US (United States) Code. Title 26. Subtitle C. Employment Taxes. Chapter 25. General Provisions relating to Employ

Codificación normativa de EEUU (Estados Unidos) Legislación Federal estadounidense # Internal revenue code

  • Enviado por: El remitente no desea revelar su nombre
  • Idioma: inglés
  • País: Estados Unidos Estados Unidos
  • 29 páginas
publicidad
publicidad

-CITE-

26 USC CHAPTER 25 - GENERAL PROVISIONS RELATING TO

EMPLOYMENT TAXES 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES

-HEAD-

CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES

-MISC1-

Sec.

3501. Collection and payment of taxes.

3502. Nondeductibility of taxes in computing taxable income.

3503. Erroneous payments.

3504. Acts to be performed by agents.

3505. Liability of third parties paying or providing for

wages.

3506. Individuals providing companion sitting placement

services.

3507. Advance payment of earned income credit.

3508. Treatment of real estate agents and direct sellers.

3509. Determination of employer's liability for certain

employment taxes.

3510. Coordination of collection of domestic service

employment taxes with collection of income taxes.

AMENDMENTS

1994 - Pub. L. 103-387, Sec. 2(b)(2), Oct. 22, 1994, 108 Stat.

4074, added item 3510.

1990 - Pub. L. 101-508, title XI, Sec. 11801(b)(16), Nov. 5,

1990, 104 Stat. 1388-522, struck out item 3510 "Credit for

increased social security employee taxes and railroad retirement

tier 1 employee taxes imposed during 1984".

1983 - Pub. L. 98-67 repealed amendments made by section 307 of

Pub. L. 97-248. See 1982 Amendment note below.

Pub. L. 98-21, title I, Sec. 123(b)(2), Apr. 20, 1983, 97 Stat.

88, added item 3510.

1982 - Pub. L. 97-248, title II, Secs. 269(d), 270(b), Sept. 3,

1982, 96 Stat. 553, 554, added items 3508 and 3509.

Pub. L. 97-248, title III, Secs. 307(b)(5), 308(a), Sept. 3,

1982, 96 Stat. 591, provided that, applicable to payments of

interest, dividends, and patronage dividends paid or credited after

June 30, 1983, the caption of chapter 25 is amended by inserting

"AND COLLECTION OF INCOME TAXES AT SOURCE". Section 102(a), (b) of

Pub. L. 98-67, title I, Aug. 5, 1983, 97 Stat. 369, repealed

subtitle A (Secs. 301-308) of title III of Pub. L. 97-248 as of the

close of June 30, 1983, and provided that the Internal Revenue Code

of 1954 [now 1986] [this title] shall be applied and administered

(subject to certain exceptions) as if such subtitle A (and the

amendments made by such subtitle A) had not been enacted.

1978 - Pub. L. 95-600, title I, Sec. 105(b)(2), Nov. 6, 1978, 92

Stat. 2776, added item 3507.

1977 - Pub. L. 95-171, Sec. 10(b), Nov. 12, 1977, 91 Stat. 1356,

added item 3506.

1966 - Pub. L. 89-719, title I, Sec. 105(c), Nov. 2, 1966, 80

Stat. 1139, added item 3505.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in title 48 section 1421i.

-End-

-CITE-

26 USC Sec. 3501 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES

-HEAD-

Sec. 3501. Collection and payment of taxes

-STATUTE-

(a) General rule

The taxes imposed by this subtitle shall be collected by the

Secretary and shall be paid into the Treasury of the United States

as internal-revenue collections.

(b) Taxes with respect to non-cash fringe benefits

The taxes imposed by this subtitle with respect to non-cash

fringe benefits shall be collected (or paid) by the employer at the

time and in the manner prescribed by the Secretary by regulations.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 471; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-369,

div. A, title V, Sec. 531(d)(5), July 18, 1984, 98 Stat. 885.)

-MISC1-

AMENDMENTS

1984 - Pub. L. 98-369 designated existing provisions as subsec.

(a), added heading, and added subsec. (b).

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary".

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-369 effective Jan. 1, 1985, see section

531(h) of Pub. L. 98-369, set out as an Effective Date note under

section 132 of this title.

-End-

-CITE-

26 USC Sec. 3502 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES

-HEAD-

Sec. 3502. Nondeductibility of taxes in computing taxable income

-STATUTE-

(a) The taxes imposed by section 3101 of chapter 21, and by

sections 3201 and 3211 of chapter 22 shall not be allowed as a

deduction to the taxpayer in computing taxable income under

subtitle A.

(b) The tax deducted and withheld under chapter 24 shall not be

allowed as a deduction either to the employer or to the recipient

of the income in computing taxable income under subtitle A.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 471; Pub. L. 97-248, title III,

Secs. 305(b), 308(a), Sept. 3, 1982, 96 Stat. 588, 591; Pub. L.

98-67, title I, Sec. 102(a), Aug. 5, 1983, 97 Stat. 369.)

-MISC1-

AMENDMENTS

1983 - Subsecs. (b), (c). Pub. L. 98-67 repealed amendments made

by Pub. L. 97-248. See 1982 Amendment note below.

1982 - Subsecs. (b), (c). Pub. L. 97-248 provided that,

applicable to payments of interest, dividends, and patronage

dividends paid or credited after June 30, 1983, subsec. (b) is

amended and a new subsec. (c) is added. Section 102(a), (b) of Pub.

