Bill > HR3223

This bill amends the Internal Revenue Code to establish new procedures for handling errors related to payroll taxes when third-party payors (such as payroll processing companies, professional employer organizations, or agents) are involved. Specifically, the bill creates a framework where a third-party payor can rely on an employer's certification of payroll information unless they have "constructive knowledge" of an error. If a third-party payor has constructive knowledge of an error, liability for that error will be shared between the employer and the third-party payor, proportional to their knowledge. If the third-party payor has no knowledge of an error, the employer bears full responsibility. The bill also prevents the IRS from delaying tax credit processing or initiating audits against an employer solely because a third-party payor filed an erroneous return. To be deemed without constructive knowledge, the third-party payor must accurately report the payroll tax credit based on the employer's certification, verify the aggregate wages used to calculate the credit, and ensure the certification indicates the employer's entitlement to the credit. The bill provides definitions for key terms like "constructive knowledge" and "third-party payor" and will apply to audits, examinations, and assessments initiated after the date of enactment.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3223/all-info