IRS Announces Limited Amnesty Program for Employers Misclassifying Independent Contractors

Earlier this week, we alerted you to the new agreement between the IRS and the Department of Labor to share information concerning employers who misclassify employees as independent contractors. Today, the IRS announced a voluntary compliance program offering limited penalties for employers who self report employee misclassifications. To be eligible, an employer must 1) consistently have treated the workers in the past as nonemployees, 2) have filed all required Forms 1099 for the workers for the previous three years, and 3) not currently be under audit by the IRS, the Department of Labor or a state agency concerning the classification of these workers. The announcement can be found here. 

Each case a business or individual may face is unique and may require legal advice. If you would like additional information regarding the content of this article, please contact the author, Keith Overholt, or the Chair of our Labor and Employment Department, John Egbert.




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