L. 98-67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A

(Secs. 301-308) of title III of Pub. L. 97-248 as of the close of

June 30, 1983, and provided that the Internal Revenue Code of 1954

[now 1986] [this title] shall be applied and administered (subject

to certain exceptions) as if such subtitle A (and the amendments

made by such subtitle A) had not been enacted.

-End-

-CITE-

26 USC Sec. 3503 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES

-HEAD-

Sec. 3503. Erroneous payments

-STATUTE-

Any tax paid under chapter 21 or 22 by a taxpayer with respect to

any period with respect to which he is not liable to tax under such

chapter shall be credited against the tax, if any, imposed by such

other chapter upon the taxpayer, and the balance, if any, shall be

refunded.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 471.)

-End-

-CITE-

26 USC Sec. 3504 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES

-HEAD-

Sec. 3504. Acts to be performed by agents

-STATUTE-

In case a fiduciary, agent, or other person has the control,

receipt, custody, or disposal of, or pays the wages of an employee

or group of employees, employed by one or more employers, the

Secretary, under regulations prescribed by him, is authorized to

designate such fiduciary, agent, or other person to perform such

acts as are required of employers under this title and as the

Secretary may specify. Except as may be otherwise prescribed by the

Secretary, all provisions of law (including penalties) applicable

in respect of an employer shall be applicable to a fiduciary,

agent, or other person so designated but, except as so provided,

the employer for whom such fiduciary, agent, or other person acts

shall remain subject to the provisions of law (including penalties)

applicable in respect of employers.

-SOURCE-

(Aug. 16, 1954, ch. 736, 68A Stat. 471; Pub. L. 85-866, title I,

Sec. 71, Sept. 2, 1958, 72 Stat. 1660; Pub. L. 94-455, title XIX,

Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.)

-MISC1-

AMENDMENTS

1976 - Pub. L. 94-455 struck out "or his delegate" after

"Secretary" in three places.

1958 - Pub. L. 85-866 substituted "title" for "subtitle" in first

sentence.

EFFECTIVE DATE OF 1958 AMENDMENT

Section 71 of Pub. L. 85-866 provided that the amendment made by

that section is effective with respect to remuneration paid after

Dec. 31, 1954.

-End-

-CITE-

26 USC Sec. 3505 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES

-HEAD-

Sec. 3505. Liability of third parties paying or providing for wages

-STATUTE-

(a) Direct payment by third parties

For purposes of sections 3102, 3202, 3402, and 3403, if a lender,

surety, or other person, who is not an employer under such sections

with respect to an employee or group of employees, pays wages

directly to such an employee or group of employees, employed by one

or more employers, or to an agent on behalf of such employee or

employees, such lender, surety, or other person shall be liable in

his own person and estate to the United States in a sum equal to

the taxes (together with interest) required to be deducted and

withheld from such wages by such employer.

(b) Personal liability where funds are supplied

If a lender, surety, or other person supplies funds to or for the

account of an employer for the specific purpose of paying wages of

the employees of such employer, with actual notice or knowledge

(within the meaning of section 6323(i)(1)) that such employer does

not intend to or will not be able to make timely payment or deposit

of the amounts of tax required by this subtitle to be deducted and

withheld by such employer from such wages, such lender, surety, or

other person shall be liable in his own person and estate to the

United States in a sum equal to the taxes (together with interest)

which are not paid over to the United States by such employer with

respect to such wages. However, the liability of such lender,

surety, or other person shall be limited to an amount equal to 25

percent of the amount so supplied to or for the account of such

employer for such purpose.

(c) Effect of payment

Any amounts paid to the United States pursuant to this section

shall be credited against the liability of the employer.

-SOURCE-

(Added Pub. L. 89-719, title I, Sec. 105(a), Nov. 2, 1966, 80 Stat.

1138.)

-MISC1-

EFFECTIVE DATE

Section applicable only with respect to wages paid on or after

Jan. 1, 1967, see section 114(c)(1) of Pub. L. 89-719, set out as

an Effective Date of 1966 Amendment note under section 6323 of this

title.

-End-

-CITE-

26 USC Sec. 3506 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES

-HEAD-

Sec. 3506. Individuals providing companion sitting placement

services

-STATUTE-

(a) In general

For purposes of this subtitle, a person engaged in the trade or

business of putting sitters in touch with individuals who wish to

employ them shall not be treated as the employer of such sitters

(and such sitters shall not be treated as employees of such person)

if such person does not pay or receive the salary or wages of the

sitters and is compensated by the sitters or the persons who employ

them on a fee basis.

(b) Definition

For purposes of this section, the term "sitters" means

individuals who furnish personal attendance, companionship, or

household care services to children or to individuals who are

elderly or disabled.

(c) Regulations

The Secretary shall prescribe such regulations as may be

necessary to carry out the purpose of this section.

-SOURCE-

(Added Pub. L. 95-171, Sec. 10(a), Nov. 12, 1977, 91 Stat. 1356.)

-MISC1-

EFFECTIVE DATE

Section 10(c) of Pub. L. 95-171 provided that: "The amendments

made by this section [enacting this section] shall apply to

remuneration received after December 31, 1974."

UNEMPLOYMENT COMPENSATION OR SOCIAL SECURITY BENEFITS BASED ON

SERVICES PERFORMED BEFORE NOVEMBER 12, 1977, UNAFFECTED

Section 10(d) of Pub. L. 95-171 provided that: "The amendments

made by this section [enacting this section] shall not be construed

as affecting (1) any individual's right to receive unemployment

compensation based on services performed before the date of the

enactment of this Act [Nov. 12, 1977], or (2) any individual's

eligibility for social security benefits to the extent based on

services performed before that date."

