-CITE- 26 USC CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES 01/03/2012 (112-90) -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle C - Employment Taxes CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES -HEAD- CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES -MISC1- Sec. 3501. Collection and payment of taxes. 3502. Nondeductibility of taxes in computing taxable income. 3503. Erroneous payments. 3504. Acts to be performed by agents. 3505. Liability of third parties paying or providing for wages. 3506. Individuals providing companion sitting placement services. [3507. Repealed.] 3508. Treatment of real estate agents and direct sellers. 3509. Determination of employer's liability for certain employment taxes. 3510. Coordination of collection of domestic service employment taxes with collection of income taxes. AMENDMENTS 2010 - Pub. L. 111-226, title II, Sec. 219(b)(3), Aug. 10, 2010, 124 Stat. 2403, struck out item 3507 "Advance payment of earned income credit". 1994 - Pub. L. 103-387, Sec. 2(b)(2), Oct. 22, 1994, 108 Stat. 4074, added item 3510. 1990 - Pub. L. 101-508, title XI, Sec. 11801(b)(16), Nov. 5, 1990, 104 Stat. 1388-522, struck out item 3510 "Credit for increased social security employee taxes and railroad retirement tier 1 employee taxes imposed during 1984". 1983 - Pub. L. 98-67 repealed amendments made by section 307 of Pub. L. 97-248. See 1982 Amendment note below. Pub. L. 98-21, title I, Sec. 123(b)(2), Apr. 20, 1983, 97 Stat. 88, added item 3510. 1982 - Pub. L. 97-248, title II, Secs. 269(d), 270(b), Sept. 3, 1982, 96 Stat. 553, 554, added items 3508 and 3509. Pub. L. 97-248, title III, Secs. 307(b)(5), 308(a), Sept. 3, 1982, 96 Stat. 591, provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, the caption of chapter 25 is amended by inserting "AND COLLECTION OF INCOME TAXES AT SOURCE". Section 102(a), (b) of Pub. L. 98-67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (Secs. 301-308) of title III of Pub. L. 97-248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted. 1978 - Pub. L. 95-600, title I, Sec. 105(b)(2), Nov. 6, 1978, 92 Stat. 2776, added item 3507. 1977 - Pub. L. 95-171, Sec. 10(b), Nov. 12, 1977, 91 Stat. 1356, added item 3506. 1966 - Pub. L. 89-719, title I, Sec. 105(c), Nov. 2, 1966, 80 Stat. 1139, added item 3505. -End- -CITE- 26 USC Sec. 3501 01/03/2012 (112-90) -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle C - Employment Taxes CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES -HEAD- Sec. 3501. Collection and payment of taxes -STATUTE- (a) General rule The taxes imposed by this subtitle shall be collected by the Secretary and shall be paid into the Treasury of the United States as internal-revenue collections. (b) Taxes with respect to non-cash fringe benefits The taxes imposed by this subtitle with respect to non-cash fringe benefits shall be collected (or paid) by the employer at the time and in the manner prescribed by the Secretary by regulations. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 471; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 98-369, div. A, title V, Sec. 531(d)(5), July 18, 1984, 98 Stat. 885.) -MISC1- AMENDMENTS 1984 - Pub. L. 98-369 designated existing provisions as subsec. (a), added heading, and added subsec. (b). 1976 - Pub. L. 94-455 struck out "or his delegate" after "Secretary". EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98-369 effective Jan. 1, 1985, see section 531(h) of Pub. L. 98-369, set out as an Effective Date note under section 132 of this title. -End- -CITE- 26 USC Sec. 3502 01/03/2012 (112-90) -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle C - Employment Taxes CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES -HEAD- Sec. 3502. Nondeductibility of taxes in computing taxable income -STATUTE- (a) The taxes imposed by section 3101 of chapter 21, and by sections 3201 and 3211 of chapter 22 shall not be allowed as a deduction to the taxpayer in computing taxable income under subtitle A. (b) The tax deducted and withheld under chapter 24 shall not be allowed as a deduction either to the employer or to the recipient of the income in computing taxable income under subtitle A. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 471; Pub. L. 97-248, title III, Secs. 305(b), 308(a), Sept. 3, 1982, 96 Stat. 588, 591; Pub. L. 98- 67, title I, Sec. 102(a), Aug. 5, 1983, 97 Stat. 369.) -MISC1- AMENDMENTS 1983 - Subsecs. (b), (c). Pub. L. 98-67 repealed amendments made by Pub. L. 97-248. See 1982 Amendment note below. 1982 - Subsecs. (b), (c). Pub. L. 97-248 provided that, applicable to payments of interest, dividends, and patronage dividends paid or credited after June 30, 1983, subsec. (b) is amended and a new subsec. (c) is added. Section 102(a), (b) of Pub. L. 98-67, title I, Aug. 5, 1983, 97 Stat. 369, repealed subtitle A (Secs. 301-308) of title III of Pub. L. 97-248 as of the close of June 30, 1983, and provided that the Internal Revenue Code of 1954 [now 1986] [this title] shall be applied and administered (subject to certain exceptions) as if such subtitle A (and the amendments made by such subtitle A) had not been enacted. -End- -CITE- 26 USC Sec. 3503 01/03/2012 (112-90) -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle C - Employment Taxes CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES -HEAD- Sec. 3503. Erroneous payments -STATUTE- 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. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 471.) -End- -CITE- 26 USC Sec. 3504 01/03/2012 (112-90) -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle C - Employment Taxes CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES -HEAD- Sec. 3504. Acts to be performed by agents -STATUTE- In case a fiduciary, agent, or other person has the control, receipt, custody, or disposal of, or pays the wages of an employee or group of employees, employed by one or more employers, the Secretary, under regulations prescribed by him, is authorized to designate such fiduciary, agent, or other person to perform such acts as are required of employers under this title and as the Secretary may specify. Except as may be otherwise prescribed by the Secretary, all provisions of law (including penalties) applicable in respect of an employer shall be applicable to a fiduciary, agent, or other person so designated but, except as so provided, the employer for whom such fiduciary, agent, or other person acts shall remain subject to the provisions of law (including penalties) applicable in respect of employers. -SOURCE- (Aug. 16, 1954, ch. 736, 68A Stat. 471; Pub. L. 85-866, title I, Sec. 71, Sept. 2, 1958, 72 Stat. 1660; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) -MISC1- AMENDMENTS 1976 - Pub. L. 94-455 struck out "or his delegate" after "Secretary" in three places. 