IRS–Independent Contractors Misclassification: IRS Voluntary Compliance Settlement Program and IRS/DOL Memorandum of Understanding

The Internal Revenue Service (IRS) has implemented a new program to allow taxpayers who have misclassified workers as independent contractors to voluntarily reclassify the workers as employees with minimal tax liability. This is a voluntary program. To be eligible, a taxpayer must have consistently treated the workers as non-employees; have filed all required Forms 1099