[Federal Register Volume 59, Number 131 (Monday, July 11, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16478]
[[Page Unknown]]
[Federal Register: July 11, 1994]
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1, 31 and 40
[IA-03-94]
RIN 1545-AS79
Federal Tax Deposits by Electronic Funds Transfer
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross reference to temporary
regulations and notice of public hearing.
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SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS is issuing temporary regulations that provide
guidance relating to the deposit of taxes by electronic funds transfer
under section 6302(h) of the Internal Revenue Code. The text of the
temporary regulations also serves as the comment document for this
notice of proposed rulemaking. This document also provides notice of a
public hearing on these proposed regulations.
DATES: Written comments must be received by September 12, 1994.
Outlines of topics to be discussed at the public hearing scheduled for
October 3, 1994, beginning at 10:00 a.m. must be received by September
12, 1994.
ADDRESSES: Send submissions to: CC:DOM:CORP:T:R (IA-03-94), room 5228,
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington,
DC 20044. In the alternative, submissions may be hand delivered between
the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:T:R (IA-03-94),
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue, NW,
Washington, DC. The public hearing will be held in the IRS Auditorium.
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Vincent G.
Surabian, 202-622-6232 (not a toll-free number). Concerning submissions
and the public hearing, Michael Slaughter 202-622-7190 (not a toll-free
number).
SUPPLEMENTARY INFORMATION:
Background
The temporary regulations (TD 8553) published in the Rules and
Regulations section of this issue of the Federal Register contain
amendments to the Income Tax Regulations (26 CFR part 1), the
Regulations on Employment Taxes and Collection of Income Tax at the
Source (26 CFR part 31), and the Excise Tax Procedural Regulations (26
CFR part 40). These amendments relate to the deposits of taxes by
electronic funds transfer. The final regulations that will result from
the regulations proposed in this notice would be based on the text of
the temporary regulations and would provide rules for the gradual
phase-in of the requirement for taxpayers to deposit certain taxes by
electronic funds transfer.
The text of those temporary regulations also serves as the text of
these proposed regulations. The preamble to the temporary regulations
explains these proposed regulations.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in EO 12866. 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) and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do
not apply to these rules and, therefore, a Regulatory Flexibility
Analysis is not required. Pursuant to section 7805(f) of the Internal
Revenue Code, a copy of this notice of proposed rulemaking will be
submitted to the Chief Counsel for Advocacy of the Small Business
Administration for comment on its impact on small business.
Comments and Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written comments (preferably a
signed original and eight (8) copies) that are timely submitted to the
IRS. All comments will be available for public inspection and copying.
A public hearing has been scheduled for October 3, 1994, beginning
at 10:00 a.m. at the IRS Auditorium. Because of access restrictions,
visitors will not be admitted beyond the building lobby more than 15
minutes before the hearing starts.
The rules of 26 CFR 601.601(a)(3) apply to the hearing.
Persons who wish to present oral comments at the hearing must
submit written comments by September 12, 1994, and submit an outline of
the topics to be discussed and the time to be devoted to each topic by
September 12, 1994.
A period of 10 minutes will be allotted to each person for making
comments.
An agenda showing the scheduling of the speakers will be prepared
after the deadline for receiving comments has passed. Copies of the
agenda will be available free of charge at the hearing.
Drafting Information
The principal author of these regulations is Vincent G. Surabian,
Office of the Assistant Chief Counsel (Income Tax & Accounting), IRS.
However, other personnel from the IRS and Treasury Department
participated in their development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 31
Employment taxes, Income taxes, Penalties, Pensions, Railroad
retirement, Reporting and recordkeeping requirements, Social Security,
Unemployment compensation.
26 CFR Part 40
Excise taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR parts 1, 31 and 40 are proposed to be amended
as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 is amended by
removing the entry ``Section 1.6302-1(a)'' and adding entries in
numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.6302-1 also issued under 26 U.S.C. 6302 (c) and (h).
Sections 1.6302-2 and 1.6302-3 also issued under 26 U.S.C. 6302(h).
* * *
Par. 2. Section 1.6302-1 is amended as follows:
1. The heading for paragraph (b) is revised.
2. The text of paragraph (b) is redesignated paragraph (b)(1) and a
heading for (b)(1) is added.
3. Paragraph (b)(2) is added.
4. The revised and added provisions read as follows:
Sec. 1.6302-1 Use of Government depositaries in connection with
corporation income and estimated income taxes and certain taxes of tax-
exempt organizations.
* * * * *
(b) Manner of deposit--(1) Deposit by Federal tax deposit coupon. *
* *
(2) Deposit by electronic funds transfer. For the requirement to
deposit corporation income and estimated income taxes and certain taxes
of tax-exempt organizations by electronic funds transfer, see
Sec. 31.6302-1T(h) of this chapter. A taxpayer not required to deposit
by electronic funds transfer pursuant to Sec. 31.6302-1T(h) of this
chapter remains subject to the rules of Sec. 1.6302-(b)(1).
