What is Form SS-8 and its purpose?

IRS Form SS-8 is a critical document used in the United States to request a determination of worker status for federal employment taxes and income tax withholding purposes. It helps clarify whether a worker should be classified as an employee or an independent contractor, which has significant tax implications for both parties involved.

Who Files Form SS-8?

Form SS-8 can be filed by either the worker or the firm seeking clarity on the worker's status. The form requires comprehensive information about the worker-firm relationship, including significant changes over the service term. The individual signing the form, especially on behalf of a corporation, must have personal knowledge of the facts presented.

The SS-8 Determination Process

Upon receiving a completed Form SS-8, the IRS sends confirmation notifications and may request additional information from all parties involved. An IRS technician then analyzes the relationship between the worker and the company, applying relevant laws to make a determination. The IRS issues a formal determination letter to the firm (or taxpayer) and the worker, outlining their decision. If the IRS cannot make a formal determination, they may send an information letter advising on tax obligations. It's important to note that SS-8 determinations do not have appeal rights typically available for federal tax returns. However, parties can submit additional information for reconsideration.

Where to Obtain and File Form SS-8

Form SS-8 can be obtained from the IRS website, along with instructions for completion. It should not be submitted with tax returns, as doing so will only delay processing. Electronic submissions are not accepted for initial requests; the completed and signed form must be mailed to the address provided by the IRS.