Yes, if your VCSP application has been rejected because you are not eligible, you may reapply.
The legal reasoning behind this is that the IRS allows taxpayers to reapply for the Voluntary Classification Settlement Program (VCSP) if their initial application was rejected due to ineligibility. This is confirmed by the IRS FAQ, which explicitly states that taxpayers can reapply if their application is rejected. The process involves submitting a new Form 8952, Application for Voluntary Classification Settlement Program, and ensuring that all eligibility criteria are met in the subsequent application.
Sources:
IRM Part 4. Examining Process. Chapter 23. Employment Tax. Section 20. Voluntary Classification Settlement Program (VCSP) Procedures
