Federal Register / Vol. 75, No. 234 / Tuesday, December 7, 2010 / Rules and Regulations 75897 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 1, 31, 40, and 301 

[TD 9507] 

RIN 1545–BJ13 

Electronic Funds Transfer of 

Depository Taxes 

AGENCY: Internal Revenue Service, 

Treasury. 

ACTION: Temporary and final 

regulations. 

SUMMARY: This document contains 

temporary and final regulations relating 

to Federal tax deposits (FTDs) by 

Electronic Funds Transfer (EFT). In 

response to the decision of the Financial 

Management Service to discontinue the 

system that processes FTD coupons, the 

temporary and final regulations provide 

rules under which depositors must use 

EFT for all FTDs and eliminate the rules 

regarding FTD coupons. The temporary 

and final regulations affect all taxpayers 

that are required to make FTDs, in 

particular those taxpayers that currently 

use FTD coupons. 

DATES: Effective Date: These regulations 

are effective on January 1, 2011. 

Applicability Date: For dates of 

applicability, see §§ 1.6302–1(d), 

1.6302–2(g), 1.6302–3(d), 1.6302–4(b), 

31.6071(a)–1(g), 31.6302–1(o), 31.6302– 

1T(n), 31.6302–2(d), 31.6302–4(e), 

31.6302(c)–3(c), 40.6302(c)–1(f), 

40.6302(c)–2(c), 40.6302(c)–3(g), 

301.6302–1(c), and 301.6656–1(c). 

FOR FURTHER INFORMATION CONTACT: 

Michael E. Hara, (202) 622–4910 (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains final 

regulations amending the Income Tax 

Regulations (26 CFR part 1) and the 

Regulations on Procedure and 

Administration (26 CFR part 301), and 

temporary and final regulations 

amending the Employment Tax and 

Collection of Income Tax at Source 

Regulations (26 CFR part 31), and the 

Excise Tax Procedural Regulations (26 

CFR part 40), to require the use of EFT 

for all FTDs and to eliminate the rules 

regarding FTD coupons. 

On August 23, 2010, the Treasury 

Department and IRS published in the 

Federal Register (75 FR 51707) 

proposed amendments to the 

regulations (REG–153340–09) to require 

EFT for all FTDs and to eliminate the 

rules regarding FTD coupons. Written 

public comments responding to the 

proposed regulations were received. No 

public hearing was held because the IRS 

did not receive any requests to speak at 

the public hearing. 

After consideration of all the 

comments, the proposed regulations are 

adopted as revised by this Treasury 

decision. 

Explanation of Provisions and 

Summary of Comments 

1. Burden on Small Businesses 

Many commentators expressed the 

concern that eliminating FTD coupons 

would burden small businesses. To help 

alleviate this perceived burden on small 

business, the regulations do not change 

the existing de minimis deposit rules 

allowing taxpayers with tax liabilities 

under certain thresholds to make a 

payment with a return. For example, 

under the de minimis deposit rules for 

employment taxes, that is, social 

security taxes, Medicare taxes, and 

withheld income taxes, an employer 

with a deposit liability of less than 

$2,500 for a return period may (1) Remit 

employment taxes with their quarterly 

or annual tax return, (2) voluntarily 

make deposits by EFT, or (3) use other 

methods of payment as provided by the 

instructions relating to the return. 

Several commentators asserted that 

many small businesses will have 

difficulty using EFT because they lack 

computers or internet access. Businesses 

without a computer may use the ACH 

debit option, which requires only a 

telephone call, to schedule a payment 

through the Electronic Federal Tax 

Payment System (EFTPS), an authorized 

method of EFT pursuant to § 31.6302– 

1(h)(4). To assist taxpayers new to 

EFTPS, United States-based live 

operator customer support is available 

toll-free 24 hours a day, year-round. 

A commentator stated that requiring 

EFTPS will likely result in an increase 

in user errors based on taxpayers’ 

computer illiteracy. Another 

commentator stated that requiring 

EFTPS will produce excessive costs in 

payment delays and requests for penalty 

abatement. According to IRS research, 

however, employers who pay 

electronically are 31 times less likely to 

make an error that results in interest or 

penalties than employers who use FTD 

coupons. 

Several commentators expressed a 

reluctance to move away from the FTD 

coupon system based on taxpayers’ 

familiarity with the current system and 

the relationships they have developed 

with their local banks. In deciding to 

discontinue the FTD coupon system, the 

Financial Management Service (FMS) 

considered current market conditions. 

In the last 18 months, more than 100 

financial institutions, large and small, 

have stopped accepting FTD coupons. 

In many states, few financial 

institutions still process FTD coupons. 

Additionally, many states now require 

employers to file or pay their state 

business taxes electronically. 

2. Alternative Payment Methods 

Several commentators requested 

continued use of FTD coupons or the 

availability of alternative payment 

methods. These final regulations 

conform to the decision by FMS to 

eliminate the system that enables the 

processing of FTD coupons. As 

discussed above, many financial 

institutions no longer accept FTD 

coupons. If businesses are unwilling or 

unable to use EFTPS, they can arrange 

for a tax professional, financial 

institution, payroll service, or other 

trusted third party to make a deposit on 

their behalf using a master account. 

Businesses also can arrange for their 

financial institution to initiate a sameday tax wire payment on their behalf. 

One commentator requested that the 

IRS continue to allow taxpayers to make 

payments by sending a check or money 

order to an IRS address when a new 

entity has applied for, but has not 

received, an employer identification 

number (EIN). The time it takes to 

receive an EIN, however, should no 

longer be an impediment to using 

EFTPS. Businesses within the United 

States or U.S. territories can apply for an 

EIN online using the IRS Web site. Once 

the application is completed, the 

information is validated during the 

online session, and an EIN is issued 

immediately. United States and 

international applicants may also obtain 

an EIN instantly using the telephone. 

3. Raising the De Minimis Amounts 

Several commentators requested 

raising the de minimis amounts above 

$2,500 for payments that may be made 

with a return. The de minimis deposit 

rules, however vary according to the 

type of tax involved. For example, the 

de minimis threshold is less than $2,500 

per quarter for Form 720, Quarterly 

Federal Excise Tax Return, under 

§ 40.6302(c)–1(e)(3), but less than $200 

per calendar year for Form 1042, 

Annual Withholding Tax Return for 

U.S. Source Income of Foreign Persons, 

under § 1.6302–2(a)(1)(iv). Changing the 

existing de minimis deposit rules would 

create additional complexity and 

confusion for taxpayers, would upset 

the current established regulatory 

scheme, and unduly complicate 

enforcement of EFTPS. 


