Federal Register / Vol. 77, No. 80 / Wednesday, April 25, 2012 / Rules and Regulations 24611 

COMMENTERS—Continued 

Abbreviation Commenter 

SPP RE .............................. Southwest Power Pool Regional Entity. 

Tallahassee ........................ City of Tallahassee, Florida. 

Trade Associations ............. American Public Power Association; Electricity Consumers Resource Council; Edison Electric Institute; Electric 

Power Supply Association; National Rural Electric Cooperative Association; and Transmission Access Policy 

Study Group. 

[FR Doc. 2012–9893 Filed 4–24–12; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 31 

[TD 9586] 

RIN 1545–BK83 

Removal of Regulations Requiring 3% 

Withholding by Government Entities 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document provides a 

Treasury decision that removes the final 

regulations contained in TD 9524 

relating to withholding by government 

entities on payments to persons 

providing property or services, and 

makes conforming amendments to 

regulations to reflect the removal of 

these regulations. The final regulations 

are removed because the 3% 

Withholding Repeal and Job Creation 

Act repealed the provision of the 

Internal Revenue Code underlying the 

final regulations before the provision 

became effective. 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. 

DATES: Effective Date: These regulations 

are effective on April 25, 2012. 

Applicability Date: For dates of 

applicability, see §§ 31.6011(a)–4(d) and 

31.6302–1(n). 

FOR FURTHER INFORMATION CONTACT: A. 

G. Kelley, (202) 622–6040 (not a toll-free 

number). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains amendments 

to 26 CFR part 31 under section 3402(t) 

of the Internal Revenue Code (Code), 

relating to three percent withholding by 

government entities on payments for 

property or services. Section 3402(t) of 

the 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. 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) (the May 

2011 final regulations). Those 

regulations were issued to implement 

the requirements of section 3402(t) and 

conform existing regulations to section 

3402(t). 

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. Section 

3402(t) was repealed before it became 

effective. 

This document, therefore, removes 

the regulatory provisions issued under 

section 3402(t) and related sections, and 

makes conforming amendments to 

certain regulations to reflect the removal 

of the section 3402(t) regulations. 

At the same time as the issuance of 

the May 2011 final regulations, the 

Treasury Department and the IRS also 

issued proposed regulations under 

section 3402(t), published in the 

Federal Register on May 9, 2011 (REG– 

151687–10, 76 FR 26678, 2011–23 IRB 

867). A related document withdraws 

those proposed regulations in light of 

the repeal of section 3402(t). See REG– 

151687–10. 

Special Analyses 

It has been determined that this 

Treasury decision is not a significant 

regulatory action as defined in 

Executive Order 12866, as 

supplemented by Executive Order 

13563. 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 this 

regulation, and because no notice of 

proposed rule making is required for 

this rule, the Regulatory Flexibility Act 

(5 U.S.C. chapter 6) does not apply. 

Drafting Information 

The principal author of these final 

regulations is A. G. Kelley, Office of the 

Division Counsel/Associate Chief 

Counsel (Tax Exempt and Government 

Entities). However, other personnel 

from the IRS and the Treasury 

Department participated in their 

development. 

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. 

Adoption of Amendments to the 

Regulations 

Accordingly, 26 CFR part 31 is 

amended as follows: 

PART 31—EMPLOYMENT TAXES AND 

COLLECTION OF INCOME TAX AT 

SOURCE 

■ Paragraph 1. The authority citation 

for part 31 continues to read in part as 

follows: 

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

§§ 31.3402 and 31.3406 [Amended] 

■ Par. 2. The following sections and 

paragraphs are removed: 

■ 1. Remove section 31.3402(t)–0. 

■ 2. Remove section 31.3402(t)–1. 

■ 3. Remove section 31.3402(t)–2. 

■ 4. Remove section 31.3402(t)–3. 

■ 5. Remove section 31.3402(t)–4. 

■ 6. Remove section 31.3402(t)–5. 

■ 7. Remove section 31.3402(t)–6. 

■ 8. Remove section 31.3402(t)–7. 

■ 9. Remove paragraphs (h) and (i) of 

section 31.3406(g)–2. 

■ Par. 3. Section 31.6011(a)–4 is 

amended by: 

■ 1. Revising paragraphs (b)(4), (b)(5), 

and (d). 

■ 2. Removing paragraph (b)(6). 

The revisions read as follows: 

§ 31.6011(a)–4 Returns of income tax 

withheld. 

* * * * * 

(b) * * * 

(4) Pensions, annuities, IRAs, and 

certain other deferred income subject to 

withholding under section 3405; and 


srobinson on DSK4SPTVN1PROD with RULES
24612 Federal Register / Vol. 77, No. 80 / Wednesday, April 25, 2012 / Rules and Regulations 

(5) Reportable payments subject to 

backup withholding under section 3406. 

* * * * * 

(d) Effective/applicability dates. 

Paragraphs (a)(1) and (a)(4)(i) of this 

section apply to taxable years beginning 

on or after December 30, 2008. 

