is LB&I.
M Management Flag Manager or work leader is holding case.
NP Not Processable Case not processed due to missing or incomplete information.
O Overturn Determination finding was overturned, rescinded, or modified in a related case.

Note:

Related case number should be input to case activity log.

OF Overseas Firm Taxpayer is a U.S. citizen working overseas. Firm may be foreign or domestic.
OP Opinion Information letter issued to taxpayer to give advice instead of a determination.

Note:

In general, cases with an "OP" flag reflect "undetermined" as the result.

P Taxpayer Advocate Service (TAS) Case TAS case with an Operation Assistance Request (OAR) or Taxpayer Assistance Order (TAO) issued.
PA Processable Prior Form SS-8 reject case is now processable.
PF Power of Attorney (POA) - Firm Firm has a valid POA on file.
PW POA - Worker Worker has a valid POA on file.
Q Quality Review Selection Case selected for embedded quality review.
R Reconsideration Taxpayer requests review of closed case.
RA Referral Accepted Referred case accepted for reconsideration.

Note:

Use this flag with the DO, FR, and TC flags, as stated in this table, when a case is accepted for audit reconsideration.

RC Related Case Case is related to another case in the SS8ICP database. Notate related case number(s) in case notes.

Note:

Use this flag on the original case considered for reconsideration or revocation.

RF First Read Reject Form SS-8 not completed and has been rejected.
RJ Referral Rejected Referred case rejected for reconsideration.

Note:

Use this flag with DO, FR, and TC flags, as stated in this table.

RP Retirement Plan Case referred to TEGE/EP for consideration of a retirement plan matter.

Note:

Do not use RA, RJ, or RS flags in conjunction with this flag.

RR Request Rescinded Requester has decided to withdraw request for SS-8 case processing.
RS Referral Sent Referral sent to the field for audit consideration. The referral date must be included.
RV Revocation IRS prompts review of closed case.
S Firm Out of Business This flag indicates the firm is out of business.
SB SB/SE Case Firm's BOD is SB/SE.
SH Safe Haven Evidenced Taxpayer provided written proof for IRC Section 530 eligibility for safe haven from IRS.
SM FSLG/TEGE Firm's BOD is FSLG/TEGE.
SW Supplemental Wage Issue Case involves erroneous classification of wages rather than worker classification.
TB Transfer to Brookhaven Campus (BSC) Case transferred from the Vermont SS-8 unit to the BSC SS-8 unit for handling.
TC Tax Compliance Officer (TCO) Referral Case is eligible for SB/SE TCO group referral for audit consideration.

Note:

Use flags RA, RJ, and RS, if applicable, as stated in this table.

TN Transfer to Newport, Vermont Case transferred from the BSC SS-8 unit to the Newport, VT SS-8 for handling.
TO Transfer Out Case file sent to another office for processing (field or NO)
TP Third Party Contact Made Third party contact is made. Add flag to case at time of contact.
W Worker Requester Worker initiated the SS-8 process.
WB Whistleblower Office Referral Referring an Informant case to the IRS Whisteblower Office for handling. Taxpayer is requesting a Whistleblower Award.

Note:

Do not use RA, RJ, or RS flags in conjunction with this flag.

WP Workshop Program Worker(s) are in a sheltered workshop environment for disabled persons.
X SS-8 Technician Held The SS-8 technician maintains case file for issue other than listed.

Form SS-8 Case Findings

Finding Description
Employee Worker in case found to be an "employee" through common law analysis or by statute (not including those described under "Statutory Employee" or "Statutory Non-Employee" below.

Note:

"Employee" finding indicates FICA tax is due on the income in question.

Exception: See IRM 7.50.1.5.5, Cases Involving State and Local Governments Overview, for cases involving workers of State and Local Governments.
Incomplete Default finding for any case that has not reached a conclusion.

Note:

A closed case should not reflect an "incomplete" result.

Independent Contractor Worker in case is found to be self-employed.

Note:

"Independent contractor" finding indicates Self-Employment Tax due on the net income earned by the worker.

No FICA or No SECA (Self-Employment Contributions Act) Due. Income in question found not to be wages or income earned in a trade or business. The income may or may not be reportable as gross income on the worker's return. The IRS informs the worker that there is no employment tax liability related to the income in question.
Split Determination Worker in a case is earning two types of ongoing income from one firm (concurrently or intermittently) that have separate tax ramifications. Example: FICA and SECA are due.

