The IRS’s Voluntary Classification Settlement Program May Help Michigan Businesses

Dykema lawyers, Bill Lentine and Gabe Marinaro, co-authored an article—“The IRS’s Voluntary Classification Settlement Program May Help Michigan Businesses”—that appears in the Spring 2012 issue of Michigan Tax Lawyer. The article discusses the real-world implications of the IRS’s announcement in late 2011 that businesses can “voluntarily reclassify workers as employees for federal employment tax purposes.”

In the article, Lentine and Marinaro note that this decision, the latest in a series of IRS actions designed to bring taxpayers into conformity by offering varying degrees of clemency for past violations, is no “magic bullet.” They advise that taxpayers who choose to reclassify some or all of its workers might unwittingly open up other issues that could raise flags for an audit.

Michigan Tax Lawyer, a periodical published by the Taxation Section of the State Bar of Michigan, is the “go-to” guide for statewide tax matters, offering topical papers and scholarly works written by and for tax practitioners.