Source: https://www.federalregister.gov/articles/2012/06/25/2012-15422/disregarded-entities-and-the-indoor-tanning-services-excise-tax
Timestamp: 2015-07-07 13:29:43
Document Index: 379581076

Matched Legal Cases: ['§ 1', '§ 1', '§ 301', '§ 1', '§ 301', '§ 1', '§ 1', '§ 1', '§ 1', '§ 301', '§ 301', '§ 301']

-37807 (2 pages)
Document Number: 2012-15422
Shorter URL: https://federalregister.gov/a/2012-15422 Related Topics
This document contains final and temporary regulations relating to disregarded entities (including qualified subchapter S subsidiaries) and the indoor tanning services excise tax. These regulations affect disregarded entities responsible for collecting the indoor tanning services excise tax and owners of those disregarded entities. The text of these temporary regulations serves as the text of proposed regulations (REG-125570-11) published in the Proposed Rules section in this issue of the Federal Register.
Applicability Date: For dates of applicability, see §§ 1.1361-4T(a)(8)(iii)(B) and 301.7701-2T(e)(9)(i).
Since January 1, 2008, §§ 1.1361-4(a)(8) and 301.7701-2(c)(2)(v) have treated a qualified subchapter S subsidiary (QSub) and a single-owner eligible entity that is disregarded as an entity separate from its owner for any purpose under § 301.7701-2 (collectively, a disregarded entity) as a separate entity for purposes of excise taxes imposed by Chapters 31, 32 (other than section 4181), 33, 34, 35, 36 (other than section 4461), and 38 of the Code, and any floor stocks tax imposed on articles subject to any of these taxes.
Consistent with existing §§ 1.1361-4(a)(8) and 301.7701-2(c)(2)(v), these temporary regulations add Chapter 49 to the list of excise taxes for which disregarded entities are treated as separate entities. Accordingly, effective for taxes imposed on amounts paid on or after July 1, 2012, these temporary regulations treat a disregarded entity as a separate entity for purposes of the indoor tanning services excise tax under section 5000B. These temporary regulations also treat a single-owner eligible entity that is disregarded as an entity separate from its owner for any purpose under § 301.7701-2 as a corporation with respect to the indoor tanning services excise tax.
The indoor tanning services excise tax is reported on Form 720 “Quarterly Federal Excise Tax Return”. As a result of these temporary regulations, a Form 720 reporting indoor tanning services excise taxes imposed on amounts paid on or after July 1, 2012, must be filed under the name and employer identification number (EIN) of the entity rather than under the name and EIN of the disregarded entity's owner. Thus, this rule affects returns of this tax that are due on or after October 31, 2012.
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 has also been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations. For applicability of the Regulatory Flexibility Act (5 U.S.C. chapter 6), please refer to the Special Analyses section of the preamble to the cross-reference notice of proposed rulemaking published elsewhere in this issue of the Federal Register. Pursuant to section 7805(f) of the Code, this regulation has been submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business.
(iii) [Reserved]. For further guidance, see § 1.1361-4T(a)(8)(iii).
§ 1.1361-4T Effect of QSub election (temporary).
(a)(1) through (a)(8)(ii) [Reserved]. For further guidance, see § 1.1361-4(a)(1) through (a)(8)(ii). (iii) Rule for Chapter 49 tax liabilities—(A) In general. A qualified subchapter S subsidiary (QSub) is treated as a separate corporation for purposes of—
(a)(9) through (d) [Reserved]. For further guidance, see § 1.1361-4(a)(9) through (d).
(vi) [Reserved]. For further guidance, see § 301.7701-2T(c)(2)(vi).
(9) [Reserved]. For further guidance, see § 301.7701-2T(e)(9).
(a) through (c)(2)(v) [Reserved]. For further guidance, see § 301.7701-2(a) through (c)(2)(v).
[FR Doc. 2012-15422 Filed 6-22-12; 8:45 am]