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75898 Federal Register / Vol. 75, No. 234 / Tuesday, December 7, 2010 / Rules and Regulations 

4. Security and Distrust of Electronic 

Payment Systems 

Several commentators expressed a 

distrust of electronic payment systems 

and their security. EFTPS is a safe and 

secure tax payment system. Online 

payments require three unique types of 

information for authentication: a 

Taxpayer Identification Number, a 

Personal Identification Number (PIN), 

and an Internet password. EFTPS 

provides an instant, printable 

confirmation number for every payment 

scheduled. Payments scheduled by 

phone require a taxpayer identification 

number and a PIN. Taxpayers who 

schedule an FTD by phone will receive 

an eight digit acknowledgement number 

for future reference. 

Moreover, IRS will only receive 

confirmation that the payment was 

made. The IRS will not have access to 

any taxpayer’s financial account. 

Businesses that do not wish to use 

EFTPS can arrange for their tax 

professional, financial institution, 

payroll service, or other trusted third 

party to make an FTD on their behalf 

using a master account. Businesses also 

may arrange for their financial 

institution to initiate a same-day tax 

wire payment for them. 

5. EFTPS Registration 

Several commentators asserted that 

EFTPS registration is time-consuming, 

should be easier to use, and should 

make EFTPS available immediately. All 

taxpayers now using FTD coupons will 

be pre-enrolled in Treasury’s free 

EFTPS. When they receive notification 

of pre-enrollment, they can use the 

phone or Internet to activate their PIN, 

enter their financial account 

information, and begin scheduling 

payments on the same day. 

One commentator asked the IRS to 

change the EFTPS enrollment process to 

include a variable to identify fiscal tax 

year taxpayers because EFTPS 

sometimes rejects payments by entities 

that operate on a fiscal tax year due to 

tax year-end mismatches. This 

suggestion was not adopted because the 

IRS already autocorrects payments for 

fiscal year taxpayers. When a taxpayer 

schedules an FTD through EFTPS, the 

system will ask the taxpayer to select 

the year and quarter to which the 

payment should be applied. This 

process should ensure that EFTPS 

payments are applied correctly. 

6. Foreign Taxpayers 

One commentator stated that U.S. 

banks are reluctant to open U.S. bank 

accounts for foreign corporations. 

Another commentator asserted that it is 

difficult for a U.S. citizen residing 

abroad to open or maintain a U.S. bank 

account. This commentator suggested 

that the IRS adapt the registration form 

and EFTPS software to allow for 

payments to the IRS from foreign bank 

accounts, and that the Treasury 

Department and IRS issue regulations 

requiring U.S. banks to open U.S. bank 

accounts for U.S. citizens residing 

abroad with a foreign address. These 

suggestions were not adopted. Foreign 

taxpayers may arrange for their financial 

institution to initiate a same-day wire 

payment on their behalf. Foreign 

taxpayers may also arrange for their 

qualified intermediary, tax professional, 

payroll service, or other trusted third 

party to make a deposit on their behalf 

using a master account. 

7. One-Day Rule 

A commentator requested clarification 

of the One-Day Rule in § 31.6302–1(c) 

and Example 4 in § 31.6302–1(d). The 

commentator argued that the One-Day 

Rule should be applied only when an 

employer has accumulated $100,000 or 

more in undeposited employment taxes 

within the deposit period applicable to 

its status as a monthly or semi-weekly 

depositor and that Example 4 should be 

modified consistent with this result. 

These suggestions were not adopted. 

The commentator misinterprets the 

existing rules, which use accumulated 

taxes rather than undeposited taxes to 

determine the application of the OneDay rule. The proposed rules merely 

updated the existing rules and examples 

to be consistent with the elimination of 

the FTD coupon system and did not 

modify this aspect of the existing rules. 

Example 4 in the proposed 

regulations correctly illustrates how the 

One-Day Rule applies in combination 

with a subsequent deposit obligation. 

Example 4 involves Employer D, a 

depositor subject to the semi-weekly 

rule for calendar year 2011. On Monday, 

January 10, 2011, D accumulates 

$115,000 in employment taxes. Because 

D has accumulated $100,000 or more in 

employment taxes, the One-Day Rule 

applies, and D therefore must deposit 

the $115,000 in employment taxes by 

the next business day, which is 

Tuesday, January 11, 2011. On Tuesday, 

January 11, 2011, D accumulates an 

additional $30,000 in employment 

taxes. Because the $115,000 in 

employment taxes accumulated on 

Monday is already subject to the OneDay Rule, there are no other 

accumulated taxes to be taken into 

account in determining D’s deposit 

obligation for the additional $30,000 in 

employment taxes accumulated on 

Tuesday. Therefore, D has an additional 

and separate deposit obligation of 

$30,000 on Tuesday that must be 

satisfied by the following Friday. This 

example is adopted in the final 

regulations without change. 

8. Delay the January 1, 2011 Effective 

Date 

Several commentators requested a 

delay in the effective date of these 

temporary and final regulations. These 

regulations implement the decision of 

FMS to eliminate the system that 

enables the processing of FTD coupons 

as of January 2011. In order to facilitate 

the transition from FTD coupons, all 

taxpayers now using coupons will be 

pre-enrolled in EFTPS. The IRS has 

begun notifying taxpayers of the 

upcoming changes and, upon 

publication of these regulations, will 

increase efforts to notify affected 

taxpayers of the EFT requirement. Since 

April 2010, the Department of Treasury 

and IRS have been reaching out to 

critical external stakeholders, including 

the Small Business Administration and 

financial institutions and their 

associations, about the pending FTD 

changes, and will continue to offer 

informational sessions and free 

marketing materials to assist external 

stakeholders in informing and educating 

taxpayers about the new requirements. 

9. Business Days and Legal Holidays 

Prior to the advent of EFTPS, 

taxpayers made FTDs using an FTD 

coupon at a government depository 

bank. Because FTDs could only be made 

on days the banks were open, the 

timeliness of deposits under section 

6302 was determined by reference to 

banking days. Furthermore, because 

many banks are closed on statewide 

legal holidays, the IRS treated statewide 

legal holidays as legal holidays in 

determining the timeliness of deposits. 

Since a taxpayer will no longer be 

able to use a government depository 

bank to make an FTD using an FTD 

coupon, these regulations remove 

references to ‘‘banking days’’ and instead 

determine the timeliness of deposits by 

reference to ‘‘business days,’’ meaning 

every calendar day that is not a 

Saturday, Sunday, or legal holiday 

under section 7503. Additionally, 

because EFTPS is available 24 hours a 

day, seven days a week, the final 

regulations provide that, consistent with 

section 7503, the term ‘‘legal holiday’’ 

for FTD purposes includes only those 

legal holidays in the District of 

Columbia. Thus, a statewide legal 

holiday will no longer be considered a 

legal holiday unless the holiday 

coincides with a legal holiday in the 

District of Columbia. The following days 


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Federal Register / Vol. 75, No. 234 / Tuesday, December 7, 2010 / Rules and Regulations 75899 

are currently legal holidays in the 

District of Columbia: New Year’s Day, 

Birthday of Martin Luther King, Jr., 

Washington’s Birthday, District of 

Columbia Emancipation Day, Memorial 

Day, Independence Day, Labor Day, 

Columbus Day, Veteran’s Day, 

Thanksgiving Day, Christmas Day, and 

the day of the inauguration of the 

President, in every fourth year. The final 

regulations include several minor 

changes from the proposed regulations 

to reflect this application of the legal 

holiday rule and provide an additional 

example to illustrate it. See § 31.6302– 

1(d) Example 5. 

