§3510 — Title 26 Internal Revenue Code | U.S. Code

Summary

Employers must file one yearly return for taxes on household workers. The return is on a calendar-year basis. It must be filed by the 15th day of the fourth month after the end of the employer’s tax year that starts in that calendar year. Employers do not have to make deposits or pay installments for these taxes. For penalty rules under section 6654, these household-worker taxes count as a chapter 2 tax for the employer’s tax year that begins in that calendar year, unless the employer gets no wage-withholding credit under section 31 for that year and would not owe an addition to tax under section 6654(e). The Treasury can adjust how section 6654(d)(2) applies. “Domestic service employment taxes” means (1) taxes under chapters 21 or 23 on pay for household work in the employer’s private home, and (2) amounts withheld under a section 3402(p) agreement. The Secretary can write rules to limit these rules for employers who owe other types of tax, issue other needed regulations, and may agree with States to collect State unemployment taxes on household-worker pay and send the money to the State’s Unemployment Trust Fund.

Title 26, §3510

Internal Revenue Code — Source: USLM XML via OLRC

(a)Except as otherwise provided in this section—

(1)returns with respect to domestic service employment taxes shall be made on a calendar year basis,

(2)any such return for any calendar year shall be filed on or before the 15th day of the fourth month following the close of the employer’s taxable year which begins in such calendar year, and

(3)no requirement to make deposits (or to pay installments under section 6157) shall apply with respect to such taxes.

(b)(1)Solely for purposes of section 6654, domestic service employment taxes imposed with respect to any calendar year shall be treated as a tax imposed by chapter 2 for the taxable year of the employer which begins in such calendar year.

(2)Paragraph (1) shall not apply to any employer for any calendar year if—

(A)no credit for wage withholding is allowed under section 31 to such employer for the taxable year of the employer which begins in such calendar year, and

(B)no addition to tax would (but for this section) be imposed under section 6654 for such taxable year by reason of section 6654(e).

(3)Under regulations prescribed by the Secretary, appropriate adjustments shall be made in the application of section 6654(d)(2) in respect of the amount treated as tax under paragraph (1).

(c)For purposes of this section, the term “domestic service employment taxes” means—

(1)any taxes imposed by chapter 21 or 23 on remuneration paid for domestic service in a private home of the employer, and

(2)any amount withheld from such remuneration pursuant to an agreement under section 3402(p).

(d)To the extent provided in regulations prescribed by the Secretary, this section shall not apply to any employer for any calendar year if such employer is liable for any tax under this subtitle with respect to remuneration for services other than domestic service in a private home of the employer.

(e)The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section. Such regulations may treat domestic service employment taxes as taxes imposed by chapter 1 for purposes of coordinating the assessment and collection of such employment taxes with the assessment and collection of domestic employers’ income taxes.

(f)(1)The Secretary is hereby authorized to enter into an agreement with any State to collect, as the agent of such State, such State’s unemployment taxes imposed on remuneration paid for domestic service in a private home of the employer. Any taxes to be collected by the Secretary pursuant to such an agreement shall be treated as domestic service employment taxes for purposes of this section.

(2)Any amount collected under an agreement referred to in paragraph (1) shall be transferred by the Secretary to the account of the State in the Unemployment Trust Fund.

(3)For purposes of subtitle F, any amount required to be collected under an agreement under paragraph (1) shall be treated as a tax imposed by chapter 23.

(4)For purposes of this subsection, the term “State” has the meaning given such term by section 3306(j)(1).

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 3510, added Pub. L. 98–21, title I, § 123(b)(1), Apr. 20, 1983, 97 Stat. 88, provided a credit for increased social security employee taxes and railroad retirement tier 1 employee taxes imposed during 1984, prior to repeal by Pub. L. 101–508, title XI, § 11801(a)(42), Nov. 5, 1990, 104 Stat. 1388–521.

Amendments

2014—Subsec. (b)(4). Pub. L. 113–295 struck out par. (4). Text read as follows: “In the case of any taxable year beginning before January 1, 1998, no addition to tax shall be made under section 6654 with respect to any underpayment to the extent such underpayment was created or increased by this section.”

Statutory Notes and Related Subsidiaries

Effective Date

of 2014 AmendmentAmendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a

Savings Provision

, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.

Effective Date

Pub. L. 103–387, § 2(b)(3), Oct. 22, 1994, 108 Stat. 4074, provided that: “The

Amendments

made by this subsection [enacting this section] shall apply to remuneration paid in calendar years beginning after December 31, 1994.” Expanded Information to Employers Pub. L. 103–387, § 2(b)(4), Oct. 22, 1994, 108 Stat. 4074, provided that: “The Secretary of the Treasury or the Secretary’s delegate shall prepare and make available information on the Federal tax obligations of employers with respect to employees performing domestic service in a private home of the employer. Such information shall also include a statement that such employers may have obligations with respect to such employees under State laws relating to unemployment insurance and workers compensation.”

§3510 Coordination of Collection of Domestic Service Employment Taxes with Collection of Income Taxes

Summary

Title 26, §3510

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Savings Provision

Effective Date

Amendments

Citations & Metadata