-End-

-CITE-

26 USC Sec. 3507 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES

-HEAD-

Sec. 3507. Advance payment of earned income credit

-STATUTE-

(a) General rule

Except as otherwise provided in this section, every employer

making payment of wages to an employee with respect to whom an

earned income eligibility certificate is in effect shall, at the

time of paying such wages, make an additional payment to such

employee equal to such employee's earned income advance amount.

(b) Earned income eligibility certificate

For purposes of this title, an earned income eligibility

certificate is a statement furnished by an employee to the employer

which -

(1) certifies that the employee will be eligible to receive the

credit provided by section 32 for the taxable year,

(2) certifies that the employee has 1 or more qualifying

children (within the meaning of section 32(c)(3)) for such

taxable year,

(3) certifies that the employee does not have an earned income

eligibility certificate in effect for the calendar year with

respect to the payment of wages by another employer, and

(4) states whether or not the employee's spouse has an earned

income eligibility certificate in effect.

For purposes of this section, a certificate shall be treated as

being in effect with respect to a spouse if such a certificate will

be in effect on the first status determination date following the

date on which the employee furnishes the statement in question.

(c) Earned income advance amount

(1) In general

For purposes of this title, the term "earned income advance

amount" means, with respect to any payroll period, the amount

determined -

(A) on the basis of the employee's wages from the employer

for such period, and

(B) in accordance with tables prescribed by the Secretary.

In the case of an employee who is a member of the Armed Forces of

the United States, the earned income advance amount shall be

determined by taking into account such employee's earned income

as determined for purposes of section 32.

(2) Advance amount tables

The tables referred to in paragraph (1)(B) -

(A) shall be similar in form to the tables prescribed under

section 3402 and, to the maximum extent feasible, shall be

coordinated with such tables, and

(B) if the employee is not married, or if no earned income

eligibility certificate is in effect with respect to the spouse

of the employee, shall treat the credit provided by section 32

as if it were a credit -

(i) of not more than 60 percent of the credit percentage in

effect under section 32(b)(1) for an eligible individual with

1 qualifying child and with earned income not in excess of

the earned income amount in effect under section 32(b)(2) for

such an eligible individual, which

(ii) phases out at 60 percent of the phaseout percentage in

effect under section 32(b)(1) for such an eligible individual

between the phaseout amount in effect under section 32(b)(2)

for such an eligible individual and the amount of earned

income at which the credit under section 32(a) phases out for

such an eligible individual, or

(C) if an earned income eligibility certificate is in effect

with respect to the spouse of the employee, shall treat the

credit as if it were a credit determined under subparagraph (B)

by substituting 1/2 of the amounts of earned income described

in such subparagraph for such amounts.

(d) Payments to be treated as payments of withholding and FICA

taxes

(1) In general

For purposes of this title, payments made by an employer under

subsection (a) to his employees for any payroll period -

(A) shall not be treated as the payment of compensation, and

(B) shall be treated as made out of -

(i) amounts required to be deducted and withheld for the

payroll period under section 3401 (relating to wage

withholding), and

(ii) amounts required to be deducted for the payroll period

under section 3102 (relating to FICA employee taxes), and

(iii) amounts of the taxes imposed for the payroll period

under section 3111 (relating to FICA employer taxes),

as if the employer had paid to the Secretary, on the day on

which the wages are paid to the employees, an amount equal to

such payments.

(2) Advance payments exceed taxes due

In the case of any employer, if for any payroll period the

aggregate amount of earned income advance payments exceeds the

sum of the amounts referred to in paragraph (1)(B), each such

advance payment shall be reduced by an amount which bears the

same ratio to such excess as such advance payment bears to the

aggregate amount of all such advance payments.

(3) Employer may make full advance payments

The Secretary shall prescribe regulations under which an

employer may elect (in lieu of any application of paragraph (2))

-

(A) to pay in full all earned income advance amounts, and

(B) to have additional amounts paid by reason of this

paragraph treated as the advance payment of taxes imposed by

this title.

(4) Failure to make advance payments

For purposes of this title (including penalties), failure to

make any advance payment under this section at the time provided

therefor shall be treated as the failure at such time to deduct

and withhold under chapter 24 an amount equal to the amount of

such advance payment.

(e) Furnishing and taking effect of certificates

For purposes of this section -

(1) When certificate takes effect

(A) First certificate furnished

An earned income eligibility certificate furnished the

employer in cases in which no previous such certificate had

been in effect for the calendar year shall take effect as of

the beginning of the first payroll period ending, or the first

payment of wages made without regard to a payroll period, on or

after the date on which such certificate is so furnished (or if

later, the first day of the calendar year for which furnished).

(B) Later certificate

An earned income eligibility certificate furnished the

employer in cases in which a previous such certificate had been

in effect for the calendar year shall take effect with respect

to the first payment of wages made on or after the first status

determination date which occurs at least 30 days after the date

on which such certificate is so furnished, except that at the

election of the employer such certificate may be made effective

with respect to any payment of wages made on or after the date

on which such certificate is so furnished. For purposes of this

section, the term "status determination date" means January 1,

May 1, July 1, and October 1 of each year.

