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Department of the Treasury
Internal Revenue Service
Instructions for Form 8952

(Rev. November 2023)
Application for Voluntary Classification Settlement Program (VCSP)

Section references are to the Internal Revenue Code unless for example, a taxpayer who has only been in business
otherwise noted. for 2 years meets this requirement if the taxpayer filed all
required Forms 1099 for the workers being reclassified
Future Developments for those 2 years);
For the latest information about developments related to 4. Have consistently treated the workers as nonemployees;
Form 8952 and its instructions, such as legislation enacted
after they were published, go to IRS.gov/Form8952. 5. Have no current dispute with the IRS as to whether the
workers are nonemployees or employees for federal
employment tax purposes;
General Instructions
6. Not be under employment tax examination by the IRS (if
Purpose of Form the taxpayer is a member of an affiliated group, this
requirement is met only if no member of the affiliated
Use Form 8952 to apply for the Voluntary Classification
group is under employment tax examination by the IRS);
Settlement Program.
DON’T send payment with Form 8952. You will 7. Not be under examination by the Department of Labor or
any state agency concerning the proper classification of
! submit payment later with a signed closing the class or classes of workers; and
CAUTION agreement. If you submit payment with Form 8952, it
may cause a processing delay. 8. a. Not have been examined previously by the IRS or the
Department of Labor concerning the proper
Voluntary Classification Settlement classification of the class or classes of workers; or
b. If the taxpayer has been examined previously by the
Program (VCSP) IRS or the Department of Labor concerning the proper
The VCSP provides an opportunity for taxpayers to voluntarily classification of the class or classes of workers, the
reclassify workers as employees for federal employment tax taxpayer must have complied with the results of the prior
purposes. The VCSP allows eligible taxpayers to obtain relief examination and not be currently contesting the
similar to that available through the Classification Settlement classification in court.
Program (CSP) for taxpayers under examination.
The VCSP is an optional program that provides taxpayers When To File
not under an employment tax examination with an File Form 8952 at any time. However, Form 8952 should be
opportunity to voluntarily reclassify their workers as filed at least 120 days before the date you want to begin
employees for future tax periods with limited federal treating the class or classes of workers as employees.
employment tax liability for past nonemployee treatment. To
participate in the program, the taxpayer must meet certain Where To File
eligibility requirements, apply to participate in the VCSP, and Send Form 8952 to the following address.
enter into a closing agreement with the IRS.
Internal Revenue Service
For more information on the VCSP, see Announcement Detroit Federal Building
2012-45 in Internal Revenue Bulletin 2012-51, available at 985 Michigan Avenue
IRS.gov/irb/2012-51_IRB#ANN-2012-45. 4 Floor CETOth
Detroit, MI 48226
Eligibility Requirements
To participate in the VCSP, taxpayers must meet certain
eligibility requirements and certify on Form 8952 that they Private delivery services. You can use certain private
meet these requirements. delivery services (PDS) designated by the IRS to meet the
“timely mailing as timely filing” rule for tax returns. Go to
Specifically, to be eligible for the VCSP, a taxpayer must: IRS.gov/PDS for the current list of designated services. The
1. Want to voluntarily reclassify certain workers as PDS can tell you how to get written proof of the mailing date.
employees for federal income tax withholding, Federal For the IRS mailing address to use if you’re using PDS, go
Insurance Contributions Act (FICA), and Federal to IRS.gov/PDSStreetAddresses.
Unemployment Tax Act (FUTA) taxes (collectively,
PDS can’t deliver items to P.O. boxes. You must use
federal employment taxes) for future tax periods;
the U.S. Postal Service to mail any item to an IRS
2. Be presently treating the workers as nonemployees; CAUTION! P.O. box address.

3. Have filed all required Forms 1099 for each of the
workers to be reclassified for the 3 preceding calendar Who Must Sign
years ending before the date Form 8952 is filed (a Form 8952 must be signed by the taxpayer under penalties of
taxpayer will meet this requirement if it filed all required perjury. The taxpayer’s representative may not sign for the
Forms 1099 for the workers being reclassified for the taxpayer. By signing Form 8952, including all representations
period of time that the workers worked for the taxpayer; in Part V, you’re representing that the taxpayer is eligible for

