I 
119TH CONGRESS 
1ST SESSION H. R. 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. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 6, 2025 
Mr. THOMPSON of California (for himself and Ms. VAN DUYNE) introduced 
the following bill; which was referred to the Committee on Ways and Means 
A BILL 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ATTRIBUTION OF ERRORS IN THE CASE OF 
THIRD PARTY PAYORS OF PAYROLL TAXES. 
(a) IN GENERAL.—The Internal Revenue Code of 
1986 is amended by adding a new section 3513 to read 
as follows: 
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‘‘SEC. 3513. THIRD PARTY PAYORS OF PAYROLL TAXES. 
‘‘(a) CERTIFICATION.—A third party payor may, in 
the course of carrying out any requirement imposed under 
this subtitle, rely on a certification by the applicable em-
ployer unless such third party payor has constructive 
knowledge of an error in such certification. For purposes 
of this section, the term ‘certification’ includes a represen-
tation, attestation, or similar document. 
‘‘(b) LIABILITY FOR ERROR.—For the purpose of im-
posing any liability with respect to an act carried out by 
a third party payor— 
‘‘(1) in the case of a third party payor with 
constructive knowledge of an error— 
‘‘(A) the employer shall be responsible for 
such liability; and 
‘‘(B) the third party payor shall be respon-
sible for such liability, but only with respect to 
so much of the liability as is attributable to a 
portion of the certification with respect to which 
the third party payor had constructive knowl-
edge of the error; or 
‘‘(2) in the case of a certification with respect 
to which the third party payor did not have con-
structive knowledge of an error, the employer shall 
have sole responsibility for any liability arising from 
such error. 
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‘‘(c) LIABILITY.—For purposes of subsection (b), the 
term ‘liability’ means any amount due under this subtitle, 
and any interest or penalties due with respect to such 
amount under this title. 
‘‘(d) EFFECT OF ERROR ON OTHER EMPLOYERS.— 
The Secretary may not delay the processing of any payroll 
tax credit claimed by a third party payor on behalf of an 
employer or initiate an audit or examination of such em-
ployer solely because such payroll tax credit was claimed 
by a third party payor that filed an erroneous return of 
tax in reliance on a certification of another employer. 
‘‘(e) RECORD RETENTION.—The Secretary may re-
quire a third party payor to provide any information in 
possession of such third party payor to the Secretary in 
relation to an employer that the Secretary could require 
such employer to provide to the Secretary. 
‘‘(f) CONSTRUCTIVE KNOWLEDGE.—For purposes of 
this section, the term ‘constructive knowledge’ means, with 
respect to a third party payor, that such third party payor 
knew or should have known of an error in a certification 
described in subsection (a). However, with respect to any 
payroll tax credit claimed by a third party payor on behalf 
of an employer, such third party payor will be deemed not 
to have constructive knowledge of an error in a certifi-
cation with respect to such payroll tax credit if— 
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‘‘(1) such certification provides that the em-
ployer is entitled to the payroll tax credit; 
‘‘(2) the third party payor accurately reported 
the payroll tax credit in accordance with information 
certified by the employer; and 
‘‘(3) prior to claiming the payroll tax credit, the 
third party payor verified the amount of aggregate 
wages paid by the third party payor used by the em-
ployer in establishing the amount of the payroll tax 
credit. 
‘‘(g) THIRD PARTY PAYOR.—For purposes of this 
section, the term ‘third party payor’ includes a fiduciary, 
agent, or other person described in section 3504, a profes-
sional employer organization, or a certified professional 
employer organization.’’. 
(b) EFFECTIVE DATE.—This section shall apply to 
audits, examinations, and assessments initiated or made 
after the date of enactment. 
Æ 
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