(2) Period during which certificate remains in effect

An earned income eligibility certificate which takes effect

under this section for any calendar year shall continue in effect

with respect to the employee during such calendar year until

revoked by the employee or until another such certificate takes

effect under this section.

(3) Change of status

(A) Requirement to revoke or furnish new certificate

If, after an employee has furnished an earned income

eligibility certificate under this section, there has been a

change of circumstances which has the effect of -

(i) making the employee ineligible for the credit provided

by section 32 for the taxable year, or

(ii) causing an earned income eligibility certificate to be

in effect with respect to the spouse of the employee,

the employee shall, within 10 days after such change in

circumstances, furnish the employer with a revocation of such

certificate or with a new certificate (as the case may be).

Such a revocation (or such a new certificate) shall take effect

under the rules provided by paragraph (1)(B) for a later

certificate and shall be made in such form as the Secretary

shall by regulations prescribe.

(B) Certificate no longer in effect

If, after an employee has furnished an earned income

eligibility certificate under this section which certifies that

such a certificate is in effect with respect to the spouse of

the employee, such a certificate is no longer in effect with

respect to such spouse, then the employee may furnish the

employer with a new earned income eligibility certificate.

(4) Form and contents of certificate

Earned income eligibility certificates shall be in such form

and contain such other information as the Secretary may by

regulations prescribe.

(5) Taxable year defined

The term "taxable year" means the last taxable year of the

employee under subtitle A beginning in the calendar year in which

the wages are paid.

(f) Internal Revenue Service notification

The Internal Revenue Service shall take such steps as may be

appropriate to ensure that taxpayers who have 1 or more qualifying

children and who receive a refund of the credit under section 32

are aware of the availability of earned income advance amounts

under this section.

-SOURCE-

(Added Pub. L. 95-600, title I, Sec. 105(b)(1), Nov. 6, 1978, 92

Stat. 2773; amended Pub. L. 97-248, title III, Secs. 307(a)(3),

308(a), Sept. 3, 1982, 96 Stat. 589, 591; Pub. L. 98-67, title I,

Sec. 102(a), Aug. 5, 1983, 97 Stat. 369; Pub. L. 98-369, div. A,

title IV, Sec. 474(r)(30), title X, Sec. 1042(d)(3), (4), July 18,

1984, 98 Stat. 845, 1044; Pub. L. 99-514, title I, Sec. 111(d)(2),

(3), Oct. 22, 1986, 100 Stat. 2108; Pub. L. 101-508, title XI, Sec.

11111(c), Nov. 5, 1990, 104 Stat. 1388-412; Pub. L. 103-66, title

XIII, Sec. 13131(d)(4)-(6), Aug. 10, 1993, 107 Stat. 435; Pub. L.

103-465, title VII, Sec. 721(c), Dec. 8, 1994, 108 Stat. 5002.)

-MISC1-

AMENDMENTS

1994 - Subsec. (c)(1). Pub. L. 103-465 inserted concluding

provisions.

1993 - Subsec. (b)(2) to (4). Pub. L. 103-66, Sec. 13131(d)(4),

added par. (2) and redesignated former pars. (2) and (3) as (3) and

(4), respectively.

Subsec. (c)(2)(B)(i), (ii). Pub. L. 103-66, Sec. 13131(d)(5),

added cls. (i) and (ii) and struck out former cls. (i) and (ii)

which read as follows:

"(i) of not more than the credit percentage under section

32(b)(1) (without regard to subparagraph (D) thereof) for an

eligible individual with 1 qualifying child and with earned income

not in excess of the amount of earned income taken into account

under section 32(a)(1), which

"(ii) phases out between the amount of earned income at which the

phaseout begins under section 32(b)(1)(B)(ii) and the amount of

income at which the credit under section 32(a)(1) phases out for an

eligible individual with 1 qualifying child, or".

Subsec. (f). Pub. L. 103-66, Sec. 13131(d)(6), added subsec. (f).

1990 - Subsec. (c)(2)(B), (C). Pub. L. 101-508 amended subpars.

(B) and (C) generally. Prior to amendment, subpars. (B) and (C)

read as follows:

"(B) if the employee is not married, or if no earned income

eligibility certificate is in effect with respect to the spouse of

the employee, shall treat the credit provided by section 32 as if

it were a credit -

"(i) of not more than 14 percent of earned income not in excess

of the amount of earned income taken into account under section

32(a), which

"(ii) phases out between the amount of earned income at which

the phaseout begins under subsection (b) of section 32 and the

amount of earned income at which the credit under section 32 is

phased out under such subsection, or

"(C) if an earned income eligibility certificate is in effect

with respect to the spouse of the employee, shall treat the credit

provided by section 32 as if it were a credit -

"(i) of not more than 14 percent of earned income not in excess

of 1/2 of the amount of earned income taken into account under

section 32(a), which

"(ii) phases out between amounts of earned income which are

1/2 of the amounts of earned income described in subparagraph

(B)(ii)."

1986 - Subsec. (c)(2)(B). Pub. L. 99-514, Sec. 111(d)(2), added

cls. (i) and (ii) and struck out former cls. (i) and (ii) which

read as follows:

"(i) of not more than 11 percent of the first $5,000 of earned

income, which

"(ii) phases out between $6,500 and $11,000 of earned income,

or".

Subsec. (c)(2)(C). Pub. L. 99-514, Sec. 111(d)(3), added cls. (i)

and (ii) and struck out former cls. (i) and (ii) which read as

follows:

"(i) of not more than 11 percent of the first $2,500 of earned

income, which

"(ii) phases out between $3,250 and $5,500 of earned income."

