Internal Revenue Code · 26 U.S.C.
§ 3505. Liability of third parties paying or providing for wages
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 3505
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- November 2, 1966 by Pub. L. 89–719
- Length
- 3 subsections · 315 words · about 1 min to read
- Cross-references
- cites 5; cited by 0 Code sections and 0 other regulations
- Regulations
- 1 issued under this section
For purposes of sections 3102, 3202, 3402, and 3403, if a lender, surety, or other person, who is not an employer under such sections with respect to an employee or group of employees, pays wages directly to such an employee or group of employees, employed by one or more employers, or to an agent on behalf of such employee or employees, such lender, surety, or other person shall be liable in his own person and estate to the United States in a sum equal to the taxes (together with interest) required to be deducted and withheld from such wages by such employer.
If a lender, surety, or other person supplies funds to or for the account of an employer for the specific purpose of paying wages of the employees of such employer, with actual notice or knowledge (within the meaning of section 6323(i)(1)) that such employer does not intend to or will not be able to make timely payment or deposit of the amounts of tax required by this subtitle to be deducted and withheld by such employer from such wages, such lender, surety, or other person shall be liable in his own person and estate to the United States in a sum equal to the taxes (together with interest) which are not paid over to the United States by such employer with respect to such wages. However, the liability of such lender, surety, or other person shall be limited to an amount equal to 25 percent of the amount so supplied to or for the account of such employer for such purpose.
Any amounts paid to the United States pursuant to this section shall be credited against the liability of the employer.
(Added Pub. L. 89–719, title I, § 105(a), Nov. 2, 1966, 80 Stat. 1138.)
Regulations under this section
Treasury regulations (26 CFR) issued under § 3505
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 5 other sections
Amendment history
From the source credit and the official notes, newest first.
- Added by Pub. L. 89–719
Where it sits in the Code
Nearby sections
- § 3501 Collection and payment of taxes
- § 3502 Nondeductibility of taxes in computing taxable income
- § 3503 Erroneous payments
- § 3504 Acts to be performed by agents
- § 3505 Liability of third parties paying or providing for wages
- § 3506 Individuals providing companion sitting placement services
- § 3507 Repealed
- § 3508 Treatment of real estate agents and direct sellers
- § 3509 Determination of employer’s liability for certain employment taxes
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable only with respect to wages paid on or after Jan. 1, 1967, see section 114(c)(1) of Pub. L. 89–719, set out as an Effective Date of 1966 Amendment note under section 6323 of this title.