Withholding of District of Columbia, State, City and County Income or Employment Taxes by Federal Agencies, 2149-2150 [06-238]
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2149
Federal Register / Vol. 71, No. 9 / Friday, January 13, 2006 / Rules and Regulations
interest assumptions for plans with
valuation dates in January 2006. This
documents corrects an inadvertent error
in the January 2006 entry to Appendix
B to part 4044. (There was no
corresponding error in the preamble to
the document.)
List of Subjects in 29 CFR Part 4044
Employee benefit plans, Pension
insurance, Pensions.
Authority: 29 U.S.C. 1301(a), 1302(b)(3),
1341, 1344, 1362.
Accordingly 29 CFR part 4044 is
corrected by making the following
correcting amendments:
I
2. In appendix B to part 4044, correct
the entry for January 2006, as set forth
below, To read as follows:
I
PART 4044—ALLOCATION OF
ASSETS IN SINGLE–EMPLOYER
PLANS
Appendix B to Part 4044—Interest
Rates Used To Value Benefits
1. The authority citation for part 4044
continues to read as follows:
I
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The values of ic are:
For valuation dates occurring in the month—
for t =
it
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January 2006 ....................................................................
Issued in Washington, DC, on this 10th day
of January 2006.
Vincent K. Snowbarger,
Deputy Executive Director, Pension Benefit
Guaranty Corporation.
[FR Doc. 06–330 Filed 1–12–06; 8:45 am]
BILLING CODE 7708–01–M
DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 215
RIN 1510–AB06
Withholding of District of Columbia,
State, City and County Income or
Employment Taxes by Federal
Agencies
Financial Management Service,
Fiscal Service, Treasury.
ACTION: Final rule.
hsrobinson on PROD1PC70 with RULES
AGENCY:
SUMMARY: The Financial Management
Service is issuing this final rule which
governs the withholding of District of
Columbia, State, City and County
income or employment taxes by Federal
agencies. This rule revises the office
within the Department of the Treasury
which will correspond with government
entities requesting that the Secretary of
the Treasury enter into an agreement
with them for the mandatory
withholding of the requesting entity’s
taxes from Federal employees’ salaries.
The revision is necessary in order to
streamline the process by which
Treasury receives such requests and
responds to them. The revision also
updates the regulation by removing
outdated provisions no longer
applicable.
EFFECTIVE DATE:
January 13, 2006.
FOR FURTHER INFORMATION CONTACT:
James E. Knox, Financial Program
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Specialist, at (202) 874–6809; or Marc I.
Seldin, Senior Attorney, at (202) 874–
6863.
SUPPLEMENTARY INFORMATION:
Background
Pursuant to 5 U.S.C. 5516, 5 U.S.C.
5517, 5 U.S.C. 5520 and Executive
Order 11997, the Secretary of the
Treasury enters into withholding
agreements with the District of
Columbia, States, cities, and counties
for the mandatory withholding of a
jurisdiction’s taxes from the salaries of
Federal employees within a taxing
jurisdiction. When a taxing jurisdiction
wishes to enter into such a withholding
agreement, it forwards a request to the
Department of the Treasury (Treasury).
Treasury reviews the request,
determines whether it meets the
statutory and regulatory requirements
for such an agreement, and notifies the
requesting taxing jurisdiction of
Treasury’s determination as to whether
it will enter into a withholding
agreement with the requesting taxing
jurisdiction. Currently, Treasury’s
governing regulation, 31 CFR part 215,
lists Treasury’s Fiscal Assistant
Secretary as the point of contact for
such requests. Following receipt of such
requests by that office, the requests are
forwarded to Treasury’s Financial
Management Service (FMS), to which
the Fiscal Assistant Secretary has
delegated the authority to enter into
such withholding agreements. In order
to streamline the process by which
Treasury receives and responds to
requests to enter into withholding
agreements, the revised rule amends
§ 215.4 (which is redesignated as
§ 215.3, as described below) to provide
that requesting taxing jurisdictions will
forward their requests directly to FMS,
and FMS will respond to the requests.
The revised rule also makes a
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conforming change to a definition set
forth in § 215.2(l).
Additionally, the revised rule updates
§§ 215.1, 215.3, 215.4, and 215.5 by
deleting several outdated provisions
which are no longer effective. Section
215.3, codified on July 1, 1977 and
effective on that date, provided actions
which could be taken within 90 days of
that date. Section 215.5 provided details
on the actions set forth in § 215.3. The
last sentence of § 215.1 referenced the
actions described in §§ 215.3 and 215.5.