1958 - Pub. L. 85-866 substituted "title" for "subtitle" in first sentence. EFFECTIVE DATE OF 1958 AMENDMENT Section 71 of Pub. L. 85-866 provided that the amendment made by that section is effective with respect to remuneration paid after Dec. 31, 1954. -End- -CITE- 26 USC Sec. 3505 01/03/2012 (112-90) -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle C - Employment Taxes CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES -HEAD- Sec. 3505. Liability of third parties paying or providing for wages -STATUTE- (a) Direct payment by third parties For purposes of sections 3102, 3202, 3402, and 3403, if a lender, surety, or other person, who is not an employer under such sections with respect to an employee or group of employees, pays wages directly to such an employee or group of employees, employed by one or more employers, or to an agent on behalf of such employee or employees, such lender, surety, or other person shall be liable in his own person and estate to the United States in a sum equal to the taxes (together with interest) required to be deducted and withheld from such wages by such employer. (b) Personal liability where funds are supplied If a lender, surety, or other person supplies funds to or for the account of an employer for the specific purpose of paying wages of the employees of such employer, with actual notice or knowledge (within the meaning of section 6323(i)(1)) that such employer does not intend to or will not be able to make timely payment or deposit of the amounts of tax required by this subtitle to be deducted and withheld by such employer from such wages, such lender, surety, or other person shall be liable in his own person and estate to the United States in a sum equal to the taxes (together with interest) which are not paid over to the United States by such employer with respect to such wages. However, the liability of such lender, surety, or other person shall be limited to an amount equal to 25 percent of the amount so supplied to or for the account of such employer for such purpose. (c) Effect of payment Any amounts paid to the United States pursuant to this section shall be credited against the liability of the employer. -SOURCE- (Added Pub. L. 89-719, title I, Sec. 105(a), Nov. 2, 1966, 80 Stat. 1138.) -MISC1- EFFECTIVE DATE Section applicable only with respect to wages paid on or after Jan. 1, 1967, see section 114(c)(1) of Pub. L. 89-719, set out as an Effective Date of 1966 Amendment note under section 6323 of this title. -End- -CITE- 26 USC Sec. 3506 01/03/2012 (112-90) -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle C - Employment Taxes CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES -HEAD- Sec. 3506. Individuals providing companion sitting placement services -STATUTE- (a) In general For purposes of this subtitle, a person engaged in the trade or business of putting sitters in touch with individuals who wish to employ them shall not be treated as the employer of such sitters (and such sitters shall not be treated as employees of such person) if such person does not pay or receive the salary or wages of the sitters and is compensated by the sitters or the persons who employ them on a fee basis. (b) Definition For purposes of this section, the term "sitters" means individuals who furnish personal attendance, companionship, or household care services to children or to individuals who are elderly or disabled. (c) Regulations The Secretary shall prescribe such regulations as may be necessary to carry out the purpose of this section. -SOURCE- (Added Pub. L. 95-171, Sec. 10(a), Nov. 12, 1977, 91 Stat. 1356.) -MISC1- EFFECTIVE DATE Section 10(c) of Pub. L. 95-171 provided that: "The amendments made by this section [enacting this section] shall apply to remuneration received after December 31, 1974." UNEMPLOYMENT COMPENSATION OR SOCIAL SECURITY BENEFITS BASED ON SERVICES PERFORMED BEFORE NOVEMBER 12, 1977, UNAFFECTED Section 10(d) of Pub. L. 95-171 provided that: "The amendments made by this section [enacting this section] shall not be construed as affecting (1) any individual's right to receive unemployment compensation based on services performed before the date of the enactment of this Act [Nov. 12, 1977], or (2) any individual's eligibility for social security benefits to the extent based on services performed before that date." -End- -CITE- 26 USC Sec. 3507 01/03/2012 (112-90) -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle C - Employment Taxes CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES -HEAD- Sec. 3507. Repealed. -MISC1- [Sec. 3507. Repealed. Pub. L. 111-226, title II, Sec. 219(a)(1), Aug. 10, 2010, 124 Stat. 2403]. Section, added Pub. L. 95-600, title I, Sec. 105(b)(1), Nov. 6, 1978, 92 Stat. 2773; amended Pub. L. 97-248, title III, Secs. 307(a)(3), 308(a), Sept. 3, 1982, 96 Stat. 589, 591; Pub. L. 98-67, title I, Sec. 102(a), Aug. 5, 1983, 97 Stat. 369; Pub. L. 98-369, div. A, title IV, Sec. 474(r)(30), title X, Sec. 1042(d)(3), (4), July 18, 1984, 98 Stat. 845, 1044; Pub. L. 99-514, title I, Sec. 111(d)(2), (3), Oct. 22, 1986, 100 Stat. 2108; Pub. L. 101-508, title XI, Sec. 11111(c), Nov. 5, 1990, 104 Stat. 1388-412; Pub. L. 103-66, title XIII, Sec. 13131(d)(4)-(6), Aug. 10, 1993, 107 Stat. 435; Pub. L. 103-465, title VII, Sec. 721(c), Dec. 8, 1994, 108 Stat. 5002, related to advance payment of earned income credit. EFFECTIVE DATE OF REPEAL Repeal applicable to taxable years beginning after Dec. 31, 2010, see section 219(c) of Pub. L. 111-226, set out as an Effective Date of 2010 Amendment note under section 32 of this title. -End- -CITE- 26 USC Sec. 3508 01/03/2012 (112-90) -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle C - Employment Taxes CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES -HEAD- Sec. 3508. Treatment of real estate agents and direct sellers -STATUTE- (a) General rule For purposes of this title, in the case of services performed as a qualified real estate agent or as a direct seller - (1) the individual performing such services shall not be treated as an employee, and (2) the person for whom such services are performed shall not be treated as an employer. (b) Definitions For purposes of this section - (1) Qualified real estate agent The term "qualified real estate agent" means any individual who is a sales person if - (A) such individual is a licensed real estate agent, (B) substantially all of the remuneration (whether or not paid in cash) for the services performed by such individual as a real estate agent is directly related to sales or other output (including the performance of services) rather than to the number of hours worked, and (C) the services performed by the individual are performed