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Treasury Regulations (26 C.F.R.)

26 CFR § 31.3131-1

Recapture of credits.

Official textecfr.govlast amended

# (a) Recapture of erroneously refunded credits.

Any amount of credits for qualified sick leave wages under section 3131(a), including any increase to the amount of the credits under sections 3131(d), 3131(e), and 3133, that are treated as overpayments and refunded or credited to an employer under section 6402(a) or 6413(b) and to which the employer is not entitled, resulting in an erroneous refund to the employer, shall be treated as an underpayment of the taxes imposed under section 3111(b) and so much of the taxes imposed under section 3221(a) as are attributable to the rate in effect under section 3111(b), as applicable, and may be assessed and collected by the Secretary in the same manner as the taxes.

# (b) Advance credit amounts erroneously refunded.

The determination of any amount of credits erroneously refunded as described in paragraph (a) of this section must take into account any amount of credits advanced to an employer under the process established by the Internal Revenue Service in accordance with section 3131(b)(4)(B) and 3131(g)(6).

# (c) Third party payors.

For purposes of this section, employers against whom an erroneous refund of the credits under section 3131 (including any increases in those credits under section 3133) can be assessed as an underpayment of the taxes imposed under section 3111(b) and so much of the taxes imposed under section 3221(a) as are attributable to the rate in effect under section 3111(b), as applicable, include persons treated as the employer under sections 3401(d), 3504, and 3511, consistent with their liability for the section 3111(b) or 3221(a) taxes against which the credit applied, and also include those persons' common law employer clients that remain subject to all provisions of law applicable to employers with respect to the payment of wages or compensation, as applicable.

# (d) Applicability date.

This section applies to all credit refunds under section 3131 (including any increases in those credits under section 3133), advanced or paid on or after September 8, 2021.

[T.D. 9978, 88 FR 48124, July 26, 2023]

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In this part (40 sections)
  1. 31.3121(d)-1 · (d)-1 Who are employees.
  2. 31.3121(d)-2 · (d)-2 Who are employers.
  3. 31.3121(e)-1 · (e)-1 State, United States, and citizen.
  4. 31.3121(f)-1 · (f)-1 American vessel and aircraft.
  5. 31.3121(g)-1 · (g)-1 Agricultural labor.
  6. 31.3121(h)-1 · (h)-1 American employer.
  7. 31.3121(i)-1 · (i)-1 Computation to nearest dollar of cash remuneration…
  8. 31.3121(i)-2 · (i)-2 Computation of remuneration for service performed…
  9. 31.3121(i)-3 · (i)-3 Computation of remuneration for service performed…
  10. 31.3121(i)-4 · (i)-4 Computation of remuneration for service performed…
  11. 31.3121(j)-1 · (j)-1 Covered transportation service.
  12. 31.3121(l)-1 · (l)-1 Agreements entered into by domestic corporations…
  13. 31.3121(o)-1 · (o)-1 Crew leader.
  14. 31.3121(q)-1 · (q)-1 Tips included for employee taxes.
  15. 31.3121(r)-1 · (r)-1 Election of coverage by religious orders.
  16. 31.3121(s)-1 · (s)-1 Concurrent employment by related corporations with…
  17. 31.3121(v)(2)-1 · (v)(2)-1 Treatment of amounts deferred under certain…
  18. 31.3121(v)(2)-2 · (v)(2)-2 Effective dates and transition rules.
  19. 31.3123-1 · Deductions by an employer from remuneration of an employee.
  20. 31.3127-1 · Exemption for employers and their employees if both are…
  21. 31.3131-1 · Recapture of credits.
  22. 31.3132-1 · Recapture of credits.
  23. 31.3134-1 · Recapture of credits.
  24. 31.3201-1 · Measure of employee tax.
  25. 31.3201-2 · Rates and computation of employee tax.
  26. 31.3202-1 · Collection of, and liability for, employee tax.
  27. 31.3211-1 · Measure of employee representative tax.
  28. 31.3211-2 · Rates and computation of employee representative tax.
  29. 31.3211-3 · Employee representative supplemental tax.
  30. 31.3212-1 · Determination of compensation.
  31. 31.3221-1 · Measure of employer tax.
  32. 31.3221-2 · Rates and computation of employer tax.
  33. 31.3221-3 · Supplemental tax.
  34. 31.3221-4 · Exception from supplemental tax.
  35. 31.3221-5 · Recapture of credits under the Families First Coronavirus…
  36. 31.3231(a)-1 · (a)-1 Who are employers.
  37. 31.3231(b)-1 · (b)-1 Who are employees.
  38. 31.3231(c)-1 · (c)-1 Who are employee representatives.
  39. 31.3231(d)-1 · (d)-1 Service.
  40. 31.3231(e)-1 · (e)-1 Compensation.
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