Establishes procedures for attributing errors in payroll tax certifications by third party payors.
The bill amends the Internal Revenue Code to clarify how errors in payroll tax certifications by third party payors are attributed. If a third party payor has constructive knowledge of an error, the employer is responsible for the liability. If the third party payor did not have constructive knowledge, they are responsible for the portion of the liability attributable to the error. The bill also prevents the Secretary from delaying or auditing employers based on errors by third party payors.
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