Since the time for any such actions has
long since expired, and for clarity, the
revised rule deletes outdated provisions
from §§ 215.1 and 215.3, deletes § 215.5
in its entirety (as it is no longer
applicable), and makes conforming
changes to § 215.4. For convenience to
the reader, § 215.3 and § 215.4 are
redesignated as § 215.4 and § 215.3,
respectively. As a result of § 215.5 being
deleted, subsequent sections § 215.6
through § 215.13 are redesignated as
§ 215.5 through § 215.12. In addition,
the current rule references a ‘‘Standard
Agreement’’ for withholding, and a
long-since expired opportunity in 1977
for requesting entities to request
deviations from the Standard
Agreement. Since there is only one
withholding agreement which
requesting entities may seek currently,
for clarity, the term ‘‘Standard
Agreement’’ has been replaced by the
term ‘‘Withholding Agreement.’’
The revised rule also updates two
definitions in § 215.2 in order to
conform to revisions made to an
underlying statute, 5 U.S.C. 5517, since
the rule was last revised. The definition
of ‘‘State’’ now specifically includes a
territory, possession, or commonwealth
of the United States. The citations
referenced in the definition of
‘‘Members of the Armed Forces’’ are
also updated. Neither of these
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13JAR1
2150
Federal Register / Vol. 71, No. 9 / Friday, January 13, 2006 / Rules and Regulations
conforming changes revises current law,
as they merely conform the rule to the
underlying law. The revised rule also
makes nomenclature revisions to the
authority citation.
Regulatory Analyses
This final rule is not a significant
regulatory action as defined in
Executive Order 12866. Therefore, a
Regulatory Assessment is not required.
Because this regulation merely affects
internal agency organization, procedure
and practice, and does not substantively
change the current rule, no notice of
proposed rulemaking is required by 5
U.S.C. 553.
Because no notice of proposed
rulemaking is required, the provisions
of the Regulatory Flexibility Act (5
U.S.C. 601 et seq.) do not apply.
This final rule is being issued
effective upon publication because it
merely affects internal agency
organization, procedure and practice,
and does not substantively change the
current rule. Consequently, there is no
requirement under 5 U.S.C. 553(d) for a
30-day or more period between the
publication date and effective date of
this rule.
withholding of State, city or county
income or employment taxes. Subpart C
is the Withholding Agreement which
the Secretary will enter into with any
State, city or county which qualifies to
have the tax withheld.
I 3. Amend § 215.2 to revise paragraphs
(h)(2)(i), (l), and (m) to read as follows:
§ 215.2
Definitions.
List of Subjects in 31 CFR Part 215
State and local tax withholding,
Federal employees.
*
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(h) * * *
(2) * * *
(i) Members of the Armed Forces
means (1) individuals in active duty
status (as defined in 10 U.S.C. 101(d)(1))
in regular and reserve components of
the Army, Navy, Air Force, Marine
Corps, and Coast Guard, and (2)
members of the National Guard while
participating in exercises or performing
duty under 32 U.S.C. 502 and members
of the Ready Reserve while participating
in scheduled drills or training periods
or serving on active duty for training
under 10 U.S.C. 10147.
*
*
*
*
*
(l) Secretary means Secretary of the
Treasury or his designee.
(m) State means a State, territory,
possession, or commonwealth of the
United States, or the District of
Columbia.
*
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I 4. Revise § 215.3 to read as follows:
Table of Contents, Authority and
Issuance
§ 215.3 Procedures for entering into a
Withholding Agreement.
For the reasons set forth in the
preamble, 31 CFR part 215 is amended
as follows:
(a) Subpart C of this part is the
Withholding Agreement which the
Secretary will enter into with a State,
city or county. A State, city or county
which does not have an existing
withholding agreement with the
Secretary and wishes to enter into such
an agreement shall indicate in a letter its
consent to be bound by the provisions
of Subpart C. The letter shall be sent to
the Secretary by addressing the request
to: Assistant Commissioner, Federal
Finance, Financial Management Service,
Department of the Treasury, 401 14th
Street, SW., Washington, DC 20227. The
letter shall be signed by an officer
authorized to bind contractually the
State, city or county. Copies of all
applicable State laws, city or county
ordinances and implementing
regulations, instructions, and forms
shall be enclosed. The letter shall also
indicate the title and address of the
official whom Federal agencies may
contact to obtain forms and other
information necessary to implement
withholding.
