Source: https://www.federalregister.gov/documents/2000/12/06/00-30791/federal-employment-tax-deposits-de-minimis-rule
Timestamp: 2020-04-05 05:10:02
Document Index: 773187433

Matched Legal Cases: ['§\u200931', 'art 31', 'art 31', '§\u200931', '§\u200931', '§\u200931', '§\u200931']

A Rule by the Internal Revenue Service on 12/06/2000
TD 8909
1545-AY46
https://www.federalregister.gov/d/00-30791 https://www.federalregister.gov/d/00-30791
Effective date: These regulations are effective December 6, 2000.
Applicability date: For dates of applicability, see § 31.6302-1T(f)(4).
Brinton T. Warren, (202) 622-4940 (not a toll-free call).
This document contains amendments to 26 CFR part 31, Employment Taxes and Collection of Income Tax at the Source. Section 31.6302-1(f)(4) provides that if the total amount of accumulated employment taxes for a return period is less than $1,000 and the amount is fully deposited or remitted with a timely filed return for the quarter, the amount deposited or remitted will be deemed to be timely deposited.
The temporary regulations change the $1,000 threshold to $2,500. Thus, a taxpayer that has accumulated employment taxes of less than $2,500 for a return period (quarterly or annual, as the case may be) does not have to make deposits but may remit its full Start Printed Page 76153liability with a timely filed return for the return period.
The de minimis threshold is being raised as part of the IRS and Treasury's continued efforts to reduce burden on the small business community. On June 16, 1998, temporary regulations (TD 8771) that raised the de minimis threshold from $500 to $1,000 were published in the Federal Register (63 FR 32735). This increase of the threshold to $1,000 was made final on June 17, 1999, (TD 8822) in regulations published in the Federal Register (64 FR 32408).
Having conducted further study, the IRS now seeks additional changes in deposit requirements to reduce taxpayer burden. The IRS and Treasury have determined that another increase in the de minimis threshold is a simple and straightforward step that will reduce burden on small businesses.
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, these regulations will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on their impact on small businesses.
Paragraph 1. The authority citation for part 31 is amended by adding an entry in numerical order to read in part as follows:
Section 31.6302-1T also issued under 26 U.S.C. 6302(a) and (c). * * *
Par. 2. In § 31.6302-1, a new sentence is added at the end of paragraph (f)(4) to read as follows:
(4) * * * For guidance regarding de minimis amounts for quarterly or annual return periods beginning on or after January 1, 2001, see § 31.6302-1T(f)(4).
Par. 3. Section 31.6302-1T is added to read as follows:
(a) through (f)(3). [Reserved] For further guidance, see § 31.6302-1(a) through (f)(3).
(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.
(f)(5) through (n). [Reserved] For further guidance, see § 31.6302-1(f)(5) through (n).
Approved: November 21, 2000.
[FR Doc. 00-30791 Filed 12-5-00; 8:45 am]