---
title: "Worker Misclassification: The Real Cost of the IRS’s New Settlement Program"
description: By Juliet L. Fink and Megan L. Brackney WG&L Practical Tax Strategies Journal October 2012 Edition On 9/21/11,…
---

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# [Worker Misclassification: The Real Cost of the IRS’s New Settlement Program](https://kostelanetz.com/publications/worker-misclassification-the-real-cost-of-the-irss-new-settlement-program)

 Written by [Kostelanetz LLP](https://kostelanetz.com/publications/author/kostelanetz-llp) | Oct 1, 2012

By [Juliet L. Fink](https://www.kflaw.com/juliet_l_fink) and [Megan L. Brackney](https://www.kflaw.com/megan_l_brackney)  
 WG&L Practical Tax Strategies Journal  
 October 2012 Edition

On 9/21/11, the IRS announced a new voluntary disclosure program, the Voluntary Classification Settlement Program (VCSP) to provide an incentive for taxpayers to comply with their employment tax obligations. The VCSP is part of a larger “fresh start” initiative by the IRS to encourage taxpayers and businesses to get compliant, while giving them financial certainty under the VCSP’s penalty framework. Under the program, eligible businesses will pay minimal back taxes and avoid all interest and penalties if they properly reclassify workers from non-employees or independent contractors to employees for future tax periods. The VCSP has no deadline.

Click [here](https://kflaw.com/wp-content/uploads/2022/06/Worker-Misclassification_-The-Real-Cost...pdf) for the full article

[View full post](https://kostelanetz.com/publications/worker-misclassification-the-real-cost-of-the-irss-new-settlement-program)

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