This Note argues that the timely filing of informational tax forms should not be a condition of an IRS Classification Settlement Program (CSP) settlement offer; the CSP should incorporate more settlement options; and the CSP should make settlement offers mandatory. Part II of this Note will discuss the legal history behind worker classification. Part III will demonstrate the unique situation of the small business owner in classifying workers. Part IV will explain § 530, a safe harbor provision for small business owners who have incorrectly classified workers. Part V will introduce the CSP in detail and explain its applications. Part VI will highlight the shortcomings of the CSP. Part VII will discuss possible solutions to CSP shortcomings. Part VII will conclude.
Note, The IRS' Classification Settlement Program: Is it an Adequate Tool to Relieve Taxpayer Burden for Small Businesses that have Misclassified Workers as Independent Contractors, 56 Clev. St. L. Rev. 451 (2008)