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).

# (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).