Supporting Statement

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
IRS Announcement ## is expected to be released on July 31st, 2011 to announce this new program. This form will be
time senstive to potential employers that may want to be included in the program. The instructions in this new Form
allow the IRS 60 days to process from the time of submission. IRS also would like employers to decide if they are
going to participate in this program by year end 2011.

2. USE OF DATA
The Internal Revenue Service (IRS) has developed a new program to permit taxpayers to voluntarily reclassify workers
as employees for federal employment tax purposes. The Voluntary Classification Settlement Program (VCSP) allows
eligible taxpayers to voluntarily reclassify their workers for federal employment tax purposes and obtain similar relief to
that obtained in the current Classification Settlement Program (CSP) available in examinations. The VCSP is optional
and provides taxpayers with an opportunity to voluntarily reclassify their workers as employees for future tax periods
with limited federal employment tax liability for the past nonemployee treatment. To participate in the program, the
taxpayer must meet certain eligibility requirements, apply to participate in VCSP, and enter into a closing agreement
with the IRS

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
Currently this new program will be mailed to the IRS processing center in Utah no option to electronically file exists

4. EFFORTS TO IDENTIFY DUPLICATION
We have attempted to eliminate duplication within the agency whenever possible.

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
Not Applicable

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
Not Applicable

Form 14029 (Rev. 4-2009) Catalog Number 51944B Page 4

Department of the Treasury–Internal Revenue Service

7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT
WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
Not Applicable

8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY
OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS,
AND DATA ELEMENTS
Periodic meetings have been held with representives of the American Bar Association, the National Society of Public
Accountants, IRSAC, and other professional groups to discuss the concept of this program. During these meetings,
there has been an opportunity for those attending to make comments regarding this program. On March 25, 2011,
Deputy Commissioner SSA, Marianna LaCanfora, indicated SSA had no concerns regarding this proposed program.
On April 6, 2011, a conference call was conducted with Treasury. They requested additional documentation, but
indicated that they felt this program filled an existing void. They also indicated that a similar initiative had been
discussed in the mid-1990s, at the time the original CSP was created. The fact they had Treasury notes on a very
similar concept from years ago that was not pursued added credibility to our proposal and mitigated many of their
questions. External groups, including GAO, TIGTA, have also published reports noting the need for such a program.

9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
Not Applicable

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returnsand tax return information are confidential as required by 26 USC 6103

11. JUSTIFICATION OF SENSITIVE QUESTIONS
Not Applicable

12. ESTIMATED BURDEN OF INFORMATION COLLECTION
Number of
Responses
Form 8952

1,000

Time per
Response
7 hrs., 40 min.

Total
Hours
7,660

Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.

Form 14029 (Rev. 4-2009) Catalog Number 51944B

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Department of the Treasury–Internal Revenue Service

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
Estimates of capital or start-up costs and costs of operation, maintenance, and purchases of services to provide
information are not available at this time.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
The primary cost to the government consists of the cost of printing this new form and its instructions. We estinmate the
cost of printing the form and its instructions to be $1,000. It is estimated that this effort will involve 5 FTE's for process.

15. REASONS FOR CHANGE IN BURDEN
This is a new form. This will result in an increase in the estimated burden by 7,660 hours.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not Applicable

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
See attachment

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB PRA SUBMISSION FORM
Not Applicable

19. REASON FOR EMERGENCY SUBMISSION
IRS Announcement ## is expected to be issued on July 31, 2011 to announce this new program. The new form will
need to be released when the IRS Announcement is issued. This Form will be time senstive to taxpayers that want to
include workers as employees in the fourth quarter 0f 2011. The instructions in this new Form allow the IRS 60 days to
process from the time of submission. IRS also would like employers to decide if they are going to participate in this
program for the fourth quarter of 2011 which begins on October 1, 2011. The 60 days backs up to August 1, 2011.

Form 14029 (Rev. 4-2009) Catalog Number 51944B

Page 6

Department of the Treasury–Internal Revenue Service