New Voluntary IRS Reclassification Program

The IRS has announced a new program for workers who have been improperly classified as independent contractors, rather than employees. This program is voluntary, and will allow for reclassification outside of the audit context. To be eligible, a taxpayer must have consistently treated the workers at issue as non-employees, must have filed all required Forms 1099 for the previous three years, and cannot currently be under audit by the IRS or by federal or state government agencies concerning the classification status. See Announcement 2011-64 for more information.