,,ii #aac? ,,congress #a/ ,session ,s4 #ijj ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,may #h1 #bjac ,ms4 ,mikulski introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to regulate payroll tax deposit ag5ts1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,small ,bus9ess ,payroll ,protection ,act ( #bjac4 #b4 ,regulation ( payroll tax deposit ag5ts 7a7 ,9 g5]al ,*apt] #gg ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #gebi4 ,payroll tax deposit ag5ts 7a7 ,regi/ration 7#a7 ,9 g5]al ,! ,secret>y %all e/abli% a sy/em to require ! initial regi/ration & ! annual r5ewal ( ! regi/ration ( p]sons seek+ to act z payroll tax deposit ag5ts au?oriz$ to make ,f$]al employm5t tax deposits on behalf ( employ] taxpay]s4 ,su* sy/em %all also-- 7,a7 e/abli% a regi/ration & r5ewal fee = ea* payroll tax deposit ag5t 9 an am\nt n to exce$ #ajj1 7,b7 provide ! payroll tax deposit ag5t ! option ( ei!r submitt+ a bond z specifi$ 9 subsection 7b7 or submitt+ to a qu>t]ly c]tification z specifi$ 9 subsection 7c71 7,c7 require su* disclosures z are specifi$ 9 subsection 7d71 & 7,d7 provide p5alties = unregi/]$ p]sons act+ z payroll tax deposit ag5ts ) respect to ,f$]al tax deposits & = payroll tax deposit ag5ts :o fail to furni% su* disclosures z are specifi$ 9 subsection 7d71 9 an am\nt n to exce$ #aj1jjj = ea* #ij days ( noncompliance4 7#b7 ,def9ition ( payroll tax deposit ag5t ,= purposes ( ?is section1 ! t]m payroll tax deposit ag5t means any p]son :i* provides payroll process+ or tax fil+ & deposit s]vices to #a or m employ]s 7o!r ?an an employ] act+ on its own behalf7 if su* p]son has ! contractual au?ority to access su* employ]'s funds = ! purpose ( mak+ employm5t tax deposits4 ,su* t]m %all n include any p]son :i* only transf]s su* funds to ! appropriate gov]nm5t au?ority 7reg>dless if su* p]son has ! au?ority to det]m9e ! am\nt ( su* transf]7 & does n o!rwise h ! au?ority to access su* funds4 7#c7 ,employm5t tax ,= purposes ( ?is section1 ! t]m employm5t tax includes unemploym5t insurance contributions4 7b7 ,bond+ 7#a7 ,9 g5]al ,if a payroll tax deposit ag5t elects to submit a bond "u subsection 7a77#a77;,b71 ! am\nt ( su* bond %all be n less ?an #ej1jjj nor m ?an #ejj1jjj1 & %all be det]m9$ ) respect to ea* payroll tax deposit ag5t "u regulations prescrib$ by ! ,secret>y4 7#b7 ,surety ,any bond or security furni%$ pursuant to ?is section %all be 9 su* =m & ) su* surety or sureties z may be prescrib$ by regulations issu$ pursuant to section #gaja4 7#c7 ,evid5ce ( bond ,evid5ce ( su* bond %all be fil$ ) ! ,secret>y ) ! initial regi/ration & ea* annual r5ewal ( ! regi/ration ( p]sons lic5s$ to act z payroll tax deposit ag5ts4 7c7 ,qu>t]ly c]tifications ,if a payroll tax deposit ag5t elects to submit to a qu>t]ly c]tification "u subsection 7a77#a77;,b71 su* c]tification %all be p]=m$ by an indep5d5t ?ird p>ty :o is qualifi$ to p]=m su* c]tifications "u t>get$ crit]ia e/abli%$ by ! ,secret>y1 at ! direction ( ! ,secret>y1 & %all be bas$ on ! foll[+ n>r[ly t>get$ pr9ciples-- 7#a7 t ! escr[ acc\nt ( ! payroll tax deposit ag5t 9 :i* su* ag5t holds its employ]s' taxes is balanc$ to ! total ( qu>t]ly reconciliation /atem5ts 7i4e41 ,int]nal ,rev5ue ,s]vice ,=ms #ida & ,/ate equival5ts71 & any liabilities collect$ b n yet deposit$ ) ! respective gov]nm5t au?ority1 7#b7 t ! escr[ acc\nt funds ( ! payroll tax deposit ag5t are n comm+l$ ) su* ag5t's op]at+ funds1 7#c7 t !re is no evid5ce t ! payroll tax deposit ag5t us$ any ( ! funds 9 su* ag5t's escr[ acc\nt to pay su* ag5t's op]at+ co/s1 & 7#d7 t !re is adequate receipt evid5ce t su* ag5t paid ! requir$ employm5t taxes on behalf ( ! employ]s to ! prop] gov]nm5t employm5t tax au?ority4 ,a copy ( ea* complet$ qu>t]ly c]tification report %all be fil$ qu>t]ly ) ! ,secret>y & no payroll tax deposit ag5t %all obta9 its annual r5ewal ( ! regi/ration ( p]sons lic5s$ to act z payroll tax deposit ag5ts unless all su* copies h be5 fil$4 7d7 ,disclosure ,! ,secret>y %all require