Page 39 - Employment Taxes Guide

// VOLUNTARY

CLOSING PROCESS

- The IRS has established a voluntary administrative process to allow certain
employment tax issues not involving worker classification to be permanently and

conclusively resolved through a closing agreement program.
- The objective of this voluntary process is to reduce administrative burden by

saving time and resources for both the IRS and taxpayers and to enhance
voluntary compliance in specified limited situations.

- Under this administrative process, along with other specific requirements,
taxpayers must demonstrate that Form 94X-X and other correction procedures
would not allow for the prompt, permanent, and conclusive resolution of the

issue(s).
- While these procedures provide for the submission of requests for a closing

agreement, whether an agreement will be entered into is a matter within the
Commissioner's sole discretion.
- For more information, see Voluntary Closing Agreement Process ? Employment

Tax Issues (VCAP?ET).