Supporting Statement Form 8952

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
Form 8952 has been developed in conjunction with the development of the new Voluntary Classification Settlement
Program (VCSP), which permits taxpayers to voluntarily reclassify workers as employees for federal employment tax
purposes. 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 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 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.
In response to the Federal Register notice (76 FR 72766), dated November 25, 2011, we received no comments
regarding Form 8952.

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

Total
Hours

7 hrs., 40 min.

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
As suggested by OMB, our Federal Register Notice dated March November 25, 2011, (76 FR 72766), requested
public comments on estimates of cost burden that are not captured in the estimates of burden hours, i.e., estimates of
capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.
However, we did not receive any response from taxpayers on this subject. As a result, estimates of the cost burdens
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
There is no change in the paperwork burden previously approved by OMB. This form is being submitted for renewal
purposes only.

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
N/A

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

Page 6

Department of the Treasury–Internal Revenue Service