(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).
(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)
section 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
(Added [Pub. L. 97–248, title II, § 270(a)], Sept. 3, 1982, [96 Stat. 553]; amended [Pub. L. 100–647, title II, § 2003(d)], Nov. 10, 1988, [102 Stat. 3598]; [Pub. L. 101–508, title V, § 5130(a)(4)], Nov. 5, 1990, [104 Stat. 1388–289]; [Pub. L. 115–141, div. U, title IV, § 401(a)(218)], Mar. 23, 2018, [132 Stat. 1194].)