Reduced 2009 Estimated Income Tax Payments for Individuals With Small Business Income, 9101-9102 [2010-4126]
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Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Rules and Regulations
Form 10–K [Corrected]
PART 249—[CORRECTED]
5. On page 68366, in the second
column, the amendatory language for
amendment 11 is corrected to read:
‘‘11. Amend Form 10–K (referenced in
§ 249.310) by removing and reserving
Item 4 in Part I.’’
■
Note: The text of Forms 8–K, 10–Q
and 10–K do not, and these
amendments will not, appear in the
Code of Federal Regulations.
Form 8–K [Corrected]
1. On page 68366, in the first column,
paragraph (a) of Form 8–K is corrected
to read as follows:
‘‘(a) The date of the meeting and
whether it was an annual or special
meeting. This information must be
provided only if a meeting of security
holders was held.’’
■
2. On page 68366, in the first column,
in Form 8–K, ‘‘Instruction 3 to Item
5.07’’ is corrected to read:
‘‘Instruction 3 to Item 5.07. If the
registrant did not solicit proxies and the
board of directors as previously reported
to the Commission was re-elected in its
entirety, a statement to that effect in
answer to paragraph (b) will suffice as
an answer thereto regarding the election
of directors.’’
■
3. On page 68366, in the first and
second column, in Form 8–K,
‘‘Instruction 5 to Item 5.07’’ is corrected
to read:
‘‘Instruction 5 to Item 5.07. A
registrant may omit the information
called for by this Item 5.07 if, on the
date of the filing of its report on Form
8–K, the registrant meets the following
conditions:
1. All of the registrant’s equity
securities are owned, either directly or
indirectly, by a single person which is
a reporting company under the
Exchange Act and which has filed all
the material required to be filed
pursuant to Section 13, 14 or 15(d)
thereof, as applicable; and
2. During the preceding thirty-six
calendar months and any subsequent
period of days, there has not been any
material default in the payment of
principal, interest, a sinking or purchase
fund installment, or any other material
default not cured within thirty days,
with respect to any indebtedness of the
registrant or its subsidiaries, and there
has not been any material default in the
payment of rentals under material longterm leases.’’
mstockstill on DSKH9S0YB1PROD with RULES
■
Form 10–Q [Corrected]
4. On page 68366, in the second
column, the amendatory language for
amendment 10 is corrected to read:
‘‘10. Amend Form 10–Q (referenced in
§ 249.308a) by removing and reserving
Item 4 in Part II—Other Information.’’
■
VerDate Nov<24>2008
16:31 Feb 26, 2010
Jkt 220001
Dated: February 23, 2010.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2010–4006 Filed 2–26–10; 8:45 am]
BILLING CODE 8011–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9480]
RIN 1545–BI89
Reduced 2009 Estimated Income Tax
Payments for Individuals With Small
Business Income
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Final and temporary
regulations.
SUMMARY: This document contains final
and temporary regulations under section
6654 of the Internal Revenue Code
(Code) relating to reduced estimated
income tax payments for qualified
individuals with small business income
for any taxable year beginning in 2009.
The temporary regulations implement
changes to section 6654 made by the
American Recovery and Reinvestment
Act of 2009. The temporary regulations
provide guidance for qualified
individuals with small business income
to certify that they satisfy the statutory
gross income requirement for purposes
of the reduction in their required 2009
estimated income tax payments. The
text of the temporary regulations serves
as the text of the proposed regulations
set forth in the notice of proposed
rulemaking on this subject in the
Proposed Rules section in this issue of
the Federal Register.
DATES: Effective Date: These regulations
are effective on March 1, 2010.
Applicability Date: These regulations
apply for any taxable year beginning in
2009.
FOR FURTHER INFORMATION CONTACT:
Adrienne Mikolashek, (202) 622–4940
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
These temporary regulations contain
amendments to the Income Tax
PO 00000
Frm 00017
Fmt 4700
Sfmt 4700
9101
Regulations (26 CFR part 1) under
section 6654(d) of the Code relating to
the addition to tax for failure by an
individual to pay estimated income tax.
Section 6654(d)(1)(D) was added by
section 1212 of Division B of the
American Recovery and Reinvestment
Act of 2009, Public Law 111–5 (123 Stat.
336 (2009)), effective for taxable years
beginning in 2009.
