PUBLIC LAW 97-248—SEPT. 3, 1982
96 STAT. 553
(3) CERTAIN REGULATIONS, ETC., PERMITTED.—Nothing in sec-
26 USC 3508
tion 530 of the Revenue Act of 1978 shall be construed to prohibit the implementation of the amendments made by this section.
note. 26 USC 3401
(d) CLERICAL AMENDMENT. — The table of sections for chapter 25 of
such Code is amended by adding a t the end thereof the following new item: "Sec. 8.508. Treatment of real estate agents and direct sellers." (e) EFFECTIVE DATES.—
26 USC 3508
(1) IN GENERAL.—Except as provided in paragraph (2), the ^°^^amendments made by this section shall apply to services performed after December 31, 1982. (2) SUBSECTION ( O. — The amendments made by subsection (c) shall t a k e effect on July 1, 1982. SEC. 270. SIMPLIFIED PROCEDURE EMPLOYMENT TAXES.
FOR DETERMINING
AMOINT OF
(a) IN GENERAL.—Chapter 25 (relating to general provisions relating to employment taxes), as amended by section 271, is amended by adding at the end thereof the following new section: "SEC. 3.509. DETERMINATION OF EMPLOYERS LIABILITY FOR CERTAIN EMPLOYMENT TAXES.
"(a) IN GENERAL.—If any employer fails to deduct and withhold any tax under chapter 24 or subchapter A of chapter 21 with respect to any employee by reason of t r e a t i n g such employee as not being a n employee for purposes of such chapter or subchapter, the a m o u n t of the employer's liability for— "(1) WITHHOLDING TAXES.—Tax under chapter 24 for
26 USC 3509.
26 USC 3401 et ^^9. 3101.
such
year with respect to such employee shall be determined as if the a m o u n t required to be deducted and withheld were equal to 1.5 percent of the wages (as defined in section 3401) paid to such employee. "(2) EMPLOYEE SOCIAL SECURITY TAX.—Taxes under subchapter
A of chapter 21 with respect to such employee shall be determined as if the taxes imposed under such subchapter were 20 percent of the a m o u n t imposed under such subchapter without regard to this subparagraph. "(b) EMPLOYER'S LIABILITY INCREASED W H E R E EMPLOYER GARDS REPORTING REQUIREMENTS.—
DISRE-
"(1) IN GENERAL.—In the case of an employer who fails to meet the applicable requirements of section 6041(a), 6041A, or 6051 with respect to any employee, unless such failure is due to reasonable cause and not willful neglect, subsection (a) shall be applied with respect to such employee— "(A) by substituting '3 percent' for '1.5 percent' in paragraph (1); and "(B) by substituting '40 percent' for '20 percent' in paragraph (2). "(2) APPLICABLE REQUIREMENTS.—For purposes of paragraph
(1), the term 'applicable requirements ' means the requirements described in paragraph (1) which would be applicable consistent with the employer's t r e a t m e n t of the employee as not being a n employee for purposes of chapter 24 or subchapter A of chapter 21. "(c) SECTION N O T TO APPLY
IN CASES OF INTENTIONAL
DISRE-
GARD.—This section shall not apply to the determination of the
Pos^, p. 601.
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