Note:

This result does not include cases where the worker is one status for an initial time span, and the job evolves into another status. In most cases, the most recent status will be input as the result of the case.

Statutory Employee Worker in the case found to be an independent contractor through common law analysis; however, they meet the statutory criteria under IRC 3121(d)(3), so the firm must treat them as an employee for FICA purposes. Occupations specific to this finding are:
  • Agent or commission driver

  • Full-time life insurance salesperson

  • Home workers

  • Traveling or city salespersons

Note:

This finding indicates FICA tax is due on the income in question.

Statutory Non-Employee Worker in the case meets the statutory criteria of IRC 3508 as in the following:
  • Direct seller (including newspaper delivery or distribution).

  • Qualified real estate agent.

    Note:

    This finding is also used if worker meets the statutory criteria under IRC 3506

    for companion sitters.

Note:

This finding indicates Self-Employment Tax due on the net income earned by the worker.

Undetermined Result for any case closed with no advice given as to the type of employment tax due on the income in question. It is undetermined for the following:
  • Request is incomplete and cannot be processed

  • Withdrawal of the request by the submitter.

  • IRS chooses not to issue a determination letter for any reason

  • Firm amends its returns to reflect the worker's correct status prior to issuance of a determination letter

Form SS-8 Case Research for Firms

Research for Firms by IDRS Command Code Research Results
AMDISA
  • Open audit controls

BMFOLE
  • Address

  • NAICS codes

  • Type of entity

  • Cross-reference to other entities (only needed if worker notates additional entities in Note on Page 1 of Form SS-8 - checking to see if worker is paid by one related entity while working for another).

BMFOLI
  • Filing history

  • Freeze codes

BMFOLT
  • Statute information (only need statute on cases for tax years older than three years).

BMFOLZ
  • Prior audit history

  • Disposal codes

ESTAB
  • Requesting returns and audit results from files.

INOLES
  • BOD code involving Federal State Local Government (FSLG) or Indian tribal cases

PMFOL
  • Number of Forms 1099 and Forms W-2 filed

SS8ICP database
  • Related cases - same worker classification for potential determination, or to work all same class workers together

Note:

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Form SS-8 Case Research for Workers

Research for Worker by IDRS Command Code Research Results
AMDISA
  • Open audit controls

IMFOLI
  • Filing History

  • Freeze codes

IMFOLT
  • Statute information (only need statute on cases for tax years older than three years).

INOLES
  • Address

INOLEX
  • Related EIN's - information to consider

IRPTR
  • Research years listed on form and one year prior

SS8ICP database
  • Related cases - worker filed multiple Forms SS-8 for determination on additional firms

Note:

≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡ ≡

Freeze Codes

Freeze Code Description Freeze Code
Audit freeze code. -L.
Combat zone designations. -C.
Criminal Investigation (CI) involvement. -T, Z-, -Z.
Disaster designations. -O, -S.
Litigation pending code. -W.

Published Forms and Letters Used in the SS-8 Program

Letter Type Letter or Form Number
Acknowledgement
  • Letter 3891, Acknowledgment Letter

Closing
  • Letter 3865, Closing Letter

Determination
  • Form 14430, SS-8 Determination Analysis

  • Form 14430-A, SS-8 Determination - Determination for Public Inspection

  • Letter 4991, SS-8 Employee Determination

  • Letter 4991 (SP), SS-8 Employee Determination (Spanish)

  • Letter 4991-A, Notice to Firm - Determination Employee

  • Letter 4991-A(SP), Notice to Firm - Determination Letter (Spanish)

  • Letter 5246, Contractor Determination - Worker

  • Letter 5246-A, Contractor Determination - Firm

Information
  • Letter 5007, Firm - Advise on Future Workers

  • Letter 5007 (SP), Firm - Advise on Future Workers (Spanish)

  • Letter 5083, Reconsideration Letter - No Additional Information to Consider

Opinion/Courtesy
  • Letter 5081, Form SS-8 Determination of Employment Status Courtesy Letter - Employee

  • Letter 5082, Form SS-8 Determination of Employment Status Courtesy Letter - Independent Contractor

Participate in Determination Process
  • Letter 5367, Notification to Firm

Rescind
  • Letter 5236, Rescind Request for Determination

  • Letter 5236 (SP), Rescind Request for Determination (Spanish)

Return
  • Letter 4949, SS-8 Return Letter

  • Letter 4949 (SP), SS-8 Return Letter (Spanish)

Field Referral Criteria

FIELD REFERRAL CRITERIA
  1. The available data on income paid for services by the firm on which no employment tax was paid (generally in the form of PMFOL, or a contract labor deduction taken on a business return or Schedule C) is as least $200,000 for any one of the two most current tax years open for audit.

