Finance & markets · 22/11/1994

Liability of Third Parties Paying or Providing for Wages: Suit Period and Its Extension and Maximum Amount Recoverable

The proposed amendments to the regulations under section 3505(b) of the Internal Revenue Code clarify the liability of lenders, sureties, and other third parties for withholding taxes when they supply funds for wages. The amendments also extend the period of limitations for collection and allow third parties to consent to the extension.