(b) Within 120 days of the receipt of
the letter from the State, city or county
official, the Secretary will, by letter,
notify the State, city or county:
I
PART 215—WITHHOLDING OF
DISTRICT OF COLUMBIA, STATE, CITY
AND COUNTY INCOME OR
EMPLOYMENT TAXES BY FEDERAL
AGENCIES
1. The table of contents for part 215
is revised to read as follows:
I
Authority: 5 U.S.C. 5516, 5517, 5520; E.O.
11997, 42 FR 31759.
I
2. Revise § 215.1 to read as follows:
hsrobinson on PROD1PC70 with RULES
§ 215.1
Scope of part.
This part relates to agreements
between the Secretary of the Treasury
and States (including the District of
Columbia), cities or counties for
withholding of State, city or county
income or employment taxes from the
compensation of civilian Federal
employees, and for the withholding of
State income taxes from the
compensation of members of the Armed
Forces. Subpart A contains general
information and definitions. Subpart B
prescribes the procedures to be followed
in entering into an agreement for the
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(1) That a Withholding Agreement has
been entered into as of the date of the
Secretary’s letter, or
(2) That a Withholding Agreement
cannot be entered into with the State,
city or county and the reason for that
determination.
(c) The withholding of the State, city
or county income or employment tax
shall commence within 90 days after the
effective date of the agreement.
I
5. Revise § 215.4 to read as follows:
§ 215.4 Relationship of Withholding
Agreement to prior agreements.
Jurisdictions which requested from
Treasury an agreement other than the
Withholding Agreement set forth in
Subpart C (formerly known as the
Standard Agreement) within 90 days
after July 1, 1977, which request
Treasury subsequently approved, will
continue to be governed by such
agreement. For all other jurisdictions,
the Withholding Agreement set forth in
Subpart C replaced all prior agreements
between the Secretary and a taxing
jurisdiction for the withholding of
income or employment taxes from the
compensation of Federal employees,
and any jurisdiction which was a party
to a prior agreement is presumed to
have consented to be bound by the
Withholding Agreement set forth in
Subpart C.
§ 215.5
[Removed]
§§ 215.6–215.13 [Redesignated as
§§ 215.5–215.12]
6. Remove § 215.5 and redesignate
§§ 215.6 through 215.13 as §§ 215.5
through 215.12, respectively.
I
7. Revise the heading for Subpart C to
read:
I
Subpart C—Withholding Agreement
I 8. In newly redesignated § 215.5,
remove the words ‘‘Standard
Agreement’’ and add, in their place, the
words ‘‘Withholding Agreement’’.
Dated: January 4, 2006.
Richard L. Gregg,
Commissioner.
[FR Doc. 06–238 Filed 1–12–06; 8:45 am]
BILLING CODE 4810–35–P
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]]>Agencies
[Federal Register Volume 71, Number 9 (Friday, January 13, 2006)]
[Rules and Regulations]
[Pages 2149-2150]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-238]
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DEPARTMENT OF THE TREASURY
Fiscal Service
31 CFR Part 215
RIN 1510-AB06
Withholding of District of Columbia, State, City and County
Income or Employment Taxes by Federal Agencies
AGENCY: Financial Management Service, Fiscal Service, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Financial Management Service is issuing this final rule
which governs the withholding of District of Columbia, State, City and
County income or employment taxes by Federal agencies. This rule
revises the office within the Department of the Treasury which will
correspond with government entities requesting that the Secretary of
the Treasury enter into an agreement with them for the mandatory
withholding of the requesting entity's taxes from Federal employees'
salaries. The revision is necessary in order to streamline the process
by which Treasury receives such requests and responds to them. The
revision also updates the regulation by removing outdated provisions no
longer applicable.
EFFECTIVE DATE: January 13, 2006.
FOR FURTHER INFORMATION CONTACT: James E. Knox, Financial Program
Specialist, at (202) 874-6809; or Marc I. Seldin, Senior Attorney, at
(202) 874-6863.
