IRS Provides Additional Favorable Guidance On Recently Modified Voluntary Classification Settlement Program

On February 27, 2013, the Internal Revenue Service (IRS) issued News Release IR-2013-23 to provide additional favorable guidance regarding modifications to the Voluntary Classification Settlement Program (VCSP) issued in Announcements 2012-45 and 2012-46 addressing worker classification issues.  The VCSP allows eligible employers to voluntarily reclassify their workers for federal employment tax purposes and obtain considerable "forgiveness" for previous non-employee treatment.  The IRS describes the program as a "low-cost option" for achieving certainty under the law by reclassifying workers as employees for future tax periods.

The Internal Revenue Service (IRS) has provided additional guidance regarding recent modifications to the Voluntary Classification Settlement Program (VCSP) issued in Announcements 2012-45 and 2012-46, published in Internal Revenue Bulletin 2012-51.  The VCSP, originally established in December 2011, allows eligible employers to voluntarily