,,ii #aacth ,,congress #ast ,session ,s4 #ijj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #h1 #bjac ,ms4 ,mikulski introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to regulate payroll tax deposit agents1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,small ,business ,payroll ,protection ,act of #bjac4 #b4 ,regulation of payroll tax deposit agents 7a7 ,in general ,chapter #gg of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #gebi4 ,payroll tax deposit agents 7a7 ,registration 7#a7 ,in general ,the ,secretary shall establish a system to require the initial registration and the annual renewal of the registration of persons seeking to act as payroll tax deposit agents authorized to make ,federal employment tax deposits on behalf of employer taxpayers4 ,such system shall also-- 7,a7 establish a registration and renewal fee for each payroll tax deposit agent in an amount not to exceed #ajj1 7,b7 provide the payroll tax deposit agent the option of either submitting a bond as specified in subsection 7b7 or submitting to a quarterly certification as specified in subsection 7c71 7,c7 require such disclosures as are specified in subsection 7d71 and 7,d7 provide penalties for unregistered persons acting as payroll tax deposit agents with respect to ,federal tax deposits and for payroll tax deposit agents who fail to furnish such disclosures as are specified in subsection 7d71 in an amount not to exceed #aj1jjj for each #ij days of noncompliance4 7#b7 ,definition of payroll tax deposit agent ,for purposes of this section1 the term payroll tax deposit agent means any person which provides payroll processing or tax filing and deposit services to #a or more employers 7other than an employer acting on its own behalf7 if such person has the contractual authority to access such employer's funds for the purpose of making employment tax deposits4 ,such term shall not include any person which only transfers such funds to the appropriate government authority 7regardless if such person has the authority to determine the amount of such transfer7 and does not otherwise have the authority to access such funds4 7#c7 ,employment tax ,for purposes of this section1 the term employment tax includes unemployment insurance contributions4 7b7 ,bonding 7#a7 ,in general ,if a payroll tax deposit agent elects to submit a bond under subsection 7a77#a77;,b71 the amount of such bond shall be not less than #ej1jjj nor more than #ejj1jjj1 and shall be determined with respect to each payroll tax deposit agent under regulations prescribed by the ,secretary4 7#b7 ,surety ,any bond or security furnished pursuant to this section shall be in such form and with such surety or sureties as may be prescribed by regulations issued pursuant to section #gaja4 7#c7 ,evidence of bond ,evidence of such bond shall be filed with the ,secretary with the initial registration and each annual renewal of the registration of persons licensed to act as payroll tax deposit agents4 7c7 ,quarterly certifications ,if a payroll tax deposit agent elects to submit to a quarterly certification under subsection 7a77#a77;,b71 such certification shall be performed by an independent third party who is qualified to perform such certifications under targeted criteria established by the ,secretary1 at the direction of the ,secretary1 and shall be based on the following narrowly targeted principles-- 7#a7 that the escrow account of the payroll tax deposit agent in which such agent holds its employers' taxes is balanced to the total of quarterly reconciliation statements 7i4e41 ,internal ,revenue ,service ,forms #ida and ,state equivalents71 and any liabilities collected but not yet deposited with the respective government authority1 7#b7 that the escrow account funds of the payroll tax deposit agent are not commingled with such agent's operating funds1 7#c7 that there is no evidence that the payroll tax deposit agent used any of the funds in such agent's escrow account to pay such agent's operating costs1 and 7#d7 that there is adequate receipt evidence that such agent paid the required employment taxes on behalf of the employers to the proper government employment tax authority4 ,a copy of each completed quarterly certification report shall be filed quarterly with the ,secretary and no payroll tax deposit agent shall obtain its annual renewal of the registration of persons licensed to act as payroll tax deposit agents unless all such copies have been filed4 7d7 ,disclosure ,the ,secretary shall require payroll tax deposit agents to disclose to each client prior to or at the time of contracting for payroll services1 and to each existing client at least quarterly-- 7#a7 the client's continuing liability for payment of all ,federal and ,state employment taxes notwithstanding any contractual relationship with a payroll tax deposit agent1 7#b7 the mechanisms available to the client to verify the amount and date of payment of all tax deposits made by the payroll tax deposit agent on behalf of such client1 including the ,internet address and telephone number of each ,federal and ,state employment tax authority related to such deposits1 and 7#c7 such other information that the ,secretary determines is necessary or appropriate to assist employers in the selection and use of payroll tax deposit agents4 7e7 ,tax deposits and returns ,only persons registered under this section may-- 7#a7 make ,federal tax deposits on behalf of an employer1 7#b7 sign and file ,federal employment tax returns on behalf of a taxpayer1 and 7#c7 have access to confidential tax information relating to such employer4 7f7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary to carry out the provisions of this section4 4 7b7 ,quarterly certification criteria ,in establishing the criteria for the quarterly certification required under section #gebi7;c7 of the ,internal ,revenue ,code of #aihf1 as added by subsection 7a71 the ,secretary of the ,treasury shall ensure1 to the extent practicable1 that the burden of the certification process on the payroll tax deposit agent is minimized4 7c7 ,payroll tax deposit agents subject to penalty for failure ,to collect and pay over tax1 or attempt ,to evade or defeat tax 7#a7 ,in general ,section #ffgb7;a7 of the ,internal ,revenue ,code of #aihf is amended by inserting 1 including any payroll tax deposit agent 7as defined in section #gebi7;a77#b77 who has assumed the obligation to pay over any tax by contract with a taxpayer 7but only to the extent that such payroll tax deposit agent has received irrevocable payment of funds for the corresponding tax liabilities from such taxpayer71 after imposed by this title4 7#b7 ,penalty not subject to discharge in bankruptcy ,section #ffgb7;a7 is further amended by adding at the end the following new sentence3 8,notwithstanding any other provision of law1 no penalty imposed under this section may be discharged in bankruptcy404 7#c7 ,conforming amendment ,section #ffgb7;b77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking the word taxpayer and inserting the word person each time it appears4 7#d7 ,construction ,the amendment made by paragraph 7#a7 shall not be construed to create any inference with respect to the interpretation of section #ffgb of the ,internal ,revenue ,code of #aihf as such section was in effect on the day before the date of the enactment of this ,act4 7d7 ,clerical amendment ,the table of sections for such chapter #gg is amended by adding at the end the following new item3 ,sec4 #gebi4 ,payroll tax deposit agents4 4 7e7 ,effective dates 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendments made by this section shall take effect on the date of the enactment of this ,act4 7#b7 ,penalty ,the amendments made by subsection 7c7 shall apply to failures occurring after the date of the enactment of this ,act4 #c4 ,verification of address change 7a7 ,in general ,chapter #be of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ceaa4 ,verification of address change ,the ,secretary shall issue a notice of confirmation of any address change relating to an employer making tax payments under this subtitle1 and such notice shall be sent to both the employer's former and new address4 4 7b7 ,clerical amendment ,the table of sections for such chapter #be is amended by adding at the end the following new item3 ,sec4 #ceaa4 ,verification of address change4 4 7c7 ,effective date ,the amendments made by this section shall take effect on the date that is #ahj days after the date of the enactment of this ,act4 #d4 ,offer-in-,compromise requests by victims of fraud ,section #gabb7;d77#c7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in subparagraph 7,b77ii71 by striking and at the end1 7#b7 in subparagraph 7,c71 by striking the period at the end and inserting 1 and1 and 7#c7 by adding at the end the following new subparagraph3 7,d7 an officer of employee of the ,internal ,revenue ,service shall give special consideration to an offer-in-compromise from a taxpayer who has been the victim of fraud4 4