Section 6654 imposes an addition to
tax in the case of an individual
taxpayer’s underpayment of estimated
tax. Estimated tax is payable in four
installments throughout the taxable
year, and the amount of each required
installment is generally 25 percent of
the required annual payment of
estimated tax. Under section
6654(d)(1)(B), the required annual
payment is the lesser of (i) 90 percent
of the tax shown on the income tax
return for the taxable year (or, if no
return is filed, 90 percent of the tax for
the year) or (ii) 100 percent of the tax
shown on the taxpayer’s return for the
preceding taxable year (or 110 percent if
the taxpayer’s adjusted gross income for
the preceding taxable year exceeded
$150,000). The provision allowing for
the payment of 100 (or 110) percent of
the tax shown on the taxpayer’s return
for the preceding taxable year does not
apply if the preceding taxable year was
less than 12 months or if the taxpayer
did not file a return for that year.
Under section 6654(d)(1)(D), the
applicable percentage of tax shown on
the return for the preceding taxable year
(either 100 or 110 percent) is reduced to
90 percent for qualified individuals for
taxable years beginning in 2009. In other
words, for taxable years beginning in
2009, a qualified individual’s annual
required payment of estimated tax is the
lesser of (i) 90 percent of the tax shown
on the return for the 2009 taxable year
(or, if no return is filed, 90 percent of
the tax for the year) or (ii) 90 percent of
the tax shown on the individual’s return
for taxable year 2008.
Explanation of Provisions
The temporary regulations explain
who is a qualified individual under
section 6654(d)(1)(D) and how a
taxpayer establishes that the taxpayer is
a qualified individual. A qualified
individual is any individual (1) whose
adjusted gross income shown on the
individual’s return for the preceding
taxable year is less than $500,000 and
(2) who certifies that more than 50
percent of the gross income shown on
that return was income from a small
business. See section 6654(d)(1)(D)(ii). If
an individual is married, within the
meaning of section 7703, and files a
separate return for a taxable year
E:\FR\FM\01MRR1.SGM
01MRR1
9102
Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Rules and Regulations
beginning in 2009, then to qualify, the
individual’s adjusted gross income
shown on the preceding year’s return
must be less than $250,000, rather than
$500,000. See section 6654(d)(1)(D)(iv).
Pursuant to section 6654(d)(1)(D)(ii)(II),
the Secretary shall prescribe by
regulation the form, manner, and time
for filing a certification. Additionally,
section 6654(m) authorizes the Secretary
to prescribe regulations as necessary to
carry out the purposes of section 6654.
Income from a small business is
defined in general terms in section
6654(d)(1)(D)(iii) as income from a trade
or business the average number of
employees of which was less than 500
for calendar year 2008. The temporary
regulations specify that the trade or
business must be a bona fide trade or
business of which the individual was an
owner. The temporary regulations
provide that a trade or business may be
organized as, or take the legal form of,
a corporation, partnership, limited
liability company, or sole
proprietorship.
The temporary regulations also
provide that a qualified individual shall
file a certification with the IRS in the
manner and at the time prescribed in
forms, publications, or other guidance,
such as Form 2210, ‘‘Underpayment of
Estimated Tax by Individuals, Estates,
and Trusts’’ (or any successor form and
its instructions).
The temporary regulations will be
applicable for taxable years beginning in
2009. The reduced percentage in section
6654(d)(1)(D) is limited to taxable years
beginning in 2009 and does not apply to
taxable years beginning before or after
2009.
mstockstill on DSKH9S0YB1PROD with RULES
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.
For the applicability of the Regulatory
Flexibility Act, see the cross-referenced
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.
Drafting Information
The principal author of these
regulations is Adrienne Mikolashek,
Office of the Associate Chief Counsel,
Procedure and Administration.
VerDate Nov<24>2008
16:31 Feb 26, 2010
Jkt 220001
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Amendments to the Regulations
Accordingly, 26 CFR part 1 is
amended as follows:
■
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by adding an entry
in numerical order to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.6654–2 is amended
by:
■ 1. Revising paragraph (a) introductory
text.
■ 2. Redesignating paragraph (a)(1) as
paragraph (a)(1)(i).
■ 3. Adding new paragraphs (a)(1)(ii)
and (f).
The additions and revision read as
follows:
■
§ 1.6654–2 Exceptions to imposition of the
addition to the tax in the case of
individuals.
(a) [Reserved]. For further guidance,
see § 1.6654–2T(a).
(1)(i) * * *
(ii) [Reserved]. For further guidance,
see § 1.6654–2T(a)(1)(ii).
*
*
*
*
*
(f) [Reserved]. For further guidance,
see § 1.6654–2T(f).
