The IRS is still concerned over the misclassification of employees as independent contractors for a tax dodge. They want to reduce the incidence of this misclassification to increase tax revenues. The IRS will audit firms and evaluate the contractors to see if they have been misclassified. If they have been misclassified then the IRS will assess the taxpayer for the underpayment of employment taxes. The IRS has now implemented a new voluntary classification settlement program ( VCSP ). The program gives partial write-offs of underpaid employment taxes, if an employer agrees to reclassify contractors as employees. To qualify for this program an employer must have classified workers as nonemployees and have filed forms 1099 for the nonemployees for the previous three years.