1984 - Subsec. (b)(1). Pub. L. 98-369, Sec. 474(r)(30),

substituted "section 32" for "section 43".

Subsec. (c)(2)(B). Pub. L. 98-369, Sec. 474(r)(30), substituted

"section 32" for "section 43" in provisions preceding cl. (i).

Subsec. (c)(2)(B)(i). Pub. L. 98-369, Sec. 1042(d)(3),

substituted "11 percent" for "10 percent".

Subsec. (c)(2)(B)(ii). Pub. L. 98-369, Sec. 1042(d)(3),

substituted "$6,500 and $11,000" for "$6,000 and $10,000".

Subsec. (c)(2)(C). Pub. L. 98-369, Sec. 474(r)(30), substituted

"section 32" for "section 43" in provisions preceding cl. (i).

Subsec. (c)(2)(C)(i). Pub. L. 98-369, Sec. 1042(d)(4),

substituted "11 percent" for "10 percent".

Subsec. (c)(2)(C)(ii). Pub. L. 98-369, Sec. 1042(d)(4),

substituted "$3,250 and $5,500" for "$3,000 and $5,000".

Subsec. (c)(3)(A)(i). Pub. L. 98-369, Sec. 474(r)(30),

substituted "section 32" for "section 43".

1983 - Subsec. (d)(4). Pub. L. 98-67 repealed amendments made by

Pub. L. 97-248. See 1982 Amendment note below.

1982 - Subsec. (d)(4). Pub. L. 97-248 provided that, applicable

to payments of interest, dividends, and patronage dividends paid or

credited after June 30, 1983, par. (4) is amended by inserting

"subchapter A of" before "chapter 24". Section 102(a), (b) of Pub.

L. 98-67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A

(Secs. 301-308) of title III of Pub. L. 97-248 as of the close of

June 30, 1983, and provided that the Internal Revenue Code of 1954

[now 1986] [this title] shall be applied and administered (subject

to certain exceptions) as if such subtitle A (and the amendments

made by such subtitle A) had not been enacted.

EFFECTIVE DATE OF 1994 AMENDMENT

Section 721(d)(2) of Pub. L. 103-465 provided that: "The

amendments made by subsections (b) and (c) [amending this section

and section 6051 of this title] shall apply to remuneration paid

after December 31, 1994."

EFFECTIVE DATE OF 1993 AMENDMENT

Amendment by Pub. L. 103-66 applicable to taxable years beginning

after Dec. 31, 1993, see section 13131(e) of Pub. L. 103-66, set

out as a note under section 32 of this title.

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-508 applicable to taxable years

beginning after Dec. 31, 1990, see section 11111(f) of Pub. L.

101-508, set out as a note under section 32 of this title.

EFFECTIVE DATE OF 1986 AMENDMENT

Amendment by Pub. L. 99-514 applicable to taxable years beginning

after Dec. 31, 1986, see section 151(a) of Pub. L. 99-514, set out

as a note under section 1 of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by section 474(r)(30) of Pub. L. 98-369 applicable to

taxable years beginning after Dec. 31, 1983, and to carrybacks from

such years, see section 475(a) of Pub. L. 98-369, set out as a note

under section 21 of this title.

Amendment by section 1042(d)(3), (4) of Pub. L. 98-369 applicable

to taxable years beginning after Dec. 31, 1984, see section 1042(e)

of Pub. L. 98-369, set out as a note under section 32 of this

title.

EFFECTIVE DATE

Section 105(g)(2) of Pub. L. 95-600, as amended by Pub. L.

96-222, title I, Sec. 101(a)(2)(D), Apr. 1, 1980, 94 Stat. 195,

provided that: "The amendments made by subsections (b), (c), and

(e) [enacting this section and amending sections 6051 and 6302 of

this title] shall apply to remuneration paid after June 30, 1979."

STUDY OF ADVANCE PAYMENTS

Section 11113 of title XI of Pub. L. 101-508 provided that:

"(a) In General. - The Comptroller General of the United States

shall, in consultation with the Secretary of the Treasury, conduct

a study of advance payments required by section 3507 of the

Internal Revenue Code of 1986 to determine -

"(1) the effectiveness of the advance payment system (including

an analysis of why so few employees take advantage of such

system), and

"(2) the manner in which such system can be implemented to

alleviate administrative complexity, if any, for small business,

and

"(3) if there are any other problems in the administration of

such system.

"(b) Report. - Not later than 1 year after the date of the

enactment of this title [Nov. 5, 1990], the Comptroller shall

report the results of the study conducted under subsection (a),

together with any recommendations, to the Committee on Finance of

the United States Senate and the Committee on Ways and Means of the

House of Representatives."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 32, 6012, 6051, 6302 of

this title; title 7 section 2014; title 42 sections 653, 1382a,

1382b.

-End-

-CITE-

26 USC Sec. 3508 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES

-HEAD-

Sec. 3508. Treatment of real estate agents and direct sellers

-STATUTE-

(a) General rule

For purposes of this title, in the case of services performed as

a qualified real estate agent or as a direct seller -

(1) the individual performing such services shall not be

treated as an employee, and

(2) the person for whom such services are performed shall not

be treated as an employer.

