Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Rules and Regulations 9101 

PART 249—[CORRECTED] 

Note: The text of Forms 8–K, 10–Q 

and 10–K do not, and these 

amendments will not, appear in the 

Code of Federal Regulations. 

Form 8–K [Corrected] 

■ 1. On page 68366, in the first column, 

paragraph (a) of Form 8–K is corrected 

to read as follows: 

‘‘(a) The date of the meeting and 

whether it was an annual or special 

meeting. This information must be 

provided only if a meeting of security 

holders was held.’’ 

■ 2. On page 68366, in the first column, 

in Form 8–K, ‘‘Instruction 3 to Item 

5.07’’ is corrected to read: 

‘‘Instruction 3 to Item 5.07. If the 

registrant did not solicit proxies and the 

board of directors as previously reported 

to the Commission was re-elected in its 

entirety, a statement to that effect in 

answer to paragraph (b) will suffice as 

an answer thereto regarding the election 

of directors.’’ 

■ 3. On page 68366, in the first and 

second column, in Form 8–K, 

‘‘Instruction 5 to Item 5.07’’ is corrected 

to read: 

‘‘Instruction 5 to Item 5.07. A 

registrant may omit the information 

called for by this Item 5.07 if, on the 

date of the filing of its report on Form 

8–K, the registrant meets the following 

conditions: 

1. All of the registrant’s equity 

securities are owned, either directly or 

indirectly, by a single person which is 

a reporting company under the 

Exchange Act and which has filed all 

the material required to be filed 

pursuant to Section 13, 14 or 15(d) 

thereof, as applicable; and 

2. During the preceding thirty-six 

calendar months and any subsequent 

period of days, there has not been any 

material default in the payment of 

principal, interest, a sinking or purchase 

fund installment, or any other material 

default not cured within thirty days, 

with respect to any indebtedness of the 

registrant or its subsidiaries, and there 

has not been any material default in the 

payment of rentals under material longterm leases.’’ 

Form 10–Q [Corrected] 

■ 4. On page 68366, in the second 

column, the amendatory language for 

amendment 10 is corrected to read: 

‘‘10. Amend Form 10–Q (referenced in 

§ 249.308a) by removing and reserving 

Item 4 in Part II—Other Information.’’ 

Form 10–K [Corrected] 

■ 5. On page 68366, in the second 

column, the amendatory language for 

amendment 11 is corrected to read: 

‘‘11. Amend Form 10–K (referenced in 

§ 249.310) by removing and reserving 

Item 4 in Part I.’’ 

Dated: February 23, 2010. 

Elizabeth M. Murphy, 

Secretary. 

[FR Doc. 2010–4006 Filed 2–26–10; 8:45 am] 

BILLING CODE 8011–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9480] 

RIN 1545–BI89 

Reduced 2009 Estimated Income Tax 

Payments for Individuals With Small 

Business Income 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final and temporary 

regulations. 

SUMMARY: This document contains final 

and temporary regulations under section 

6654 of the Internal Revenue Code 

(Code) relating to reduced estimated 

income tax payments for qualified 

individuals with small business income 

for any taxable year beginning in 2009. 

The temporary regulations implement 

changes to section 6654 made by the 

American Recovery and Reinvestment 

Act of 2009. The temporary regulations 

provide guidance for qualified 

individuals with small business income 

to certify that they satisfy the statutory 

gross income requirement for purposes 

of the reduction in their required 2009 

estimated income tax payments. The 

text of the temporary regulations serves 

as the text of the proposed regulations 

set forth in the notice of proposed 

rulemaking on this subject in the 

Proposed Rules section in this issue of 

the Federal Register. 

DATES: Effective Date: These regulations 

are effective on March 1, 2010. 

Applicability Date: These regulations 

apply for any taxable year beginning in 

2009. 

FOR FURTHER INFORMATION CONTACT: 

Adrienne Mikolashek, (202) 622–4940 

(not a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

These temporary regulations contain 

amendments to the Income Tax 

Regulations (26 CFR part 1) under 

section 6654(d) of the Code relating to 

the addition to tax for failure by an 

individual to pay estimated income tax. 

