Deadline for Voluntary Worker Classification Program – Critical for Construction Contractors!

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Construction contractors wanting to make use of the IRS’ Voluntary Classification Settlement Program (VCSP) have until 6/30/13 to file the required Form 8952 (Application for Voluntary Classification Settlement Program). The VCSP allows taxpayers to voluntarily reclassify workers as employees (instead of independent contractors) for employment tax purposes going forward from the time of the settlement. The program fee is a reduced percentage of the employment tax liability that would have been due and is submitted with the Form 8952. To be eligible, employers must have consistently treated workers as nonemployees (i.e., filing required Form 1099 for at least three years prior to the reclassification. A taxpayer already under an IRS employment tax audit or a DOL worker classification audit cannot use the settlement program. Information is available at www.irs.gov/Government-Entities/Federal,-State-&-Local-Governments/Voluntary-Classification-Settlement-Program-1

About Michael Corcoran

Michael Corcoran has written 48 post in this blog.

Michael (Mike) Corcoran is a CPA in the Construction Industry Services Group at Aronson. He has over six years servicing construction clients with Aronson and he has worked with a variety of construction contractors, such as electrical, heavy/highway, mechanical, and masonry subcontractors of up to $300 million in annual revenue. Mike specializes in providing assurance and tax services to construction contractors. He graduated with a Bachelor’s of Science Degree in Accounting from West Virginia University in 2004.

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