The IRS has announced both permanent and temporary modifications of eligibility requirements to its Voluntary Worker Classification Settlement (VWCS). Previously, employers who were under IRS audit could not participate. Now, however, employers under IRS audit (other than an audit of employment taxes), may qualify. Another permanent change is that the look-back period will be only three years, rather than six years. Traditionally, employers must have previously filed required Forms 1099 for workers they seek to reclassify for the prior three years in order to qualify for VWCS. This requirement has been waived as an eligibility requirement through June 30, 2013.

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