Rev. Proc. 70-6
Rev. Proc. 70-6; 1970-1 C.B. 420
- Cross-Reference26 CFR 601.401: Employment taxes.
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Amplified by Rev. Proc. 84-33 Amplified by Rev. Proc. 80-4
Section 1. Purpose.
This Revenue Procedure describes the procedure to be followed in requesting authorization to act as agent under section 3504 of the Internal Revenue Code of 1954 for purposes of Chapters 21, 22, 24, and 25, subtitle C, of the Code. Also, special instructions are set forth for employers and their authorized agents, supplementing those on Form 941c, Statement to Correct Information, for correcting wage reports under Chapter 21 of the Code.
Sec. 2. Background.
.01 Chapters 21, 22, 24, and 25 of the Code relate to and are entitled the Federal Insurance Contributions Act, the Railroad Retirement Tax Act, the Collection of Income Tax at Source on Wages, and General Provisions Relating to Employment Taxes, respectively.
.02 Section 31.3504-1 of the Employment Tax Regulations as amended by T.D. 7012, C.B. 1969-2, 244, approved May 9, 1969 provides that applications for authorization to act as agent shall be filed with the District Director or Director of a Service Center with whom the agent on approval of the application will file returns. Under the regulations prior to amendment, agents requesting authorization were required to make application to the District Director.
Sec. 3. Procedure for Requests.
.01 Application for authorization as agent to perform acts required of an employer should be made in writing by the agent to the Director, Internal Revenue Service Center, with whom the agent will file returns upon approval of the application.
.02 The application for authorization should be accompanied by Form 2678, Employer Appointment of Agent under Section 3504 of the Internal Revenue Code, executed by each employer for whom the agent is to act (See Attachment 1). Form 2678 is available on request to any Internal Revenue Service office.
.03 The employer should submit the properly executed Form 2678 to the agent who will transmit it to the Service Center Director with a written request for authority to act as agent of such employer. The agent should insure that his employer identification number is shown in Form 2678. If he has not been assigned a number, a properly executed Form SS-4, Application for Employer Identification Number, should accompany his request.
.04 One application for authorization to act as an agent may be filed by the agent to cover more than one employer if accompanied by a properly executed Form 2678 from each of the employers.
.05 Approval of an application will be given by letter to the agent from the Service Center Director. The letter of authorization will be effective when mailed. Conversely, notice of termination of an authorization shall be considered as given when mailed by the Director, or when received by him from the agent.
Sec. 4. Filing of Tax Returns.
.01 The agent must file one return for each tax-return period with the Director of the Service Center, regardless of the number of employers for whom he is acting as agent. Returns shall include tips reported by employees to the agent and the taxable wages actually or constructively paid by the agent to employees of the employers for whom the agent acts, as well as the taxable wages and tips of the agent's own employees. (The term "wages" as used herein shall be construed to include tips and other compensation, whenever applicable.)
.02 The agent's name and identifying number are to be entered in the spaces provided on the returns, and the returns are to be completely executed.
.03 Attached to each return, as a part thereof, shall be the statement, "This return is filed under authorization granted in accordance with Section 3504 of the Internal Revenue Code of 1954."
.04 The agent shall maintain such records as will disclose the full wages paid to each employee on behalf of, and identified by, each employer for whom he acts.
.05 For purposes of excluding from the return under the Federal Insurance Contributions Act the wages paid to an employee in excess of the maximum annual taxable wages, the wages paid to the employee shall be considered with respect to each employer separately, and not in conjunction with the wages paid to the employee on behalf of any other employer. If the agent is acting for employers under the Railroad Retirement Tax Act, he will report for each employer the taxable compensation as determined under that Act with respect to each employer.
Sec. 5. Correction of Wages Reported Under Federal Insurance Contributions Act.
.01 The agent normally will submit statements to correct wages erroneously reported by him under the Federal Insurance Contributions Act on behalf of the actual employer.
.02 An exception will be made whenever the aggregate wages reported for a single employee by both the employer and his agent on behalf of the employer exceed the maximum annual taxable wages. Examples of such reporting are shown in Attachment 2. In these instances, any related tax adjustment should be initiated by the employer supported by Form 941c, Statement to Correct Information, prepared in accordance with the illustration in Attachment 3. The Form 941c will be submitted by the actual employer as an attachment to his return for the tax return period in which the adjustment is reported, or with a claim for refund if adjustment is not made on a return.
.03 The illustrated adaption of Form 941c is permissible only under the circumstances described in .02 above.
Sec. 6. General.
In accordance with section 3504 of the Code, all provisions of law (including penalties) and regulations prescribed in pursuance of law, applicable with respect to an employer will be applicable to the agent, and despite the acts performed by the agent pursuant to authority granted under Section 3504, the employer will remain subject to all provisions of law (including penalties), and regulations prescribed in pursuance of law with respect to employers.
Sec. 7. Inquiries.
Inquiries concerning this Revenue Procedure should refer to its number and should be addressed to the Director, Internal Revenue Service Center, serving the district in which the agent is located.
Sec. 8. Effect on Other Documents
This Revenue Procedure supersedes Revenue Procedure 57-31, C.B. 1957-2, 1104.