■ Par. 3. Section 1.6654–2T is added to
read as follows:
§ 1.6654–2T Exceptions to imposition of
the addition to the tax in the case of
individuals (temporary).
(a) In general. The addition to the tax
under section 6654 will not be imposed
for any underpayment of any
installment of estimated tax if, on or
before the date prescribed for payment
of the installment, the total amount of
all payments of estimated tax made
equals or exceeds the lesser of the
amount in § 1.6654–2(a)(1) or the
amount in § 1.6654–2(a)(2).
(1)(i) [Reserved]. For further guidance,
see § 1.6654–2(a)(1)(i).
(ii) Special rule for taxable years
beginning in 2009. For any taxable year
beginning in 2009, for a qualified
individual, the amount described in
§ 1.6654–2(a)(1)(i) is reduced to 90
percent of that amount.
(A) Qualified individual means any
individual whose adjusted gross income
shown on the individual’s return for the
preceding taxable year is less than
$500,000 and who certifies, as
prescribed in paragraph (a)(1)(ii)(D) of
this section, that more than 50 percent
PO 00000
Frm 00018
Fmt 4700
Sfmt 4700
of the gross income shown on the return
for the preceding taxable year was
income from a small business.
(B) Income from a small business
means income from the operation of a
bona fide trade or business of which the
individual was an owner during
calendar year 2009, and that on average
had fewer than 500 employees in
calendar year 2008.
(C) The trade or business may be
organized as, or take the legal form of,
a corporation, partnership, limited
liability company, or sole
proprietorship.
(D) A qualified individual shall file a
certification of the individual’s
qualification in the manner and at the
time prescribed by the Internal Revenue
Service in forms, publications, or other
guidance.
(a)(2) through (e) [Reserved]. For
further guidance, see § 1.6654–2(a)(2)
through (e).
(f) Effective/applicability date.
Paragraph (a) of this section applies to
any taxable year beginning in 2009.
(g) Expiration date. The applicability
of paragraph (a) of this section expires
on or before February 26, 2013.
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
Approved: February 18, 2010.
Michael F. Mundaca,
Acting Assistant Secretary of the Treasury
(Tax Policy).
[FR Doc. 2010–4126 Filed 2–26–10; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF JUSTICE
28 CFR Part 43
[AG Order No. 3141–2010]
Recovery of Cost of Hospital and
Medical Care and Treatment Furnished
by the United States; Delegation of
Authority
Department of Justice.
Final rule.
AGENCY:
ACTION:
SUMMARY: This rule amends Department
of Justice regulations to increase the
settlement and waiver authority
delegated to heads of departments and
agencies of the United States
responsible for the furnishing of
hospital, medical, surgical, or dental
care. This change responds to the
increase in medical costs since 1992,
when the current level of delegated
settlement and waiver authority was
established, and will further the
efficient operation of the government.
DATES: Effective Date: March 1, 2010.
E:\FR\FM\01MRR1.SGM
01MRR1
]]>Agencies
[Federal Register Volume 75, Number 39 (Monday, March 1, 2010)]
[Rules and Regulations]
[Pages 9101-9102]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-4126]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9480]
RIN 1545-BI89
Reduced 2009 Estimated Income Tax Payments for Individuals With
Small Business Income
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final and temporary regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final and temporary regulations under
section 6654 of the Internal Revenue Code (Code) relating to reduced
estimated income tax payments for qualified individuals with small
business income for any taxable year beginning in 2009. The temporary
regulations implement changes to section 6654 made by the American
Recovery and Reinvestment Act of 2009. The temporary regulations
provide guidance for qualified individuals with small business income
to certify that they satisfy the statutory gross income requirement for
purposes of the reduction in their required 2009 estimated income tax
payments. The text of the temporary regulations serves as the text of
the proposed regulations set forth in the notice of proposed rulemaking
on this subject in the Proposed Rules section in this issue of the
Federal Register.
DATES: Effective Date: These regulations are effective on March 1,
2010.
Applicability Date: These regulations apply for any taxable year
beginning in 2009.
FOR FURTHER INFORMATION CONTACT: Adrienne Mikolashek, (202) 622-4940
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
These temporary regulations contain amendments to the Income Tax
Regulations (26 CFR part 1) under section 6654(d) of the Code relating
to the addition to tax for failure by an individual to pay estimated
income tax. Section 6654(d)(1)(D) was added by section 1212 of Division
B of the American Recovery and Reinvestment Act of 2009, Public Law
111-5 (123 Stat. 336 (2009)), effective for taxable years beginning in
2009.
