[Federal Register Volume 65, Number 235 (Wednesday, December 6, 2000)]
[Proposed Rules]
[Pages 76194-76195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-30792]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 31

[REG-114423-00]
RIN 1545-AY47


Federal Employment Tax Deposits--De Minimis Rule

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

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SUMMARY: These proposed regulations affect taxpayers required to make 
deposits of Federal employment taxes. This document contains proposed 
regulations which change the de minimis deposit rule for quarterly and 
annual return periods.
    In the Rules and Regulations section of this issue of the Federal 
Register, the IRS is issuing temporary regulations relating to the 
deposit of Federal employment taxes. The text of those regulations also 
serves as the text of these proposed regulations.

DATES: Written or electronically generated comments and requests for a 
public hearing must be received by March 6, 2001.

ADDRESSES: Send submissions to: CC:M&SP:RU (REG-114423-00), room 5226, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. Submissions may be hand delivered Monday through Friday 
between the hours of 8 a.m. and 5 p.m. to: CC:M&SP:RU (REG-114423-00), 
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue, 
NW., Washington, DC. Alternatively, taxpayers may submit comments 
electronically via the Internet by selecting the ``Tax Regs'' option on 
the IRS Home Page, or by submitting comments directly to the IRS 
Internet site at http://www.irs.gov/tax_regs/regslist.html.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Brinton T. Warren, (202) 622-4940; concerning submissions of comments 
and requests for a public hearing, Treena Garrett of the Regulations 
Unit at (202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Employment Tax and Collection 
of Income Tax at Source Regulations (26 CFR part 31) relating to 
section 6302. The temporary regulations change the de minimis rule for 
the deposit of Federal employment taxes. The text of those regulations 
also serves as the text of these proposed regulations. The preamble to 
the temporary regulations explains the amendments.

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 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 Internal Revenue Code, this 
notice of proposed

[[Page 76195]]

rulemaking will be submitted to the Chief Counsel for Advocacy of the 
Small Business Administration for comment on their impact.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written (a signed original and 8 
copies) and electronic comments that are submitted timely to the IRS. 
The IRS and Treasury specifically request comments on the clarity of 
the proposed regulations and how they can be made easier to understand. 
All comments will be available for public inspection and copying. A 
public hearing will be scheduled if requested in writing by any person 
that timely submits comments. If a public hearing is scheduled, notice 
of the date, time, and place for the public hearing will be published 
in the Federal Register.

Drafting Information

    The principal author of the regulations is Brinton T. Warren of the 
Office of Associate Chief Counsel, Procedure and Administration 
(Administrative Provisions and Judicial Practice Division). However, 
other personnel from the IRS and Treasury Department participated in 
their development.

List of Subjects in 26 CFR Part 31

    Employment taxes, Income taxes, Penalties, Pensions, Railroad 
retirement, Reporting and recordkeeping requirements, Social security, 
Unemployment compensation.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 31 is proposed to be 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 * * *

    Par. 2. In Sec. 31.6302-1, paragraph (f)(4) is revised to read as 
follows:


Sec. 31.6302-1  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.

* * * * *
    (f) * * *
    (4) [The text of proposed Sec. 31.6302-1(f)(4) is the same as the 
text of Sec. 31.6302-1T(f)(4)].
* * * * *

Charles O. Rossotti,
Commissioner of Internal Revenue.
[FR Doc. 00-30792 Filed 12-5-00; 8:45 am]
BILLING CODE 4830-01-U