Flat Rate Supplemental Wage Withholding; Correction, 77612 [E6-22022]

Download as PDF 77612 Federal Register / Vol. 71, No. 248 / Wednesday, December 27, 2006 / Rules and Regulations the taxpayer’s allocations is warranted and complete any such examination. The separate cycle will be worked as resources are available and may not have the same estimated completion date as the other issues under examination for the taxable year. The IRS may ask the taxpayer to extend the statute of limitations on assessment and collection for the taxable year to permit examination of the taxpayer’s method of allocation, including an extension limited, where appropriate, to the taxpayer’s method of allocation. (l) Effective date. This section applies to taxable years beginning on or after December 27, 2006. PART 602—OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT I Par. 4. The authority citation for part 602 continues to read as follows: Authority: 26 U.S.C. 7805. Par. 5. In § 602.101 paragraph (b) is amended by adding an entry to the table in numerical order, §§ 1.863–8 and 1.863–9, to read as follows: I § 602.101 * * CFR part or section where identified and described Background The final regulations that are the subject of these corrections are under sections 3401 and 3402 of the Internal Revenue Code. Need for Corrections As published, final regulations (TD 9276) contain errors that may prove to be misleading and are in need of clarification. * Current OMB control No. 1545–1718. 1545–1718. Kevin M. Brown, Acting Deputy Commissioner for Services and Enforcement. Approved: December 21, 2006. Eric Solomon, Assistant Secretary of the Treasury (Tax Policy). [FR Doc. E6–22174 Filed 12–26–06; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 31 [TD 9276] rwilkins on PROD1PC63 with RULES Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendment. VerDate Aug<31>2005 17:07 Dec 26, 2006 Jkt 211001 * * * * * * * * (vi) * * * If U elects to withhold income tax at the flat rate provided under paragraph (a)(7)(iii)(F) of this section, withholding on the $50,000 of sick pay would be calculated at 25 percent of the $50,000 payment and would be $12,500. * * * * * * * * LaNita Van Dyke, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). [FR Doc. E6–22022 Filed 12–26–06; 8:45 am] BILLING CODE 4830–01–P Correction of Publication [CGD05–06–119] RIN 1625–AA–09 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: I Authority: 26 U.S.C. 7805 * * * I Par. 2. Section 31.3402(g)-1(a)(8) is amended by revising the fifth sentence of Example 1 paragraph (iii), the fifth sentence of Example 3 paragraph (i), the last sentence of Example 3 paragraph (iv) and the third sentence of Example 3 paragraph (vi). The revisions read as follows: Supplemental wage (a) * * * (8) * * * Flat Rate Supplemental Wage Withholding; Correction SUMMARY: This document contains corrections to final regulations (TD * (iv) * * * If R elects to use optional flat rate withholding provided under paragraph (a)(7)(iii)(f) of this section, withholding would be calculated at 25 percent of the $1,000,000 portion of the payment and would be $250,000. DEPARTMENT OF HOMELAND SECURITY § 31.3402(g)–1 payments. RIN 1545–BD96 AGENCY: * List of Subjects in 26 CFR Part 31 Employment taxes, Income taxes, Penalties, Pensions, Railroad retirement, Reporting and recordkeeping requirements, Social security, Unemployment compensation. I 1.863–8 ..................... 1.863–9 ..................... Example 3. (i) * * * Unrelated company U pays D sick pay as an agent of the employer R and such sick pay is supplemental wages pursuant to § 31.3401(a)-1(b)(8)(i)(b)(2). * * * Accordingly, 26 CFR part 31 is corrected by making the following correcting amendments: OMB Control numbers. * * (b) * * * 9276) that were published in the Federal Register on Tuesday, July 25, 2006 (71 FR 42049), amending the regulations that provide for determining the amount of income tax withholding on supplemental wages. These regulations apply to all employers and others making supplemental wage payments to employees. DATES: The correction will be effective January 1, 2007. FOR FURTHER INFORMATION CONTACT: A.G. Kelley, (202) 622–6040 (not a toll-free number). SUPPLEMENTARY INFORMATION: Example 1. * * * (iii) * * * If Y elected to withhold income tax using paragraph (a)(7) of this section, Y would withhold on the $400,000 component at 25 percent (pursuant to paragraph (a)(7)(iii)(F) of this section), which would result in $100,000 tax withheld. * * * * PO 00000 * * Frm 00030 * Fmt 4700 * Sfmt 4700 Coast Guard 33 CFR Part 117 Drawbridge Operation Regulations; Potomac River, Alexandria, VA and Oxon Hill, MD Coast Guard, DHS. Notice of temporary deviation from regulations. AGENCY: ACTION: SUMMARY: The Commander, Fifth Coast Guard District, has issued a temporary deviation from the regulation governing the operation of the new Woodrow Wilson Memorial (I–95) Bridge, mile 103.8, across Potomac River between Alexandria, Virginia and Oxon Hill, Maryland. This deviation allows the new drawbridge to remain closed to navigation each day from 10 a.m. to 2 p.m. beginning on December 25, 2006 until and including February 22, 2007, to facilitate completion of the Outer Loop portion for the new Woodrow Wilson Bridge construction project. DATES: This deviation is effective from 10 a.m. on December 25, 2006, until 2 p.m. on February 22, 2007. ADDRESSES: Materials referred to in this document are available for inspection or copying at Commander (dpb), Fifth Coast Guard District, Federal Building, 1st Floor, 431 Crawford Street, E:\FR\FM\27DER1.SGM 27DER1

