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Instructions for Form 8952

(Rev. November 2024)
Application for Voluntary Classification Settlement Program (VCSP)

Section references are to the Internal Revenue Code 3. Have filed all required Forms 1099 for each of the
unless otherwise noted. workers to be reclassified for the 3 preceding
calendar years ending before the date Form 8952 is
Future Developments filed (a taxpayer will meet this requirement if it filed all
For the latest information about developments related to required Forms 1099 for the workers being
Form 8952 and its instructions, such as legislation reclassified for the period of time that the workers
enacted after they were published, go to IRS.gov/ worked for the taxpayer; for example, a taxpayer who
Form8952. has only been in business for 2 years meets this
requirement if the taxpayer filed all required Forms
1099 for the workers being reclassified for those 2
General Instructions years);
Purpose of Form 4. Have consistently treated the workers as
Use Form 8952 to apply for the Voluntary Classification nonemployees;
Settlement Program. 5. Have no current dispute with the IRS as to whether
DON’T send payment with Form 8952. You will the workers are nonemployees or employees for
federal employment tax purposes;
! submit payment later with a signed closing
CAUTION agreement. If you submit payment with Form
6. Not be under employment tax examination by the IRS
8952, it may cause a processing delay.
(if the taxpayer is a member of an affiliated group, this
requirement is met only if no member of the affiliated
Voluntary Classification Settlement group is under employment tax examination by the
Program (VCSP) IRS);
The VCSP provides an opportunity for taxpayers to 7. Not be under examination by the Department of Labor
voluntarily reclassify workers as employees for federal or any state agency concerning the proper
employment tax purposes. The VCSP allows eligible classification of the class or classes of workers; and
taxpayers to obtain relief similar to that available through
the Classification Settlement Program (CSP) for taxpayers 8. a. Not have been examined previously by the IRS or
under examination. the Department of Labor concerning the proper
classification of the class or classes of workers; or
The VCSP is an optional program that provides b. If the taxpayer has been examined previously by
taxpayers not under an employment tax examination with the IRS or the Department of Labor concerning the
an opportunity to voluntarily reclassify their workers as proper classification of the class or classes of
employees for future tax periods with limited federal workers, the taxpayer must have complied with the
employment tax liability for past nonemployee treatment. results of the prior examination and not be currently
To participate in the program, the taxpayer must meet contesting the classification in court.
certain eligibility requirements, apply to participate in the
VCSP, and enter into a closing agreement with the IRS. When To File
File Form 8952 at any time. However, Form 8952 should
For more information on the VCSP, see Announcement be filed at least 120 days before the date you want to
2012-45 in Internal Revenue Bulletin 2012-51, available at begin treating the class or classes of workers as
IRS.gov/irb/2012-51_IRB#ANN-2012-45 . employees.

Eligibility Requirements Where To File
To participate in the VCSP, taxpayers must meet certain Send Form 8952 to the following address.
eligibility requirements and certify on Form 8952 that they
meet these requirements. Internal Revenue Service
Detroit Federal Building
Specifically, to be eligible for the VCSP, a taxpayer 985 Michigan Avenue
must: th
4 Floor CETO
1. Want to voluntarily reclassify certain workers as Detroit, MI 48226
employees for federal income tax withholding, Federal
Insurance Contributions Act (FICA), and Federal Private delivery services (PDSs). You can use certain
Unemployment Tax Act (FUTA) taxes (collectively, PDSs designated by the IRS to meet the “timely mailing as
federal employment taxes) for future tax periods; timely filing” rule for tax returns. Go to IRS.gov/PDS for the
2. Be presently treating the workers as nonemployees;
Instructions for Form 8952 (Rev. 11-2024) Catalog Number 58045V
Nov 5, 2024 Department of the Treasury Internal Revenue Service www.irs.gov

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current list of designated services. The PDS can tell you
how to get written proof of the mailing date. Specific Instructions
For the IRS mailing address to use if you’re using a
PDS, go to IRS.gov/PDSStreetAddresses. Line 2. Employer Identification
PDSs can’t deliver items to P.O. boxes. You must Number (EIN)
Enter the taxpayer’s EIN. If the taxpayer doesn’t have an
! use the U.S. Postal Service to mail any item to an
CAUTION IRS P.O. box address. EIN, the taxpayer must apply for one. An EIN can be
applied for in one of the following ways.
Who Must Sign • Go to IRS.gov/EIN. The EIN is issued immediately
once the application information is validated.
Form 8952 must be signed by the taxpayer under
penalties of perjury. The taxpayer’s representative may not • Faxing or mailing Form SS-4, Application for Employer
Identification Number.
sign for the taxpayer. By signing Form 8952, including all
representations in Part V, you’re representing that the The taxpayer must have received an EIN by the time
taxpayer is eligible for this program and that all information Form 8952 is filed for the form to be processed. For more
presented is correct to the best of your knowledge. information about EINs, see Pub. 1635.

