New IRS Voluntary Compliance Initiative for Misclassified Independent Contractors

On September 21, 2011, the IRS introduced an extremely favorable settlement for those who have misclassified employees as independent contractors to reclassify them and eliminate the tax exposure.

This favorable program includes audit protection for prior years and abatement of interest and penalties.

The complete announcement can be viewed at http://www.irs.gov/pub/irs-drop/a-11-64.pdf Employers with any concerns as to the classification of independent contractors should contact their Marcum tax professional for guidance.

A special thanks to article contributors Jeffrey S. Winkleman, CPA, MST and Julie Meyer, Marketing Director.