  2. The firm has not filed information returns (i.e. no Form 1099-MISC filed), but the Form SS-8 case data reveals there is at least one worker in the class earning at least $25,000, or if workers earned less than $25,000, there are multiple Forms SS-8 received. Data can be in the form of verbal evidence obtained from the worker in the SS-8 case.

  3. A case may or may not meet either of the prior criteria in Paragraph 1 or 2 above, but there are egregious indicators of civil or criminal fraud. This includes erroneous classification of employment cases, where workers were intentionally reclassified to independent contractor status to avoid tax, which involve at least 10 workers.

  4. The payer is found to be in violation of a CSP, VCSP, or 906 Closing Agreement.

  5. There is an erroneous classification of wages or fringe benefit issue that was not treated as wages for at least 10 workers. The matter is company-wide and totals at least $100,000 when considering the approximate income amount not treated as wages for each worker, and the number of workers involved. Issues may include the following:

    • Officer compensation.

    • Accountable plan income.

    • Fringe benefits.

    • Workers treated as employees with tax withheld, but not paid in (no reporting form issued).

    • Third party payer cases that appear abusive.

  6. Any issues involving officer compensation, or whether an officer is improperly treated as an independent contractor.

  7. Any cases when there is an indication that the firm had previously treated the workers as employees, and converted the workers to independent contractors, regardless of the number of workers or amount paid.

Fraud Checklist

Case #: CASE ID
Approximate # of Workers in Class:
Firm's Date of Establishment:
Indicators of Tax Avoidance Indicators of Willfulness to Avoid Tax
___ Evidence showing concealment of bank accounts or business records. ___ Paying employees in cash or part cash/part check.
___ Inadequate explanation dealing in large sums of cash. ___ A pattern of employment tax violations.
  1. Years involved:

  2. Description of violation:

___ Failure to file an income tax return. Years not filed: ___ Failure to file employment tax returns.
  1. Quarters/Years not filed:

___ Keeping two sets of books. ___ Prior conviction for employment tax offense.
  1. Year of Issue:

  2. Description:

  3. Result:

___ Failure to keep adequate records. ___ Changing payment reporting from Form W-2 to Form 1099-MISC without reason.
  1. Year(s) affected:

___ False statements during phone interview. ___ Paying employees from different checking accounts.
___ Failure to answer pertinent questions or respond. ___ Paying employees from different business names.
___ Failure to follow advice from their POA. ___ Loans to employees that are never repaid.
___Testimony of employees concerning irregular business practices. ___ Use of a 2nd set of payroll records.
___ Co-mingling funds. ___ Employee leasing that causes change in worker classification.
___ Pattern of consistent failure over several years (at least 3) of wrongdoing. ___ Making false or misleading statements.
___ Proof that returns are incorrect to a degree that indicate the falsity was deliberate. ___ Check stubs show withholding but none paid to IRS.
___ Making false statements on Form SS-8 or attachments. ___ Not following advice of POA or fully disclosing to POA.
___ Use of false TINs. ___ Making cash withdrawals from banks to cover cash payroll.
___ Paying workers under the table; dealing only in cash. ___ Pyramiding.
___ Not issuing reporting forms. Years not issued: ___ CBRS reflects high cash activity.
  1. Describe:

___ Issuing Form W-2 without withholding tax.
___ Check stubs show withholding but none paid to IRS.
___ Collecting FICA, but not paying it to IRS.
___ Income on reporting forms incorrect.
___ Many TINs and no clear reason for changes to TIN.
___ Paying workers through a "crew leader" to avoid tax.
___ Ignoring a previously issued worker classification decision.
  1. Case #:

