[Federal Register Volume 79, Number 179 (Tuesday, September 16, 2014)]
[Rules and Regulations]
[Pages 55362-55363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22036]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 31
[TD 9692]
RIN 1545-BL92
Authority for Voluntary Withholding on Other Payments
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations and removal of temporary regulations.
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SUMMARY: This document contains final regulations under section 3402(p)
of the Internal Revenue Code (Code) relating to voluntary withholding
agreements. The final regulations allow the Secretary to issue guidance
in the Internal Revenue Bulletin to describe payments for which the
Secretary finds that income tax withholding under a voluntary
withholding agreement would be appropriate. The regulations affect
persons making and persons receiving payments for which the IRS issues
subsequent guidance authorizing the parties to enter into voluntary
withholding agreements.
DATES: Effective Date: These regulations are effective on September 16,
2014.
Applicability Date: For date of applicability, see Sec.
31.3402(p)-1(d).
FOR FURTHER INFORMATION CONTACT: Linda L. Conway-Hataloski at (202)
317-6798 (not a toll-free number).
[[Page 55363]]
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments to 26 CFR part 31 under section
3402(p) of the Code. On November 29, 2013, Treasury and the IRS
published in the Federal Register temporary regulations (TD 9646) at 78
FR 71476 and a notice of proposed rulemaking by cross-reference to
temporary regulations (REG-146620-13, 78 FR 71542) under section
3402(p) of the Code relating to voluntary withholding.
Two written comments responding to the notice of proposed
rulemaking were received but neither comment addressed issues relevant
to the notice of proposed rulemaking or the temporary regulations. No
public hearing was requested or held. Accordingly, the proposed
regulations (which cross referenced the temporary regulations) are
adopted without change as final regulations.
Explanation of Provisions
These final regulations under section 31.3402(p)-1 adopt without
change the proposed regulations and the temporary regulations that
allow the Secretary to describe other payments subject to voluntary
withholding agreements in guidance published in the Internal Revenue
Bulletin (IRB). Similarly to the proposed and the temporary
regulations, these final regulations also provide that the IRB guidance
will set forth requirements regarding the form and duration of the
voluntary withholding agreement specific to the type of payment from
which withholding is authorized.
Special Analyses
It has been determined that this Treasury decision is not a
significant regulatory action as defined in Executive Order 12866, as
supplemented by Executive Order 13563. Therefore, a regulatory
assessment is not required. It also has been determined that section
553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does
not apply to these regulations, and because the regulations do not
impose a collection of information on small entities, the Regulatory
Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to
section 7805(f) of the Code, these regulations have been submitted to
the Chief Counsel for Advocacy of the Small Business Administration for
comment on their impact on small business, and no comments were
received.
Drafting Information
The principal author of these regulations is Linda L. Conway-
Hataloski, Office of Division Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities). However, personnel from other offices
of the IRS and Treasury participated in their development.
List of Subjects in 26 CFR Part 31
Employment taxes, Income taxes, Penalties, Pensions, Railroad
retirement, Reporting and recordkeeping requirements, Social security,
Unemployment compensation.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 31 is amended as follows:
PART 31--EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE
0
Paragraph 1. The authority citation for part 31 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 31.3402(p)-1 is amended by:
0
1. Revising the headings of paragraphs (a) and (b).
0
2. Removing the language ``3402(b)'' in the first sentence and
``3402(p)'' in the third sentence of paragraph (a) and ``3402(p)'' in
the five places that it appears in paragraph (b) and adding
``3402(p)(3)(A)'' in their place.
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3. Adding paragraphs (c) and (d).
The revisions and additions read as follows:
Sec. 31.3402(p)-1 Voluntary Withholding Agreements.
(a) Employer-employee agreement. * * *
(b) Form and duration of employer-employee agreement. * * *
(c) Other payments. The Secretary may issue guidance by publication
in the Internal Revenue Bulletin (IRB) (which will be available at
www.IRS.gov) describing other payments for which withholding under a
voluntary withholding agreement would be appropriate and authorizing
payors to agree to withhold income tax on such payments if requested by
the payee. Requirements regarding the form and duration of voluntary
withholding agreements authorized by this paragraph (c) will be
provided in the IRB guidance issued regarding specific types of
payments.
(d) Effective/applicability date. (1) This section applies on and
after September 16, 2014.
Sec. 31.3402(p)-1T [Removed]
0
Par. 3. Section 31.3402(p)-1T is removed.
John Dalrymple,
Deputy Commissioner for Services and Enforcement.
Approved: September 8, 2014.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2014-22036 Filed 9-15-14; 8:45 am]
BILLING CODE 4830-01-P