A separate notice is being issued with 

these final regulations to provide 

transitional relief. Notice 2010—states 

that the IRS will not assert penalties for 

FTDs made in 2011 that would be 

considered timely if statewide legal 

holidays were taken into account. 

10. Other Differences From the Proposed 

Regulations 

In addition to the changes described 

earlier in this preamble, the final 

regulations include four minor revisions 

that vary from the text of the proposed 

regulations. Sections 31.6071(a)–1(a) 

and (c) are revised, consistent with the 

intent of the proposed regulations, to 

eliminate the rules for FTD coupons. 

The table of contents in § 31.6302–0 was 

updated to reflect the changes to the 

regulation headings. The heading to 

§ 40.6302(c)–1T has been revised to 

remove the reference to government 

depositaries. Additionally, § 40.6302(c)– 

3 is further revised to illustrate the 

computation of the three business day 

rule for excise taxes when an 

intervening day is a holiday consistent 

with the rules in § 31.6302–1(c)(2)(iii) 

for employment taxes. 

Special Analyses 

It has been determined that this final 

rule is not a significant regulatory action 

as defined in Executive Order 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) does 

not apply to these regulations and 

because these 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, the notice of proposed rulemaking 

preceding these regulations was 

submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on its 

impact on small business. 

Drafting Information 

The principal author of these final 

regulations is Michael E. Hara, Office of 

the Associate Chief Counsel (Procedure 

and Administration). 

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. 

26 CFR Part 301 

Employment taxes, Estate taxes, 

Excise taxes, Gift taxes, Income taxes, 

Penalties, Reporting and recordkeeping 

requirements. 

Amendments to the Regulations 

■ Accordingly, 26 CFR parts 1, 31, 40, 

and 301 are amended as follows: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 is amended by revising the 

entries for sections 1.6302–1 through 

1.6302–4 to read in part as follows: 

Authority: 26 U.S.C. 7805 * * * 

Sections 1.6302–1, 1.6302–2, 1.6302–3 and 

1.6302–4 also issued under 26 U.S.C. 

6302(h). * * * 

■ Par. 2. Section 1.1461–1 is amended 

by revising paragraph (a)(1), first 

sentence, to read as follows: 

§ 1.1461–1 Payment and returns of tax 

withheld. 

(a) Payment of withheld tax—(1) 

Deposits of tax. Every withholding agent 

who withholds tax pursuant to chapter 

3 of the Internal Revenue Code (Code) 

and the regulations under such chapter 

shall deposit such amount of tax as 

provided in § 1.6302–2(a). * * * 

* * * * * 

■ Par. 3. Section 1.6302–1 is amended 

by: 

■ 1. Revising the heading. 

■ 2. Revising paragraph (a). 

■ 3. Removing paragraph (b)(1), 

redesignating paragraph (b)(2) as 

paragraph (b), and revising the heading 

for paragraph (b). 

■ 4. Removing paragraph (c). 

■ 5. Redesignating paragraph (d) as 

paragraph (c). 

■ 6. Adding paragraph (d). 

The revisions and additions read as 

follows: 

§ 1.6302–1 Deposit rules for corporation 

income and estimated income taxes and 

certain taxes of tax-exempt organizations. 

(a) Requirement. A corporation, any 

organization subject to the tax imposed 

by section 511, and any private 

foundation subject to the tax imposed 

by section 4940, shall deposit all 

payments of tax imposed by chapter 1 

of the Internal Revenue Code (or treated 

as so imposed by section 6154(h)), 

including any payments of estimated 

tax, on or before the date otherwise 

prescribed for paying such tax. This 

paragraph (a) does not apply to a foreign 

corporation or entity that has no office 

or place of business in the United 

States. 

(b) Deposits by electronic funds 

transfer. * * * 

* * * * * 

(d) Effective/applicability date. This 

section applies to deposits and 

payments made after December 31, 

2010. 

■ Par. 4. Section 1.6302–2 is amended 

by: 

■ 1. Revising the heading. 

■ 2. Revising paragraphs (a)(1)(i), (ii), 

and (iv). 

■ 3. Revising the heading for paragraph 

(b). 

■ 4. Revising paragraph (b)(1). 

■ 5. Removing paragraph (b)(6). 

■ 6. Adding a sentence to the end of 

paragraph (g). 

The revisions and additions read as 

follows: 

§ 1.6302–2 Deposit rules for tax withheld 

on nonresident aliens and foreign 

corporations. 

(a) Time for making deposits—(1) 

Deposits—(i) Monthly deposits. Except 

as provided in paragraphs (a)(1)(ii) and 

(iv) of this section, every withholding 

agent that, pursuant to chapter 3 of the 

Internal Revenue Code, has 

accumulated at the close of any calendar 

month an aggregate amount of 

undeposited taxes of $200 or more shall 

deposit such aggregate amount by the 

15th day of the following month. 

However, the preceding sentence shall 

not apply if the withholding agent has 

made a deposit of taxes pursuant to 

paragraph (a)(1)(ii) of this section to a 

quarter-monthly period that occurred 

during such month. If the 15th day of 

the following month is a Saturday, 

Sunday, or legal holiday in the District 

of Columbia under section 7503, taxes 

will be treated as timely deposited if 

deposited on the next succeeding day 

which is not a Saturday, Sunday, or 

legal holiday. With respect to section 


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75900 Federal Register / Vol. 75, No. 234 / Tuesday, December 7, 2010 / Rules and Regulations 

1446, this section applies only to a 

publicly traded partnership described in 

§ 1.1446–4. 

(ii) Quarter-monthly deposits. If at the 

close of any quarter-monthly period 

within a calendar month, the aggregate 

amount of undeposited taxes required to 

be withheld pursuant to chapter 3 of the 

Internal Revenue Code is $2,000 or 

more, the withholding agent shall 

deposit such aggregate amount within 3 

business days after the close of such 

quarter-monthly period. Business days 

include every calendar day other than 

Saturdays, Sundays, or legal holidays in 

the District of Columbia under section 

7503. If any of the three weekdays 

following the close of a quarter-monthly 

period is a legal holiday under section 

7503, the withholding agent has an 

additional day for each day that is a 

legal holiday by which to make the 

required deposit. For example, if the 

Monday following the close of a quartermonthly period is New Year’s Day, a 

legal holiday, the required deposit for 

the quarter-monthly period is not due 

until the following Thursday rather than 

the following Wednesday. 

