IRS OKs Rule On Tax Liability For Home Health Agents

Law360, New York (December 11, 2013, 4:07 PM EST) -- The Internal Revenue Service released final regulations Wednesday providing that agents who handle wage payments for home health care recipients can assume responsibility for the recipients' federal unemployment tax obligations in certain circumstances.

Individuals who receive home care services are treated as employers under the Internal Revenue Code, and many designate agents to perform certain acts required of employers, like paying wages. Previous law allowed agents to handle income tax withholding and Federal Insurance Contributions Act taxes, but the final regulations, which are scheduled to be...
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