Third parties who directly pay
another's payrolls can be held liable for the full amount of taxes
required to be withheld but not paid to the Government (subject to
the 25% limitation). IRC 3505 deals with persons who supply funds
to an employer for the purpose of paying wages. The notification
that a third party is paying or supplying wages will usually be
made by filing of the Form 4219, Statement of Liability of Lender,
Surety, or Other Person for Withholding Taxes. The Form 4219,
Statement of Liability of Lender, Surety, or Other Person for
Withholding Taxes, is to be submitted and associated with each
employer and for every calendar quarter for which a liability under
section 3505 is incurred.
US Code:
26
USC 3505 Name of Law: Liability of third parties paying or
providing for wages
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.