Life Business and Money - The IRS Amnesty Program

To determine whether a worker is an independent contractor or an employee under common law, you must examine the relationship between the worker and the business.  The Internal Revenue Service has expanded their Amnesty Program to help alleviate potential penalties and interest.

 

“IRS Expands Voluntary Worker Classification Settlement Program; Relief from Past Payroll Taxes Available to More Employers Who Reclassify Their Workers as Employees”.

 

IR-2013-23, Feb. 27, 2013

 

WASHINGTON — The Internal Revenue Service has expanded its Voluntary Classification Settlement Program (VCSP), paving the way for more taxpayers to take advantage of this low-cost option for achieving certainty under the law by reclassifying their workers as employees for future tax periods.