* * * * * 

(iv) Annual deposits. If at the close of 

December of each calendar year, the 

aggregate amount of undeposited taxes 

required to be withheld pursuant to 

chapter 3 of the Internal Revenue Code 

is less than $200, the withholding agent 

may deposit such aggregate amount by 

March 15 of the following calendar year. 

If such aggregate amount is not so 

deposited, it shall be remitted in 

accordance with paragraph (a)(1) of 

§ 1.1461–1. 

* * * * * 

(b) Manner of payment—(1) Payments 

not required by electronic funds 

transfer. A payment that is not required 

to be deposited by this section shall be 

made separately from a payment 

required by any other section. The 

payment may be submitted with the 

filed return. The timeliness of the 

payment will be determined by the date 

payment is received by the Internal 

Revenue Service at the place prescribed 

for filing by regulations or forms and 

instructions, or if section 7502(a) 

applies, by the date the payment is 

treated as received under section 

7502(a), or on the last day prescribed for 

filing the return (determined without 

regard to any extension of time for filing 

the return), whichever is later. Each 

withholding agent making payments 

under this section shall report on the 

return, for the period to which such 

payments are made, information 

regarding such payments according to 

the instructions that apply to such 

return. 

* * * * * 

(g) * * * Paragraph (b)(1) of this 

section applies to deposits and 

payments made after December 31, 

2010. 

■ Par. 5. Section 1.6302–3 is amended 

by: 

■ 1. Revising the heading. 

■ 2. Revising paragraph (a). 

■ 3. Revising paragraph (c). 

■ 4. Adding paragraph (d). 

The revisions and additions read as 

follows: 

§ 1.6302–3 Deposit rules for estimated 

taxes of certain trusts. 

(a) Requirement. A bank or other 

financial institution described in 

paragraph (b) of this section shall 

deposit all payments of estimated tax 

under section 6654(l) with respect to 

trusts for which such institution acts as 

a fiduciary by the date otherwise 

prescribed for paying such tax in the 

manner set forth in published guidance, 

publications, forms and instructions. 

* * * * * 

(c) Cross-references. For the 

requirement to deposit estimated tax 

payments of taxable trusts by electronic 

funds transfer, see § 31.6302–1(h) of this 

chapter. 

(d) Effective/applicability date. This 

section applies to deposits and 

payments made after December 31, 

2010. 

■ Par. 6. Section 1.6302–4 is revised to 

read as follows: 

§ 1.6302–4 Voluntary payments by 

electronic funds transfer. 

(a) Electronic funds transfer. Any 

person may voluntarily remit by 

electronic funds transfer any payment of 

tax imposed by subtitle A of the Internal 

Revenue Code, including any payment 

of estimated tax. Such payment must be 

made in the manner set forth in 

published guidance, publications, forms 

and instructions. 

(b) Effective/applicability date. This 

section applies to deposits and 

payments made after December 31, 

2010. 

PART 31—EMPLOYMENT TAXES AND 

COLLECTION OF INCOME TAX AT THE 

SOURCE 

■ Par. 7. The authority citation for part 

31 is amended by removing the entries 

for sections 31.6071–1, 31.6302–1 

through 6302–3, 31.6302–3, 31.6302–4, 

31.6302(c)–2A and 31.6302(c)–3 and 

adding entries in numerical order to 

read in part as follows: 

Authority: 26 U.S.C. 7805 * * * 

Section 31.6071(a)–1 also issued under 26 

U.S.C.6071. 

* * * * * 

Section 31.6302–1 also issued under 26 

U.S.C. 6302(a) and (h). 

Section 31.6302–1T also issued under 26 

U.S.C. 6302(a) and (h). 

Section 31.6302–2, 31.6302–3, and 

31.6302–4 also issued under 26 U.S.C. 

6302(a) and (h). 

Section 31.6302(c)–2A also issued under 

26 U.S.C. 6157(d) and 6302(a) and (h). 

Section 31.6302(c)–3 also issued under 26 

U.S.C. 6302(a) and (h).* * * 

■ Par. 8. Section 31.6071(a)–1 is 

amended by 

■ 1. Revising paragraphs (a)(1) and (c). 

■ 2. Adding paragraph (g). 

The revisions and the addition read as 

follows: 

§ 31.6071(a)–1 Time for filing returns and 

other documents. 

(a) Federal Insurance Contributions 

Act and income tax withheld from 

wages and from nonpayroll payments— 

(1) Quarterly or annual returns. Except 

as provided in paragraph (a)(4) of this 

section, each return required to be made 

under §§ 31.6011(a)–1 and 31.6011(a)– 

1T, in respect of the taxes imposed by 

the Federal Insurance Contributions Act 

(26 U.S.C. 3101–3128), or required to be 

made under §§ 31.6011(a)–4 and 

31.6011(a)–4T, in respect of income tax 

withheld, shall be filed on or before the 

last day of the first calendar month 

following the period for which it is 

made. However, a return may be filed 

on or before the 10th day of the second 

calendar month following such period if 

timely deposits under section 6302(c) of 

the Code and the regulations have been 

made in full payment of such taxes due 

for the period. 

* * * * * 

(c) Federal Unemployment Tax Act. 

Each return of the tax imposed by the 

Federal Unemployment Tax Act 

required to be made under § 31.6011(a)– 

3 shall be filed on or before the last day 

of the first calendar month following the 

period for which it is made. However, 

a return may be filed on or before the 

10th day of the second calendar month 

following such period if timely deposits 

under section 6302(c) of the Code and 

the regulations thereunder have been 

made in full payment of such taxes due 

for the period. 

* * * * * 

(g) Effective/applicability date. The 

elimination of the rules of paragraph (a) 

and (c) of this section regarding the 

timeliness of deposits apply to deposits 

and payments made after December 31, 

2010. 


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Federal Register / Vol. 75, No. 234 / Tuesday, December 7, 2010 / Rules and Regulations 75901 

§ 31.6302–0 [Amended] 

■ Par. 9. Section 31.6302–0 is amended 

by revising the entries for § 31.6302– 

1(c), (c)(2), (c)(2)(iii), (c)(4), (h), (h)(2), 

(h)(2)(ii), (h)(2)(iii), (i), (i)(3), (j), (n), and 

§ 31.6302–2 (c) and (d), and by adding 

entries for § 31.6302–1 (h)(2)(iv) and (o) 

and § 31.6302–4 to read as follows: 

§ 31.6302–0 Table of Contents. 

* * * * * 

§ 31.6302–1 Deposit rules for taxes under 

the Federal Insurance Contributions Act 

(FICA) and withheld income taxes. 

