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Credit for Erroneously Paid Employment Taxes

IRC §3503

Any tax paid under FICA or RRTA for a period where the taxpayer was not liable must be credited against other employment tax liabilities or refunded.

Eligibility

Taxpayers who mistakenly paid Chapter 21 or 22 taxes for periods in which they had no legal liability.

Frequently Asked Questions

Who is eligible for the Credit for Erroneously Paid Employment Taxes?

Taxpayers who mistakenly paid Chapter 21 or 22 taxes for periods in which they had no legal liability.

How does the Credit for Erroneously Paid Employment Taxes work?

Any tax paid under FICA or RRTA for a period where the taxpayer was not liable must be credited against other employment tax liabilities or refunded.

What law authorizes the Credit for Erroneously Paid Employment Taxes?

The Credit for Erroneously Paid Employment Taxes is authorized under IRC §3503 of the Internal Revenue Code (Title 26, United States Code).

Statutory Text — IRC §3503

Source: Internal Revenue Code, Title 26, United States Code

§ 3503. Erroneous payments Any tax paid under chapter 21 or 22 by a taxpayer with respect to any period with respect to which he is not liable to tax under such chapter shall be credited against the tax, if any, imposed by such other chapter upon the taxpayer, and the balance, if any, shall be refunded. (Aug. 16, 1954, ch. 736, 68A Stat. 471.)