[Federal Register Volume 77, Number 80 (Wednesday, April 25, 2012)]
[Proposed Rules]
[Pages 24660-24661]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-9886]



Internal Revenue Service

26 CFR Part 31

RIN 1545-BJ98

Withholding on Payments by Government Entities to Persons 
Providing Property or Services

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Withdrawal of notice of proposed rulemaking.


SUMMARY: This document withdraws a notice of proposed rulemaking 
relating to withholding by government entities on payments to persons 
providing property or services. The proposed regulations are withdrawn 
because Public Law 112-56, ``The 3% Withholding Repeal and Job Creation 
Act,'' repealed the provision of the Internal Revenue Code underlying 
the proposed rules. The guidance affects government entities that would 
have been required to withhold and report tax from payments to persons 
providing property or services and also affects the persons receiving 
payments for property or services from these government entities.

FOR FURTHER INFORMATION CONTACT:  A.G. Kelley, (202) 622-6040 (not a 
toll-free number).



    Section 3402(t) of the Internal Revenue Code (Code) was added by 
section 511 of the Tax Increase Prevention and Reconciliation Act of 
2005, Public Law 109-222 (TIPRA), 120 Stat. 345, which was enacted on 
May 17, 2006.
    Section 102 of the 3% Withholding Repeal and Job Creation Act (Pub. 
L. 112-56, 125 Stat. 711), which was enacted on November 21, 2011, 
repealed section 3402(t) of the Code.
    The Treasury Department and the IRS issued proposed regulations 
under section 3402(t), published in the

[[Page 24661]]

Federal Register on May 9, 2011 (REG-151687-10, 76 FR 26678, 2011-23 
IRB 867). This document withdraws those proposed regulations in light 
of the repeal of section 3402(t).
    At the same time as the issuance of the proposed regulations, the 
Treasury Department and the IRS issued final regulations under sections 
3402(t), 3406, 6011, 6051, 6071, and 6302 of the Code that were 
published in the Federal Register on May 9, 2011 (TD 9524, 76 FR 26583, 
2011-23 IRB 843). A related document (TD 9586, REG-148417-11) removes 
the final regulations under section 3402(t) and makes conforming 
amendments to the regulations under other sections reflecting that 

List of Subjects in 26 CFR Part 31

    Employment taxes, Fishing vessels, Gambling, Income taxes, 
Penalties, Pensions, Railroad retirement, Reporting and recordkeeping 
requirements, Social Security, Unemployment compensation.

Withdrawal of Notice of Proposed Rulemaking

    Accordingly, under the authority of 26 U.S.C. 7805, the notice of 
proposed rulemaking (REG-151687-10) that was published in the Federal 
Register on May 9, 2011 (76 FR 26678) is withdrawn.

Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2012-9886 Filed 4-24-12; 8:45 am]