* * * * * 

(c) Deposit rules. 

* * * * * 

(2) Semi-Weekly rule. 

* * * * * 

(iii) Special rule for computing days. 

* * * * * 

(4) Deposits required only on business 

days. 

* * * * * 

(h) Time and manner of deposit— 

deposits required to be made by 

electronic funds transfer. 

* * * * * 

(2) Applicability of requirement. 

* * * * * 

(ii) Deposits for return periods 

beginning after December 31, 1999, and 

made before January 1, 2011. 

(iii) Deposits made after December 31, 

2010. 

(iv) Voluntary deposits. 

* * * * * 

(i) Time and manner of deposit. 

* * * * * 

(3) Time deemed paid. 

(j) Voluntary payments by electronic 

funds transfer. 

* * * * * 

(n) [Reserved]. For further guidance, 

see § 31.6302–0T, the entry for 

§ 31.6302–1T(n). 

(o) Effective/Applicability date. 

§ 31.6302–2 Deposit rules for taxes under 

the Railroad Retirement Tax Act (R.R.T.A.). 

* * * * * 

(c) Modification of Monthly rule 

determination. 

* * * * * 

(d) Effective/Applicability date. 

* * * * * 

§ 31.6302–4 Deposit rules for withheld 

income taxes attributable to nonpayroll 

taxes. 

■ Par. 10. Section 31.6302–1 is 

amended by: 

■ 1. Revising the heading. 

■ 2. Revising paragraphs (c)(1), (c)(2), 

(c)(3), and (c)(4). 

■ 3. Revising paragraph (d), Example 1, 

Example 2, Example 3, Example 4, and 

Example 5. 

■ 4. Revising paragraph (h)(2)(ii). 

■ 5. Redesignating paragraph (h)(2)(iii) 

as paragraph (h)(2)(iv) and revising 

newly-designated paragraph (h)(2)(iv). 

■ 6. Adding new paragraphs (h)(2)(iii) 

and (iv). 

■ 7. Revising paragraph (i)(1) and (i)(3). 

■ 8. Removing paragraphs (i)(4), (i)(5) 

and (i)(6). 

■ 9. Adding paragraph (o). 

The revisions and additions read as 

follows: 

§ 31.6302–1 Deposit rules for taxes under 

the Federal Insurance Contributions Act 

(FICA) and withheld income taxes. 

* * * * * 

(c) Deposit rules—(1) Monthly rule. 

An employer that is a monthly depositor 

must deposit employment taxes 

accumulated with respect to payments 

made during a calendar month by 

electronic funds transfer by the 15th day 

of the following month. If the 15th day 

of the following month is a Saturday, 

Sunday, or legal holiday in the District 

of Columbia under section 7503, taxes 

will be treated as timely deposited if 

deposited on the next succeeding day 

which is not a Saturday, Sunday, or 

legal holiday. 

(2) Semi-Weekly rule—(i) In general. 

An employer that is a semi-weekly 

depositor for a calendar year must 

deposit employment taxes by electronic 

funds transfer by the dates set forth 

below: 

Payment dates/semi-weekly periods Deposit date 

(A) Wednesday, Thursday and/or Friday ................................................................................................. On or before the following Wednesday. 

(B) Saturday, Sunday, Monday and/or Tuesday ...................................................................................... On or before the following Friday. 

(ii) Semi-weekly period spanning two 

return periods. If the return period ends 

during a semi-weekly period in which 

an employer has two or more payment 

dates, two deposit obligations may exist. 

For example, if one quarterly return 

period ends on Thursday and a new 

quarterly return period begins on 

Friday, employment taxes from 

payments on Wednesday and Thursday 

are subject to one deposit obligation, 

and employment taxes from payments 

on Friday are subject to a separate 

deposit obligation. Two separate federal 

tax deposits are required. 

(iii) Special rule for computing days. 

Semi-weekly depositors have at least 

three business days following the close 

of the semi-weekly period by which to 

deposit employment taxes accumulated 

during the semi-weekly period. 

Business days include every calendar 

day other than Saturdays, Sundays, or 

legal holidays in the District of 

Columbia under section 7503. If any of 

the three weekdays following the close 

of a semi-weekly period is a legal 

holiday, the employer has an additional 

day for each day that is a legal holiday 

by which to make the required deposit. 

For example, if the Monday following 

the close of a Wednesday to Friday 

semi-weekly period is Memorial Day, a 

legal holiday, the required deposit for 

the semi-weekly period is not due until 

the following Thursday rather than the 

following Wednesday. 

(3) Exception—One–Day rule. 

Notwithstanding paragraphs (c)(1) and 

(c)(2) of this section, if on any day 

within a deposit period (monthly or 

semi-weekly) an employer has 

accumulated $100,000 or more of 

employment taxes, those taxes must be 

deposited by electronic funds transfer in 

time to satisfy the tax obligation by the 

close of the next day. If the next day is 

a Saturday, Sunday, or legal holiday in 

the District of Columbia under section 

7503, the taxes will be treated as timely 

deposited if deposited on the next 

succeeding day which is not a Saturday, 

Sunday, or legal holiday. For purposes 

of determining whether the $100,000 

threshold is met— 

(i) A monthly depositor takes into 

account only those employment taxes 

accumulated in the calendar month in 

which the day occurs; and 

(ii) A semi-weekly depositor takes 

into account only those employment 

taxes accumulated in the Wednesday– 

Friday or Saturday–Tuesday semiweekly period in which the day occurs. 

(4) Deposits required only on business 

days. No taxes are required to be 

deposited under this section on any day 

that is a Saturday, Sunday, or legal 

holiday. Deposits are required only on 

business days. Business days include 

every calendar day other than 

Saturdays, Sundays, or legal holidays. 

For purposes of this paragraph (c), legal 

holidays shall have the same meaning 

provided in section 7503. Pursuant to 

section 7503, the term legal holiday 

means a legal holiday in the District of 

Columbia. For purposes of this 


srobinson on DSKHWCL6B1PROD with RULES
75902 Federal Register / Vol. 75, No. 234 / Tuesday, December 7, 2010 / Rules and Regulations 

paragraph (c), the term ‘‘legal holiday’’ 

does not include other Statewide legal 

holidays. 

* * * * * 

(d) * * * 

Example 1. Monthly depositor. (i) 

Determination of status. For calendar year 

2011, Employer A determines its depositor 

status using the lookback period July 1, 2009 

to June 30, 2010. For the four calendar 

quarters within this period, A reported 

aggregate employment tax liabilities of 

$42,000 on its quarterly Forms 941. Because 

the aggregate amount did not exceed $50,000, 

A is a monthly depositor for the entire 

calendar year 2011. 