Section 6654(d)(1)(D) was added by 

section 1212 of Division B of the 

American Recovery and Reinvestment 

Act of 2009, Public Law 111–5 (123 Stat. 

336 (2009)), effective for taxable years 

beginning in 2009. 

Section 6654 imposes an addition to 

tax in the case of an individual 

taxpayer’s underpayment of estimated 

tax. Estimated tax is payable in four 

installments throughout the taxable 

year, and the amount of each required 

installment is generally 25 percent of 

the required annual payment of 

estimated tax. Under section 

6654(d)(1)(B), the required annual 

payment is the lesser of (i) 90 percent 

of the tax shown on the income tax 

return for the taxable year (or, if no 

return is filed, 90 percent of the tax for 

the year) or (ii) 100 percent of the tax 

shown on the taxpayer’s return for the 

preceding taxable year (or 110 percent if 

the taxpayer’s adjusted gross income for 

the preceding taxable year exceeded 

$150,000). The provision allowing for 

the payment of 100 (or 110) percent of 

the tax shown on the taxpayer’s return 

for the preceding taxable year does not 

apply if the preceding taxable year was 

less than 12 months or if the taxpayer 

did not file a return for that year. 

Under section 6654(d)(1)(D), the 

applicable percentage of tax shown on 

the return for the preceding taxable year 

(either 100 or 110 percent) is reduced to 

90 percent for qualified individuals for 

taxable years beginning in 2009. In other 

words, for taxable years beginning in 

2009, a qualified individual’s annual 

required payment of estimated tax is the 

lesser of (i) 90 percent of the tax shown 

on the return for the 2009 taxable year 

(or, if no return is filed, 90 percent of 

the tax for the year) or (ii) 90 percent of 

the tax shown on the individual’s return 

for taxable year 2008. 

Explanation of Provisions 

The temporary regulations explain 

who is a qualified individual under 

section 6654(d)(1)(D) and how a 

taxpayer establishes that the taxpayer is 

a qualified individual. A qualified 

individual is any individual (1) whose 

adjusted gross income shown on the 

individual’s return for the preceding 

taxable year is less than $500,000 and 

(2) who certifies that more than 50 

percent of the gross income shown on 

that return was income from a small 

business. See section 6654(d)(1)(D)(ii). If 

an individual is married, within the 

meaning of section 7703, and files a 

separate return for a taxable year 

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9102 Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Rules and Regulations 

beginning in 2009, then to qualify, the 

individual’s adjusted gross income 

shown on the preceding year’s return 

must be less than $250,000, rather than 

$500,000. See section 6654(d)(1)(D)(iv). 

Pursuant to section 6654(d)(1)(D)(ii)(II), 

the Secretary shall prescribe by 

regulation the form, manner, and time 

for filing a certification. Additionally, 

section 6654(m) authorizes the Secretary 

to prescribe regulations as necessary to 

carry out the purposes of section 6654. 

Income from a small business is 

defined in general terms in section 

6654(d)(1)(D)(iii) as income from a trade 

or business the average number of 

employees of which was less than 500 

for calendar year 2008. The temporary 

regulations specify that the trade or 

business must be a bona fide trade or 

business of which the individual was an 

owner. The temporary regulations 

provide that a trade or business may be 

organized as, or take the legal form of, 

a corporation, partnership, limited 

liability company, or sole 

proprietorship. 

The temporary regulations also 

provide that a qualified individual shall 

file a certification with the IRS in the 

manner and at the time prescribed in 

forms, publications, or other guidance, 

such as Form 2210, ‘‘Underpayment of 

Estimated Tax by Individuals, Estates, 

and Trusts’’ (or any successor form and 

its instructions). 

The temporary regulations will be 

applicable for taxable years beginning in 

2009. The reduced percentage in section 

6654(d)(1)(D) is limited to taxable years 

beginning in 2009 and does not apply to 

taxable years beginning before or after 

2009. 

Special Analyses 

It has been determined that this 

Treasury decision is not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

regulatory assessment is not required. 

For the applicability of the Regulatory 

Flexibility Act, see the cross-referenced 

notice of proposed rulemaking 

published elsewhere in this issue of the 

Federal Register. 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. 