  2. Date of case closing:

  3. Result:

  4. Occupation:

___ Non-compliance with a CSP.
___ Frivolous claims as to why they don't owe tax.
___ Providing workers with incorrect information concerning withholding requirements.
___ Ceasing to withhold tax for no apparent reason (Forms W-2/1099-MISC).
___ Filing a claim for refund of prior year withholdings with no valid basis.
___ Failing to call wages, wages (i.e. loans, etc.).
___ TP lives a lavish lifestyle and has extravagant spending habits.
___ Firm has not requested an EIN with which to pay employment taxes.
Additional information:

Memorandum Language When Transferring Form SS-8 to Appeals or Criminal Investigation

Memorandum Language When Transferring Form SS-8 to Appeals or Criminal Investigation
Use the following memorandum language, in paragraph format, when referring a Form SS-8 to Appeals or Criminal Investigation:
  • The SS-8 Program received a request from a taxpayer for consideration of a worker's status for federal employment tax purposes related to income earned from [insert firm name] from [insert date] to [insert date]. IRS procedures prohibit the SS-8 Program from issuing a determination when another IRS office has jurisdiction over the matter. IDRS research indicates your office has jurisdiction over federal employment tax matters of the federal employment tax matters of [insert worker or firm name] at this time. Therefore, we are suspending our Form SS-8 case pending notification of the results of your findings.

  • We are enclosing a copy of the entire Form SS-8 file pending in our unit for your consideration. Please provide a quarterly update on the status of your case.

  • Feel free to contact me if you have any questions about this Form SS-8 case. I look forward to hearing from you approximately 30 days from the date of this memorandum.

Letter Language When Processing Form SS-8 Cases With Prior Employment Tax Audits

Letter Language When Processing Form SS-8 Cases With Prior Employment Tax Audits
Use the following letter language, in paragraph format, when sending a letter involving a prior employment tax audit and the results of the audit are secured, and the worker classification issues were addressed, and the facts are the same or similar.
  • We received your Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, from [insert date] to [insert date].

  • Our records indicate the employment tax status of [insert occupation] for [insert firm name] was previously addressed by the Service.

  • The office having jurisdiction over the worker classification matter has provided us with the conclusion on the status of [insert occupation] performing services for the firm.

  • It was determined that [insert occupation] are [insert employees or independent contractors].

  • We have enclosed a copy of the determination letter that serves as a basis for this conclusion.

  • If you have any questions, please contact us at the telephone number shown in the heading of the letter.

Letter Language When Processing Form SS-8 Cases With Appeals or Criminal Investigation Involvement

Letter Language When Processing Form SS-8 Cases With Appeals or Criminal Investigation Involvement
Use the following letter language, in paragraph format, when sending a letter to a firm with Appeals or Criminal Investigation involvement.
  • We received your Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, from [insert date] to [insert date].

  • We are prohibited from issuing a formal determination at this time since another Internal Revenue Service office has jurisdiction over the worker classification of [insert occupation] for [insert firm name] for earlier years than those in question, and the issue is not yet resolved.

  • If you have any questions, please contact us at the telephone numbers shown in the heading of this letter.

Letter Language When Processing Form SS-8 Reconsideration Cases

Letter Language When Processing Form SS-8 Reconsideration Cases
Use the following letter language, in paragraph format, when sending a letter to a worker or firm requesting a reconsideration of a prior determination. You will also need to prepare Form 14430, SS-8 Determination Analysis, for the reconsideration results.
  • This letter is in response to your request for reconsideration of a determination that was issued on [insert date], regarding the federal employment tax status of [insert worker name], who was engaged by (insert firm name) to provide services as a [insert occupation]. In that determination, we concluded that the worker was an [employee or independent contractor] of the firm for purposes of the taxes imposed under the Federal Insurance Contributions Act (FICA), the Federal Unemployment Tax Act (FUTA), and income tax withholding.

  • The Internal Revenue Service allows taxpayers to request a reconsideration of the facts or law when they believe the determination to be in error. If warranted the original finding may be rescinded.

  • We have thoroughly considered your request for reconsideration and have prepared Form 14430, with the results of the reconsideration.

  • If you have any questions regarding this reconsideration, please contact us at the telephone numbers shown in the heading of this letter.