(b) Definitions

For purposes of this section -

(1) Qualified real estate agent

The term "qualified real estate agent" means any individual who

is a sales person if -

(A) such individual is a licensed real estate agent,

(B) substantially all of the remuneration (whether or not

paid in cash) for the services performed by such individual as

a real estate agent is directly related to sales or other

output (including the performance of services) rather than to

the number of hours worked, and

(C) the services performed by the individual are performed

pursuant to a written contract between such individual and the

person for whom the services are performed and such contract

provides that the individual will not be treated as an employee

with respect to such services for Federal tax purposes.

(2) Direct seller

The term "direct seller" means any person if -

(A) such person -

(i) is engaged in the trade or business of selling (or

soliciting the sale of) consumer products to any buyer on a

buy-sell basis, a deposit-commission basis, or any similar

basis which the Secretary prescribes by regulations, for

resale (by the buyer or any other person) in the home or

otherwise than in a permanent retail establishment,

(ii) is engaged in the trade or business of selling (or

soliciting the sale of) consumer products in the home or

otherwise than in a permanent retail establishment, or

(iii) is engaged in the trade or business of the delivering

or distribution of newspapers or shopping news (including any

services directly related to such trade or business),

(B) substantially all the remuneration (whether or not paid

in cash) for the performance of the services described in

subparagraph (A) is directly related to sales or other output

(including the performance of services) rather than to the

number of hours worked, and

(C) the services performed by the person are performed

pursuant to a written contract between such person and the

person for whom the services are performed and such contract

provides that the person will not be treated as an employee

with respect to such services for Federal tax purposes.

(3) Coordination with retirement plans for selfemployed

This section shall not apply for purposes of subtitle A to the

extent that the individual is treated as an employee under

section 401(c)(1) (relating to self-employed individuals).

-SOURCE-

(Added Pub. L. 97-248, title II, Sec. 269(a), Sept. 3, 1982, 96

Stat. 551; amended Pub. L. 104-188, title I, Sec. 1118(a), Aug. 20,

1996, 110 Stat. 1764.)

-MISC1-

AMENDMENTS

1996 - Subsec. (b)(2)(A). Pub. L. 104-188 added cl. (iii).

EFFECTIVE DATE OF 1996 AMENDMENT

Section 1118(b) of Pub. L. 104-188 provided that: "The amendments

made by this section shall apply to services performed after

December 31, 1995."

EFFECTIVE DATE

Section 269(e) of Pub. L. 97-248 provided that:

"(1) In general. - Except as provided in paragraph (2), the

amendments made by this section [enacting this section and amending

section 410 of Title 42, The Public Health and Welfare] shall apply

to services performed after December 31, 1982.

"(2) Subsection (c). - The amendments made by subsection (c)

[amending provisions set out as a note under section 3401 of this

title] shall take effect on July 1, 1982."

RULES AND REGULATIONS

Section 269(c)(3) of Pub. L. 97-248 provided that: "Nothing in

section 530 of the Revenue Act of 1978 [set out as a note under

section 3401 of this title] shall be construed to prohibit the

implementation of the amendments made by this section [enacting

this section, amending section 410 of Title 42, The Public Health

and Welfare, and amending provisions set out as a note under

section 3401 of this title]."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 42 section 410.

-End-

-CITE-

26 USC Sec. 3509 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES

-HEAD-

Sec. 3509. Determination of employer's liability for certain

employment taxes

-STATUTE-

(a) In general

If any employer fails to deduct and withhold any tax under

chapter 24 or subchapter A of chapter 21 with respect to any

employee by reason of treating such employee as not being an

employee for purposes of such chapter or subchapter, the amount of

the employer's liability for -

(1) Withholding taxes

Tax under chapter 24 for such year with respect to such

employee shall be determined as if the amount required to be

deducted and withheld were equal to 1.5 percent of the wages (as

defined in section 3401) paid to such employee.

(2) Employee social security tax

Taxes under subchapter A of chapter 21 with respect to such

employee shall be determined as if the taxes imposed under such

subchapter were 20 percent of the amount imposed under such

subchapter without regard to this subparagraph.

(b) Employer's liability increased where employer disregards

reporting requirements

(1) In general

In the case of an employer who fails to meet the applicable

requirements of section 6041(a), 6041A, or 6051 with respect to

any employee, unless such failure is due to reasonable cause and

not willful neglect, subsection (a) shall be applied with respect

to such employee -

(A) by substituting "3 percent" for "1.5 percent" in

paragraph (1); and

(B) by substituting "40 percent" for "20 percent" in

paragraph (2).

(2) Applicable requirements

For purposes of paragraph (1), the term "applicable

requirements" means the requirements described in paragraph (1)

which would be applicable consistent with the employer's

treatment of the employee as not being an employee for purposes

of chapter 24 or subchapter A of chapter 21.

(c) Section not to apply in cases of intentional disregard

This section shall not apply to the determination of the

employer's liability for tax under chapter 24 or subchapter A of

chapter 21 if such liability is due to the employer's intentional

disregard of the requirement to deduct and withhold such tax.

(d) Special rules

For purposes of this section -

(1) Determination of liability

If the amount of any liability for tax is determined under this

section -

(A) the employee's liability for tax shall not be affected by

the assessment or collection of the tax so determined,

(B) the employer shall not be entitled to recover from the

employee any tax so determined, and

(C) sections (!1) 3402(d) and section 6521 shall not apply.

(2) Section not to apply where employer deducts wage but not

social security taxes

This section shall not apply to any employer with respect to

any wages if -

(A) the employer deducted and withheld any amount of the tax

imposed by chapter 24 on such wages, but

(B) failed to deduct and withhold the amount of the tax

imposed by subchapter A of chapter 21 with respect to such

wages.