Drafting Information 

The principal author of these 

regulations is Adrienne Mikolashek, 

Office of the Associate Chief Counsel, 

Procedure and Administration. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Amendments to the Regulations 

■ Accordingly, 26 CFR part 1 is 

amended as follows: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 is amended by adding an entry 

in numerical order to read in part as 

follows: 

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

■ Par. 2. Section 1.6654–2 is amended 

by: 

■ 1. Revising paragraph (a) introductory 

text. 

■ 2. Redesignating paragraph (a)(1) as 

paragraph (a)(1)(i). 

■ 3. Adding new paragraphs (a)(1)(ii) 

and (f). 

The additions and revision read as 

follows: 

§ 1.6654–2 Exceptions to imposition of the 

addition to the tax in the case of 

individuals. 

(a) [Reserved]. For further guidance, 

see § 1.6654–2T(a). 

(1)(i) * * * 

(ii) [Reserved]. For further guidance, 

see § 1.6654–2T(a)(1)(ii). 

* * * * * 

(f) [Reserved]. For further guidance, 

see § 1.6654–2T(f). 

■ Par. 3. Section 1.6654–2T is added to 

read as follows: 

§ 1.6654–2T Exceptions to imposition of 

the addition to the tax in the case of 

individuals (temporary). 

(a) In general. The addition to the tax 

under section 6654 will not be imposed 

for any underpayment of any 

installment of estimated tax if, on or 

before the date prescribed for payment 

of the installment, the total amount of 

all payments of estimated tax made 

equals or exceeds the lesser of the 

amount in § 1.6654–2(a)(1) or the 

amount in § 1.6654–2(a)(2). 

(1)(i) [Reserved]. For further guidance, 

see § 1.6654–2(a)(1)(i). 

(ii) Special rule for taxable years 

beginning in 2009. For any taxable year 

beginning in 2009, for a qualified 

individual, the amount described in 

§ 1.6654–2(a)(1)(i) is reduced to 90 

percent of that amount. 

(A) Qualified individual means any 

individual whose adjusted gross income 

shown on the individual’s return for the 

preceding taxable year is less than 

$500,000 and who certifies, as 

prescribed in paragraph (a)(1)(ii)(D) of 

this section, that more than 50 percent 

of the gross income shown on the return 

for the preceding taxable year was 

income from a small business. 

(B) Income from a small business 

means income from the operation of a 

bona fide trade or business of which the 

individual was an owner during 

calendar year 2009, and that on average 

had fewer than 500 employees in 

calendar year 2008. 

(C) The trade or business may be 

organized as, or take the legal form of, 

a corporation, partnership, limited 

liability company, or sole 

proprietorship. 

(D) A qualified individual shall file a 

certification of the individual’s 

qualification in the manner and at the 

time prescribed by the Internal Revenue 

Service in forms, publications, or other 

guidance. 

(a)(2) through (e) [Reserved]. For 

further guidance, see § 1.6654–2(a)(2) 

through (e). 

(f) Effective/applicability date. 

Paragraph (a) of this section applies to 

any taxable year beginning in 2009. 

(g) Expiration date. The applicability 

of paragraph (a) of this section expires 

on or before February 26, 2013. 

Steven T. Miller, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: February 18, 2010. 

Michael F. Mundaca, 

Acting Assistant Secretary of the Treasury 

(Tax Policy). 

[FR Doc. 2010–4126 Filed 2–26–10; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF JUSTICE 

28 CFR Part 43 

[AG Order No. 3141–2010] 

Recovery of Cost of Hospital and 

Medical Care and Treatment Furnished 

by the United States; Delegation of 

Authority 

AGENCY: Department of Justice. 

ACTION: Final rule. 

SUMMARY: This rule amends Department 

of Justice regulations to increase the 

settlement and waiver authority 

delegated to heads of departments and 

agencies of the United States 

responsible for the furnishing of 

hospital, medical, surgical, or dental 

care. This change responds to the 

increase in medical costs since 1992, 

when the current level of delegated 

settlement and waiver authority was 

established, and will further the 

efficient operation of the government. 

DATES: Effective Date: March 1, 2010. 

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