Tax
Aug. 6, 2026
Employment settlement claims: Should you sign IRS Form 4669?
IRS Form 4669 serves a legitimate purpose in worker-classification disputes but requiring it in employment settlements may be both inappropriate and premature.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
IRS Form 4669 is signed by the recipient of a payment, confirming that they included it in their income and paid self-employment tax. It is used by companies to reduce or avoid liability to the IRS if the IRS later says they should have treated the payment as wages and withheld income and employment taxes. If the recipient reports the payment as income and pays self-employment tax, a failure to withhold penalty seems moot.
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