(ii) Monthly rule. During December 2011, A 

(a monthly depositor) accumulates $3,500 in 

employment taxes. A has a $3,500 deposit 

obligation that must be satisfied by the 15th 

day of the following month. Since January 

15, 2012, is a Sunday, and January 16, 2012, 

Dr. Martin Luther King, Jr.’s Birthday, is a 

legal holiday, A’s deposit obligation will be 

satisfied if the deposit is made by electronic 

funds transfer by the next business day, 

January 17, 2012. 

Example 2. Semi-weekly depositor. (i) 

Determination of status. For the calendar 

year 2011, Employer B determines its 

depositor status using the lookback period 

July 1, 2009 to June 30, 2010. For the four 

calendar quarters within this period, B 

reported aggregate employment tax liabilities 

of $88,000 on its quarterly Forms 941. 

Because that amount exceeds $50,000, B is a 

semi-weekly depositor for the entire calendar 

year 2011. 

(ii) Semi-weekly rule. On Friday, January 7, 

2011, B (a semi-weekly depositor) has a pay 

day on which it accumulates $4,000 in 

employment taxes. B has a $4,000 deposit 

obligation that must be satisfied by the 

following Wednesday, January 12, 2011. 

(iii) Deposit made within three business 

days. On Friday, January 14, 2011, B (a semiweekly depositor) has a pay day on which it 

accumulates $4,200 in employment taxes. 

Generally, B would have a required deposit 

obligation of employment taxes that must be 

satisfied by the following Wednesday, 

January 19, 2011. Because Monday, January 

17, 2011, is Dr. Martin Luther King, Jr.’s 

Birthday, a legal holiday, B has an additional 

day to make the required deposit. B has a 

$4,200 deposit obligation that must be 

satisfied by the following Thursday, January 

20, 2011. 

Example 3. One-Day rule. On Monday, 

January 10, 2011, Employer C accumulates 

$110,000 in employment taxes with respect 

to wages paid on that date. C has a deposit 

obligation of $110,000 that must be satisfied 

by the next business day. If C was not subject 

to the semi-weekly rule on January 10, 2011, 

C becomes subject to that rule as of January 

11, 2011. See paragraph (b)(2)(ii) of this 

section. 

Example 4. One-Day rule in combination 

with subsequent deposit obligation. Employer 

D is subject to the semi-weekly rule for 

calendar year 2011. On Monday, January 10, 

2011, D accumulates $115,000 in 

employment taxes. D has a deposit obligation 

that must be satisfied by the next business 

day. On Tuesday, January 11, D accumulates 

an additional $30,000 in employment taxes. 

Although D has a $115,000 deposit obligation 

incurred earlier in the semi-weekly period, D 

has an additional and separate deposit 

obligation of $30,000 on Tuesday that must 

be satisfied by the following Friday. 

Example 5. Legal Holidays. Employer E 

conducts business in State X. Wednesday, 

August 31, 2011, is a statewide legal holiday 

in State X which is not a legal holiday in the 

District of Columbia. On Friday, August 26, 

2011, E (a semi-weekly depositor) has a pay 

day on which it accumulates $4,000 in 

employment taxes. E has a $4,000 deposit 

obligation that must be satisfied on or before 

the following Wednesday, August 31, 2011, 

notwithstanding that the day is a statewide 

legal holiday in State X. 

* * * * * 

(h) * * * 

(2) * * * 

(ii) Deposits for return periods 

beginning after December 31, 1999, and 

made before January 1, 2011. Unless 

exempted under paragraph (h)(5) of this 

section, for deposits for return periods 

beginning after December 31, 1999, and 

made before January 1, 2011, a taxpayer 

that deposits more than $200,000 of 

taxes described in paragraph (h)(3) of 

this section during a calendar year 

beginning after December 31, 1997, 

must use electronic funds transfer (as 

defined in paragraph (h)(4) of this 

section) to make all deposits of those 

taxes that are required to be made for 

return periods beginning after December 

31 of the following year and must 

continue to deposit by electronic funds 

transfer in all succeeding years. As an 

example, a taxpayer that exceeds the 

$200,000 deposit threshold during 

calendar year 1998 is required to make 

deposits for return periods beginning in 

or after calendar year 2000 by electronic 

funds transfer. 

(iii) Deposits made after December 31, 

2010. Unless exempted under paragraph 

(h)(5) of this section, a taxpayer that has 

a required tax deposit obligation 

described in paragraph (h)(3) of this 

section must use electronic funds 

transfer (as defined in paragraph (h)(4) 

of this section) to make all deposits of 

those taxes made after December 31, 

2010. 

(iv) Voluntary deposits. A taxpayer 

that is authorized to make payment of 

taxes with a return under regulations 

may voluntarily make a deposit by 

electronic funds transfer. 

* * * * * 

(i) Time and manner of remittance 

with a return—(1) General rules. A 

remittance required to be made by this 

section that is authorized to be made 

with a return under regulations and is 

made with a return must be made 

separately from a remittance required by 

any other section. Further, a remittance 

for a deposit period in one return period 

must be made separately from a 

remittance for a deposit period in 

another return period. 

* * * * * 

(3) Time deemed paid. In general, 

amounts remitted with a return under 

this section will be considered as paid 

on the date payment is received by the 

Internal Revenue Service at the place 

prescribed for filing by regulations or 

forms and instructions (or if section 

7502(a) applies, by the date the payment 

is treated as received under section 

7502(a)), or on the last day prescribed 

for filing the return (determined without 

regard to any extension of time for filing 

the return), whichever is later. In the 

case of the taxes imposed by chapter 21 

and 24 of the Internal Revenue Code, 

solely for purposes of section 6511 and 

the regulations thereunder (relating to 

the period of limitation on credit or 

refund), if an amount is remitted with 

a return under this section prior to April 

15th of the calendar year immediately 

succeeding the calendar year that 

contains the period for which the 

amount was remitted, the amount will 

be considered paid on April 15th of the 

succeeding calendar year. 

* * * * * 

(o) Effective/applicability date. 

Paragraphs (c), (d) Examples 1 through 

5, (h)(2)(ii), (h)(2)(iii), (h)(2)(iv),(i)(1) 

and (i)(3) of this section apply to 

deposits and payments made after 

December 31, 2010. 

■ Par. 11. Section 31.6302–1T is 

amended by revising paragraphs (g)(1) 

and (n)(1) to read as follows. 

§ 31.6302–1T 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 (temporary). 

* * * * * 

(g) Agricultural employers—Special 

rules—(1) In general. An agricultural 

employer reports wages paid to farm 

workers annually on Form 943 

(Employer’s Annual Tax Return for 

Agricultural Employees) and reports 

wages paid to nonfarm workers 

quarterly on Form 941 or annually on 

Form 944. Accordingly, an agricultural 

employer must treat employment taxes 

reportable on Form 943 (‘‘Form 943 

taxes’’) separately from employment 

taxes reportable on Form 941 or Form 

944 (‘‘Form 941 or Form 944 taxes’’). 