SUPPLEMENTARY INFORMATION:
Background
Pursuant to 5 U.S.C. 5516, 5 U.S.C. 5517, 5 U.S.C. 5520 and
Executive Order 11997, the Secretary of the Treasury enters into
withholding agreements with the District of Columbia, States, cities,
and counties for the mandatory withholding of a jurisdiction's taxes
from the salaries of Federal employees within a taxing jurisdiction.
When a taxing jurisdiction wishes to enter into such a withholding
agreement, it forwards a request to the Department of the Treasury
(Treasury). Treasury reviews the request, determines whether it meets
the statutory and regulatory requirements for such an agreement, and
notifies the requesting taxing jurisdiction of Treasury's determination
as to whether it will enter into a withholding agreement with the
requesting taxing jurisdiction. Currently, Treasury's governing
regulation, 31 CFR part 215, lists Treasury's Fiscal Assistant
Secretary as the point of contact for such requests. Following receipt
of such requests by that office, the requests are forwarded to
Treasury's Financial Management Service (FMS), to which the Fiscal
Assistant Secretary has delegated the authority to enter into such
withholding agreements. In order to streamline the process by which
Treasury receives and responds to requests to enter into withholding
agreements, the revised rule amends Sec. 215.4 (which is redesignated
as Sec. 215.3, as described below) to provide that requesting taxing
jurisdictions will forward their requests directly to FMS, and FMS will
respond to the requests. The revised rule also makes a conforming
change to a definition set forth in Sec. 215.2(l).
Additionally, the revised rule updates Sec. Sec. 215.1, 215.3,
215.4, and 215.5 by deleting several outdated provisions which are no
longer effective. Section 215.3, codified on July 1, 1977 and effective
on that date, provided actions which could be taken within 90 days of
that date. Section 215.5 provided details on the actions set forth in
Sec. 215.3. The last sentence of Sec. 215.1 referenced the actions
described in Sec. Sec. 215.3 and 215.5. Since the time for any such
actions has long since expired, and for clarity, the revised rule
deletes outdated provisions from Sec. Sec. 215.1 and 215.3, deletes
Sec. 215.5 in its entirety (as it is no longer applicable), and makes
conforming changes to Sec. 215.4. For convenience to the reader, Sec.
215.3 and Sec. 215.4 are redesignated as Sec. 215.4 and Sec. 215.3,
respectively. As a result of Sec. 215.5 being deleted, subsequent
sections Sec. 215.6 through Sec. 215.13 are redesignated as Sec.
215.5 through Sec. 215.12. In addition, the current rule references a
``Standard Agreement'' for withholding, and a long-since expired
opportunity in 1977 for requesting entities to request deviations from
the Standard Agreement. Since there is only one withholding agreement
which requesting entities may seek currently, for clarity, the term
``Standard Agreement'' has been replaced by the term ``Withholding
Agreement.''
The revised rule also updates two definitions in Sec. 215.2 in
order to conform to revisions made to an underlying statute, 5 U.S.C.
5517, since the rule was last revised. The definition of ``State'' now
specifically includes a territory, possession, or commonwealth of the
United States. The citations referenced in the definition of ``Members
of the Armed Forces'' are also updated. Neither of these
[[Page 2150]]
conforming changes revises current law, as they merely conform the rule
to the underlying law. The revised rule also makes nomenclature
revisions to the authority citation.
Regulatory Analyses
This final rule is not a significant regulatory action as defined
in Executive Order 12866. Therefore, a Regulatory Assessment is not
required.
Because this regulation merely affects internal agency
organization, procedure and practice, and does not substantively change
the current rule, no notice of proposed rulemaking is required by 5
U.S.C. 553.
Because no notice of proposed rulemaking is required, the
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do
not apply.
This final rule is being issued effective upon publication because
it merely affects internal agency organization, procedure and practice,
and does not substantively change the current rule. Consequently, there
is no requirement under 5 U.S.C. 553(d) for a 30-day or more period
between the publication date and effective date of this rule.
List of Subjects in 31 CFR Part 215
State and local tax withholding, Federal employees.
Table of Contents, Authority and Issuance
0
For the reasons set forth in the preamble, 31 CFR part 215 is amended
as follows:
PART 215--WITHHOLDING OF DISTRICT OF COLUMBIA, STATE, CITY AND
COUNTY INCOME OR EMPLOYMENT TAXES BY FEDERAL AGENCIES
0
1. The table of contents for part 215 is revised to read as follows:
Authority: 5 U.S.C. 5516, 5517, 5520; E.O. 11997, 42 FR 31759.