* * * * *
Par. 3. Section 1.6302-2 is amended as follows:
1. The heading for paragraph (b) is revised.
2. Paragraph (c) is redesignated paragraph (b)(6).
3. A new paragraph (c) is added.
4. The revised and added provisions read as follows:
Sec. 1.6302-2 Use of Government depositaries for payment of tax
withheld on nonresident aliens and foreign corporations.
* * * * *
(b) Deposits by Federal tax deposit coupon. * * *
(c) Deposits by electronic funds transfer. For the requirement to
deposit taxes withheld on nonresident aliens and foreign corporations
by electronic funds transfer, see Sec. 31.6302-1T(h) of this chapter. A
taxpayer not required to deposit by electronic funds transfer pursuant
to Sec. 31.6302-1T(h) of this chapter remains subject to the rules of
Sec. 1.6302-2(b).
* * * * *
Par. 4. In Sec. 1.6302-3, paragraph (c) is revised to read as
follows:
Sec. 1.6302-3 Use of Government depositaries in connection with
estimated taxes of certain trusts.
* * * * *
(c) Cross-references. For further guidance and instructions for
certain banks and financial institutions acting as fiduciaries with
respect to taxable trusts, see Revenue Procedure 89-49, 1989-2 C.B. 615
(see Sec. 601.601(d)(2) of this chapter) or any successor revenue
procedure. For the requirement to deposit estimated tax payments of
taxable trusts by electronic funds transfer, see Sec. 31.6302-1T(h) of
this chapter.
PART 31--EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE
Par. 5. The authority citation for part 31 is amended by removing
the entry ``Sections 31.6302-1 through 31.6302-3'' and adding entries
in numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Sections 31.6302-1 through 31.6302-3 also issued under 26 U.S.C.
6302(a), (c) and (h). * * *
Section 31.6302(c)-3 also issued under 26 U.S.C. 6302(h).
Par. 6. In Sec. 31.6302-1, paragraph (h) is redesignated paragraph
(i), and new paragraph (h) is added to read as follows:
Sec. 31.6302-1 Federal tax deposit rules for withheld income taxes and
taxes under the Federal Insurance Contributions Act (FICA) attributable
to payments made after December 31, 1992.
[The text of proposed paragraph (h) is the same as the text of
Sec. 31.6302-1T(h) published elsewhere in this issue of the Federal
Register].
Par. 7. Section 31.6302(c)-3 is amended as follows:
1. The heading for paragraph (b) is revised.
2. Paragraph (c) is revised.
3. Paragraph (d) is added.
4. The revised and added provisions read as follows:
Sec. 31.6302(c)-3 Use of Government depositaries in connection with
tax under the Federal Unemployment Tax Act.
* * * * *
(b) Manner of deposit--deposits required to be made by Federal tax
deposit (FTD) coupon. * * *
(c) Manner of deposit--deposits required to be made by electronic
funds transfer. For the requirement to deposit tax under the Federal
Unemployment Tax Act by electronic funds transfer, see Sec. 31.6302-
1T(h). A taxpayer not required to deposit by electronic funds transfer
pursuant to Sec. 31.6302-1T(h) remains subject to the rules of
Sec. 31.6302(c)-3(b).
(d) Effective date. The provisions of paragraphs (a) and (b) of
this section apply with respect to calendar quarters beginning after
December 31, 1969. The provisions of paragraph (c) of this section
apply with respect to calendar quarters beginning on or after January
1, 1995.
PART 40--EXCISE TAX PROCEDURAL REGULATIONS
Par. 8. The authority citation for part 40 is amended by removing
the entry ``Sections 40.6302(c)-1, 40.6302(c)-2, 40.6302(c)-3 and
40.6302(c)-4'' and adding entries in numerical order to read as
follows:
Authority: 26 U.S.C. 7805 * * *
Section 40.6302(c)-1 also issued under 26 U.S.C. 6302 (a) and (h).
Sections 40.6302(c)-2, 40.6302(c)-3 and 40.6302(c)-4 also issued
under 26 U.S.C. 6302(a).
Par. 9. Section 40.6302(c)-1 is amended as follows:
1. The text of paragraph (d) is redesignated paragraph (d)(1) and a
paragraph heading is added for (d)(1).
2. Paragraph (d)(2) is added.
3. The added provisions read as follows:
Sec. 40.6302(c)-1 Use of Government depositaries.
* * * * *
(d) Remittance of deposits--(1) Deposits by Federal tax deposit
coupon. * * *
(2) Deposits by electronic funds transfer. For the requirement to
deposit excise taxes by electronic funds transfer, see Sec. 31.6302-
1T(h) of this chapter. A taxpayer not required to deposit by electronic
funds transfer pursuant to Sec. 31.6302-1T(h) of this chapter remains
subject to the rules of Sec. 40.6302(c)-1(d)(1).
* * * * *
Michael P. Dolan,
Acting Commissioner of Internal Revenue.
[FR Doc. 94-16478 Filed 7-6-94; 1:01 pm]
BILLING CODE 4830-01-U