Form 943 taxes and Form 941 or Form 

944 taxes are not combined for purposes 

of determining whether a deposit of 

either is due, whether the One–Day rule 

of § 31.6302–1(c)(3) applies, or whether 

any safe harbor is applicable. In 


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Federal Register / Vol. 75, No. 234 / Tuesday, December 7, 2010 / Rules and Regulations 75903 

addition, Form 943 taxes and Form 941 

or Form 944 taxes must be deposited 

separately. (See § 31.6302–1(b) for rules 

for determining an agricultural 

employer’s deposit status for Form 941 

taxes.) Whether an agricultural 

employer is a monthly or semi-weekly 

depositor of Form 943 taxes is 

determined according to the rules of this 

paragraph (g). 

* * * * * 

(n) Effective/applicability dates—(1) 

In general. Sections 31.6302–1 through 

31.6302–3 apply with respect to the 

deposit of employment taxes 

attributable to payments made after 

December 31, 1992. To the extent that 

the provisions of §§ 31.6302–1 through 

31.6302–3 are inconsistent with the 

provisions of §§ 31.6302(c)–1 and 

31.6302(c)–2, a taxpayer will be 

considered to be in compliance with 

§§ 31.6301–1 through 31.6302–3 if the 

taxpayer makes timely deposits during 

1993 in accordance with §§ 31.6302(c)– 

1 and 31.6302(c)–2. Paragraphs (b)(4), 

(c)(5), (c)(6), (d) Example 6, (e)(2), 

(f)(4)(i), (f)(4)(iii), (f)(5) Example 3, and 

(g)(1) of this section apply to taxable 

years beginning on or after December 

30, 2008. Paragraph (f)(4)(ii) of this 

section applies to taxable years 

beginning on or after January 1, 2010. 

The rules of paragraphs (e)(2) and (g)(1) 

of this section that apply to taxable 

years beginning before December 30, 

2008, are contained in § 31.6302–1 in 

effect before December 30, 2008. The 

rules of paragraphs (b)(4), (c)(5), (c)(6), 

(d) Example 6, (f)(4)(i), (f)(4)(iii), and 

(f)(5) Example 3 of this section that 

apply to taxable years beginning on or 

after January 1, 2006, and before 

December 30, 2008, are contained in 

§ 31.6302–1T in effect before December 

30, 2008. The rules of paragraphs (b)(4) 

and (f)(4) of this section that apply to 

taxable years beginning before January 

1, 2006, are contained in § 31.6302–1 in 

effect prior to January 1, 2006. The rules 

of paragraph (g) of this section 

eliminating use of Federal tax deposit 

coupons apply to deposits and 

payments made after December 31, 

2010. 

* * * * * 

■ Par. 12. Section 31.6302–2 is 

amended by: 

■ 1. Revising the heading. 

■ 2. Revising paragraph (d). 

The revisions read as follows. 

§ 31.6302–2 Deposit rules for taxes under 

the Railroad Retirement Tax Act (RRTA). 

* * * * * 

(d) Effective/applicability date. This 

section applies to deposits and 

payments made after December 31, 

2010. 

■ Par. 13. Section 31.6302–4 is 

amended by: 

■ 1. Revising the heading. 

■ 2. Revising paragraph (d). 

■ 3. Adding paragraph (e). 

The revisions and additions read as 

follows: 

§ 31.6302–4 Deposit rules for withheld 

income taxes attributable to nonpayroll 

payments. 

* * * * * 

(d) Special rules. A taxpayer must 

treat nonpayroll withheld taxes, which 

are reported on Form 945, ‘‘Annual 

Return of Withheld Federal Income 

Tax,’’ separately from taxes reportable 

on Form 941, ‘‘Employer’s QUARTERLY 

Federal Tax Return’’ (or any other 

return, for example, Form 943, 

‘‘Employer’s Annual Federal Tax Return 

for Agricultural Employees’’). Taxes 

reported on Form 945 and taxes 

reported on Form 941 are not combined 

for purposes of determining whether a 

deposit of either is due, whether the 

One-Day rule of § 31.6302–1(c)(3) 

applies, or whether any safe harbor is 

applicable. In addition, taxes reported 

on Form 945 and taxes reported on 

Form 941 must be deposited separately. 

(See paragraph (b) of § 31.6302–1 for 

rules for determining an employer’s 

deposit status for taxes reported on 

Form 941.) Taxes reported on Form 945 

for one calendar year must be deposited 

separately from taxes reported on Form 

945 for another calendar year. 

(e) Effective/applicability date. 

Section 31.6302–4(d) applies to deposits 

and payments made after December 31, 

2010. 

§ 31.6302(c)–2A [Removed] 

■ Par. 14. Section 31.6302(c)–2A is 

removed. 

■ Par. 15. Section 31.6302(c)–3 is 

amended by: 

■ 1. Revising the heading. 

■ 2. Revising paragraph (a)(1), 

introductory text. 

■ 3. Revising paragraph (a)(1)(i). 

■ 4. Revising paragraph (a)(1)(ii), 

introductory text. 

■ 5. Removing paragraph (a)(3). 

■ 6. Revising paragraph (b). 

■ 7. Revising paragraph (c). 

■ 8. Removing paragraph (d). 

The revisions read as follows: 

§ 31.6302(c)–3 Deposit rules for taxes 

under the Federal Unemployment Tax Act. 

(a) Requirement—(1) In general. 

Except as provided in paragraph (a)(2) 

of this section, every person that, by 

reason of the provisions of section 6157, 

computes the tax imposed by section 

3301 on a quarterly or other time period 

basis shall— 

(i) If the person is described in section 

(a)(1) of section 6157, deposit the 

amount of such tax by the last day of the 

first calendar month following the close 

of each of the first three calendar 

quarters in the calendar year; or 

(ii) If the person is other than a person 

described in section (a)(1) of section 

6157, deposit the amount of such tax by 

the last day of the first calendar month 

following the close of— 

* * * * * 

(b) Manner of deposit—(1) In general. 

A deposit required to be made by an 

employer under this section shall be 

made separately from a deposit required 

by any other section. An employer may 

make one, or more than one, remittance 

of the amount required to be deposited. 

An employer that is not required to 

deposit an amount of tax by this section 

may nevertheless voluntarily make that 

deposit. For the requirement to deposit 

tax under the Federal Unemployment 

Tax Act by electronic funds transfer, see 

§ 31.6302–1(h). 

(2) Time deemed paid. For the time an 

amount deposited by electronic funds 

transfer is deemed paid, see § 31.6302– 

1(h)(9). For the time an amount remitted 

with a return is deemed paid, see 

§ 31.6302–1(i)(3). 

(c) Effective/applicability date. This 

section applies to deposits and 

payments made after December 31, 

2010. 