0
2. Revise Sec. 215.1 to read as follows:
Sec. 215.1 Scope of part.
This part relates to agreements between the Secretary of the
Treasury and States (including the District of Columbia), cities or
counties for withholding of State, city or county income or employment
taxes from the compensation of civilian Federal employees, and for the
withholding of State income taxes from the compensation of members of
the Armed Forces. Subpart A contains general information and
definitions. Subpart B prescribes the procedures to be followed in
entering into an agreement for the withholding of State, city or county
income or employment taxes. Subpart C is the Withholding Agreement
which the Secretary will enter into with any State, city or county
which qualifies to have the tax withheld.
0
3. Amend Sec. 215.2 to revise paragraphs (h)(2)(i), (l), and (m) to
read as follows:
Sec. 215.2 Definitions.
* * * * *
(h) * * *
(2) * * *
(i) Members of the Armed Forces means (1) individuals in active
duty status (as defined in 10 U.S.C. 101(d)(1)) in regular and reserve
components of the Army, Navy, Air Force, Marine Corps, and Coast Guard,
and (2) members of the National Guard while participating in exercises
or performing duty under 32 U.S.C. 502 and members of the Ready Reserve
while participating in scheduled drills or training periods or serving
on active duty for training under 10 U.S.C. 10147.
* * * * *
(l) Secretary means Secretary of the Treasury or his designee.
(m) State means a State, territory, possession, or commonwealth of
the United States, or the District of Columbia.
* * * * *
0
4. Revise Sec. 215.3 to read as follows:
Sec. 215.3 Procedures for entering into a Withholding Agreement.
(a) Subpart C of this part is the Withholding Agreement which the
Secretary will enter into with a State, city or county. A State, city
or county which does not have an existing withholding agreement with
the Secretary and wishes to enter into such an agreement shall indicate
in a letter its consent to be bound by the provisions of Subpart C. The
letter shall be sent to the Secretary by addressing the request to:
Assistant Commissioner, Federal Finance, Financial Management Service,
Department of the Treasury, 401 14th Street, SW., Washington, DC 20227.
The letter shall be signed by an officer authorized to bind
contractually the State, city or county. Copies of all applicable State
laws, city or county ordinances and implementing regulations,
instructions, and forms shall be enclosed. The letter shall also
indicate the title and address of the official whom Federal agencies
may contact to obtain forms and other information necessary to
implement withholding.
(b) Within 120 days of the receipt of the letter from the State,
city or county official, the Secretary will, by letter, notify the
State, city or county:
(1) That a Withholding Agreement has been entered into as of the
date of the Secretary's letter, or
(2) That a Withholding Agreement cannot be entered into with the
State, city or county and the reason for that determination.
(c) The withholding of the State, city or county income or
employment tax shall commence within 90 days after the effective date
of the agreement.
0
5. Revise Sec. 215.4 to read as follows:
Sec. 215.4 Relationship of Withholding Agreement to prior agreements.
Jurisdictions which requested from Treasury an agreement other than
the Withholding Agreement set forth in Subpart C (formerly known as the
Standard Agreement) within 90 days after July 1, 1977, which request
Treasury subsequently approved, will continue to be governed by such
agreement. For all other jurisdictions, the Withholding Agreement set
forth in Subpart C replaced all prior agreements between the Secretary
and a taxing jurisdiction for the withholding of income or employment
taxes from the compensation of Federal employees, and any jurisdiction
which was a party to a prior agreement is presumed to have consented to
be bound by the Withholding Agreement set forth in Subpart C.
Sec. 215.5 [Removed]
Sec. Sec. 215.6-215.13 [Redesignated as Sec. Sec. 215.5-215.12]
0
6. Remove Sec. 215.5 and redesignate Sec. Sec. 215.6 through 215.13
as Sec. Sec. 215.5 through 215.12, respectively.
0
7. Revise the heading for Subpart C to read:
Subpart C--Withholding Agreement
0
8. In newly redesignated Sec. 215.5, remove the words ``Standard
Agreement'' and add, in their place, the words ``Withholding
Agreement''.
Dated: January 4, 2006.
Richard L. Gregg,
Commissioner.
[FR Doc. 06-238 Filed 1-12-06; 8:45 am]
BILLING CODE 4810-35-P
