Tax Notes logo

Rev. Proc. 70-6

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

  • Cross-Reference
    26 CFR 601.401: Employment taxes.

    (Also Part I, Sections 3504; 31.3504-1.)
  • Code Sections
  • Language
  • 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






 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






 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







        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






                                              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




 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





                              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




 employee who






 and date of                  Send original and one copy to Internal


 classification.              Revenue Service.
  • Cross-Reference
    26 CFR 601.401: Employment taxes.

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