IRS Worker Classification Enforcement Efforts & Free Webinar on 2/15

PBS previously informed you about the IRS Voluntary Classification Settlement Program (VCSP) in which taxpayers may voluntarily reclassify workers as employees for federal employment tax purposes.

Further efforts are being made to enforce worker classification by numerous legislative agencies. In September 2011, a Memorandum of Understanding (MOU) was signed between the IRS and the Department of Labor (DOL) documenting plans to begin sharing information related to employee classification in a manner that protects taxpayer identities. The DOL will share employment tax compliance investigation data with the IRS. The IRS will evaluate these DOL employment tax referrals, conduct examinations if appropriate, and may share the referrals with state and municipal taxing agencies. The IRS will share data relating to trends in misclassification with the DOL.

Also in September 2011, President Obama unveiled his plan, “Living Within Our Means and Investing in the Future: The President’s Plan for Economic Growth and Deficit Reduction,” in which he granted the IRS expanded authority to regulate worker classification and issue generally applicable guidance about the proper classification. This plan is expected to reduce the nation’s deficit by $8 billion over 10 years.

The IRS is hosting a free webinar on Worker Classification on February 15. For more info and to register...