In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. REGULATION OF PAYROLL TAX DEPOSIT AGENTS.

(a) In General.--Chapter 77 of the Internal Revenue Code of 1986
(relating to miscellaneous provisions) is amended by adding at the end
the following new section:

''SEC. 7529. PAYROLL TAX DEPOSIT AGENTS.

''(a) Registration.--
''(1) In general.--The Secretary shall establish a system
to require the initial registration and the annual renewal of
the registration of persons seeking to act as payroll tax
deposit agents authorized to make Federal employment tax
deposits on behalf of employer taxpayers. Such system shall
also--
''(A) establish a registration and renewal fee for
each payroll tax deposit agent in an amount not to
exceed $100,
''(B) provide the payroll tax deposit agent the
option of either submitting a bond as specified in
subsection (b) or submitting to an annual audit as
specified in subsection (c),
''(C) require such disclosures as are specified in
subsection (d),
''(D) require that such agent ensure the direct
notification of the employer by any Federal employment
tax authority (and State employment tax authority if
such agent contracts to make State employment tax
deposits for the employer) regarding the nonpayment of
such employment taxes, and
''(E) provide penalties for unregistered persons
acting as payroll tax deposit agents with respect to
Federal tax deposits in an amount not to exceed $10,000
for each 90 days of noncompliance.
''(2) Definition of payroll tax deposit agent.--For
purposes of this section, the term 'payroll tax deposit agent'
means any person which provides payroll processing or tax
filing and deposit services to 1 or more employers (other than
an employer acting on its own behalf) if such person has the
contractual authority to access such employer's funds for the
purpose of making employment tax deposits. Such term shall not
include any person which only transfers such funds (regardless
if such person has the authority to determine the amount of
such transfer) and does not have the authority to impound such
funds for such purpose.
''(3) Employment tax.--For purposes of this section, the
term 'employment tax' includes unemployment insurance
contributions.
''(b) Bonding.--
''(1) In general.--If a payroll tax deposit agent elects to
submit a bond under subsection (a)(1)(B), the amount of such
bond shall be not less than $50,000 nor more than $500,000, and
shall be determined with respect to each payroll tax deposit
agent under regulations prescribed by the Secretary.
''(2) Surety.--Any bond or security furnished pursuant to
this section shall be in such form and with such surety or
sureties as may be prescribed by regulations issued pursuant to
section 7101.
''(c) Annual Audits.--If a payroll tax deposit agent elects to
submit to an annual audit under subsection (b)(1)(B), such audit shall
be performed by an independent third party and shall be based on such
audit principles as the Secretary determines necessary, including the
following:
''(1) The escrow account of the payroll tax deposit agent
in which such agent holds its employers' taxes is balanced each
year to the total of the quarterly reconciliation statements.
''(2) The escrow account funds of the payroll tax deposit
agent are not commingled with such agent's operating funds.
''(3) No evidence that the payroll tax deposit agent used
any of the funds in such agent's escrow account to pay such
agent's own operating costs.
''(4) Receipt evidence that such agent paid the required
employment taxes on behalf of the employers to the proper
government employment tax authority.
''(d) Disclosure.--The Secretary shall require payroll tax deposit
agents to disclose to each potential and existing client prior to or at
the time of contracting for payroll services--
''(1) the client's continuing liability for payment of all
Federal and State employment taxes notwithstanding any
contractual relationship with a payroll tax deposit agent,
''(2) the mechanisms available to the client to verify the
amount and date of payment of all tax deposits made by the
payroll tax deposit agent on behalf of such client, including
the Internet address, postal address, and telephone number of
each Federal and State employment tax authority related to such
deposits, and
''(3) such other information that the Secretary determines
is necessary or appropriate to assist employers in the
selection and use of payroll tax deposit agents.
''(e) Tax Deposits and Returns.--Only persons registered under this
section may--
''(1) make Federal tax deposits on behalf of an employer,
''(2) sign and file Federal employment tax returns on
behalf of a taxpayer, and
''(3) have access to confidential tax information relating
to such employer.
''(f) Regulations.--The Secretary shall prescribe such regulations
as may be necessary to carry out the provisions of this section.''.
(b) Payroll Tax Deposit Agents Subject to Penalty for Failure To
Collect and Pay Over Tax, or Attempt To Evade or Defeat Tax.--
(1) In general.--Section 6672(a) of the Internal Revenue
Code of 1986 is amended by inserting '', including any payroll
tax deposit agent (as defined in section 7529(a)(2)),'' after
''Any person''.
(2) Construction.--The amendment made by paragraph (1)
shall not be construed to create any inference with respect to
the interpretation of section 6672 of the Internal Revenue Code
of 1986 as such section was in effect on the day before the
date of the enactment of this Act.
(c) Clerical Amendment.--The table of sections for such chapter 77
is amended by adding at the end the following new item:

''Sec. 7529. Payroll tax deposit agents.''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall take effect on the date
of the enactment of this Act.
(2) Penalty.--The amendments made by subsection (b) shall
apply to failures occurring after the date of the enactment of
this Act.
Amends the Internal Revenue Code to require the Secretary of the Treasury to establish a registration system for payroll tax deposit agents. Requires such agents to: (1) submit to a bond or annual audit; (2) make certain disclosures to their clients concerning liability for payment of employment taxes; and (3) pay penalties for failing to collect or pay over employment taxes or for attempting to evade or defeat payment of such taxes.