§ 3510. — Coordination of collection of domestic service employment taxes with collection of income taxes.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 26USC3510]
TITLE 26--INTERNAL REVENUE CODE
Subtitle C--Employment Taxes
CHAPTER 25--GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES
Sec. 3510. 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).
(4) Transitional rule
In the case of any taxable year beginning before January 1,
1998, no addition to tax shall be made under section 6654 with
respect to any underpayment to the extent such underpayment was
created or increased by this section.
(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).
(Added Pub. L. 103-387, Sec. 2(b)(1), Oct. 22, 1994, 108 Stat. 4073.)
Prior Provisions
A prior section 3510, added Pub. L. 98-21, title I, Sec. 123(b)(1),
Apr. 20, 1983, 97 Stat. 88, provided a credit for increased social
security employee taxes and railroad retirement tier 1 employee taxes
imposed during 1984, prior to repeal by Pub. L. 101-508, title XI,
Sec. 11801(a)(42), Nov. 5, 1990, 104 Stat. 1388-521.
Effective Date
Section 2(b)(3) of Pub. L. 103-387 provided that: ``The amendments
made by this subsection [enacting this section] shall apply to
remuneration paid in calendar years beginning after December 31, 1994.''
Expanded Information to Employers
Section 2(b)(4) of Pub. L. 103-387 provided that: ``The Secretary of
the Treasury or the Secretary's delegate shall prepare and make
available information on the Federal tax obligations of employers with
respect to employees performing domestic service in a private home of
the employer. Such information shall also include a statement that such
employers may have obligations with respect to such employees under
State laws relating to unemployment insurance and workers
compensation.''
Section Referred to in Other Sections
This section is referred to in title 42 section 1320b-7.
