Improvements to the SS-8 Program Are Needed to Help Workers and Improve Employment Tax Compliance

The Commissioner, Small Business/Self-Employed (SB/SE) Division, should create guidance and training for the responsible functions to ensure the accurate processing and determinations of worker classification requests, including gig economy worker classification requests.

The Deputy Commissioner Services and Enforcement should work with the Treasury Office of Tax Policy to pursue a legislative change to Section 530 so that, at a minimum, the IRS can take prospective action to enforce the law on employers who incorrectly treat workers as independent contractors.

The Commissioner, Small Business/Self-Employed (SB/SE) Division, should evaluate whether SB/SE's Employment Tax WSD or the Campus SS-8 Program is the best function to identify potential cases and consider utilizing the experience of the SS-8 Program employees who have first-hand knowledge of the cases to encourage referrals to the Employment Tax Examination function.

The Commissioner, Small Business/Self-Employed (SB/SE) Division, should require employees to evaluate whether businesses are complying with determinations. Consider program changes and referrals to the Employment Tax Examination function as appropriate to increase business compliance with worker classification determinations.

The Commissioner, Small Business/Self-Employed (SB/SE) Division, should evaluate the process used in making worker classification determinations and opinions in the SS-8 Program and make necessary changes to improve processing.