[Federal Register Volume 75, Number 114 (Tuesday, June 15, 2010)]
[Proposed Rules]
[Pages 33740-33741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14396]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 40 and 49
[REG-112841-10]
RIN 1545-BJ40
Indoor Tanning Services; Cosmetic Services; Excise Taxes
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations.
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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 on the indoor tanning services excise tax imposed by the
Patient Protection and Affordable Care Act. These regulations affect
users and providers of indoor tanning services. The text of the
temporary regulations also serves as the text of the proposed
regulations.
DATES: Written and electronic comments and requests for a public
hearing must be received by September 13, 2010.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-112841-10), Room
5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered to:
CC:PA:LPD:PR Monday through Friday between the hours of 8 a.m. and 4
p.m. to: CC:PA:LPD:PR (REG-112841-10), Courier's Desk, Internal Revenue
Service, 1111 Constitution Avenue, NW., Washington, DC, or sent
electronically via the Federal eRulemaking Portal at http://www.regulations.gov (REG-112841-10).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Taylor Cortright, (202) 622-3130; concerning submissions of comments
and requests for a public hearing, Regina Johnson, (202) 622-7180 (not
toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information contained in this notice of proposed
rulemaking has been approved by the Office of Management and Budget in
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d))
and assigned control number 1545-2177. Comments on the collection of
information should be sent to the Office of Management and Budget,
Attn: Desk Officer for the Department of the Treasury, Office of
Information and Regulatory Affairs, Washington, DC 20503, with copies
to the Internal Revenue Service, Attn: IRS Reports Clearance Officer,
SE:W:CAR:MP:T:T:SP, Washington, DC 20224. Comments on the collection of
information should be received by September 13, 2010. Comments are
specifically requested concerning:
Whether the proposed collection of information is necessary for the
proper performance of the functions of the Internal Revenue Service,
including whether the information will have practical utility;
The accuracy of the estimated burden associated with the proposed
collection of information;
How the quality, utility, and clarity of the information to be
collected may be enhanced;
How the burden of complying with the proposed collections of
information may be minimized, including through the application of
automated collection techniques or other forms of information
technology; and
Estimates of capital or start-up costs of operation, maintenance,
and purchase of service to provide information.
The collection of information in this proposed regulation is in
proposed Sec. 49.5000B-1(d)(2). This information is required to be
maintained in order for providers of indoor tanning services to
accurately calculate the tax on indoor tanning services when those
services are offered with other goods and services. The likely
recordkeepers are providers of indoor tanning services.
Estimated total average annual recordkeeping burden: 10,000 hours.
Estimated average annual burden hours per recordkeeper: 30 minutes.
Estimated number of recordkeepers: 20,000.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid control number assigned by the Office of
Management and Budget.
Books or records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and
tax return information are confidential, as required by 26 U.S.C. 6103.
Background
This document contains proposed amendments to the Excise Tax
Procedural Regulations (26 CFR part 40) and the Facilities and Services
Excise Tax Regulations (26 CFR part 49) under section 5000B of the
Internal Revenue Code (Code). Section 5000B of the Code was enacted by
section 10907 of the Patient Protection and Affordable Care Act, Public
Law 111-148 (124 Stat. 119 (2010)) to impose an excise tax on indoor
tanning services. The text of temporary regulations published in this
issue of the Federal Register also serves as the text of these proposed
regulations. The preamble to the temporary regulations explains the
temporary regulations.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
12866. Therefore, a regulatory assessment is not required. It has been
determined that section 553(b) of the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these regulations. It is hereby
certified that these regulations will not have a significant economic
impact on a substantial number of small entities. This certification is
based on the fact that these regulations are designed to accommodate
the recordkeeping methods currently used by small entities that provide
indoor tanning services. The regulations merely implement the tax
imposed by section 5000B of the Code, and section 6001 of the Code
already requires taxpayers to keep books and records sufficient to show
whether or not they are liable for tax. The information necessary to
prepare these records is readily available to providers, and this
recordkeeping will take little additional time to complete.
Accordingly, a Regulatory Flexibility Analysis under the Regulatory
Flexibility Act (5 U.S.C. chapter 6) is not required. Pursuant to
section 7805(f) of the Code, this regulation has been submitted to the
Chief Counsel for Advocacy of the Small Business Administration for
comment on its impact on small business.
Comments and Requests for a Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written comments (a signed original
and eight (8) copies) or electronic comments
[[Page 33741]]
that are submitted timely to the IRS. The IRS and the Treasury
Department request comments on the clarity of the proposed rules and
how they can be made easier to understand. As described in the preamble
to the temporary regulations, comments are also requested regarding
whether the presumption relating to section 5000B(c)(2) (that the
amount paid by the payor to the provider includes the tax if the tax is
not separately stated) is consistent with the manner in which providers
maintain books and records and specifically whether such a rule is
useful for purposes of minimizing recordkeeping burdens of the
providers.
All comments will be available for public inspection and copying. A
public hearing may be scheduled if requested in writing by any person
that timely submits written comments. If a public hearing is scheduled,
notice of the date, time, and place for the hearing will be published
in the Federal Register.
Drafting Information
The principal author of these regulations is Taylor Cortright,
Office of the Associate Chief Counsel (Passthroughs and Special
Industries). However, other personnel from the IRS and the Treasury
Department participated in their development.
List of Subjects
26 CFR Part 40
Excise taxes, Reporting and recordkeeping requirements.
26 CFR Part 49
Excise taxes, Reporting and recordkeeping requirements, Telephone,
Transportation.
Proposed Amendments to the Regulations
Accordingly, 26 CFR parts 40 and 49 are proposed to be amended as
follows:
PART 40--EXCISE TAX PROCEDURAL REGULATIONS
Paragraph 1. The authority citation for part 40 continues to read
in part as follows:
Authority: 26 U.S.C. 7805. * * *
Par. 2. Section 40.0-1 is amended by revising paragraph (d) to read
as follows:
Sec. 40.0-1 Introduction.
* * * * *
(d) [The text of this proposed Sec. 40.0-1(d) is the same as the
text of Sec. 40.0-1T(d) published elsewhere in this issue of the
Federal Register].
(e) [The text of this proposed Sec. 40.0-1(e) is the same as the
text of Sec. 40.0-1T(e) published elsewhere in this issue of the
Federal Register].
* * * * *
Par. 3. Section 40.6302(c)-1 is amended by adding paragraph (g) to
read as follows:
Sec. 40.6302(c)-1 Use of government depositaries.
* * * * *
(g) [The text of this proposed Sec. 40.6302(c)-1(g) is the same as
the text of Sec. 40.6302(c)-1T(g) published elsewhere in this issue of
the Federal Register].
PART 49--FACILITIES AND SERVICES EXCISE TAX
Par. 4. The authority citation for part 49 continues to read in
part as follows:
Authority: 26 U.S.C. 7805. * * *
Par. 5. Section 49.0-3 is added to read as follows:
Sec. 49.0-3 Introduction; cosmetic services.
[The text of this proposed Sec. 49.0-3 is the same as the text of
Sec. 49.0-3T published elsewhere in this issue of the Federal
Register].
Par. 6. Subpart G is added to read as follows:
Subpart G--Cosmetic Services
Sec. 49.5000B-1 Indoor tanning services.
[The text of this proposed Sec. 49.5000B-1 is the same as the text
of Sec. 49.5000B-1T(a) through (h) published elsewhere in this issue
of the Federal Register].
Steven Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2010-14396 Filed 6-11-10; 11:15 am]
BILLING CODE 4830-01-P