pursuant to a written contract between such individual and the person for whom the services are performed and such contract provides that the individual will not be treated as an employee with respect to such services for Federal tax purposes. (2) Direct seller The term "direct seller" means any person if - (A) such person - (i) is engaged in the trade or business of selling (or soliciting the sale of) consumer products to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis which the Secretary prescribes by regulations, for resale (by the buyer or any other person) in the home or otherwise than in a permanent retail establishment, (ii) is engaged in the trade or business of selling (or soliciting the sale of) consumer products in the home or otherwise than in a permanent retail establishment, or (iii) is engaged in the trade or business of the delivering or distribution of newspapers or shopping news (including any services directly related to such trade or business), (B) substantially all the remuneration (whether or not paid in cash) for the performance of the services described in subparagraph (A) is directly related to sales or other output (including the performance of services) rather than to the number of hours worked, and (C) the services performed by the person are performed pursuant to a written contract between such person and the person for whom the services are performed and such contract provides that the person will not be treated as an employee with respect to such services for Federal tax purposes. (3) Coordination with retirement plans for selfemployed This section shall not apply for purposes of subtitle A to the extent that the individual is treated as an employee under section 401(c)(1) (relating to self-employed individuals). -SOURCE- (Added Pub. L. 97-248, title II, Sec. 269(a), Sept. 3, 1982, 96 Stat. 551; amended Pub. L. 104-188, title I, Sec. 1118(a), Aug. 20, 1996, 110 Stat. 1764.) -MISC1- AMENDMENTS 1996 - Subsec. (b)(2)(A). Pub. L. 104-188 added cl. (iii). EFFECTIVE DATE OF 1996 AMENDMENT Section 1118(b) of Pub. L. 104-188 provided that: "The amendments made by this section shall apply to services performed after December 31, 1995." EFFECTIVE DATE Section 269(e) of Pub. L. 97-248 provided that: "(1) In general. - Except as provided in paragraph (2), the amendments made by this section [enacting this section and amending section 410 of Title 42, The Public Health and Welfare] shall apply to services performed after December 31, 1982. "(2) Subsection (c). - The amendments made by subsection (c) [amending provisions set out as a note under section 3401 of this title] shall take effect on July 1, 1982." RULES AND REGULATIONS Section 269(c)(3) of Pub. L. 97-248 provided that: "Nothing in section 530 of the Revenue Act of 1978 [set out as a note under section 3401 of this title] shall be construed to prohibit the implementation of the amendments made by this section [enacting this section, amending section 410 of Title 42, The Public Health and Welfare, and amending provisions set out as a note under section 3401 of this title]." -End- -CITE- 26 USC Sec. 3509 01/03/2012 (112-90) -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle C - Employment Taxes CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES -HEAD- Sec. 3509. Determination of employer's liability for certain employment taxes -STATUTE- (a) In general If any employer fails to deduct and withhold any tax under chapter 24 or subchapter A of chapter 21 with respect to any employee by reason of treating such employee as not being an employee for purposes of such chapter or subchapter, the amount of the employer's liability for - (1) Withholding taxes Tax under chapter 24 for such year with respect to such employee shall be determined as if the amount required to be deducted and withheld were equal to 1.5 percent of the wages (as defined in section 3401) paid to such employee. (2) Employee social security tax Taxes under subchapter A of chapter 21 with respect to such employee shall be determined as if the taxes imposed under such subchapter were 20 percent of the amount imposed under such subchapter without regard to this subparagraph. (b) Employer's liability increased where employer disregards reporting requirements (1) In general In the case of an employer who fails to meet the applicable requirements of section 6041(a), 6041A, or 6051 with respect to any employee, unless such failure is due to reasonable cause and not willful neglect, subsection (a) shall be applied with respect to such employee - (A) by substituting "3 percent" for "1.5 percent" in paragraph (1); and (B) by substituting "40 percent" for "20 percent" in paragraph (2). (2) Applicable requirements For purposes of paragraph (1), the term "applicable requirements" means the requirements described in paragraph (1) which would be applicable consistent with the employer's treatment of the employee as not being an employee for purposes of chapter 24 or subchapter A of chapter 21. (c) Section not to apply in cases of intentional disregard This section shall not apply to the determination of the employer's liability for tax under chapter 24 or subchapter A of chapter 21 if such liability is due to the employer's intentional disregard of the requirement to deduct and withhold such tax. (d) Special rules For purposes of this section - (1) Determination of liability If the amount of any liability for tax is determined under this section - (A) the employee's liability for tax shall not be affected by the assessment or collection of the tax so determined, (B) the employer shall not be entitled to recover from the employee any tax so determined, and (C) sections (!1) 3402(d) and section 6521 shall not apply. (2) Section not to apply where employer deducts wage but not social security taxes This section shall not apply to any employer with respect to any wages if - (A) the employer deducted and withheld any amount of the tax imposed by chapter 24 on such wages, but (B) failed to deduct and withhold the amount of the tax imposed by subchapter A of chapter 21 with respect to such wages. (3) Section not to apply to certain statutory employees This section shall not apply to any tax under subchapter A of chapter 21 with respect to an individual described in subsection (d)(3) of section 3121 (without regard to whether such individual is described in paragraph (1) or (2) of such subsection). -SOURCE- (Added Pub. L. 97-248, title II, Sec. 270(a), Sept. 3, 1982, 96 Stat. 553; amended Pub. L. 100-647, title II, Sec. 2003(d), Nov. 10, 1988, 102 Stat. 3598; Pub. L. 101-508, title V, Sec. 5130(a)(4), Nov. 5, 1990, 104 Stat. 1388-289.) -MISC1- AMENDMENTS 1990 - Subsec. (d)(3). Pub. L. 101-508 substituted "subsection (d)(3)" for "subsection (d)(4)". 