# 119-hr-3223: To amend the Internal Revenue Code of 1986 to establish procedures relating to the attribution of errors in the case of third party payors of payroll taxes, and for other purposes.

119-hr-3223, To amend the Internal Revenue Code of 1986 to establish procedures relating to the attribution of errors in the case of third party payors of payroll taxes, and for other purposes., is a 119th Congress bill sponsored by Rep. Thompson, Mike [D-CA-4] (D-CA); status introduced; PRIA reads it as touching household money (as of 2026-09-21).

- Canonical: https://policyrisk.com/legislation/119-hr-3223
- As of: 2026-09-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-3223
- Congress: 119
- Title: To amend the Internal Revenue Code of 1986 to establish procedures relating to the attribution of errors in the case of third party payors of payroll taxes, and for other purposes.
- Status: introduced
- Introduced: 2025-05-06
- Sponsor: Rep. Thompson, Mike [D-CA-4] (D-CA)
- Cosponsors: 25
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-09-21

## Summary

**Limits third-party payroll processor liability when they reasonably rely on employer certifications.** This bill would create a new tax-code rule that decides who is on the hook for payroll tax mistakes and when a third-party payor must share blame. It defines key terms, sets a "constructive knowledge" standard, creates safe harbors for payors, requires records, and limits certain enforcement actions by the Secretary of the Treasury. - Employers: If a third-party payor relied on an employer's certification and did not have constructive knowledge of an error, the employer would remain solely responsible for any payroll tax amounts, interest, and penalties tied to that error. - Third-party payors (including fiduciaries, agents, professional employer organizations, and certified PEOs): Payors would be able to rely on employer certifications and qualify for a safe harbor if they accurately reported credits per the employer's information and verified aggregate wages before claiming credits. If a payor had constructive knowledge of an error, it would only be liable for the portion connected to that knowledge. - Tax administration: The Secretary could still require payors to provide employer-related information. The Secretary would be prohibited from delaying payroll tax credits or opening audits solely because a payor claimed a credit based on another employer's certification.

## Cosponsors (25)

- Rep. Van Duyne, Beth [R-TX-24] (R-TX), 2025-05-06T00:00:00.000Z
- Rep. Panetta, Jimmy [D-CA-19] (D-CA), 2025-06-04T00:00:00.000Z
- Rep. Buchanan, Vern [R-FL-16] (R-FL), 2025-06-05T00:00:00.000Z
- Rep. Sewell, Terri A. [D-AL-7] (D-AL), 2025-06-26T00:00:00.000Z
- Rep. Davis, Danny K. [D-IL-7] (D-IL), 2025-09-08T00:00:00.000Z
- Rep. Yakym, Rudy [R-IN-2] (R-IN), 2025-09-08T00:00:00.000Z
- Rep. Hern, Kevin [R-OK-1] (R-OK), 2025-09-10T00:00:00.000Z
- Rep. Miller, Max L. [R-OH-7] (R-OH), 2025-09-10T00:00:00.000Z
- Rep. Sánchez, Linda T. [D-CA-38] (D-CA), 2025-10-03T00:00:00.000Z
- Rep. Moran, Nathaniel [R-TX-1] (R-TX), 2025-10-03T00:00:00.000Z
- Rep. DelBene, Suzan K. [D-WA-1] (D-WA), 2025-10-03T00:00:00.000Z
- Rep. Schneider, Bradley Scott [D-IL-10] (D-IL), 2025-10-03T00:00:00.000Z
- Rep. Nunn, Zachary [R-IA-3] (R-IA), 2025-10-03T00:00:00.000Z
- Rep. Tenney, Claudia [R-NY-24] (R-NY), 2025-10-31T00:00:00.000Z
- Rep. Steube, W. Gregory [R-FL-17] (R-FL), 2025-11-17T00:00:00.000Z
- Rep. Suozzi, Thomas R. [D-NY-3] (D-NY), 2025-11-19T00:00:00.000Z
- Rep. Boyle, Brendan F. [D-PA-2] (D-PA), 2025-12-18T00:00:00.000Z
- Rep. Horsford, Steven [D-NV-4] (D-NV), 2025-12-18T00:00:00.000Z
- Rep. Houchin, Erin [R-IN-9] (R-IN), 2026-03-27T00:00:00.000Z
- Rep. Moore, Blake D. [R-UT-1] (R-UT), 2026-05-07T00:00:00.000Z
- Rep. Bean, Aaron [R-FL-4] (R-FL), 2026-06-11T00:00:00.000Z
- Rep. Perez, Marie Gluesenkamp [D-WA-3] (D-WA), 2026-07-09T00:00:00.000Z
- Rep. Estes, Ron [R-KS-4] (R-KS), 2026-09-02T00:00:00.000Z
- Rep. Kelly, Mike [R-PA-16] (R-PA), 2026-09-02T00:00:00.000Z
- Rep. Carey, Mike [R-OH-15] (R-OH), 2026-09-02T00:00:00.000Z

## Provisions PRIA read

- Liability rules for payroll tax services: mixed, high. If enacted, new rules would set who pays when a payroll tax filing is wrong. Payroll providers (like PEOs and agents) could rely on an employer's certification unless they should have known it was wrong. If the provider lacked constructive knowledge, the employer would owe the full bill; if it had…
- Audit limits and record duties for payors: mixed, medium. If enacted, the IRS could not delay a payroll tax credit or start an audit of an employer solely because a payroll provider filed an erroneous return while relying on another employer’s certification. The IRS could still require payroll providers to give employer records it could also require from…

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- 119-hr-1502: North Platte Canteen Congressional Gold Medal Act
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- 119-hr-33: To amend the Internal Revenue Code of 1986 to provide special rules for the taxation of certain residents of Taiwan with income from sources within the United…

## Sources
- [119-hr-3223 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/3223)

## Related
- [119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage A…](https://policyrisk.com/legislation/119-hr-842)
- [119-hr-3514: Improving Seniors’ Timely Access to Care Act of 2025](https://policyrisk.com/legislation/119-hr-3514)
- [119-hr-1502: North Platte Canteen Congressional Gold Medal Act](https://policyrisk.com/legislation/119-hr-1502)
- [119-hr-1262: Mikaela Naylon Give Kids a Chance Act](https://policyrisk.com/legislation/119-hr-1262)
- [119-hr-452: Miracle on Ice Congressional Gold Medal Act](https://policyrisk.com/legislation/119-hr-452)
- [119-hr-33: To amend the Internal Revenue Code of 1986 to provide special rules for the tax…](https://policyrisk.com/legislation/119-hr-33)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-3223 (as of 2026-09-21).