Nov 17, 2023 Cat. No. 58045V

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this program and that all information presented is correct to An affiliated group is one or more chains of includible
the best of your knowledge. corporations (section 1504(a)) connected through stock
ownership with a common parent corporation. The common
For a sole proprietorship, the form must be signed and parent must be an includible corporation and the following
dated by the individual who owns the business. requirements must be met.
For a corporation (including a limited liability company • The common parent must own directly stock that
(LLC) treated as a corporation), the form must be signed and represents at least 80% of the total voting power and at
dated by: least 80% of the total value of the stock of at least one of
• The president, vice president, treasurer, assistant the other includible corporations.
treasurer, chief accounting officer; or • Stock that represents at least 80% of the total voting
• Any other corporate officer (such as tax officer) power and at least 80% of the total value of the stock of
authorized to sign. each of the other corporations (except for the common
parent) must be owned directly by one or more of the
For a partnership, the form must be signed and dated by a other includible corporations.
partner. For an LLC classified as a partnership, the form must
be signed by a member who would be authorized to sign the For this purpose, the term “stock” generally doesn’t
partnership’s Form 1065, U.S. Return of Partnership Income. include any stock that (a) is nonvoting, (b) is nonconvertible,
For more information on who can sign for a partnership, see (c) is limited and preferred as to dividends and doesn’t
the Instructions for Form 1065. participate significantly in corporate growth, and (d) has
redemption and liquidation rights that don’t exceed the issue
For an estate or trust, the form must be signed and dated price of the stock (except for a reasonable redemption or
by the fiduciary or an authorized representative. If there are liquidation premium). See section 1504(a)(4).
joint fiduciaries or representatives, only one is required to
sign the form. Part II. Contact Person
If the form is filed on behalf of the taxpayer by a receiver, The contact person is the person the IRS may contact if there
trustee, or assignee, the fiduciary must sign the form. is an issue with the application. If the contact person doesn’t
have legal authority to bind the taxpayer, the taxpayer must
Assembling the Application attach to Form 8952 a properly executed Form 2848.
To ensure the application is both timely and correctly
processed, attach all documents in the following order. Special instructions for Form 2848. On Form 2848, line 3,
enter “Voluntary Classification Settlement Program” as the
1. Form 8952 and attached statement (see Line 15 Description of Matter. Leave the entry spaces for Tax Form
instructions). Number and for Year(s) or Period(s) blank. Check the box on
2. Form 2848, Power of Attorney and Declaration of Form 2848, line 4.

Representative, if applicable. See Part II. Contact Line 15
Person, later.
For the workers from all classes to be reclassified (shown on
Complete every applicable entry space on Form 8952. line 15), attach a statement listing their names and
Don’t enter “See Attached” instead of completing the entry corresponding social security numbers.
spaces. If more space is needed, attach separate sheets
Failure to attach a list of names and social security
using the same size and format as the printed forms. If there
TIP numbers will delay processing of the application and
are supporting statements and attachments, arrange them in
require additional correspondence.
the same order as the lines they support and attach them
last. Show the total dollar figure on Form 8952, Part IV. Enter
the taxpayer’s name and EIN at the top of each supporting Line 16
statement or attachment. If more space is needed, attach separate sheets. Enter the
taxpayer's name and EIN at the top of each sheet.

Specific Instructions Line 17
Enter the beginning date of the employment tax period
Line 2. Employer Identification (calendar year or quarter) for which you want to begin treating
Number (EIN) the class or classes of workers as employees. To allow the
IRS time to process your application, this date should be at
Enter the taxpayer’s EIN. If the taxpayer doesn’t have an EIN,
least 120 days after the date you file Form 8952.
the taxpayer must apply for one. An EIN can be applied for in
one of the following ways. The IRS will make every effort to process Form 8952
• Go to IRS.gov/EIN. The EIN is issued immediately once TIP with sufficient time to allow for the voluntary
the application information is validated. reclassification on the requested date.
• Faxing or mailing Form SS-4, Application for Employer
Identification Number. Example. If you want to begin treating a class or classes
of workers as employees for the first quarter of 2025, you will
The taxpayer must have received an EIN by the time Form enter January 1, 2025. In this case, you should file Form
8952 is filed for the form to be processed. For more 8952 at least 120 days before January 1, 2025.
information about EINs, see Pub. 1635.
If you want to begin treating a class or classes of workers
Line 10 as employees for the fourth quarter of 2024, you will enter
October 1, 2024. In this case, you should file Form 8952 at
Check the box that applies. If you aren’t a member of an least 120 days before October 1, 2024.
affiliated group, you can skip lines 11–14.