Paragraph (a)(4)(ii) of this section 

applies to taxable years beginning on or 

after January 1, 2010. The rules of 

paragraph (a)(1) of this section that 

apply to taxable years beginning before 

December 30, 2008, are contained in 

§ 31.6011(a)–4 as in effect prior to 

December 30, 2008. The rules of 

paragraph (a)(4)(ii) of this section that 

apply to taxable years beginning before 

January 1, 2010, but on or after 

December 30, 2008, are contained in 

§ 31.6011(a)–4T as in effect on or after 

December 30, 2008. The rules of 

paragraph (a)(4) of this section that 

apply to taxable years beginning before 

December 30, 2008, are contained in 

§ 31.6011(a)–4T as in effect prior to 

December 30, 2008. 

§ 31.6051–5 [Removed] 

■ Par. 4. Section 31.6051–5 is removed. 

■ Par. 5. Section 31.6071(a)–1 is 

amended by: 

■ 1. Revising paragraph (a)(3)(i). 

■ 2. Removing paragraph (g). 

The revision reads as follows: 

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

other documents. 

(a) * * * 

(3) Information returns–(i) General 

rule. Each information return in respect 

of wages as defined in Federal Insurance 

Contributions Act or of income tax 

withheld from wages as required under 

§ 31.6051–2 must be filed on or before 

the last day of February (March 31 if 

filed electronically) of the year 

following the calendar year for which it 

is made, except that, if a tax return 

under § 31.6011(a)–5(a) is filed as a final 

return for a period ending prior to 

December 31, the information return 

must be filed on or before the last day 

of the second calendar month following 

the period for which the tax return is 

filed. 

* * * * * 

■ Par. 6. Section 31.6302–1 is amended 

by: 

■ 1. Revising paragraph (e)(1)(iii)(C). 

■ 2. Removing paragraph (e)(1)(iii)(E). 

■ 3. Revising paragraph (n). 

The revisions read as follows: 

§ 31.6302–1 Deposit rules for taxes under 

the Federal Insurance Contributions Act 

(FICA) and withheld income taxes. 

* * * * * 

(e) * * * 

(1) * * * 

(iii) * * * 

(C) Certain annuities described in 

section 3402(o)(1)(B); and 

* * * * * 

(n) Effective/applicability dates. 

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 §§ 31.6302–1 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 as in effect 

prior to 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 

as in effect prior to 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 as 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. 7. Section 31.6302–4 is amended 

by: 

■ 1. Revising paragraphs (b)(4) and 

(b)(5). 

■ 2. Removing paragraph (b)(6). 

■ 3. Revising paragraph (e). 

The revisions read as follows: 

§ 31.6302–4 Deposit rules for withheld 

income taxes attributable to nonpayroll 

payments. 

* * * * * 

(b) * * * 

(4) Annuities withheld under section 

3405, relating to withholding on 

pensions, annuities, IRAs, and certain 

other deferred income; and 

(5) Amounts withheld under section 

3406, relating to backup withholding 

with respect to reportable payments. 

* * * * * 

(e) Effective/applicability date. 

Section 31.6302–4(d) applies to deposits 

and payments made after December 31, 

2010. 

Steven T. Miller, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: April 17, 2012. 

Emily S. McMahon, 

Acting Assistant Secretary of the Treasury 

(Tax Policy). 

[FR Doc. 2012–9887 Filed 4–24–12; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF DEFENSE 

Department of the Navy 

32 CFR Part 706 

Certifications and Exemptions Under 

the International Regulations for 

Preventing Collisions at Sea, 1972 

AGENCY: Department of the Navy, DoD. 

ACTION: Final rule. 

SUMMARY: The Department of the Navy 

(DoN) is amending its certifications and 

exemptions under the International 

Regulations for Preventing Collisions at 

Sea, 1972 (72 COLREGS), to reflect that 

the Deputy Assistant Judge Advocate 

General (DAJAG) (Admiralty and 

Maritime Law) has determined that USS 

ASHLAND (LSD 48) is a vessel of the 

Navy which, due to its special 

construction and purpose, cannot fully 

comply with certain provisions of the 72 

COLREGS without interfering with its 

special function as a naval ship. The 

intended effect of this rule is to warn 

mariners in waters where 72 COLREGS 

apply. 

DATES: This rule is effective April 25, 

2012 and is applicable beginning April 

16, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Lieutenant Jaewon Choi, JAGC, U.S. 

Navy, Admiralty Attorney, (Admiralty 

and Maritime Law), Office of the Judge 

Advocate General, Department of the 

Navy, 1322 Patterson Ave. SE., Suite 

3000, Washington Navy Yard, DC 

20374–5066, telephone 202–685–5040. 

SUPPLEMENTARY INFORMATION: Pursuant 

to the authority granted in 33 U.S.C. 

1605, the DoN amends 32 CFR part 706. 

This amendment provides notice that 

the DAJAG (Admiralty and Maritime 

Law), under authority delegated by the 

Secretary of the Navy, has certified that 

USS ASHLAND (LSD 48) is a vessel of 

the Navy which, due to its special 

construction and purpose, cannot fully 

comply with the following specific 

provisions of 72 COLREGS without 


srobinson on DSK4SPTVN1PROD with RULES