Hi, I’m Sydney, and I work for the IRS.
As an employer, are you classifying your workers as independent contractors when they actually should be employees?
If so, we have a program that can help you voluntarily reclassify them.
It’s called the Voluntary Classification Settlement Program, or VCSP.
If you get approved for this program, you won’t have to pay federal payroll taxes for the past, as long as you start designating your workers as employees for future tax periods.
To qualify, you must meet certain eligibility requirements, such as you’ve consistently treated your workers as independent contractors or nonemployees, in the past you’ve filed all of the required 1099 forms, you are not currently being audited by the IRS for employment taxes and you are not being audited by the U.S. Department of Labor or a state agency regarding the classification of your workers.
For a complete list of the eligibility requirements, see the instructions for Form 8952.
Then, when you’re ready, just fill it out and submit it to us.
We’ll take it from there and help you with the rest of the process.
To download the form and to find out more about the program, just go to irs.gov/vcsp.