(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply with respect to amounts paid or distrib-
uted out of health savings accounts after December 31, 2010. 
SEC. 18. CERTAIN DOMESTICALLY CONTROLLED FOREIGN 
PERSONS 
PERFORMING 
SERVICES 
UNDER 
CONTRACT WITH UNITED STATES GOVERN-
MENT TREATED AS AMERICAN EMPLOYERS. 
(a) FICA TAXES.—Section 3121 (relating to defini-
tions) is amended by adding at the end the following new 
subsection: 
‘‘(z) TREATMENT OF CERTAIN FOREIGN PERSONS AS 
AMERICAN EMPLOYERS.— 
‘‘(1) IN GENERAL.—If any employee of a foreign 
person is performing services in connection with a 
contract between the United States Government (or 
any instrumentality thereof) and any member of any 
domestically controlled group of entities which in-
cludes such foreign person, such foreign person shall 
be treated for purposes of this chapter as an Amer-
ican employer with respect to such services performed 
by such employee. 
‘‘(2) DOMESTICALLY CONTROLLED GROUP OF EN-
TITIES.—For purposes of this subsection— 
‘‘(A) IN GENERAL.—The term ‘domestically 
controlled group of entities’ means a controlled 
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group of entities the common parent of which is 
a domestic corporation. 
‘‘(B) CONTROLLED GROUP OF ENTITIES.— 
The term ‘controlled group of entities’ means a 
controlled group of corporations as defined in 
section 1563(a)(1), except that— 
‘‘(i) ‘more than 50 percent’ shall be 
substituted for ‘at least 80 percent’ each 
place it appears therein, and 
‘‘(ii) the determination shall be made 
without regard to subsections (a)(4) and 
(b)(2) of section 1563. 
A partnership or any other entity (other than a 
corporation) shall be treated as a member of a 
controlled group of entities if such entity is con-
trolled (within the meaning of section 954(d)(3)) 
by members of such group (including any entity 
treated as a member of such group by reason of 
this sentence). 
‘‘(3) LIABILITY
OF
COMMON
PARENT.—In the 
case of a foreign person who is a member of any do-
mestically controlled group of entities, the common 
parent of such group shall be jointly and severally 
liable for any tax under this chapter for which such 
foreign person is liable by reason of this subsection, 
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and for any penalty imposed on such person by this 
title with respect to any failure to pay such tax or 
to file any return or statement with respect to such 
tax or wages subject to such tax. No deduction shall 
be allowed under this title for any liability imposed 
by the preceding sentence. 
‘‘(4) COORDINATION.—Paragraph (1) shall not 
apply to any services which are covered by an agree-
ment under subsection (l). 
‘‘(5) CROSS REFERENCE.—For relief from taxes 
in cases covered by certain international agreements, 
see sections 3101(c) and 3111(c).’’. 
(b) SOCIAL SECURITY BENEFITS.—Subsection (e) of 
section 210 of the Social Security Act (42 U.S.C. 410(e)) 
is amended— 
(1) by striking ‘‘(e) The term’’ and inserting 
‘‘(e)(1) The term’’, 
(2) by redesignating clauses (1) through (6) as 
clauses (A) through (F), respectively, and 
(3) by adding at the end the following new para-
graph: 
‘‘(2)(A) If any employee of a foreign person is per-
forming services in connection with a contract between the 
United States Government (or any instrumentality thereof) 
and any member of any domestically controlled group of 
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entities which includes such foreign person, such foreign 
person shall be treated as an American employer with re-
spect to such services performed by such employee. 
‘‘(B) For purposes of this paragraph— 
‘‘(i) The term ‘domestically controlled group of 
entities’ means a controlled group of entities the com-
mon parent of which is a domestic corporation. 
‘‘(ii) The term ‘controlled group of entities’ 
means a controlled group of corporations as defined 
in section 1563(a)(1) of the Internal Revenue Code of 
1986, except that— 
‘‘(I) ‘more than 50 percent’ shall be sub-
stituted for ‘at least 80 percent’ each place it ap-
pears therein, and 
‘‘(II) the determination shall be made with-
out regard to subsections (a)(4) and (b)(2) of sec-
tion 1563 of such Code. 
A partnership or any other entity (other than a cor-
poration) shall be treated as a member of a controlled 
group of entities if such entity is controlled (within 
the meaning of section 954(d)(3) of such Code) by 
members of such group (including any entity treated 
as a member of such group by reason of this sen-
tence).’’. 
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(c) EFFECTIVE DATE.—The amendment made by this 
section shall apply to services performed after the date of 
the enactment of this Act. 
SEC. 19. TIME FOR PAYMENT OF CORPORATE ESTIMATED 
TAX. 
The percentage under subparagraph (C) of section 
401(1) of the Tax Increase Prevention and Reconciliation 
Act of 2005 in effect on the date of the enactment of this 
Act is increased by 0.25 percentage points. 
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