For a sole proprietorship, the form must be signed and Line 10
dated by the individual who owns the business.
Check the box that applies. If you aren’t a member of an
For a corporation (including a limited liability company affiliated group, you can skip lines 11–14.
(LLC) treated as a corporation), the form must be signed
An affiliated group is one or more chains of includible
and dated by:
corporations (section 1504(a)) connected through stock
• The president, vice president, treasurer, assistant
ownership with a common parent corporation. The
treasurer, or chief accounting officer; or
common parent must be an includible corporation and the
• Any other corporate officer (such as tax officer)
following requirements must be met.
authorized to sign.
• The common parent must own directly stock that
For a partnership, the form must be signed and dated represents at least 80% of the total voting power and
by a partner. For an LLC classified as a partnership, the at least 80% of the total value of the stock of at least
form must be signed by a member who would be one of the other includible corporations.
authorized to sign the partnership’s Form 1065, U.S. • Stock that represents at least 80% of the total voting
Return of Partnership Income. For more information on power and at least 80% of the total value of the stock
who can sign for a partnership, see the Instructions for of each of the other corporations (except for the
Form 1065. common parent) must be owned directly by one or
more of the other includible corporations.
For an estate or trust, the form must be signed and
dated by the fiduciary or an authorized representative. If For this purpose, the term “stock” generally doesn’t
there are joint fiduciaries or representatives, only one is include any stock that (a) is nonvoting, (b) is
required to sign the form. If the form is filed on behalf of nonconvertible, (c) is limited and preferred as to dividends
the taxpayer by a receiver, trustee, or assignee, the and doesn’t participate significantly in corporate growth,
fiduciary must sign the form. and (d) has redemption and liquidation rights that don’t
exceed the issue price of the stock (except for a
Assembling the Application reasonable redemption or liquidation premium). See
To ensure the application is both timely and correctly section 1504(a)(4).
processed, attach all documents in the following order.
Part II. Contact Person
1. Form 8952 and attached statement (see Line 15, The contact person is the person the IRS may contact if
later). there is an issue with the application. If the contact person
2. Form 2848, Power of Attorney and Declaration of doesn’t have legal authority to bind the taxpayer, the
Representative, if applicable. See Part II. Contact taxpayer must attach to Form 8952 a properly executed
Person, later. Form 2848.

Complete every applicable entry space on Form 8952. Special instructions for Form 2848. On Form 2848,
Don’t enter “See Attached” instead of completing the entry line 3, enter “Voluntary Classification Settlement Program”
spaces. If more space is needed, attach separate sheets as the Description of Matter. Leave the entry spaces for
using the same size and format as the printed forms. If Tax Form Number and for Year(s) or Period(s) blank.
there are supporting statements and attachments, arrange Check the box on Form 2848, line 4.
them in the same order as the lines they support and
attach them last. Show the total dollar figure on Form Line 15
8952, Part IV. Enter the taxpayer’s name and employer For the workers from all classes to be reclassified (shown
identification number (EIN) at the top of each supporting on line 15), attach a statement listing their names and
statement or attachment. corresponding social security numbers (SSNs).

2 Instructions for Form 8952 (Rev. 11-2024)

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Failure to attach a list of names and SSNs will from the beginning of the year or from the beginning
TIP delay processing of the application and require date of work up to the signing of the Form 8952.
additional correspondence.
Nonemployee compensation of $600 or more can
TIP generally be found reported in box 1 of the Form
Line 16 1099-NEC, Nonemployee Compensation, filed for
Enter a description of the class or classes of workers to be the worker for the most recently completed calendar year.
reclassified. If more space is needed, attach separate See the instructions for box 1 of Form 1099-NEC for
sheets. Enter the taxpayer's name and EIN at the top of details.
each sheet.
Line 20
Line 17
The social security wage base limit is applied on an
Enter the beginning date of the employment tax period
employee-by-employee basis. The social security wage
(calendar year or quarter) for which you want to begin
base limit for calendar year 2023 was $160,200. The
treating the class or classes of workers as employees. To
social security wage base limit for calendar year 2024 is
allow the IRS time to process your application, this date
$168,600. The social security wage base limit for calendar
should be at least 120 days after the date you file Form
year 2025 will be $176,100.
8952.
Example. A taxpayer filing Form 8952 in December of
The IRS will make every effort to process Form 2024 with one worker would look to compensation paid to
TIP 8952 with sufficient time to allow for the voluntary the worker in 2023 because 2023 is the most recently
reclassification on the requested date. completed calendar year. If the worker received $165,500
Example. If you want to begin treating a class or in compensation in 2023, the taxpayer would subtract
classes of workers as employees for the first quarter of $160,200 from $165,500 and enter $5,300 on line 20.

