Printable Form 2026

IRS Form 8973 – IRS Form, Instructions, Pubs 2026

IRS Form 8973 – Businesses partnering with a Certified Professional Employer Organization (CPEO) for payroll and employment tax services must understand IRS Form 8973. This form, officially titled Certified Professional Employer Organization/Customer Reporting Agreement, ensures proper IRS notification of service contracts between CPEOs and their customers.

The latest version is Form 8973 (Rev. December 2023), available for download directly from the IRS here: https://www.irs.gov/pub/irs-pdf/f8973.pdf. The accompanying instructions (Rev. December 2018) remain current and provide essential guidance.

This comprehensive guide covers the purpose of IRS Form 8973, who files it, filing deadlines, step-by-step completion instructions, customer implications, and FAQs—based exclusively on official IRS sources.

What Is a Certified Professional Employer Organization (CPEO)?

A CPEO is a professional employer organization (PEO) that the IRS has voluntarily certified under sections 3511 and 7705 of the Internal Revenue Code. CPEOs handle federal employment tax responsibilities (withholding, reporting, depositing, and paying taxes) for their customers’ “worksite employees.”

When a business enters a CPEO contract (as defined in IRC section 7705(e)(2)), the CPEO generally becomes solely liable for employment taxes on wages it pays to those employees. Customers benefit from shared liability relief but must follow strict reporting rules, including Form 8973.

The IRS maintains a public list of certified CPEOs at IRS.gov/CPEO.

Purpose of IRS Form 8973

CPEOs use Form 8973 to:

  • Notify the IRS when a service contract with a customer starts or ends.
  • Identify which employment tax forms (e.g., Form 941, 940, 943, CT-1) the CPEO will file on the customer’s behalf.
  • Provide the CPEO’s consent for the IRS to disclose the customer’s tax information (from the CPEO’s returns) back to the customer.
  • Correct previously filed Forms 8973.

A “service contract” includes:

  • A CPEO contract under IRC section 7705(e)(2) — a written agreement where the CPEO assumes full employer responsibilities.
  • A service agreement under Treas. Reg. section 31.3504-2(b)(2) — where the CPEO acts as a co-employer and assumes tax liability.

Note: Form 8973 is not used if the customer filed Form 2678 appointing the CPEO as an agent under section 3504.

Who Must File IRS Form 8973?

  • Primary filer: The CPEO must file for every customer when a service contract starts or ends.
  • Optional for customers: The customer may file a separate Form 8973 to report the end of a contract.
  • Both the customer (Parts 1, 2, and 4) and CPEO (Parts 3, 6, and consent) typically sign when reporting a start.

Failure to file can affect certification status, tax liability allocation on Schedule R, and may require amended returns (e.g., Form 941-X).

When to File Form 8973? (Deadlines)

  • Standard deadline: Within 30 days of the service contract start or end date.
  • Newly certified CPEOs: Up to 6 months from the date of the IRS certification notice for existing customers (per Rev. Proc. 2017-14).
  • Corrections: Within 15 days if the IRS notifies you of an incorrect start date.
  • Consent renewal: Before the last period on the prior consent expires (typically every 3 years/12 quarters).

The service contract start date is the date the parties entered the CPEO contract or service agreement (cannot predate the CPEO’s certification effective date).

How to Complete IRS Form 8973: Step-by-Step?

Always read the official instructions before completing the form. Use black ink or fillable PDF; enter dates as MM/DD/YYYY.

Part 1: Why Are You Filing This Form?

  • Check the appropriate box: Start, End, or Correction.
  • Enter the start or end date.

Part 2: Customer Information

  • Line 1: Customer’s EIN.
  • Line 2: Customer’s legal name (as on EIN application).
  • Line 3: Trade name (if any).
  • Line 4: Full address.
  • Line 5: Check boxes for forms the CPEO will file (e.g., all or some wages on Form 941 series, 940, etc.).

Part 3: CPEO Information

  • Lines 6–9: CPEO’s EIN, legal name, trade name, and U.S. address.

Part 4: Customer Relationship Information (required for starts)

  • Line 10: Is this a CPEO contract under section 7705(e)(2)? (Yes/No)
  • Line 11: Is the customer a provider of employment-related services? (e.g., another PEO)
  • Line 12: Is the customer a related party of the CPEO? (per modified section 267 rules)
  • Line 13: Does the CPEO apply customer-based exemptions under sections 3511(a)(2) and 3511(c)(2)?

Part 5: Customer Signature
Authorized representative signs, declaring Parts 1, 2, and 4 are true to the best of their knowledge.

Part 6: CPEO Signature
Signed under penalties of perjury.

Page 3: CPEO Consent to Disclosure of Tax Information

  • Lists specific tax forms and periods (up to 3 years/12 quarters recommended).
  • Allows IRS to share the customer’s allocated tax data from the CPEO’s returns.
  • Renew as needed.

Signatures: Original ink signatures required (mechanically reproduced or scanned originals accepted; no purely electronic signatures).

Where and How to File Form 8973?

Mail the completed form to:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0089

Provide a copy to the other party. No electronic filing option currently exists for this form.

Implications for CPEO Customers

  • Liability shift: For worksite employees covered by a valid CPEO contract, the CPEO is solely liable for taxes on wages it pays.
  • Joint liability possible: For non-worksite employees or certain other remuneration.
  • Reporting: The CPEO files aggregate returns using its own EIN and attaches Schedule R to allocate amounts per customer.
  • Transparency: Customers receive disclosed tax information via the consent but cannot view CPEO’s EFTPS deposits directly.
  • Requirement: You must sign Form 8973 to fully benefit from CPEO status and liability protection. Unsigned forms may require the CPEO to recharacterize the relationship and amend returns.

Always verify the CPEO’s current certification status on IRS.gov/CPEO before signing.

Common FAQs About IRS Form 8973

Q: Can I use electronic signatures?
No. Ink signatures (or mechanical reproductions of original ink signatures) are required.

Q: What if the customer refuses to sign?
For CPEO contracts, the relationship may not qualify under section 3511. For service agreements, the CPEO can submit an unsigned form with a detailed perjury statement explaining efforts made.

Q: How does this affect Schedule R?
All customers/clients must be reported on Schedule R of the CPEO’s aggregate Form 941/940/943, even before Form 8973 is filed.

Q: Do I need to file for every tax period?
No—one Form 8973 covers the ongoing relationship (with consent renewal every 3 years).

Download Official Resources

Conclusion

IRS Form 8973 is a critical compliance tool that protects both CPEOs and their customers while maintaining IRS oversight of employment tax responsibilities. Filing accurately and on time helps avoid penalties, certification issues, and unexpected tax liabilities.

For personalized advice, consult a tax professional or the IRS CPEO program directly. Always use the latest official forms and instructions from IRS.gov, as rules can evolve.

This guide is for informational purposes only and is based on current IRS publications as of February 2026. Tax laws are complex—verify with official sources for your specific situation.