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###### Department of the Treasury

###### Internal Revenue Service 

          - 26 CFR Part 31 
          - [REG-114423-00] 
          - RIN 1545-AY47 

# AGENCY:

Internal Revenue Service (IRS), Treasury. 

# ACTION:

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

# 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                           ( print 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 § 31.6302-1, paragraph (f)(4) is revised to read as follows:                     

§ 31.6302-1 

* * * * *

(f) * * * 

(4) [The text of proposed § 31.6302-1(f)(4) is the same as the text of § 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