JW e-Alert: IRS Gives Employers A Fresh Start Opportunity for Misclassifying Employees

The IRS recently launched a new program to give employers a "fresh start" for prior acts of misclassifying "employees" as "independent contractors" by allowing employers to pay minimal taxes and avoid interest and penalties. The Voluntary Classification Settlement Program ("VCSP") was announced on September 21, 2011, providing employers an opportunity to voluntarily reclassify independent contractors as employees, if appropriate.