To amend the Internal Revenue Code of 1986 to establish procedures relating to the attribution of errors in the case of third party payors of payroll taxes, and for other purposes.

# HR 3223 Summary **What the Bill Does:** This bill would change how the IRS handles mistakes made by third-party payroll tax processors—companies that handle payroll taxes on behalf of other businesses. It would establish clearer procedures for determining who is responsible when these processors make errors in calculating or reporting payroll taxes. The goal appears to be creating more defined rules so businesses and the IRS can more easily resolve disputes about tax mistakes. **Who It Affects:** The bill primarily affects payroll processing companies (like ADP or Paychex) and the small-to-medium businesses that use them. It could also impact the IRS's ability to collect taxes and pursue liability claims.

Employees could be indirectly affected if payroll errors impact their tax withholdings or records. **Current Status:** HR 3223 was introduced by Representative Mike Thompson (D-CA) but remains in committee and has not advanced further. The bill has not yet been voted on by Congress. Without more detailed information about specific provisions, it's unclear what exact changes the bill proposes to current tax procedures.