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isn’t an employee of the filing entity. The preparer must give
Part IV. Payment Calculation Using
you a copy of the form in addition to the copy to be filed with
Section 3509(a) Rates the IRS.
Line 18 If you are a paid preparer, enter your Preparer Tax
Enter the total compensation paid in the most recently Identification Number (PTIN) in the space provided. If you
completed calendar year to all workers to be reclassified. work for a tax preparation firm, you must also enter the firm’s
See exceptions below. name, address, and EIN. However, you can’t use the EIN of
• An individual (not a business) submits Form 8952 for a the tax preparation firm in place of your PTIN.
household worker. Enter the total payment of the most
recent full year's compensation paid to the worker. If the You can apply for a PTIN online or by filing Form W-12,
current year is the first year the worker performed IRS Paid Preparer Tax Identification Number (PTIN)
services, the total payment would be the amount paid to Application and Renewal. For more information about
the worker from the beginning of the year or from the applying for a PTIN online, visit IRS.gov/PTIN.
beginning date of work up to the signing of the Form Generally, don’t complete this section if you are filing the
8952. form as a reporting agent and have a valid Form 8655,
• U.S. Territory (including Puerto Rico, U.S. Virgin Islands, Reporting Agent Authorization, on file with the IRS. However,
American Samoa, Guam, and the Commonwealth of the a reporting agent must complete this section if the reporting
Northern Mariana Islands). U.S. Territories have no agent offered legal advice, for example, advising the client on
Form(s) 1099 filing requirements. Enter the total payment determining whether its workers are employees or
of the most recent full year's compensation paid to the independent contractors for federal tax purposes.
worker. If the current year is the first year the worker
performed services, the total payment would be the Privacy Act and Paperwork Reduction Act Notice. We
amount paid to the worker from the beginning of the year ask for the information on this form to carry out the Internal
or from the beginning date of work up to the signing of Revenue laws of the United States. We need this information
the Form 8952. to determine your eligibility to participate in this program and
to calculate the appropriate payment under the VCSP. Our
• Taxpayer did not pay independent contractors in the tax
authority to ask for the information on this form is Subtitle C,
year prior to filing Form 8952. Applicant has no prior
Employment Taxes, of the Internal Revenue Code. Section
Form 1099 filing requirement. If the current year is the
6109 requires you to provide your identifying number. You
first year the worker performed services, the total
aren’t required to apply for the VCSP; however, if you apply,
payment would be the amount paid to the worker from
you must provide the information requested.
the beginning of the year or from the beginning date of
work up to the signing of the Form 8952. Failure to provide all the requested information may
Nonemployee compensation of $600 or more can prevent the processing of your application; providing false or
TIP generally be found reported in box 1 of the Form fraudulent information may subject you to penalties. We may
1099-NEC, Nonemployee Compensation, filed for disclose this information to the Department of Justice for civil
the worker for the most recently completed calendar year. or criminal litigation, and to cities, states, the District of
See the instructions for box 1 of Form 1099-NEC for details. Columbia, and U.S. commonwealths and territories for use in
administering their tax laws. We may also disclose this
information to other countries under a tax treaty, to federal
Line 20
and state agencies to enforce federal non-tax criminal laws,
The social security wage base is applied on an and to intelligence agencies to combat terrorism.
employee-by-employee basis. The social security wage base
for calendar year 2022 was $147,000. The social security You aren’t required to provide the information requested
wage base for calendar year 2023 is $160,200. The social on a form that is subject to the Paperwork Reduction Act
security wage base for calendar year 2024 will be $168,600. unless the form displays a valid OMB control number. Books
Example. A taxpayer filing Form 8952 in December of or records relating to a form or its instructions must be
2023 with one worker would look to compensation paid to the retained as long as their contents may become material in the
worker in 2022 because 2022 is the most recently completed administration of any Internal Revenue law. Generally, tax
calendar year. If the worker received $152,300 in returns and return information are confidential, as required by
compensation in 2022, the taxpayer would subtract $147,000 section 6103.
from $152,300 and enter $5,300 on line 20. The time needed to complete and file this form will vary
depending on individual circumstances. The estimated
Line 24
burden for taxpayers who file this form is shown below.
Multiply the amount on line 23 by 10% (0.10). This is the
amount required to be paid upon IRS acceptance of your . . . . . . . . . . . . . . . . . . . . . . . . 6 hr., 56 min.
Recordkeeping
application and execution of your VCSP closing agreement.
DON’T send payment with Form 8952. You will submit Learning about the law or the form. . . . . . . . . . . 18 min.
payment later with a signed closing agreement. If you submit Preparing and sending the form to the IRS . . . . . 25 min.
payment with Form 8952, it may cause a processing delay.
Paid Preparer Use Only If you have comments concerning the accuracy of these time
A paid preparer must sign Form 8952 and provide the estimates or suggestions for making this form simpler, we
information in the Paid Preparer Use Only section at the end would be happy to hear from you. You can send us
of the form if the preparer was paid to prepare the form and comments from IRS.gov/FormComments. Or you can send
your comments to:

Instructions for Form 8952 -3-

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    Internal Revenue Service                                   Although we can’t respond individually to each comment 
    Tax Forms and Publications                                 received, we do appreciate your feedback and will consider 
    1111 Constitution Ave. NW, IR-6526                         your comments as we revise our tax forms, instructions, and 
    Washington, DC 20224                                       publications.

Don’t send this form to this office. Instead, see Where To 
File, earlier.

                                                           -4-              Instructions for Form 8952

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