SS-8 Case Flags for SS8ICP Database After October 1, 2014

INVENTORY FLAGS
FLAG DEFINITION
E 6110 Processing - Inventory
EC Erroneous Classification
EH Expedite Handling
F Firms
FW Prospective Employment Status
OP Opinion Letter - Streamline Processing
PF POA for Firms
PW POA for Workers
R Reconsideration
RC Related Case
SM State & Local Government
SW Supplemental Wage
TP Three Party Arrangements
W Worker
WP Workshop Program
SECONDARY EXPEDITE HANDLING FLAGS
FLAG DEFINITION
A AUR
C Congressional
M Management Request
P TAS
CLOSING FLAGS
FLAG DEFINITION
FC Firm Compliance
NP Case Not Processable
O For Reconsiderations Only - Use When Prior Determination is Overturned.
RF Any SS-8 Returned.
RR Rescinded - By requester

Second Screening Checklist

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Internal Firm Compliance--Worker Letter Language

Internal Firm Compliance--Worker Letter Language
Use the following letter language, in paragraph format, when sending a letter to a worker when a firm has voluntarily changed the worker's status.
  • We received a Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, for services performed as a [insert occupation]________________.

  • The firm states that it is reclassifying your employment status to an "employee" . Since this reclassification resolves your employment status concern, a determination letter is no longer required. Therefore, we have closed this case. If you have any questions, please let us know.

  • If you need assistance with filing or amending your tax return(s), please contact Customer Service at 1-800-829-1040.

Internal Firm Compliance--Firm Letter Language

Internal Firm Compliance--Firm Letter Language
Use the following letter language, in paragraph format, when sending a letter to a firm that has voluntarily changed the worker's status.
  • We received your Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, for services performed as a [insert occupation]_________.

  • Because you state that you are voluntarily changing the worker's status to employee, a determination letter will not be issued. We appreciate your voluntary compliance. If you engaged other workers under substantially similar circumstances, you should reclassify them as employees at this time as well.

  • If you need assistance in filing or adjusting your employment tax returns due to the reclassification of your worker(s), please call Customer Service at 1-800-829-4933.

  • If you need assistance in preparing or correcting Forms W-2, W-3, 1096, 1099, or other information returns, please call Customer Service at 1-866-455-7438.

  • If you have questions concerning this letters, please contact me with your case number (CASEID) at the number listed above.

Internal Statutory Non-Employee Letter Language

Internal Statutory Non-Employee Letter Language
Use the following letter language, in paragraph format, when sending a letter to a worker that is a statutory non-employee.
  • We received your Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, for services performed [insert date] to [insert date].

  • We determined that you are a statutory non-employee for federal employment tax purposes. The attachment to this letter provides an analysis of the facts and circumstances that led to our determination.

  • As a statutory non-employee, you must pay federal income tax and self-employment tax on the income your received for your services, unless a specific exclusion applies. Statutory non-employees report earnings as a statutory non-employee and deduct related business expenses on Schedule C, Profit or Loss from Business (Sole Proprietorship). The net profit (or loss) from Schedule C is included on Schedule SE, Self-Employment Tax, to calculate self-employment tax and on Form 1040 for income tax purposes. Generally, because statutory non-employees do not have taxes withheld from the payments they receive for services, they must pay quarterly estimated taxes using Form 1040-ES, Estimated Tax for Individuals.

  • If you haven't filed your tax return (Form 1040), you may need to do so. If you have filed your return, you may need to amend it. You may be due a refund, you may reduce your tax liability, or you may owe additional tax. This depends on whether or not you filed a return and how you reported the income you received on that return.

  • If you need help preparing or correcting your tax returns, you can call Customer Service at 1-800-829-1040.

Internal Statutory Employee Letter Language

Internal Statutory Employee Letter Language
Use the following letter language, in paragraph format, when sending a letter to a worker that is a statutory employee.
  • We received your Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, for services performed [insert date] to [insert date].

  • We determined that you are a statutory employee for federal employment tax purposes. The attachment to this letter provides an analysis of the facts and circumstances that led to our determination.

  • As a statutory employee, you must pay federal income tax and Federal Insurance Contributions Act (FICA) tax (that is social security and Medicare taxes) on wages you received for your services, unless a specific exclusion applies.