2026, you will enter January 1, 2026. In this case, you Line 24
should file Form 8952 at least 120 days before January 1,
Multiply the amount on line 23 by 10% (0.10). This is the
2026.
amount required to be paid upon IRS acceptance of your
If you want to begin treating a class or classes of application and execution of your VCSP closing
workers as employees for the fourth quarter of 2025, you agreement. DON’T send payment with Form 8952. You
will enter October 1, 2025. In this case, you should file will submit payment later with a signed closing agreement.
Form 8952 at least 120 days before October 1, 2025. If you submit payment with Form 8952, it may cause a
processing delay.
Part IV. Payment Calculation Using
Section 3509(a) Rates Paid Preparer Use Only
A paid preparer must sign Form 8952 and provide the
Line 18 information in the Paid Preparer Use Only section at the
Enter the total compensation paid in the most recently end of the form if the preparer was paid to prepare the
completed calendar year to all workers to be reclassified. form and isn’t an employee of the filing entity. The
See exceptions below. preparer must give you a copy of the form in addition to
• An individual (not a business) submits Form 8952 for a the copy to be filed with the IRS.
household worker. Enter the total payment of the most
recent full year's compensation paid to the worker. If If you are a paid preparer, enter your Preparer Tax
the current year is the first year the worker performed Identification Number (PTIN) in the space provided. If you
services, the total payment would be the amount paid work for a tax preparation firm, you must also enter the
to the worker from the beginning of the year or from firm’s name, address, and EIN. However, you can’t use the
the beginning date of work up to the signing of the EIN of the tax preparation firm in place of your PTIN.
Form 8952.
You can apply for a PTIN online or by filing Form W-12,
• U.S. territory (including Puerto Rico, the U.S. Virgin IRS Paid Preparer Tax Identification Number (PTIN)
Islands, American Samoa, Guam, and the Application and Renewal. For more information about
Commonwealth of the Northern Mariana Islands). U.S. applying for a PTIN online, go to IRS.gov/PTIN.
territories have no Form(s) 1099 filing requirements.
Enter the total payment of the most recent full year's Generally, don’t complete this section if you are filing
compensation paid to the worker. If the current year is the form as a reporting agent and have a valid Form 8655,
the first year the worker performed services, the total Reporting Agent Authorization, on file with the IRS.
payment would be the amount paid to the worker from However, a reporting agent must complete this section if
the beginning of the year or from the beginning date of the reporting agent offered legal advice, for example,
work up to the signing of the Form 8952. advising the client on determining whether its workers are
employees or independent contractors for federal tax
• Taxpayer did not pay independent contractors in the purposes.
tax year prior to filing Form 8952. Applicant has no
prior Form 1099 filing requirement. If the current year Privacy Act and Paperwork Reduction Act Notice. We
is the first year the worker performed services, the ask for the information on Form 8952 to carry out the
total payment would be the amount paid to the worker Internal Revenue laws of the United States. We need this
information to determine your eligibility to participate in

Instructions for Form 8952 (Rev. 11-2024) 3

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this program and to calculate the appropriate payment You aren’t required to provide the information requested
under the VCSP. Our authority to ask for the information on on a form that is subject to the Paperwork Reduction Act
Form 8952 is Subtitle C, Employment Taxes, of the unless the form displays a valid OMB control number.
Internal Revenue Code. Section 6109 requires you to Books or records relating to a form or its instructions must
provide your identifying number. You aren’t required to be retained as long as their contents may become
apply for the VCSP; however, if you apply, you must material in the administration of any Internal Revenue law.
provide the information requested. Generally, tax returns and return information are
Failure to provide all the requested information may confidential, as required by section 6103.
prevent the processing of your application; providing false The time needed to complete and file Form 8952 will
or fraudulent information may subject you to penalties. We vary depending on individual circumstances. The
may disclose this information to the Department of Justice estimated burden for employers filing Form 8952 is
for civil or criminal litigation, and to cities, states, the approved under OMB control number 1545-0029 and is
District of Columbia, and U.S. commonwealths and included in the estimates shown in their employment tax
territories for use in administering their tax laws. We may return instructions.
also disclose this information to other countries under a
tax treaty, to federal and state agencies to enforce federal
nontax criminal laws, and to intelligence agencies to
combat terrorism.

4 Instructions for Form 8952 (Rev. 11-2024)

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