26-U.S.C.-3505
§3505 – Liability of Third Parties Paying Or Providing For Wages
Pathway
Title 26 > Subtitle C > Chapter 25 > Section 3505
Details
- Reference: Section 3505
- Legend: §3505 – Liability of Third Parties Paying Or Providing For Wages
- USCode Year: 2013
Provision Content
(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.
(Added Pub. L. 89–719, title I, §105(a), Nov. 2, 1966, 80 Stat. 1138.)
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.
U.S. Encyclopedia of Law Coverage
26-U.S.C.-3505 in the Legal Encyclopedia: Taxes
In this entry about 26-U.S.C.-3505, find legal reference material, bibliographies and premiere content related to taxes in the American Encyclopedia of Law, presenting a comprehensive view of the United States taxes-specific issues, written by authorities in the field.
26-U.S.C.-3504 in the Legal Encyclopedia: Employment Taxes
In this entry about 26-U.S.C.-3504, find legal reference material, bibliographies and premiere content related to employment taxes in the American Encyclopedia of Law, presenting a comprehensive view of the United States employment taxes-specific issues, written by authorities in the field.
26-U.S.C.-3403 in the Legal Encyclopedia: Employment
In this entry about 26-U.S.C.-3403, find legal reference material, bibliographies and premiere content related to employment in the American Encyclopedia of Law, presenting a comprehensive view of the United States employment-specific issues, written by authorities in the field.
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