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IRC Sec. 3402. Income tax collected at source
• (a) Requirement of withholding
• (1) In general
Except as otherwise provided in this
section, every employer making payment
of wages shall deduct and withhold upon
such wages a tax determined in accor-
dance with tables or computational pro-
cedures prescribed by the Secretary.
IRC Sec. 3403. Liability for tax
The employer shall be liable for the payment of
the tax required to be deducted and withheld under
this chapter, and shall not be liable to any per-
son for the amount of any such payment
Treasury Regulation § 31.3403-1 Liability for tax
Every employer required to deduct and withhold the
tax under section 3402 from the wages of an em-
ployee is liable for the payment of such tax
whether or not it is collected from the employee
by the employer. If, for example, the employer
deducts less than the correct amount of tax, or if
he fails to deduct any part of the tax, he is
nevertheless liable for the correct amount of the
tax. See, however, § 31.3402(d)-1. * * *
Treasury Regulation Sec. 31.6205-1 Adjustments of
underpayments.
(a) In general. (1) An employer who makes, or has
made, an undercollection or underpayment of--
(iii) Income tax required under section 3402 to be
withheld, with respect to any payment of wages or
compensation, shall correct such error as provided
in this section.
(c) Income tax required to be withheld from
wages--(4) Deductions from employee. If no income
tax, or less than the correct amount of income
tax, required under section 3402 to be withheld
from wages is deducted from wages paid to an em-
ployee in a calendar year, the employer shall
collect the amount of the undercollection on or
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Last modified: November 10, 2007