Attachment 1
Form 2678
(Rev. Dec. 1969) Employer Appointment of Agent
Department of the Treasury Under Section 3504,
Internal Revenue Service Internal Revenue Code
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This notice of appointment shall
be executed by the employer and
submitted to the agent. The
agent will transmit it to the 1.
Director, Internal Revenue
Service Center with whom the Director, Internal Revenue
agent files returns, with the Service Center
request for authority to do all 3651 South Interregional
that is required of the employer Highway
under applicable chapters of Austin, Texas 78741
Subtitle C of the Internal
Revenue Code with respect to
wages paid by the agent on
behalf of the employer.
2. Name of Employer 3. Employer's Address
(Include ZIP Code)
PQR Shipping Company National Bank Building
New Orleans, Louisiana 70000
4. Employer Identification Number
72-1111111
5. Name of Agent & 6. Agent's Address
Identification Number (Include ZIP Code)
Seaman's Local #000 000 Canal St.
New Orleans, Louisiana 70000
7. Agent's Employer
Identification Number
72-0000000
8. Date Agency Became Effective
January 1, 1969
This is your notification that
the above-named agent has been
appointed to pay wages to our
employees. His appointment is
effective on the date shown in
item 7, above.
Under the provision of section
3504 of the Internal Revenue
Code, it is requested that the
appointed agent be authorized
to do all that is required
under Chapters ______________
of Subtitle C of the Code
with respect to this wages
he pays.
It is understood that the
agent and the employer are Paul Q. Roe, December
subject to all of the Vice President 15, 1969
provisions of law and Signed______________ Date________
regulations (including
penalties) which are
applicable to employers.
By _______________________________
(Person signing notice must
indicate whether he is owner,
partner, member of firm,
fiduciary, or, if a corporate
officer, give his title.)
Attachment 2
Examples of Wage Reporting Subject to Special Preparation of Form
941C
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Employee name Wages reported by
and account No. Period -------------------------
Employer Agent/1/
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William Doe 3/31/68 $4,200 None
111-11-1111 6/30/68 3,600 None
9/30/68 None $300
12/31/68 None None
-------------------------
7,800 300
John Smith 3/31/68 2,000 200
222-22-2222 6/30/68 2,000 None
9/30/68 2,000 200
12/31/68 2,000 None
-------------------------
/2/8,000 400
Richard W. Brown 3/31/68 2,500 None
333-33-3333 6/30/68 2,500 None
9/30/68 2,500 450
12/31/68 None 250
-------------------------
7,500 700
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Attachment 3
Form 941c Statement to Correct Information
(Rev. July 1969) Previously Reported Under the
Department of the Federal Insurance
Treasury Internal Contributions Act
Revenue Service Page No. 1 of 1
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Employer Identification Number 72-1111111 If the social security
number, name, tips, or
Employer's Name (Please type or print) wages of one or more
employees were omitted
PQR Shipping Company from or erroneously
reported on one or more
National Bank Building returns on Schedule A
(Form 941-M), Form 941,
941SS, 941010, 942, or
943, each such error
should be corrected on
Form 941c. Separate
sheets of Form 941c
should be used if both
wages and tips need
corrections.
Address
See the explanation on
New Orleans, Louisiana 70000 back of this form.
Check ONE Box on each page: __ All entries on this X All entries
page are for tips. on this page
are for wages.
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(1) (2) (3) (4) (5) Do Not
Use
Employee's Name of Period Decrease For
Social Employee Covered by Office
Security (Please type Return to be Use
number or print) Corrected/*/ Only
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000 00 0000 Dol- Cents Dol- Cents
lars lars
Adjustment of wages under Section 3504, I.R.C. The decreases shown
adjust only cases in which the aggregate wages reported by both the
actual employer and his agent, (insert agent's name, address, and
EIN), exceed the maximum taxable wages.
111 11 1111 William Doe 9/30/68 300 00
222 22 2222 John Smith 3/31/68 200 00
" " " " " 9/30/68 200 00
333 33 3333 Richard W.
Brown 9/30/68 150 00
" " " " " 12/31/68 250 00
/*/ For correction of a Totals For
quarterly return on THIS Page 1100 00
Schedule A (Form 941-
M), Form 941, 941SS,
941010, or 942, show
the date the quarter
ended, such as 12/31/67,
3/31/68, 6/30/68 or
9/30/68. For correction
of an annual return on Difference Between
Form 943 show the year. Totals For THIS Page 1100 00
TIPS
Difference Between
Enter total on last page Totals For ALL Pages
ONLY if more than one page WAGES
Difference Between
Totals For ALL Pages
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Space Below for Use of Signature of Person Preparing Form 941c
Internal Revenue Service
This Form 941c should be
transmitted with:
__ An A/T in the "ADJ-1/
1000" series (no barred Paul Q. Roe
period). Signed _________________________________
__ An A/T in the "ADJ-9000/
9300" series because of Vice President
the inclusion of wages Title __________________________________
for barred period(s) (Owner, president, partner, member,
shown: etc., or Internal Revenue employee)
January 23, 1969
Date ___________________________________
Initials of Initials Date
office
employee who
classifies
transmittal,
and date of Send original and one copy to Internal
classification. Revenue Service.
- Cross-Reference26 CFR 601.401: Employment taxes.
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available