Tag Archives: Voluntary Classification Settlement Program

Tax Alert: Worker classification settlement program

The IRS has expanded its Voluntary Classification Settlement Program (“VCSP”) established in September 2011 to allow more businesses to qualify for this low-cost option to resolve instances of questionable qualification of workers as independent contractors instead of as employees. (We discussed the VCSP in this prior alert.) The VCSP allows employers that meet certain criteria to voluntarily reclassify workers from independent contractors to employees and pay only a fraction of their federal employment tax liability for past nonemployee treatment while avoiding penalties, interest payments and audits.

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Robert E. McKenzie writes article on new IRS policies and programs for Journal of Tax Practice & Procedure

Arnstein & Lehr Attorney Robert E. McKenzie

Robert E. McKenzie

Arnstein & Lehr Chicago Partner Robert E. McKenzie authored the article titled “Fresh Start – Tax Collection Tips for Your Client in a Struggling Economy: A Collection Update and Review of the New Voluntary Classification Settlement Program,” which appeared in the December 2011-January 2012 edition of the Journal of Tax Practice & Procedure. In the article, Mr. McKenzie discusses the IRS’ “Fresh Start” initiative of new policies and programs to help taxpayers pay back taxes and avoid tax liens.

To read the article in full, please click here.

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Robert E. McKenzie writes Forbes blog post on new IRS worker reclassification program

Arnstein & Lehr Attorney Robert E. McKenzie

Robert E. McKenzie

Chicago Partner Robert E. McKenzie wrote a post for Forbes magazine’s online blog that appeared on Tuesday, September 29. Mr. McKenzie’s post discusses the IRS’ new Voluntary Classification Settlement Program (VCSP) for companies with misclassified workers. He discusses in the post the dangers of IRS examinations if an employer has been found to misclassify its workers, employer eligibility guidelines, VCSP agreements, applying for VCSP, and other considerations. To read the complete article, please click here.

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