PART 40—EXCISE TAX PROCEDURAL 

REGULATIONS 

■ Par. 16. The authority citation for part 

40 continues to read in part as follows: 

Authority: 26 U.S.C. 7805 * * * 

■ Par. 17. Section 40.6302(c)–1 is 

amended by: 

■ 1. Revising the heading. 

■ 2. In paragraph (b)(2)(v), removing the 

language ‘‘that failure may be reported to 

the appropriate IRS office and’’. 

■ 3. Revising paragraphs (d) and (f). 

The revisions read as follows: 

§ 40.6302(c)–1 Deposits. 

* * * * * 

(d) Deposits required by electronic 

funds transfer. All deposits required by 

this part must be made by electronic 

funds transfer, as that term is defined in 

§ 31.6302–1(h)(4) of this chapter. 

* * * * * 

(f) Effective/applicability date. This 

section applies to deposits and 

payments made after December 31, 

2010. 

* * * * * 

■ Par. 18. Section 40.6302(c)–1T is 

amended by revising the section 

heading to read as follows: 


srobinson on DSKHWCL6B1PROD with RULES
75904 Federal Register / Vol. 75, No. 234 / Tuesday, December 7, 2010 / Rules and Regulations 

§ 40.6302(c)–1T Deposits (temporary). 

* * * * * 

§ 40.6302(c)–2 [Amended] 

■ Par. 19. Section 40.6302(c)–2, 

paragraph (c), is amended by removing 

the language ‘‘2001’’ and adding ‘‘2001, 

except that paragraph (b) of this section 

does not apply after December 31, 2010’’ 

in its place. 

■ Par. 20. Section 40.6302(c)–3 is 

amended as follows: 

■ 1. The heading is revised. 

■ 2. Paragraph (c) is revised. 

■ 3. In paragraph (g), the language 

‘‘2004’’ is removed and ‘‘2004, and 

except that paragraph (f)(5) of this 

section does not apply after December 

31, 2010’’ is added in its place. 

The revisions read as follows: 

§ 40.6302(c)–3 Deposits under chapter 33. 

* * * * * 

(c) Time to deposit. Under the 

alternative method, the deposit of tax 

for any semimonthly period must be 

made by the third business day after the 

seventh day of that semimonthly period. 

For purposes of this paragraph (c), a 

‘‘business day’’ is any calendar day other 

than a Saturday, Sunday, or legal 

holiday. The term ‘‘legal holiday’’ means 

a legal holiday in the District of 

Columbia as defined in section 7503. 

Thus, for example, the deposit for the 

semimonthly period beginning on 

January 1, 2011 (relating to amounts 

billed between December 1st and 

December 15, 2010) is due by January 

12, 2011, three business days after 

January 7, the seventh day of the 

semimonthly period. The deposit for the 

semimonthly period beginning on 

October 1, 2011 (relating to amounts 

billed between September 1st and 

September 15, 2011), is due by October 

13, 2011, due to the October 10, 2011, 

Columbus Day holiday. 

* * * * * 

PART 301—PROCEDURE AND 

ADMINISTRATION 

■ Par. 21. The authority citation for part 

301 is amended to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

■ Par. 22. Section 301.6302–1 is revised 

to read as follows: 

§ 301.6302–1 Manner or time of collection 

of taxes. 

(a) Employment and excise taxes. For 

provisions relating to the manner or 

time of collection of certain 

employment and excise taxes and 

deposits in connection with the 

payment thereof, see the regulations 

relating to the particular tax. 

(b) Income taxes. (1) For provisions 

relating to the deposits of income and 

estimated income taxes of certain 

corporations, see § 1.6302–1 of this 

chapter (Income Tax Regulations). 

(2) For provisions relating to the 

deposits of tax required to be withheld 

under chapter 3 of the Code on 

nonresident aliens and foreign 

corporations and tax-free covenant 

bonds, see § 1.6302–2 of this chapter. 

(c) Effective/applicability date. This 

section applies to deposits and 

payments made after December 31, 

2010. 

■ Par. 23. Section 301.6656–1 is 

amended by: 

■ 1. Revising paragraph (b). 

■ 2. Revising paragraph (c). 

The revisions read as follows: 

§ 301.6656–1 Abatement of penalty. 

* * * * * 

(b) Deposit sent to Secretary. The 

Secretary may abate the penalty 

imposed by section 6656(a) if the first 

time a taxpayer is required to make a 

deposit, the amount required to be 

deposited is inadvertently sent to the 

Secretary rather than deposited by 

electronic funds transfer. 

(c) Effective/applicability date. This 

section applies to deposits and 

payments made after December 31, 

2010. 

§ 301.7502–2 [Removed] 

■ Par. 24. Section 301.7502–2 is 

removed. 

Steven T. Miller, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: November 30, 2010. 

Michael Mundaca, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2010–30526 Filed 12–2–10; 11:15 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF LABOR 

Office of Labor-Management 

Standards 

29 CFR Part 403 

RIN 1215—AB75; 1245—AA02 

Rescission of Form T–1, Trust Annual 

Report; Requiring Subsidiary 

Organization Reporting on the Form 

LM–2, Labor Organization Annual 

Report; Modifying Subsidiary 

Organization Reporting on the Form 

LM–3, Labor Organization Annual 

Report; LMRDA Coverage of 

Intermediate Labor Organizations; 

Final Rule 

Correction 

In rule document 2010—29226 

beginning on page 74936 in the issue of 

Wednesday, December 1, 2010 make the 

following correction: 

On page 74936, in the second column, 

under the DATES section, in the second 

line, ‘‘January 3, 2011’’ should read 

‘‘January 1, 2011’’. 

[FR Doc. C1–2010–29226 Filed 12–6–10; 8:45 am] 

BILLING CODE 1505–01–D 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Parts 594, 595, and 597 

Global Terrorism Sanctions 

Regulations; Terrorism Sanctions 

Regulations; Foreign Terrorist 

Organizations Sanctions Regulations 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Final rule. 

SUMMARY: The Office of Foreign Assets 

Control (‘‘OFAC’’) of the U.S. 

Department of the Treasury is amending 

the Global Terrorism Sanctions 

Regulations (‘‘GTSR’’) and the Terrorism 

Sanctions Regulations (‘‘TSR’’) to 

expand the scope of authorizations in 

each of those programs for the provision 

of certain legal services. In addition, 

OFAC is adding new general licenses 

under the GTSR, the TSR, and the 

Foreign Terrorist Organizations 

Sanctions Regulations to authorize U.S. 

persons to receive specified types of 

payment for certain authorized legal 

services. 

DATES: Effective Date: December 7, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Assistant Director for Compliance, 

Outreach & Implementation, tel.: 202/ 

622–2490, Assistant Director for 


srobinson on DSKHWCL6B1PROD with RULES