26 U.S.C. § 3505 — Liability of third parties paying or pro-

Page 2860 TITLE 26—INTERNAL REVENUE CODE § 3503 Section 102(a), (b) of Pub. L. 98–67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (§§ 301–308) of title III of Pub. L. 97–248 as of the close of June 30, 1983, and pro- vided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been en- acted. § 3503. Erroneous payments Any tax paid under chapter 21 or 22 by a tax- payer with respect to any period with respect to which he is not liable to tax under such chapter shall be credited against the tax, if any, imposed by such other chapter upon the taxpayer, and the balance, if any, shall be refunded. (Aug. 16, 1954, ch. 736, 68A Stat. 471.) § 3504. Acts to be performed by agents In case a fiduciary, agent, or other person has the control, receipt, custody, or disposal of, or pays the wages of an employee or group of em- ployees, employed by one or more employers, the Secretary, under regulations prescribed by him, is authorized to designate such fiduciary, agent, or other person to perform such acts as are required of employers under this title and as the Secretary may specify. Except as may be otherwise prescribed by the Secretary, all provi- sions of law (including penalties) applicable in respect of an employer shall be applicable to a fiduciary, agent, or other person so designated but, except as so provided, the employer for whom such fiduciary, agent, or other person acts shall remain subject to the provisions of law (in- cluding penalties) applicable in respect of em- ployers. (Aug. 16, 1954, ch. 736, 68A Stat. 471; Pub. L. 85–866, title I, § 71, Sept. 2, 1958, 72 Stat. 1660; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) Editorial Notes AMENDMENTS 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ in three places. 1958—Pub. L. 85–866 substituted ‘‘title’’ for ‘‘subtitle’’ in first sentence. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1958 AMENDMENT Pub. L. 85–866, title I, § 71, Sept. 2, 1958, 72 Stat. 1660, provided that the amendment made by that section is effective with respect to remuneration paid after Dec. 31, 1954. § 3505. Liability of third parties paying or pro- viding for wages (a) Direct payment by third parties For purposes of sections 3102, 3202, 3402, and 3403, if a lender, surety, or other person, who is not an employer under such sections with re- spect to an employee or group of employees, pays wages directly to such an employee or group of employees, employed by one or more employers, or to an agent on behalf of such em- ployee or employees, such lender, surety, or other person shall be liable in his own person and estate to the United States in a sum equal to the taxes (together with interest) required to be deducted and withheld from such wages by such employer. (b) Personal liability where funds are supplied If a lender, surety, or other person supplies funds to or for the account of an employer for the specific purpose of paying wages of the em- ployees of such employer, with actual notice or knowledge (within the meaning of section 6323(i)(1)) that such employer does not intend to or will not be able to make timely payment or deposit of the amounts of tax required by this subtitle to be deducted and withheld by such employer from such wages, such lender, surety, or other person shall be liable in his own person and estate to the United States in a sum equal to the taxes (together with interest) which are not paid over to the United States by such em- ployer with respect to such wages. However, the liability of such lender, surety, or other person shall be limited to an amount equal to 25 per- cent of the amount so supplied to or for the ac- count of such employer for such purpose. (c) Effect of payment Any amounts paid to the United States pursu- ant to this section shall be credited against the liability of the employer. (Added Pub. L. 89–719, title I, § 105(a), Nov. 2, 1966, 80 Stat. 1138.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable only with respect to wages paid on or after Jan. 1, 1967, see section 114(c)(1) of Pub. L. 89–719, set out as an Effective Date of 1966 Amendment note under section 6323 of this title. § 3506. Individuals providing companion sitting placement services (a) In general For purposes of this subtitle, a person engaged in the trade or business of putting sitters in touch with individuals who wish to employ them shall not be treated as the employer of such sit- ters (and such sitters shall not be treated as em- ployees of such person) if such person does not pay or receive the salary or wages of the sitters and is compensated by the sitters or the persons who employ them on a fee basis. (b) Definition For purposes of this section, the term ‘‘sit- ters’’ means individuals who furnish personal at- tendance, companionship, or household care services to children or to individuals who are el- derly or disabled. (c) Regulations The Secretary shall prescribe such regulations as may be necessary to carry out the purpose of this section. (Added Pub. L. 95–171, § 10(a), Nov. 12, 1977, 91 Stat. 1356.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 95–171, § 10(c), Nov. 12, 1977, 91 Stat. 1356, pro- vided that: ‘‘The amendments made by this section [en-