2025 second_quarter Filing

HR 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 - NAPEO is lobbying in support of this legislation. H.R. 3223 would ensure that payroll tax credit claims filed on an aggregate return by third-party payors are not delayed due to problems with any one clients claim, and that the liability for any improper claims is assigned to the entity that initiates and benefits from the claim unless the third-party payor failed to take certain clear steps prior to filing the claim. By taking these actions, the federal government would save money by clarifying responsibility for payroll tax credits and deterring fraud and small businesses would receive their payroll tax credits in a more timely manner. Specifically, this legislation would: Ensure that any IRS audit or examination of a small business client of an aggregate tax filer does not delay the processing of any payroll tax credits claimed by the PEO or other third-party payor on behalf of other small business clients. Confirm that, with respect to any employer payroll tax credit, the small business client benefiting from the payroll tax credit is liable, and the PEO or other third-party payor is not liable, for any improperly claimed credit amount, provided that the PEO or other third-party payor took certain clear steps including: oVerifying certain wage information of which the PEO or other third-party payor has direct knowledge and collecting a certification from the client that includes certain information. oAccurately reporting the credit in accordance with the information certified by the client. oProviding the IRS with any information in its possession that the IRS could require the employer to provide, if needed to audit the employer. Be business-model neutral with respect to entities that file aggregate employment tax returns, that is, available to PEOs, IRS-certified PEOs, and agents under Code section 3504. IRS Modernization: NAPEO is lobbying Congress to call attention to the need for the IRS to use modern technology to process our tax claims. Specifically, we are asking Congress to require the IRS to use electronic returns and allow for transparency in the processing of tax returns submitted by PEOs. Additionally, NAPEO continues to work with Congress and the IRS to process amended tax returns containing Employee Retention Tax Credits (ERTC).