The Internal Revenue Service is not noted for charity toward miscreants whose tax returns are, shall we say, creative. It was tax evasion, after all, rather than murder, bootlegging, and assorted other crimes, that led to a federal conviction for mobster Al Capone. Every now and then, though, the IRS manages to give a real break to taxpayers who might have made an honest mistake.

The agency’s Voluntary Classification Settlement Program (VCSP), announced a few months ago, is such a break for employers who qualify. The program applies to employers across the board and is not restricted to the horse business. The potential savings under the program could be huge.

Before you read any furtherÑSTOP! Raise your right hand and promise that you will not take this information as legal advice. Not every employer will qualify for VCSP, navigating the requirements of the program is tricky, and it’s not at all clear whether individual states are buying into the federal tax forgiveness scheme. Figuring this out isn’t a do-it-yourself project! Professional guidance from a tax advisor knowledgeable about taxes and the horse industry is essential