H.R. 5703 – Elderly Care Tax Act of 2008

110th CONGRESS

2d Session

H. R. 5703

IN THE HOUSE OF REPRESENTATIVES

April 3, 2008

Mr. Lewis of Georgia introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to provide that elderly and disabled individuals receiving in-home care under certain government programs are not liable for the payment of employment taxes with respect to the providers of such care, and for other purposes.

Short title

This Act may be cited as the Elderly Care Tax Act of 2008.

Elderly and disabled individuals receiving in-home care under certain government programs not subject to employment tax provisions

(a)

In general

Chapter 25 (relating to general provisions relating to employment taxes) is amended by adding at the end the following new section:

3511.

Elderly and disabled individuals receiving in-home care under certain government programs

(a)

In general

In the case of amounts paid under a home care service program to a home care service provider by the fiscal administrator of such program—

(1)

the home care service recipient shall not be liable for the payment of any taxes imposed under this subtitle with respect to amounts paid for the provision of services under such program, and

(2)

the fiscal administrator shall be so liable.

(b)

Definitions

For purposes of this section—

(1)

Home care service program

The term home care service program means a State or local government program—

(A)

any portion of which is funded with Federal funds, and

(B)

under which domestic services are provided to elderly or disabled individuals in their homes.

Such term shall not include any program to the extent home care service recipients make payments to the home care service providers for such in-home domestic services.

(2)

Home care service provider

The term home care service provider means any individual who provides domestic services to a home care service recipient under a home care service program.

(3)

Home care service recipient

The term home care service recipient means any individual receiving domestic services under a home care service program.

(4)

Fiscal administrator

The term fiscal administrator means any person or governmental entity who pays amounts under a home care service program to home care service providers for the provision of domestic services under such program.

(c)

Returns by fiscal administrator

For purposes of this section—

(1)

In general

Returns relating to taxes imposed or amounts required to be withheld under this subtitle shall be made under the identifying number of the fiscal administrator.

(2)

Identification of service recipient

The fiscal administrator shall, to the extent required under regulations prescribed by the Secretary, make a return setting forth—

(A)

the name and address of each home care service recipient for whom amounts are paid by such fiscal administrator under the home care services program, and

(B)

such other information as the Secretary may require.

(d)

Regulations

The Secretary may prescribe such regulations or other guidance as may be necessary to carry out the purposes of this section, including requiring deposits of any tax imposed under this subtitle.

(b)

Service recipient identification return treated as information return

Paragraph (3) of section 6724(d) of such Code is amended by striking and at the end of subparagraph (C)(ii), by striking the period at the end of subparagraph (D)(ii) and inserting , and, and by adding at the end the following new subparagraph:

(E)

any requirement under section 3511(c)(2).

(c)

Clerical amendment

The table of sections for chapter 25 is amended by adding at the end the following new item:

Sec. 3511. Elderly and disabled individuals receiving in-home care under certain government programs.

(d)

Effective date

The amendments made by this section shall apply to amounts paid after December 31, 2008.

Elderly Care Tax Act of 2008

Legislative Activity

Bill Text