(3) Section not to apply to certain statutory employees

This section shall not apply to any tax under subchapter A of

chapter 21 with respect to an individual described in subsection

(d)(3) of section 3121 (without regard to whether such individual

is described in paragraph (1) or (2) of such subsection).

-SOURCE-

(Added Pub. L. 97-248, title II, Sec. 270(a), Sept. 3, 1982, 96

Stat. 553; amended Pub. L. 100-647, title II, Sec. 2003(d), Nov.

10, 1988, 102 Stat. 3598; Pub. L. 101-508, title V, Sec.

5130(a)(4), Nov. 5, 1990, 104 Stat. 1388-289.)

-MISC1-

AMENDMENTS

1990 - Subsec. (d)(3). Pub. L. 101-508 substituted "subsection

(d)(3)" for "subsection (d)(4)".

1988 - Subsec. (d)(3). Pub. L. 100-647 substituted "subsection

(d)(4)" for "subsection (d)(3)".

EFFECTIVE DATE OF 1990 AMENDMENT

Amendment by Pub. L. 101-508 effective as if included in the

enactment of Pub. L. 100-647, Sec. 2003(d), see section 5130(b) of

Pub. L. 101-508, set out as a note under section 1402 of this

title.

EFFECTIVE DATE

Section 270(c) of Pub. L. 97-248 provided that: "The amendment

made by this section [enacting this section] shall take effect on

the date of the enactment of this Act [Sept. 3, 1982], except that

such amendments shall not apply to any assessment made before

January 1, 1983."

-FOOTNOTE-

(!1) So in original. Probably should be "section".

-End-

-CITE-

26 USC Sec. 3510 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle C - Employment Taxes

CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES

-HEAD-

Sec. 3510. Coordination of collection of domestic service

employment taxes with collection of income taxes

-STATUTE-

(a) General rule

Except as otherwise provided in this section -

(1) returns with respect to domestic service employment taxes

shall be made on a calendar year basis,

(2) any such return for any calendar year shall be filed on or

before the 15th day of the fourth month following the close of

the employer's taxable year which begins in such calendar year,

and

(3) no requirement to make deposits (or to pay installments

under section 6157) shall apply with respect to such taxes.

(b) Domestic service employment taxes subject to estimated tax

provisions

(1) In general

Solely for purposes of section 6654, domestic service

employment taxes imposed with respect to any calendar year shall

be treated as a tax imposed by chapter 2 for the taxable year of

the employer which begins in such calendar year.

(2) Employers not otherwise required to make estimated payments

Paragraph (1) shall not apply to any employer for any calendar

year if -

(A) no credit for wage withholding is allowed under section

31 to such employer for the taxable year of the employer which

begins in such calendar year, and

(B) no addition to tax would (but for this section) be

imposed under section 6654 for such taxable year by reason of

section 6654(e).

(3) Annualization

Under regulations prescribed by the Secretary, appropriate

adjustments shall be made in the application of section

6654(d)(2) in respect of the amount treated as tax under

paragraph (1).

(4) Transitional rule

In the case of any taxable year beginning before January 1,

1998, no addition to tax shall be made under section 6654 with

respect to any underpayment to the extent such underpayment was

created or increased by this section.

(c) Domestic service employment taxes

For purposes of this section, the term "domestic service

employment taxes" means -

(1) any taxes imposed by chapter 21 or 23 on remuneration paid

for domestic service in a private home of the employer, and

(2) any amount withheld from such remuneration pursuant to an

agreement under section 3402(p).

For purposes of this subsection, the term "domestic service in a

private home of the employer" includes domestic service described

in section 3121(g)(5).

(d) Exception where employer liable for other employment taxes

To the extent provided in regulations prescribed by the

Secretary, this section shall not apply to any employer for any

calendar year if such employer is liable for any tax under this

subtitle with respect to remuneration for services other than

domestic service in a private home of the employer.

(e) General regulatory authority

The Secretary shall prescribe such regulations as may be

necessary or appropriate to carry out the purposes of this section.

Such regulations may treat domestic service employment taxes as

taxes imposed by chapter 1 for purposes of coordinating the

assessment and collection of such employment taxes with the

assessment and collection of domestic employers' income taxes.

(f) Authority to enter into agreements to collect State

unemployment taxes

(1) In general

The Secretary is hereby authorized to enter into an agreement

with any State to collect, as the agent of such State, such

State's unemployment taxes imposed on remuneration paid for

domestic service in a private home of the employer. Any taxes to

be collected by the Secretary pursuant to such an agreement shall

be treated as domestic service employment taxes for purposes of

this section.

(2) Transfers to State account

Any amount collected under an agreement referred to in

paragraph (1) shall be transferred by the Secretary to the

account of the State in the Unemployment Trust Fund.

(3) Subtitle F made applicable

For purposes of subtitle F, any amount required to be collected

under an agreement under paragraph (1) shall be treated as a tax

imposed by chapter 23.

(4) State

For purposes of this subsection, the term "State" has the

meaning given such term by section 3306(j)(1).

-SOURCE-

(Added Pub. L. 103-387, Sec. 2(b)(1), Oct. 22, 1994, 108 Stat.

4073.)

-MISC1-

PRIOR PROVISIONS

A prior section 3510, added Pub. L. 98-21, title I, Sec.

