Employment tax controversy and risk management
Understanding the new IRS Voluntary Classification Settlement Program (VCSP)
John Tuzynski, Chief of Employment Tax Operations, Internal Revenue Service joins Ernst & Young LLP panelists as they discuss the program and implications.
Business leaders and other administrators continue to be challenged with the growing complexity of employment tax compliance requirements and the consequences of improper interpretation and treatment. The risks of inappropriate treatment can be significant. The lack of clear guidance complicates matters and business decisions need to be made with knowledge of current rules and tools that minimize your potential exposure in the area of employment tax risk.
The Internal Revenue Service (IRS) recently announced the new Voluntary Classification Settlement Program (VCSP) which allows taxpayers to prospectively reclassify workers as employees for federal employment tax purposes. The VCSP is optional and provides taxpayers with the ability to reclassify their workers with limited additional federal employment tax liability for past nonemployee treatment. The VCSP will be available to businesses, tax-exempt organizations and government entities that currently treat their workers or group of workers as independent contractors, and now wish to treat these workers as employees for future tax periods. Those taxpayers wishing to reclassify employees as of 1 January 2012 will need to apply for the voluntary disclosure by 2 November 2011 so timely consideration of this program is important.
How much exposure does your company or organization have? Are you eligible for the relief under Section 530? What factors should you consider in deciding how to proceed? What are the implications of making the change? What are the potential pitfalls? In addition to the federal employment tax liability, what might the implications be for employee benefits and state and local tax liabilities?
Please join us for a 60-minute webcast on Thursday, 6 October at 11:00 a.m. EDT as our panel provides a better understanding of the new IRS VCSP - its eligibility criteria, deadlines and implications.
John Tuzynski, Internal Revenue Service, Chief of Employment Tax Operations
Catherine Creech, Ernst & Young LLP, National Tax
Mary Gorman, Ernst & Young LLP, Tax Controversy and Risk Management Services - Former Assistant Division Counsel, Office of Chief Counsel, Internal Revenue Service
Kenneth Hausser, Ernst & Young LLP, Employment Tax Advisory Services
Thomas Meyerer, Ernst & Young LLP, Federal Employment Tax Controversy Leader, Tax Controversy and Risk Management Services
Debbie Nolan, Ernst & Young LLP, Americas Director of Tax Controversy and Risk Management Services
Audience participants are encouraged to ask questions throughout the webcast.