1988 - Subsec. (d)(3). Pub. L. 100-647 substituted "subsection (d)(4)" for "subsection (d)(3)". EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101-508 effective as if included in the enactment of Pub. L. 100-647, Sec. 2003(d), see section 5130(b) of Pub. L. 101-508, set out as a note under section 1402 of this title. EFFECTIVE DATE Section 270(c) of Pub. L. 97-248 provided that: "The amendment made by this section [enacting this section] shall take effect on the date of the enactment of this Act [Sept. 3, 1982], except that such amendments shall not apply to any assessment made before January 1, 1983." -FOOTNOTE- (!1) So in original. Probably should be "section". -End- -CITE- 26 USC Sec. 3510 01/03/2012 (112-90) -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle C - Employment Taxes CHAPTER 25 - GENERAL PROVISIONS RELATING TO EMPLOYMENT TAXES -HEAD- Sec. 3510. Coordination of collection of domestic service employment taxes with collection of income taxes -STATUTE- (a) General rule Except as otherwise provided in this section - (1) returns with respect to domestic service employment taxes shall be made on a calendar year basis, (2) any such return for any calendar year shall be filed on or before the 15th day of the fourth month following the close of the employer's taxable year which begins in such calendar year, and (3) no requirement to make deposits (or to pay installments under section 6157) shall apply with respect to such taxes. (b) Domestic service employment taxes subject to estimated tax provisions (1) In general Solely for purposes of section 6654, domestic service employment taxes imposed with respect to any calendar year shall be treated as a tax imposed by chapter 2 for the taxable year of the employer which begins in such calendar year. (2) Employers not otherwise required to make estimated payments Paragraph (1) shall not apply to any employer for any calendar year if - (A) no credit for wage withholding is allowed under section 31 to such employer for the taxable year of the employer which begins in such calendar year, and (B) no addition to tax would (but for this section) be imposed under section 6654 for such taxable year by reason of section 6654(e). (3) Annualization Under regulations prescribed by the Secretary, appropriate adjustments shall be made in the application of section 6654(d)(2) in respect of the amount treated as tax under paragraph (1). (4) Transitional rule In the case of any taxable year beginning before January 1, 1998, no addition to tax shall be made under section 6654 with respect to any underpayment to the extent such underpayment was created or increased by this section. (c) Domestic service employment taxes For purposes of this section, the term "domestic service employment taxes" means - (1) any taxes imposed by chapter 21 or 23 on remuneration paid for domestic service in a private home of the employer, and (2) any amount withheld from such remuneration pursuant to an agreement under section 3402(p). For purposes of this subsection, the term "domestic service in a private home of the employer" includes domestic service described in section 3121(g)(5). (d) Exception where employer liable for other employment taxes To the extent provided in regulations prescribed by the Secretary, this section shall not apply to any employer for any calendar year if such employer is liable for any tax under this subtitle with respect to remuneration for services other than domestic service in a private home of the employer. (e) General regulatory authority The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section. Such regulations may treat domestic service employment taxes as taxes imposed by chapter 1 for purposes of coordinating the assessment and collection of such employment taxes with the assessment and collection of domestic employers' income taxes. (f) Authority to enter into agreements to collect State unemployment taxes (1) In general The Secretary is hereby authorized to enter into an agreement with any State to collect, as the agent of such State, such State's unemployment taxes imposed on remuneration paid for domestic service in a private home of the employer. Any taxes to be collected by the Secretary pursuant to such an agreement shall be treated as domestic service employment taxes for purposes of this section. (2) Transfers to State account Any amount collected under an agreement referred to in paragraph (1) shall be transferred by the Secretary to the account of the State in the Unemployment Trust Fund. (3) Subtitle F made applicable For purposes of subtitle F, any amount required to be collected under an agreement under paragraph (1) shall be treated as a tax imposed by chapter 23. (4) State For purposes of this subsection, the term "State" has the meaning given such term by section 3306(j)(1). -SOURCE- (Added Pub. L. 103-387, Sec. 2(b)(1), Oct. 22, 1994, 108 Stat. 4073.) -MISC1- PRIOR PROVISIONS A prior section 3510, added Pub. L. 98-21, title I, Sec. 123(b)(1), Apr. 20, 1983, 97 Stat. 88, provided a credit for increased social security employee taxes and railroad retirement tier 1 employee taxes imposed during 1984, prior to repeal by Pub. L. 101-508, title XI, Sec. 11801(a)(42), Nov. 5, 1990, 104 Stat. 1388-521. EFFECTIVE DATE Section 2(b)(3) of Pub. L. 103-387 provided that: "The amendments made by this subsection [enacting this section] shall apply to remuneration paid in calendar years beginning after December 31, 1994." EXPANDED INFORMATION TO EMPLOYERS Section 2(b)(4) of Pub. L. 103-387 provided that: "The Secretary of the Treasury or the Secretary's delegate shall prepare and make available information on the Federal tax obligations of employers with respect to employees performing domestic service in a private home of the employer. Such information shall also include a statement that such employers may have obligations with respect to such employees under State laws relating to unemployment insurance and workers compensation." -End- -CITE- 26 USC Subtitle D - Miscellaneous Excise Taxes 01/03/2012 (112-90) -EXPCITE- TITLE 26 - INTERNAL REVENUE CODE Subtitle D - Miscellaneous Excise Taxes -HEAD- Subtitle D - Miscellaneous Excise Taxes -MISC1- Chapter Sec.(!1) 31. Retail excise taxes 4001 32. Manufacturers excise taxes 4061 33. Facilities and services 4231 34. Taxes on certain insurance policies 4371 35. Taxes on wagering 4401 36. Certain other excise taxes 4451 [37. Repealed.] 