Internal Revenue Code:Sec. 3510. Coordination of collection of domestic service employment taxes with collection of income taxes

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle C - Employment Taxes
       CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES
     

Statute

    Sec. 3510. Coordination of collection of domestic service
        employment taxes with collection of income taxes
 
    (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).
 

Sources

    (Added Pub. L. 103-387, Sec. 2(b)(1), Oct. 22, 1994, 108 Stat.
    4073.)
 

Miscellaneous

                              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.''
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in title 42 section 1320b-7.