123(b)(1), Apr. 20, 1983, 97 Stat. 88, provided a credit for

increased social security employee taxes and railroad retirement

tier 1 employee taxes imposed during 1984, prior to repeal by Pub.

L. 101-508, title XI, Sec. 11801(a)(42), Nov. 5, 1990, 104 Stat.

1388-521.

EFFECTIVE DATE

Section 2(b)(3) of Pub. L. 103-387 provided that: "The amendments

made by this subsection [enacting this section] shall apply to

remuneration paid in calendar years beginning after December 31,

1994."

EXPANDED INFORMATION TO EMPLOYERS

Section 2(b)(4) of Pub. L. 103-387 provided that: "The Secretary

of the Treasury or the Secretary's delegate shall prepare and make

available information on the Federal tax obligations of employers

with respect to employees performing domestic service in a private

home of the employer. Such information shall also include a

statement that such employers may have obligations with respect to

such employees under State laws relating to unemployment insurance

and workers compensation."

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 42 section 1320b-7.

-End-

-CITE-

26 USC Subtitle D - Miscellaneous Excise Taxes 01/06/03

-EXPCITE-

TITLE 26 - INTERNAL REVENUE CODE

Subtitle D - Miscellaneous Excise Taxes

-HEAD-

Subtitle D - Miscellaneous Excise Taxes

-MISC1-

Chapter Sec.(!1)

31. Retail excise taxes 4001

32. Manufacturers excise taxes 4061

33. Facilities and services 4231

34. Documentary stamp taxes (!2) 4371

35. Taxes on wagering 4401

36. Certain other excise taxes 4451

[37. Repealed.]

38. Environmental taxes 4611

39. Registration-required obligations 4701

40. General provisions relating to occupational taxes 4901

41. Public charities 4911

42. Private foundations; and certain other tax-exempt

organizations 4940

43. Qualified pension, etc., plans 4971

44. Real estate investment trusts 4981

[45. Repealed.]

46. Golden parachute payments 4999

47. Certain group health plans 5000

AMENDMENTS

1990 - Pub. L. 101-508, title XI, Sec. 11801(b)(17), Nov. 5,

1990, 104 Stat. 1388-522, struck out item for chapter 37 "Sugar,

coconut and palm oil".

1989 - Pub. L. 101-239, title VI, Sec. 6202(b)(4)(B), title VII,

Sec. 7841(d)(4), Dec. 19, 1989, 103 Stat. 2233, 2428, substituted

semicolon for comma in item for chapter 42 and struck out "large"

after "Certain" in item for chapter 47.

1988 - Pub. L. 100-418, title I, Sec. 1941(b)(3)(A), Aug. 23,

1988, 102 Stat. 1324, struck out item for chapter 45 "Windfall

profit tax on domestic crude oil".

1987 - Pub. L. 100-203, title X, Sec. 10712(c)(8), Dec. 22, 1987,

101 Stat. 1330-467, substituted "and certain other tax-exempt

organizations" for "black lung benefit trusts" in item for chapter

42.

1986 - Pub. L. 99-509, title IX, Sec. 9319(d)(2), Oct. 21, 1986,

100 Stat. 2012, added item for chapter 47.

1984 - Pub. L. 98-369, div. A, title I, Sec. 67(d)(2), July 18,

1984, 98 Stat. 587, added item for chapter 46.

1983 - Pub. L. 97-424, title V, Sec. 512(b)(2)(B), Jan. 6, 1983,

96 Stat. 2177, substituted "Retail excise taxes" for "Special

fuels" in item for chapter 31.

1982 - Pub. L. 97-248, title III, Sec. 310(b)(4)(B), Sept. 3,

1982, 96 Stat. 598, added item for chapter 39.

1980 - Pub. L. 96-510, title II, Sec. 211(b), Dec. 11, 1980, 94

Stat. 2801, added item for chapter 38.

Pub. L. 96-223, Sec. 101(a)(2), Apr. 2, 1980, 94 Stat. 250, added

item for chapter 45.

1978 - Pub. L. 95-227, Sec. 4(c)(2)(C), Feb. 10, 1978, 92 Stat.

22, inserted ", black lung benefit trusts" after "foundations" in

item for chapter 42.

1976 - Pub. L. 94-455, title XIII, Sec. 1307(d)(3)(A), title XVI,

Sec. 1605(c), title XIX, Secs. 1904(b)(7)(E), (10)(G), 1952(n)(6),

Oct. 4, 1976, 90 Stat. 1728, 1755, 1815, 1818, 1846, substituted

"41. Public charities" for "41. Interest equalization tax" added

item for chapter 44 and struck out items for chapters "38. Import

taxes" and "39. Regulatory taxes".

1974 - Pub. L. 93-406, title II, Sec. 1016(b)(2), Sept. 2, 1974,

88 Stat. 932, added item for chapter 43.

1969 - Pub. L. 91-172, title I, Sec. 101(j)(59), Dec. 30, 1969,

83 Stat. 532, added item for chapter 42.

1964 - Pub. L. 88-563, Sec. 2(b), Sept. 2, 1964, 78 Stat. 841,

added item for chapter 41.

-SECREF-

SUBTITLE REFERRED TO IN OTHER SECTIONS

This subtitle is referred to in sections 6103, 6110, 6302, 6501,

6676, 6724, 7463, 7851 of this title.

-FOOTNOTE-

(!1) Section numbers editorially supplied.

(!2) Chapter heading amended by Pub. L. 94-455 without

corresponding amendment of analysis.

-End-