IRS Issues Guidance on Agent Designation to Report Employment Taxes

For over 50 years, Bloomberg BNA’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

The Internal Revenue Service issued final rules and an accompanying revenue procedure on authorizing agents under tax code Section 3504 to report, withhold, file and pay all taxes on behalf of employers who are health care recipients.
The final regulations (T.D. 9649), issued Dec. 11, affect employers and their designated agents who pay wages for home care services, which are subject to taxes under the Federal Unemployment Tax Act.
The final rules follow on proposed regulations (REG-137036-08) issued in 2010 (07 DTR G-1, 1/13/10).
Revenue Procedure 2013-39 , also issued Dec. 11, describes updated procedures to request the IRS to authorize a person to act as an agent under Section 3504, and clarifies the rules for revoking that authorization.
For full access to this article, please register for a free trial to Daily Tax Report®.