payroll tax deposit ag5ts to disclose to ea* cli5t prior to or at ! "t ( contract+ = payroll s]vices1 & to ea* exi/+ cli5t at lea/ qu>t]ly-- 7#a7 ! cli5t's cont9u+ liability = paym5t ( all ,f$]al & ,/ate employm5t taxes not)/&+ any contractual relation%ip ) a payroll tax deposit ag5t1 7#b7 ! me*anisms available to ! cli5t to v]ify ! am\nt & date ( paym5t ( all tax deposits made by ! payroll tax deposit ag5t on behalf ( su* cli5t1 includ+ ! ,int]net address & telephone numb] ( ea* ,f$]al & ,/ate employm5t tax au?ority relat$ to su* deposits1 & 7#c7 su* o!r in=mation t ! ,secret>y det]m9es is necess>y or appropriate to assi/ employ]s 9 ! selection & use ( payroll tax deposit ag5ts4 7e7 ,tax deposits & returns ,only p]sons regi/]$ "u ?is section may-- 7#a7 make ,f$]al tax deposits on behalf ( an employ]1 7#b7 sign & file ,f$]al employm5t tax returns on behalf ( a taxpay]1 & 7#c7 h access to confid5tial tax in=mation relat+ to su* employ]4 7f7 ,regulations ,! ,secret>y %all prescribe su* regulations z may be necess>y to c>ry out ! provisions ( ?is section4 4 7b7 ,qu>t]ly c]tification crit]ia ,9 e/abli%+ ! crit]ia = ! qu>t]ly c]tification requir$ "u section #gebi7;c7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by subsection 7a71 ! ,secret>y ( ! ,treasury %all ensure1 to ! ext5t practicable1 t ! burd5 ( ! c]tification process on ! payroll tax deposit ag5t is m9imiz$4 7c7 ,payroll tax deposit ag5ts subject to p5alty = failure ,to collect & pay ov] tax1 or attempt ,to evade or defeat tax 7#a7 ,9 g5]al ,section #ffgb7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ 1 includ+ any payroll tax deposit ag5t 7z def9$ 9 section #gebi7;a77#b77 :o has assum$ ! obligation to pay ov] any tax by contract ) a taxpay] 7b only to ! ext5t t su* payroll tax deposit ag5t has receiv$ irrevocable paym5t ( funds = ! correspond+ tax liabilities f su* taxpay]71 aft] impos$ by ?is title4 7#b7 ,p5alty n subject to dis*>ge 9 bankruptcy ,section #ffgb7;a7 is fur!r am5d$ by add+ at ! end ! foll[+ new s5t5ce3 8,not)/&+ any o!r provision ( law1 no p5alty impos$ "u ?is section may be dis*>g$ 9 bankruptcy404 7#c7 ,con=m+ am5dm5t ,section #ffgb7;b77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ ! ^w taxpay] & ins]t+ ! ^w p]son ea* "t x appe>s4 7#d7 ,con/ruction ,! am5dm5t made by p>agraph 7#a7 %all n be con/ru$ to create any inf]5ce ) respect to ! int]pretation ( section #ffgb ( ! ,int]nal ,rev5ue ,code ( #aihf z su* section 0 9 effect on ! day be=e ! date ( ! enactm5t ( ?is ,act4 7d7 ,cl]ical am5dm5t ,! table ( sections = su* *apt] #gg is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #gebi4 ,payroll tax deposit ag5ts4 4 7e7 ,effective dates 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 ! am5dm5ts made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act4 7#b7 ,p5alty ,! am5dm5ts made by subsection 7c7 %all apply to failures occurr+ aft] ! date ( ! enactm5t ( ?is ,act4 #c4 ,v]ification ( address *ange 7a7 ,9 g5]al ,*apt] #be ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new section3 #ceaa4 ,v]ification ( address *ange ,! ,secret>y %all issue a notice ( confirmation ( any address *ange relat+ to an employ] mak+ tax paym5ts "u ?is subtitle1 & su* notice %all be s5t to bo? ! employ]'s =m] & new address4 4 7b7 ,cl]ical am5dm5t ,! table ( sections = su* *apt] #be is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #ceaa4 ,v]ification ( address *ange4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all take effect on ! date t is #ahj days aft] ! date ( ! enactm5t ( ?is ,act4 #d4 ,(f]-9-,compromise reque/s by victims ( fraud ,section #gabb7;d77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$-- 7#a7 9 subp>agraph 7,b77ii71 by /rik+ & at ! end1 7#b7 9 subp>agraph 7,c71 by /rik+ ! p]iod at ! end & ins]t+ 1 &1 & 7#c7 by add+ at ! end ! foll[+ new subp>agraph3 7,d7 an (fic] ( employee ( ! ,int]nal ,rev5ue ,s]vice %all give special consid]ation to an (f]-9-compromise f a taxpay] :o has be5 ! victim ( fraud4 4