[Federal Register Volume 66, Number 100 (Wednesday, May 23, 2001)]
[Rules and Regulations]
[Page 28370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-12864]



[[Page 28370]]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 31

[TD 8946]
RIN 1545-AY47


Federal Employment Tax Deposits--De Minimis Rule

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations and removal of temporary regulations.

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SUMMARY: This document contains final regulations relating to the 
deposit of Federal employment taxes. The final regulations adopt the 
rules of the temporary regulations that change the de minimis deposit 
rule for quarterly and annual periods from $1,000 to $2,500. The 
regulations affect taxpayers required to make deposits of Federal 
employment taxes.

DATES: Effective Date: These regulations are effective May 23, 2001.
    Applicability Date: For dates of applicability, see Sec. 31.6302-
1(f)(4).

FOR FURTHER INFORMATION CONTACT: Brinton T. Warren, (202) 622-4940 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:   

Background

    This document contains amendments to 26 CFR part 31, Employment 
Taxes and Collection of Income Tax at the Source. On December 6, 2000, 
temporary and final regulations (TD 8909) relating to the deposit of 
Federal employment taxes under section 6302 of the Internal Revenue 
Code were published in the Federal Register (65 FR 76152). A notice of 
proposed rulemaking (REG-114423-00) cross-referencing the temporary 
regulations was published in the Federal Register for the same day (65 
FR 76194). No comments were received from the public in response to the 
notice of proposed rulemaking.

Explanation of Provisions

    These final regulations adopt the rules of the temporary 
regulations. Under these rules, a taxpayer does not have to make 
deposits of Federal employment taxes for a quarterly or annual return 
period if the tax for the period is less than $2,500 and the taxpayer 
remits its full liability with a timely filed return for the period. 
The regulations are applicable with respect to quarterly and annual 
periods beginning on or after January 1, 2001.

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. 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, 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 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.

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 is amended by 
removing the entry for Section 31.6302-1T 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) De Minimis rule. For quarterly and annual return periods 
beginning on or after January 1, 2001, if the total amount of 
accumulated employment taxes for the return period is less than $2,500 
and the amount is fully deposited or remitted with a timely filed 
return for the return period, the amount deposited or remitted will be 
deemed to have been timely deposited.
* * * * *


Sec. 31.6302-1T  [Removed]

    Par. 3. Section 31.6302-1T is removed.

Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
    Approved: May 10, 2001.
Mark A. Weinberger,
Assistant Secretary for Tax Policy.
[FR Doc. 01-12864 Filed 5-22-01; 8:45 am]
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