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Instructions for Form 8952

Department of the Treasury

Internal Revenue Service

(Rev. November 2014)

For use with Form 8952 (Rev. November 2013)

Application for Voluntary Classification Settlement Program (VCSP)

DRAFT AS OF

Eligibility Requirements

Section references are to the Internal Revenue Code unless

otherwise noted.

To participate in the VCSP, taxpayers must meet certain

Future Developments

eligibility requirements and certify on Form 8952 that they

meet these requirements.

For the latest information about developments related to

Form 8952 and its instructions, such as legislation enacted

July 10, 2014

Specifically, to be eligible for the VCSP, a taxpayer must:

after they were published, go to

1. Want to voluntarily reclassify certain workers as

What's New

employees for federal income tax withholding, Federal

Insurance Contributions Act (FICA), and Federal

For applications filed after May 1, 2014, attach a statement

Unemployment Tax Act (FUTA) taxes (collectively,

listing the names and corresponding social security numbers

federal employment taxes) for future tax periods;

of the workers for all classes to be reclassified, as indicated

on line 15.

2. Be presently treating the workers as nonemployees;

Reminders

3. Have filed all required Forms 1099 for each of the

workers to be reclassified for the 3 preceding calendar

Employer's effective rate. The effective rate for a

years ending before the date Form 8952 is filed (a

volunteering employer's social security tax on wages paid

taxpayer will meet this requirement if it filed all required

after 2012 is revised to 7.44% (.0744) to reflect the expiration

Forms 1099 for the workers being reclassified for the

of the payroll tax holiday.

period of time that the workers worked for the taxpayer;

for example, a taxpayer who has only been in business

Modified VCSP. The modified VCSP has expired. The

for 2 years meets this requirement if the taxpayer filed all

program ended on June 30, 2013.

required Forms 1099 for the workers being reclassified

for those 2 years);

General Instructions

4. Have consistently treated the workers as nonemployees;

Purpose of Form

5. Have no current dispute with the IRS as to whether the

Use Form 8952 to apply for the Voluntary Classification

workers are nonemployees or employees for federal

Settlement Program.

employment tax purposes;

DO NOT send payment with Form 8952. You will

6. Not be under employment tax examination by the IRS (if

submit payment later with a signed closing

the taxpayer is a member of an affiliated group, this

agreement. If you submit payment with Form 8952, it

requirement is met only if no member of the affiliated

CAUTION

may cause a processing delay.

group is under employment tax examination by the IRS);

7. Not be under examination by the Department of Labor or

Voluntary Classification Settlement

any state agency concerning the proper classification of

Program (VCSP)

the class or classes of workers; and

The VCSP provides an opportunity for taxpayers to

8. a. Not have been examined previously by the IRS or the

voluntarily reclassify workers as employees for federal

Department of Labor concerning the proper

employment tax purposes. The VCSP allows eligible

classification of the class or classes of workers; or

taxpayers to obtain relief similar to that available through the

b. If the taxpayer has been examined previously by the

Classification Settlement Program (CSP) for taxpayers under

IRS or the Department of Labor concerning the proper

examination.

classification of the class or classes of workers, the

taxpayer must have complied with the results of the prior

The VCSP is an optional program that provides taxpayers

examination and not be currently contesting the

not under an employment tax examination with an

classification in court.

opportunity to voluntarily reclassify their workers as

employees for future tax periods with limited federal

When To File

employment tax liability for past nonemployee treatment. To

File Form 8952 at any time. However, Form 8952 should be

participate in the program, the taxpayer must meet certain

filed at least 60 days before the date you want to begin

eligibility requirements, apply to participate in the VCSP, and

treating the class or classes of workers as employees.

enter into a closing agreement with the IRS.

Where To File

For more information on the VCSP, see Announcement

2012-45 in Internal Revenue Bulletin 2012-51 available at

Send Form 8952 to the following address.

Jun 26, 2014

Cat. No. 58045V

Instructions For Form 8952 Draft - Application For Voluntary Classification Settlement Program (Vcsp) - Internal Revenue Service - 2014 Page 2

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