To amend the Internal Revenue Code of 1986 to clarify liability for certain employment taxes.

Amends the Internal Revenue Code to provide that an employer's treatment of employees, or employees in substantially similar positions, as being employees for certain periods and not being employees for other periods shall not be treated as indicative of any intentional disregard of the requirement to deduct and withhold employment taxes.

Sets forth the circumstances under which employment tax liability is terminated for periods before December 31, 1994. Declares that an employer shall be treated as having a reasonable basis for not treating an employee as an employee for a period if such treatment was based on: (1) judicial precedent, published rulings, technical advice, or a letter ruling; (2) longstanding recognized practice of a significant segment of the industry; or (3) some other demonstrable manner.

Prohibits a refund or credit of any overpayment of an employment tax resulting from the application of this Act.