38. Environmental taxes 4611 39. Registration-required obligations 4701 40. General provisions relating to occupational taxes 4901 41. Public charities 4911 42. Private foundations; and certain other tax-exempt organizations 4940 43. Qualified pension, etc., plans 4971 44. Real estate investment trusts 4981 45. Provisions relating to expatriated entities 4985 46. Golden parachute payments 4999 47. Certain group health plans 5000 48. Maintenance of minimum essential coverage 5000A 49. Cosmetic services 5000B 50. Foreign procurement 5000C AMENDMENTS 2011 - Pub. L. 111-347, title III, Sec. 301(a)(2), Jan. 2, 2011, 124 Stat. 3666, added item for chapter 50. 2010 - Pub. L. 111-148, title X, Sec. 10907(c), Mar. 23, 2010, 124 Stat. 1020, added item for chapter 49. Pub. L. 111-148, title IX, Sec. 9017(b), Mar. 23, 2010, 124 Stat. 872, which directed amendment of analysis by adding item for chapter 49, was not executed in view of Pub. L. 111-148, title X, Sec. 10907(a), Mar. 23, 2010, 124 Stat. 1020, which provided that the amendments made by section 9017 of Pub. L. 111-148 were deemed null, void, and of no effect. Pub. L. 111-148, title I, Sec. 1501(c), title VI, Sec. 6301(e)(2)(B)(ii), Mar. 23, 2010, 124 Stat. 249, 747, added items for chapters 34 and 48 and struck out former item for chapter 34 "Documentary stamp taxes". 2004 - Pub. L. 108-357, title VIII, Sec. 802(c)(2), Oct. 22, 2004, 118 Stat. 1568, added item for chapter 45. 1990 - Pub. L. 101-508, title XI, Sec. 11801(b)(17), Nov. 5, 1990, 104 Stat. 1388-522, struck out item for chapter 37 "Sugar, coconut and palm oil". 1989 - Pub. L. 101-239, title VI, Sec. 6202(b)(4)(B), title VII, Sec. 7841(d)(4), Dec. 19, 1989, 103 Stat. 2233, 2428, substituted semicolon for comma in item for chapter 42 and struck out "large" after "Certain" in item for chapter 47. 1988 - Pub. L. 100-418, title I, Sec. 1941(b)(3)(A), Aug. 23, 1988, 102 Stat. 1324, struck out item for chapter 45 "Windfall profit tax on domestic crude oil". 1987 - Pub. L. 100-203, title X, Sec. 10712(c)(8), Dec. 22, 1987, 101 Stat. 1330-467, substituted "and certain other tax-exempt organizations" for "black lung benefit trusts" in item for chapter 42. 1986 - Pub. L. 99-509, title IX, Sec. 9319(d)(2), Oct. 21, 1986, 100 Stat. 2012, added item for chapter 47. 1984 - Pub. L. 98-369, div. A, title I, Sec. 67(d)(2), July 18, 1984, 98 Stat. 587, added item for chapter 46. 1983 - Pub. L. 97-424, title V, Sec. 512(b)(2)(B), Jan. 6, 1983, 96 Stat. 2177, substituted "Retail excise taxes" for "Special fuels" in item for chapter 31. 1982 - Pub. L. 97-248, title III, Sec. 310(b)(4)(B), Sept. 3, 1982, 96 Stat. 598, added item for chapter 39. 1980 - Pub. L. 96-510, title II, Sec. 211(b), Dec. 11, 1980, 94 Stat. 2801, added item for chapter 38. Pub. L. 96-223, Sec. 101(a)(2), Apr. 2, 1980, 94 Stat. 250, added item for chapter 45. 1978 - Pub. L. 95-227, Sec. 4(c)(2)(C), Feb. 10, 1978, 92 Stat. 22, inserted ", black lung benefit trusts" after "foundations" in item for chapter 42. 1976 - Pub. L. 94-455, title XIII, Sec. 1307(d)(3)(A), title XVI, Sec. 1605(c), title XIX, Secs. 1904(b)(7)(E), (10)(G), 1952(n)(6), Oct. 4, 1976, 90 Stat. 1728, 1755, 1815, 1818, 1846, substituted "41. Public charities" for "41. Interest equalization tax" added item for chapter 44 and struck out items for chapters "38. Import taxes" and "39. Regulatory taxes". 1974 - Pub. L. 93-406, title II, Sec. 1016(b)(2), Sept. 2, 1974, 88 Stat. 932, added item for chapter 43. 1969 - Pub. L. 91-172, title I, Sec. 101(j)(59), Dec. 30, 1969, 83 Stat. 532, added item for chapter 42. 1964 - Pub. L. 88-563, Sec. 2(b), Sept. 2, 1964, 78 Stat. 841, added item for chapter 41. IMPOSITION OF ANNUAL FEE ON BRANDED PRESCRIPTION PHARMACEUTICAL MANUFACTURERS AND IMPORTERS Pub. L. 111-148, title IX, Sec. 9008, Mar. 23, 2010, 124 Stat. 859, as amended by Pub. L. 111-152, title I, Sec. 1404(a), Mar. 30, 2010, 124 Stat. 1064, provided that: "(a) Imposition of Fee. - "(1) In general. - Each covered entity engaged in the business of manufacturing or importing branded prescription drugs shall pay to the Secretary of the Treasury not later than the annual payment date of each calendar year beginning after 2010 a fee in an amount determined under subsection (b). "(2) Annual payment date. - For purposes of this section, the term 'annual payment date' means with respect to any calendar year the date determined by the Secretary, but in no event later than September 30 of such calendar year. "(b) Determination of Fee Amount. - "(1) In general. - With respect to each covered entity, the fee under this section for any calendar year shall be equal to an amount that bears the same ratio to the applicable amount as - "(A) the covered entity's branded prescription drug sales taken into account during the preceding calendar year, bear to "(B) the aggregate branded prescription drug sales of all covered entities taken into account during such preceding calendar year. "(2) Sales taken into account. - For purposes of paragraph (1), the branded prescription drug sales taken into account during any calendar year with respect to any covered entity shall be determined in accordance with the following table: "With respect to a covered entity's aggregate The percentage branded prescription drug sales during the of such sales calendar year that are: taken into account is: -------------------------------------------------------------------- Not more than $5,000,000 0 percent More than $5,000,000 but not more than 10 percent $125,000,000 More than $125,000,000 but not more than 40 percent $225,000,000 More than $225,000,000 but not more than 75 percent $400,000,000 More than $400,000,000 100 percent. -------------------------------------------------------------------- "(3) Secretarial determination. - The Secretary of the Treasury shall calculate the amount of each covered entity's fee for any calendar year under paragraph (1). In calculating such amount, the Secretary of the Treasury shall determine such covered entity's branded prescription drug sales on the basis of reports submitted under subsection (g) and through the use of any other source of information available to the Secretary of the Treasury. "(4) Applicable amount. - For purposes of paragraph (1), the applicable amount shall be determined in accordance with the following table: "Calendar year Applicable amount 2011 $2,500,000,000 2012 $2,800,000,000 2013 $2,800,000,000 2014 $3,000,000,000 2015 $3,000,000,000 2016 $3,000,000,000 2017 $4,000,000,000 2018 $4,100,000,000 2019 and thereafter $2,800,000,000. -------------------------------------------------------------------- "(c) Transfer of Fees to Medicare Part B Trust Fund. - There is hereby appropriated to the Federal Supplementary Medical Insurance Trust Fund established under section 1841 of the Social Security Act [42 U.S.C. 1395t] an amount equal to the fees received by the Secretary of the Treasury under subsection (a). "(d) Covered Entity. - "(1) In general. - For purposes of this section, the term 'covered entity' means any manufacturer or importer with gross receipts