The Voluntary Classification Settlement Program (VCSP) is the Internal Revenue Service’s (IRS) program designed to provide relief to eligible taxpayers to voluntarily reclassify workers as employees for federal employment taxes. This article explains how to submit the application for the VCSP with Form 8952 and the eligibility requirements and necessary paperwork.
What is Form 8952?
Form 8952 is an application for the Voluntary Classification Settlement Program (VCSP), an optional program providing taxpayers not under employment tax examination an opportunity to voluntarily reclassify their workers as employees for future tax periods with limited federal employment tax liability for past nonemployee treatment. Eligibility requirements must be met and certification of the same given in the form. Furthermore, it must be filed at least 60 days prior to the intended start of treatment, and signed under penalties of perjury by either an individual (in the case of a sole proprietorship), a corporate officer (for a corporation), partner (for a partnership), member or fiduciary (for an estate or trust). The form and attached documents should be arranged in the order provided on the IRS website, being sure to make all applicable entries and provide the taxpayer’s name and EIN on each supporting statement or attachment. Payment need not be sent with Form 8952, as it will be submitted at a later date with a signed closing agreement.
IRS Form 8952 – Who Needs to Fill It Out?
Form 8952 needs to be filled out voluntarily by taxpayers who want to reclassify the workers as employees for federal employment tax purposes, have filed all the required Forms 1099 for the 3 years prior to submitting Form 8952, and meet certain eligibility requirements. One must also certify their eligibility on Form 8952 and sign it under penalty of perjury. Depending on the type of taxpayer, the form can be signed by the individual or business owner, corporate officer, partner, or fiduciary. Forms 2848 and any supporting statements and attachments must also be included to ensure the application is processed correctly and timely.
Step-by-Step: Form 8952 Instructions For Filling Out the Document
Form 8952 is used to apply for the Voluntary Classification Settlement Program (VCSP), an optional program which allows taxpayers to reclassify certain workers as employees for federal employment tax purposes with limited liability for past nonemployee treatment. To be eligible, taxpayers must meet certain requirements, file all required Forms 1099, not be under current dispute or examination, and agree to the closing agreement. Form 8952 must be signed by the taxpayer, then sent to the IRS with Form 2848 (if applicable), supporting documents, and a total dollar figure. Make sure to enter every applicable entry space in the form, and arrange all supporting documents in the same order as the lines they support. The IRS provides a list of private delivery services which can provide written proof of mailing date.
Below, we present a table that will help you understand how to fill out Form 8952.
|Key Information for Form 8952||Details|
|Purpose||Apply for the Voluntary Classification Settlement Program (VCSP)|
|Eligibility||Requirements, including filing all required Forms 1099 and agreement to the closing agreement|
|Filing Process||Submit to the IRS with Form 2848 (if applicable), supporting documents, and payment|
Do You Need to File Form 8952 Each Year?
Form 8952 must be filed to participate in the Voluntary Classification Settlement Program (VCSP) and be eligible for relief similar to the Classification Settlement Program (CSP). The form must meet certain renewal eligibility requirements and must be signed by the taxpayer. This form should be filed at least sixty days prior to the desired effective date. In order to ensure timely and correct processing, all documents should be arranged in the specified order. For more details, the instructions in the form must be adhered to and all applicable entries completed.
Download the official IRS Form 8952 PDF
On the official IRS website, you will find a link to download Form 8952. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 8952