  • Statutory employees report earnings as a statutory employee and deduct related business expenses on Schedule C, Profit or Loss from Business (Sole Proprietorship). The net profit (or loss) from Schedule C is not included on Schedule SE, Self-Employment Tax, because services performed as a statutory employee do not constitute the carrying on of a trade or business for purposes of calculating self-employment tax. Generally, statutory employees have FICA taxes withheld from the payments they receive for services. If these taxes were not withheld from your pay because you were treated as an independent contractor, you must compute and pay the employee portion of the tax with your return. Use Form 8919, Uncollected Social Security and Medicare Tax on Wages, to compute the tax. This will ensure you receive credit for these earning with the Social Security Administration (SSA).

  • If you haven't filed your tax return (Form 1040), you may need to do so. If you have filed your return, you may need to amend it. You may be due a refund, you may reduce your tax liability, or you may owe additional tax. This depends on whether or not you filed a return and how you reported the income you received on that return.

  • If you need help preparing or correcting your tax returns, you can call Customer Service at 1-800-829-1040.

Internal Corporate Officer--Firm Letter Language

Internal Corporate Officer--Firm Language Letter
Use the following letter language, in paragraph format, when sending a letter to a firm for a corporate officer.
  • We received your Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, for services performed [insert date] to [insert date].

  • In general, a corporate officer is an employee of a corporation, and is included within the definition of employee for purposes of Federal Insurance Contributions Act (FICA) tax, Federal Unemployment Tax Act (FUTA) tax, and federal income tax withholding unless a specific exclusion applies.

  • We determined that the worker is an employee for federal employment tax purposes. The attachment to this letter provides an analysis of the facts and circumstances that led to our determination.

  • This determination is binding on the Service, assuming there is no change in the facts or law that form the basis for the ruling. If you take a contrary position or disregard the ruling, you may be referred for audit. If you haven't filed employment tax returns, you may need to do so. If you filed employment tax returns, you may need to amend them.

  • Employers generally must withhold income tax and Federal Insurance Contributions Act (FICA) tax, (that is, social security and Medicare tax) from wages paid to their employees and pay these taxes to the government. Employers must also pay the employer share of FICA tax and Federal Unemployment Tax Act (FUTA) tax on the wages. To make any necessary adjustments to pay these taxes on past wages to your employees, including the use of special rates, please refer to Publication 15, (Circular E) Employer's Supplemental Tax Guide and Publication 15-A, Employer's Supplemental Tax Guide. You can get these publications by calling 1-800-TAX-FORM (1-800-829-3676) or by visiting us online at www.irs.gov/formspubs.

  • If you need help preparing or correcting employment tax returns, you can call Customer Service at 1-800-829-4933.

Internal Corporate Officer--Worker Letter Language

Internal Corporate Officer--Worker Letter Language
Use the following letter language, in paragraph format, when sending a letter to a worker that is a statutory employee.
  • We received your Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, for services performed [insert date] to [insert date].

  • In general, a corporate officer is an employee of a corporation, and is included within the definition of employee for purposes of Federal Insurance Contributions Act (FICA) tax, Federal Unemployment Tax Act (FUTA) tax, and federal income tax withholding unless a specific exclusion applies.

  • We determined you are an employee for federal employment tax purposes. Therefore, you must pay federal income tax and your share of Federal Insurance Contributions Act (FICA) tax, that is, social security and Medicare taxes) on the income you received for your services, unless subject to a specific exclusion. Normally, an employer withholds FICA and income taxes from an employee's paycheck and forwards the withheld amounts to the government. If this did not happen in your case because your employer didn't treat you as an employee, then you must pay your share of FICA. The attachments to this letter provide an analysis of the facts and circumstances in this case that led to our determination.

  • If you haven't filed your tax return (Form 1040) previously, you may need to do so. If you have filed your return, you may need to amend it. You may be due a refund, you may reduce your tax liability or you may owe additional tax. This depends on whether or not you filed a return and how you reported the income you received on that return. The enclosed Notice 989, Commonly Asked Questions When IRS Determines Your Work Status is "Employee" , will help to explain what you should do next.

  • If you need help preparing or correcting Form 1040, you can call Customer Service at 1-800-829-1040.

Protective Claims Liaison Report Quarterly Dates

Quarter Months Included Month Report Received
1st Quarter October/November/December January
2nd Quarter January/February/March April
3rd Quarter April/May/June July
4th Quarter July/August/September October

Note:

The Protective Claims Liaison should receive these reports by the 15th of the month.