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Rev. Proc. 70-6


Rev. Proc. 70-6; 1970-1 C.B. 420

DATED
DOCUMENT ATTRIBUTES
  • Cross-Reference
    26 CFR 601.401: Employment taxes.

    (Also Part I, Sections 3504; 31.3504-1.)
  • Code Sections
  • Language
    English
  • Tax Analysts Electronic Citation
    not available
Citations: Rev. Proc. 70-6; 1970-1 C.B. 420

Amplified by Rev. Proc. 84-33 Amplified by Rev. Proc. 80-4

Rev. Proc. 70-6

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

 

 --------------------------------------------------------------------

 

 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

 

 

 ---------------------------------------------------------------------

 

        Employee name                         Wages reported by

 

       and account No.       Period          -------------------------

 

                                             Employer        Agent/1/

 

 ---------------------------------------------------------------------

 

 

 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

 

 

 ---------------------------------------------------------------------

 

 

                                                       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

 

 --------------------------------------------------------------------

 

 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.

 

 --------------------------------------------------------------------

 

     (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

 

 --------------------------------------------------------------------

 

 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

 

 --------------------------------------------------------------------

 

 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.
DOCUMENT ATTRIBUTES
  • Cross-Reference
    26 CFR 601.401: Employment taxes.

    (Also Part I, Sections 3504; 31.3504-1.)
  • Code Sections
  • Language
    English
  • Tax Analysts Electronic Citation
    not available
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