Agencies

[Federal Register Volume 71, Number 248 (Wednesday, December 27, 2006)]
[Rules and Regulations]
[Page 77612]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-22022]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 31

[TD 9276]
RIN 1545-BD96


Flat Rate Supplemental Wage Withholding; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final regulations (TD 
9276) that were published in the Federal Register on Tuesday, July 25, 
2006 (71 FR 42049), amending the regulations that provide for 
determining the amount of income tax withholding on supplemental wages. 
These regulations apply to all employers and others making supplemental 
wage payments to employees.

DATES: The correction will be effective January 1, 2007.

FOR FURTHER INFORMATION CONTACT: A.G. Kelley, (202) 622-6040 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of these corrections are 
under sections 3401 and 3402 of the Internal Revenue Code.

Need for Corrections

    As published, final regulations (TD 9276) contain errors that may 
prove to be misleading and are in need of clarification.

List of Subjects in 26 CFR Part 31

    Employment taxes, Income taxes, Penalties, Pensions, Railroad 
retirement, Reporting and recordkeeping requirements, Social security, 
Unemployment compensation.

Correction of Publication

0
Accordingly, 26 CFR part 31 is corrected by making the following 
correcting amendments:

PART 31--EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE

0
Paragraph 1. The authority citation for part 31 continues to read, in 
part, as follows:

    Authority: 26 U.S.C. 7805 * * *


0
Par. 2. Section 31.3402(g)-1(a)(8) is amended by revising the fifth 
sentence of Example 1 paragraph (iii), the fifth sentence of Example 3 
paragraph (i), the last sentence of Example 3 paragraph (iv) and the 
third sentence of Example 3 paragraph (vi).
    The revisions read as follows:


Sec.  31.3402(g)-1  Supplemental wage payments.

    (a) * * *
    (8) * * *
    Example 1. * * *
    (iii) * * * If Y elected to withhold income tax using paragraph 
(a)(7) of this section, Y would withhold on the $400,000 component 
at 25 percent (pursuant to paragraph (a)(7)(iii)(F) of this 
section), which would result in $100,000 tax withheld. * * *
* * * * *
    Example 3. (i) * * * Unrelated company U pays D sick pay as an 
agent of the employer R and such sick pay is supplemental wages 
pursuant to Sec.  31.3401(a)-1(b)(8)(i)(b)(2). * * *
* * * * *
    (iv) * * * If R elects to use optional flat rate withholding 
provided under paragraph (a)(7)(iii)(f) of this section, withholding 
would be calculated at 25 percent of the $1,000,000 portion of the 
payment and would be $250,000.
* * * * *
    (vi) * * * If U elects to withhold income tax at the flat rate 
provided under paragraph (a)(7)(iii)(F) of this section, withholding 
on the $50,000 of sick pay would be calculated at 25 percent of the 
$50,000 payment and would be $12,500. * * *
* * * * *

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
 [FR Doc. E6-22022 Filed 12-26-06; 8:45 am]
BILLING CODE 4830-01-P