IRS Rev. Rul.: Determination of Employer’s Liability for Certain Employment Taxes (IRC §3509)

The IRS published guidance addressing the application of section 530 of the Revenue Act of 1978, I.R.C. §3509 reduced rates, and the requirements to issue a Notice of Employment Tax Determination under §7436 in five distinct factual situations. Section 3509 allows an employer to remit unpaid taxes at reduced rates if an employer fails to deduct and withhold income tax or the employee share of FICA tax with respect to any of its employees because the employer treated that employee as a non-employee. [Rev. Rul. 2025-3, 2025-4 I.R.B. __ (Jan. 21, 2025)]

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