- 11 -
amount of the overpayment and order a refund of the overpayment,
or to credit the overpayment against the deficiency, if the
requirements of section 6512(b) are satisfied. Sec. 6512(b)(1)
and (2).
B. Jurisdiction Over Hospital Tax
Petitioners’ equitable recoupment defense pertains to
hospital tax imposed by the Federal Insurance Contributions Act,
codified as chapter 21 (sections 3101-3128). Section 3101(b)
imposes a 1.45-percent hospital tax on the wage income of all
employees, which the employer must withhold from the employees’
wages and pay to the Secretary. See secs. 3102(a), 3501. In
addition, section 3111(b) requires employers to pay to the
Secretary a corresponding 1.45-percent hospital tax on all wages
paid to employees. See sec. 3501.
Our deficiency and overpayment jurisdiction (described
above) does not extend to hospital tax imposed under sections
3101 and 3111. Nevertheless, Congress has recently expanded our
jurisdiction with respect to employment tax. In 1997, Congress
passed the Taxpayer Relief Act of 1997, Pub. L. 105-34, sec.
1454(a), 111 Stat. 1055, adding section 7436, which confers
jurisdiction on the Court to review certain determinations made
by the Commissioner regarding employment status (worker
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: March 27, 2008