Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
One of the more perplexing and problematic concepts to comprehend under federal tax law is the Employee v. Independent Contractor debate. It is critical for businesses to occasionally review the category of its workers to see if they are properly classified.
Misclassified workers remain a priority with the Internal Revenue Service (IRS). The IRS is aware that large groups of businesses avoid payroll tax responsibilities by classifying workers as independent contractors rather than employees.
Furthermore, we will discuss the Volunteer Classification Settlement Program (VCSP). The VCSP is a little-known program that may be the right choice to get your client into compliance with treating their workers as employees. Learn about the process, how to qualify for the program, and discover the significant tax savings that will benefit your client. (Bonus Material: Discussion on guidance issued by the Department of Labor).
Publication Date: August 2025
Designed For
All Tax Professionals that need to determine correct worker classification and assist clients with settlement programs in this area
Topics Covered
- Mastering Worker Classification
- Independent Contractor Defined (by IRS)
- Wages Defined (by Code Section)
- Significance of Classification
- Tests for Classification
- Classification Issues
- Department of Labor
- Control Factors
- IRS Publication 1976
- Collection Settlement Program (CSP)
- Voluntary Classification Settlement Program (VSCP)
- Gig Economy
- Case Law
- IRS Publication 5146
Learning Objectives
- Explain how to distinguish between an employee and an independent contractor
- Identify the three Categories of Control Factors
- Identify Section 530 Relief under the Revenue Act of 1978
- Explain the Classification Settlement Program (CSP)
- Explain the Voluntary Classification Settlement Program (VCSP)
- Identify recent guidance
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
A.J. Reynolds
Recipient of the 2024 Excellence in Education Award from the National Association of Enrolled Agents.
A.J. Reynolds, EA has over thirty years of experience encompassing various areas of taxation. Though his practice centers on Individual, Business, and Estate Tax preparation, A.J. focuses a portion of his practice to IRS Representations. As diverse as his specializations, A.J.’s clientele, too, ranges from average workers to Fortune 500 executives. Additionally, A.J volunteers his time with the Iowa Legal Aid’s Managing Attorney assisting in Tax Court cases and assorted income tax issues.
A.J. brings his everyday “in the trenches” experience to seminars and webinars for multiple organizations to assist attendees with real issues affecting tax professionals.
A.J. started his tax career with a national CPA firm in San Diego, CA after proudly serving for five years in the United States Navy onboard the Guided Missile Destroyer USS Callaghan. While onboard the destroyer, the ship executed many missions in the Straits of Hormuz off the coast of Iran.
Outside of his tax practice, A.J. is a member of the Diocese of Sioux City Priests’ Pension & Welfare Board and the Investment Advisory Board for the Diocese. When not working, his time is spent in various activities, including traveling with his wife and their two children.