from branded prescription drug sales. "(2) Controlled groups. - "(A) In general. - For purposes of this subsection, all persons treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986 or subsection (m) or (o) of section 414 of such Code shall be treated as a single covered entity. "(B) Inclusion of foreign corporations. - For purposes of subparagraph (A), in applying subsections (a) and (b) of section 52 of such Code to this section, section 1563 of such Code shall be applied without regard to subsection (b)(2)(C) thereof. "(3) Joint and several liability. - If more than one person is liable for payment of the fee under subsection (a) with respect to a single covered entity by reason of the application of paragraph (2), all such persons shall be jointly and severally liable for payment of such fee. "(e) Branded Prescription Drug Sales. - For purposes of this section - "(1) In general. - The term 'branded prescription drug sales' means sales of branded prescription drugs to any specified government program or pursuant to coverage under any such program. "(2) Branded prescription drugs. - "(A) In general. - The term 'branded prescription drug' means - "(i) any prescription drug the application for which was submitted under section 505(b) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(b)), or "(ii) any biological product the license for which was submitted under section 351(a) of the Public Health Service Act (42 U.S.C. 262(a)). "(B) Prescription drug. - For purposes of subparagraph (A)(i), the term 'prescription drug' means any drug which is subject to section 503(b) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 353(b)). "(3) Exclusion of orphan drug sales. - The term 'branded prescription drug sales' shall not include sales of any drug or biological product with respect to which a credit was allowed for any taxable year under section 45C of the Internal Revenue Code of 1986. The preceding sentence shall not apply with respect to any such drug or biological product after the date on which such drug or biological product is approved by the Food and Drug Administration for marketing for any indication other than the treatment of the rare disease or condition with respect to which such credit was allowed. "(4) Specified government program. - The term 'specified government program' means - "(A) the Medicare Part D program under part D of title XVIII of the Social Security Act [42 U.S.C. 1395w-101 et seq.], "(B) the Medicare Part B program under part B of title XVIII of the Social Security Act [42 U.S.C. 1395j et seq.], "(C) the Medicaid program under title XIX of the Social Security Act [42 U.S.C. 1396 et seq.], "(D) any program under which branded prescription drugs are procured by the Department of Veterans Affairs, "(E) any program under which branded prescription drugs are procured by the Department of Defense, or "(F) the TRICARE retail pharmacy program under section 1074g of title 10, United States Code. "(f) Tax Treatment of Fees. - The fees imposed by this section - "(1) for purposes of subtitle F of the Internal Revenue Code of 1986, shall be treated as excise taxes with respect to which only civil actions for refund under procedures of such subtitle shall apply, and "(2) for purposes of section 275 of such Code, shall be considered to be a tax described in section 275(a)(6). "(g) Reporting Requirement. - Not later than the date determined by the Secretary of the Treasury following the end of any calendar year, the Secretary of Health and Human Services, the Secretary of Veterans Affairs, and the Secretary of Defense shall report to the Secretary of the Treasury, in such manner as the Secretary of the Treasury prescribes, the total branded prescription drug sales for each covered entity with respect to each specified government program under such Secretary's jurisdiction using the following methodology: "(1) Medicare part d program. - The Secretary of Health and Human Services shall report, for each covered entity and for each branded prescription drug of the covered entity covered by the Medicare Part D program, the product of - "(A) the per-unit ingredient cost, as reported to the Secretary of Health and Human Services by prescription drug plans and Medicare Advantage prescription drug plans, minus any per-unit rebate, discount, or other price concession provided by the covered entity, as reported to the Secretary of Health and Human Services by the prescription drug plans and Medicare Advantage prescription drug plans, and "(B) the number of units of the branded prescription drug paid for under the Medicare Part D program. "(2) Medicare part b program. - The Secretary of Health and Human Services shall report, for each covered entity and for each branded prescription drug of the covered entity covered by the Medicare Part B program under section 1862(a) of the Social Security Act [42 U.S.C. 1395y(a)], the product of - "(A) the per-unit average sales price (as defined in section 1847A(c) of the Social Security Act [42 U.S.C. 1395w-3a(c)]) or the per-unit Part B payment rate for a separately paid branded prescription drug without a reported average sales price, and "(B) the number of units of the branded prescription drug paid for under the Medicare Part B program. The Centers for Medicare and Medicaid Services shall establish a process for determining the units and the allocated price for purposes of this section for those branded prescription drugs that are not separately payable or for which National Drug Codes are not reported. "(3) Medicaid program. - The Secretary of Health and Human Services shall report, for each covered entity and for each branded prescription drug of the covered entity covered under the Medicaid program, the product of - "(A) the per-unit ingredient cost paid to pharmacies by States for the branded prescription drug dispensed to Medicaid beneficiaries, minus any per-unit rebate paid by the covered entity under section 1927 of the Social Security Act [42 U.S.C. 1396r-8] and any State supplemental rebate, and "(B) the number of units of the branded prescription drug paid for under the Medicaid program. "(4) Department of veterans affairs programs. - The Secretary of Veterans Affairs shall report, for each covered entity and for each branded prescription drug of the covered entity the total amount paid for each such branded prescription drug procured by the Department of Veterans Affairs for its beneficiaries. "(5) Department of defense programs and tricare. - The Secretary of Defense shall report, for each covered entity and for each branded prescription drug of the covered entity, the sum of - "(A) the total amount paid for each such branded prescription drug procured by the Department of Defense for its beneficiaries, and "(B) for each such branded prescription drug dispensed under the TRICARE retail pharmacy program, the product of - "(i) the per-unit ingredient cost, minus any per-unit rebate paid by the covered entity, and "(ii) the number of units of the branded prescription drug dispensed under such program. "(h) Secretary. - For purposes of this section, the term 'Secretary' includes the Secretary's delegate. "(i) Guidance. - The Secretary of the Treasury shall publish guidance necessary to carry out the purposes of this section. "(j) Effective Date. - This section shall apply to calendar years beginning after December 31, 2010. "(k) Conforming Amendment. - [Amended section 1395t of Title 42, The Public Health and Welfare.]" [Pub. L. 111-152, title I, Sec. 1404(b), Mar. 30, 2010, 124 Stat. 1064, provided that: "The amendments made by this section [amending section 9008 of Pub. L. 111-148, set out above] shall take effect as if included in section 9008 of the Patient Protection and Affordable Care Act [Pub. L. 111-148]."] IMPOSITION OF ANNUAL FEE ON MEDICAL DEVICE MANUFACTURERS AND IMPORTERS Pub. L. 111-148, title IX, Sec. 9009, Mar. 23, 2010, 124 Stat. 862, as amended by Pub. L. 111-148, title X, Sec. 10904(a), Mar. 23, 2010, 124 Stat. 1016, provided for the imposition of an annual fee on medical device manufacturers and importers in calendar years beginning after 2010, prior to repeal by Pub. L. 111-152, title I, Sec. 1405(d), Mar. 30, 2010, 124 Stat. 1065. [Pub. L. 111-152, title I, Sec. 1405(d), Mar. 30, 2010, 124 Stat. 1065, provided that the repeal of section 9009 of Pub. L. 111-148, formerly set out above, is effective as of Mar. 23, 2010.] IMPOSITION OF ANNUAL FEE ON HEALTH INSURANCE PROVIDERS Pub. L. 111-148, title IX, Sec. 9010, title X, Sec. 10905(a)-(f), Mar. 23, 2010, 124 Stat. 865, 1017-1019, as amended by Pub. L. 111- 152, title I, Sec. 1406(a), Mar. 30, 2010, 124 Stat. 1065, provided that: "(a) Imposition of Fee. - "(1) In general. - Each covered entity engaged in the business of providing health insurance shall pay to the Secretary not later than the annual payment date of each calendar year beginning after 2013 a fee in an amount determined under subsection (b). "(2) Annual payment date. - For purposes of this section, the term 'annual payment date' means with respect to any calendar year the date determined by the Secretary, but in no event later than September 30 of such calendar year. "(b) Determination of Fee Amount. - "(1) In general. - With respect to each covered entity, the fee under this section for any calendar year shall be equal to an amount that bears the same ratio to the applicable amount as - "(A) the covered entity's net premiums written with respect to health insurance for any United States health risk that are taken into account during the preceding calendar year, bears to "(B) the aggregate net premiums written with respect to such health insurance of all covered entities that are taken into account during such preceding calendar year. "(2) Amounts taken into account. - For purposes of paragraph (1) - "(A) In general. - The net premiums written with respect to health insurance for any United States health risk that are taken into account during any calendar year with respect to any covered entity shall be determined in accordance with the following table: "With respect to a covered entity's net The percentage premiums written during the calendar year that of net premiums are: written that are taken into account is: -------------------------------------------------------------------- Not more than $25,000,000 0 percent More than $25,000,000 but not more than 50 percent $50,000,000 More than $50,000,000 100 percent. -------------------------------------------------------------------- "(B) Partial exclusion for certain exempt activities. - After the application of subparagraph (A), only 50 percent of the remaining net premiums written with respect to health insurance for any United States health risk that are attributable to the activities (other than activities of an unrelated trade or business as defined in section 513 of the Internal Revenue Code of 1986) of any covered entity qualifying under paragraph (3), (4), (26), or (29) of section 501(c) of such Code and exempt from tax under section 501(a) of such Code shall be taken into account. "(3) Secretarial determination. - The Secretary shall calculate the amount of each covered entity's fee for any calendar year under paragraph (1). In calculating such amount, the Secretary shall determine such covered entity's net premiums written with respect to any United States health risk on the basis of reports submitted by the covered entity under subsection (g) and through the use of any other source of information available to the Secretary. "(c) Covered Entity. - "(1) In general. - For purposes of this section, the term 'covered entity' means any entity which provides health insurance for any United States health risk during the calendar year in which the fee under this section is due. "(2) Exclusion. - Such term does not include - "(A) any employer to the extent that such employer self- insures its employees' health risks, "(B) any governmental entity, "(C) any entity - "(i) which is incorporated as a nonprofit corporation under a State law, "(ii) no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in section 501(h) of the Internal Revenue Code of 1986), and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office, and "(iii) more than 80 percent of the gross revenues of which is received from government programs that target low-income, elderly, or disabled populations under titles XVIII, XIX, and XXI of the Social Security Act [42 U.S.C. 1395 et seq., 1396 et seq., 1397aa et seq.], and "(D) any entity which is described in section 501(c)(9) of such Code and which is established by an entity (other than by an employer or employers) for purposes of providing health care benefits. "(3) Controlled groups. - "(A) In general. - For purposes of this subsection, all persons treated as a single employer under subsection (a) or (b) of section 52 of the Internal Revenue Code of 1986 or subsection (m) or (o) of section 414 of such Code shall be treated as a single covered entity (or employer for purposes of paragraph (2)). "(B) Inclusion of foreign corporations. - For purposes of subparagraph (A), in applying subsections (a) and (b) of section 52 of such Code to this section, section 1563 of such Code shall be applied without regard to subsection (b)(2)(C) thereof. If any entity described in subparagraph (C) or (D) of paragraph (2) is treated as a covered entity by reason of the application of the preceding sentence, the net premiums written with respect to health insurance for any United States health risk of such