No, if your parent, subsidiary, or another member of your consolidated group is under IRS audit, you cannot participate in the Voluntary Classification Settlement Program (VCSP). An employment tax audit of one of the members of an affiliated group is treated as an employment tax audit of the applicant for purposes of the VCSP.
Sources:
Notice 2012-69
§ 6103. Confidentiality and disclosure of returns and return information
IRM Part 4. Examining Process. Chapter 23. Employment Tax. Section 20. Voluntary Classification Settlement Program (VCSP) Procedures