Internal Revenue Code (Title 26 U.S.C.)
26 U.S.C. § 3505
Liability of third parties paying or providing for wages
# (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: view the official text
Nearby sections (25 sections)
- 3323 · [§3323. Omitted]
- 3401 · Definitions
- 3402 · Income tax collected at source
- 3403 · Liability for tax
- 3404 · Return and payment by governmental employer
- 3405 · Special rules for pensions, annuities, and certain other…
- 3406 · Backup withholding
- 3451 · [§§3451 to 3456. Repealed. Pub. L. 98–67, title I, §102(a), Aug.…
- 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 · [§3507. Repealed. Pub. L. 111–226, title II, §219(a)(1), Aug.…
- 3508 · Treatment of real estate agents and direct sellers
- 3509 · Determination of employer's liability for certain employment…
- 3510 · Coordination of collection of domestic service employment taxes…
- 3511 · Certified professional employer organizations
- 3512 · Treatment of certain persons as employers with respect to motion…
- 4001 · [§§4001 to 4003. Repealed. Pub. L. 113–295, div. A, title II,…
- 4041 · Imposition of tax
- 4042 · Tax on fuel used in commercial transportation on inland waterways
- 4043 · Surtax on fuel used in aircraft part of a fractional ownership…
- 4051 · Imposition of tax on heavy trucks and trailers sold at retail