entity shall not be taken into account for purposes of this section. "(4) Joint and several liability. - If more than one person is liable for payment of the fee under subsection (a) with respect to a single covered entity by reason of the application of paragraph (3), all such persons shall be jointly and severally liable for payment of such fee. "(d) United States Health Risk. - For purposes of this section, the term 'United States health risk' means the health risk of any individual who is - "(1) a United States citizen, "(2) a resident of the United States (within the meaning of section 7701(b)(1)(A) of the Internal Revenue Code of 1986), or "(3) located in the United States, with respect to the period such individual is so located. "(e) Applicable Amount. - For purposes of subsection (b)(1) - "(1) Years before 2019. - In the case of calendar years beginning before 2019, the applicable amount shall be determined in accordance with the following table: "Calendar year Applicable amount 2014 $8,000,000,000 2015 $11,300,000,000 2016 $11,300,000,000 2017 $13,900,000,000 2018 $14,300,000,000. -------------------------------------------------------------------- "(2) Years after 2018. - In the case of any calendar year beginning after 2018, the applicable amount shall be the applicable amount for the preceding calendar year increased by the rate of premium growth (within the meaning of section 36B(b)(3)(A)(ii) of the Internal Revenue Code of 1986) for such preceding calendar year. "(f) Tax Treatment of Fees. - The fees imposed by this section - "(1) for purposes of subtitle F of the Internal Revenue Code of 1986, shall be treated as excise taxes with respect to which only civil actions for refund under procedures of such subtitle shall apply, and "(2) for purposes of section 275 of such Code shall be considered to be a tax described in section 275(a)(6). "(g) Reporting Requirement. - "(1) In general. - Not later than the date determined by the Secretary following the end of any calendar year, each covered entity shall report to the Secretary, in such manner as the Secretary prescribes, the covered entity's net premiums written with respect to health insurance for any United States health risk for such calendar year. "(2) Penalty for failure to report. - "(A) In general. - In the case of any failure to make a report containing the information required by paragraph (1) on the date prescribed therefor (determined with regard to any extension of time for filing), unless it is shown that such failure is due to reasonable cause, there shall be paid by the covered entity failing to file such report, an amount equal to - "(i) $10,000, plus "(ii) the lesser of - "(I) an amount equal to $1,000, multiplied by the number of days during which such failure continues, or "(II) the amount of the fee imposed by this section for which such report was required. "(B) Treatment of penalty. - The penalty imposed under subparagraph (A) - "(i) shall be treated as a penalty for purposes of subtitle F of the Internal Revenue Code of 1986, "(ii) shall be paid on notice and demand by the Secretary and in the same manner as tax under such Code, and "(iii) with respect to which only civil actions for refund under procedures of such subtitle F shall apply. "(3) Accuracy-related penalty. - "(A) In general. - In the case of any understatement of a covered entity's net premiums written with respect to health insurance for any United States health risk for any calendar year, there shall be paid by the covered entity making such understatement, an amount equal to the excess of - "(i) the amount of the covered entity's fee under this section for the calendar year the Secretary determines should have been paid in the absence of any such understatement, over "(ii) the amount of such fee the Secretary determined based on such understatement. "(B) Understatement. - For purposes of this paragraph, an understatement of a covered entity's net premiums written with respect to health insurance for any United States health risk for any calendar year is the difference between the amount of such net premiums written as reported on the return filed by the covered entity under paragraph (1) and the amount of such net premiums written that should have been reported on such return. "(C) Treatment of penalty. - The penalty imposed under subparagraph (A) shall be subject to the provisions of subtitle F of the Internal Revenue Code of 1986 that apply to assessable penalties imposed under chapter 68 of such Code. "(4) Treatment of information. - Section 6103 of the Internal Revenue Code of 1986 shall not apply to any information reported under this subsection. "(h) Additional Definitions. - For purposes of this section - "(1) Secretary. - The term 'Secretary' means the Secretary of the Treasury or the Secretary's delegate. "(2) United states. - The term 'United States' means the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the possessions of the United States. "(3) Health insurance. - The term 'health insurance' shall not include - "(A) any insurance coverage described in paragraph (1)(A) or (3) of section 9832(c) of the Internal Revenue Code of 1986, "(B) any insurance for long-term care, or "(C) any medicare supplemental health insurance (as defined in section 1882(g)(1) of the Social Security Act [42 U.S.C. 1395ss(g)(1)]). "(i) Guidance. - The Secretary shall publish guidance necessary to carry out the purposes of this section and shall prescribe such regulations as are necessary or appropriate to prevent avoidance of the purposes of this section, including inappropriate actions taken to qualify as an exempt entity under subsection (c)(2). "(j) Effective Date. - This section shall apply to calendar years beginning after December 31, 2013." [Pub. L. 111-152, title I, Sec. 1406(a)(3)(C), Mar. 30, 2010, 124 Stat. 1065, which directed amendment of section 9010(c) of Pub. L. 111-148, set out above, by substituting "subparagraph (C) or (D)" for "subparagraph (C)(i)(I), (D)(i)(I), or (E)(i)" in par. (3)(A), was executed by making the substitution in concluding provisions of par. (3), to reflect the probable intent of Congress.] [Pub. L. 111-152, title I, Sec. 1406(b), Mar. 30, 2010, 124 Stat. 1067, provided that: "The amendments made by this section [amending section 9010 of Pub. L. 111-148, set out above] shall take effect as if included in section 9010 of the Patient Protection and Affordable Care Act [Pub. L. 111-148]."] [Pub. L. 111-148, title X, Sec. 10905(g), Mar. 23, 2010, 124 Stat. 1019, provided that: "The amendments made by this section [amending section 9010 of Pub. L. 111-148, set out above] shall take effect as if included in the enactment of section 9010."] -FOOTNOTE- (!1) Section numbers editorially supplied. -End-