Section 6654 imposes an addition to tax in the case of an
individual taxpayer's underpayment of estimated tax. Estimated tax is
payable in four installments throughout the taxable year, and the
amount of each required installment is generally 25 percent of the
required annual payment of estimated tax. Under section 6654(d)(1)(B),
the required annual payment is the lesser of (i) 90 percent of the tax
shown on the income tax return for the taxable year (or, if no return
is filed, 90 percent of the tax for the year) or (ii) 100 percent of
the tax shown on the taxpayer's return for the preceding taxable year
(or 110 percent if the taxpayer's adjusted gross income for the
preceding taxable year exceeded $150,000). The provision allowing for
the payment of 100 (or 110) percent of the tax shown on the taxpayer's
return for the preceding taxable year does not apply if the preceding
taxable year was less than 12 months or if the taxpayer did not file a
return for that year.
Under section 6654(d)(1)(D), the applicable percentage of tax shown
on the return for the preceding taxable year (either 100 or 110
percent) is reduced to 90 percent for qualified individuals for taxable
years beginning in 2009. In other words, for taxable years beginning in
2009, a qualified individual's annual required payment of estimated tax
is the lesser of (i) 90 percent of the tax shown on the return for the
2009 taxable year (or, if no return is filed, 90 percent of the tax for
the year) or (ii) 90 percent of the tax shown on the individual's
return for taxable year 2008.
Explanation of Provisions
The temporary regulations explain who is a qualified individual
under section 6654(d)(1)(D) and how a taxpayer establishes that the
taxpayer is a qualified individual. A qualified individual is any
individual (1) whose adjusted gross income shown on the individual's
return for the preceding taxable year is less than $500,000 and (2) who
certifies that more than 50 percent of the gross income shown on that
return was income from a small business. See section 6654(d)(1)(D)(ii).
If an individual is married, within the meaning of section 7703, and
files a separate return for a taxable year
[[Page 9102]]
beginning in 2009, then to qualify, the individual's adjusted gross
income shown on the preceding year's return must be less than $250,000,
rather than $500,000. See section 6654(d)(1)(D)(iv). Pursuant to
section 6654(d)(1)(D)(ii)(II), the Secretary shall prescribe by
regulation the form, manner, and time for filing a certification.
Additionally, section 6654(m) authorizes the Secretary to prescribe
regulations as necessary to carry out the purposes of section 6654.
Income from a small business is defined in general terms in section
6654(d)(1)(D)(iii) as income from a trade or business the average
number of employees of which was less than 500 for calendar year 2008.
The temporary regulations specify that the trade or business must be a
bona fide trade or business of which the individual was an owner. The
temporary regulations provide that a trade or business may be organized
as, or take the legal form of, a corporation, partnership, limited
liability company, or sole proprietorship.
The temporary regulations also provide that a qualified individual
shall file a certification with the IRS in the manner and at the time
prescribed in forms, publications, or other guidance, such as Form
2210, ``Underpayment of Estimated Tax by Individuals, Estates, and
Trusts'' (or any successor form and its instructions).
The temporary regulations will be applicable for taxable years
beginning in 2009. The reduced percentage in section 6654(d)(1)(D) is
limited to taxable years beginning in 2009 and does not apply to
taxable years beginning before or after 2009.
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. For the
applicability of the Regulatory Flexibility Act, see the cross-
referenced 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.
Drafting Information
The principal author of these regulations is Adrienne Mikolashek,
Office of the Associate Chief Counsel, Procedure and Administration.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Amendments to the Regulations
0
Accordingly, 26 CFR part 1 is amended as follows:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 is amended by adding an
entry in numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.6654-2 is amended by:
0
1. Revising paragraph (a) introductory text.
0
2. Redesignating paragraph (a)(1) as paragraph (a)(1)(i).
0
3. Adding new paragraphs (a)(1)(ii) and (f).
The additions and revision read as follows:
Sec. 1.6654-2 Exceptions to imposition of the addition to the tax in
the case of individuals.
(a) [Reserved]. For further guidance, see Sec. 1.6654-2T(a).
(1)(i) * * *
(ii) [Reserved]. For further guidance, see Sec. 1.6654-
2T(a)(1)(ii).
* * * * *
(f) [Reserved]. For further guidance, see Sec. 1.6654-2T(f).
0
Par. 3. Section 1.6654-2T is added to read as follows:
Sec. 1.6654-2T Exceptions to imposition of the addition to the tax in
the case of individuals (temporary).
(a) In general. The addition to the tax under section 6654 will not
be imposed for any underpayment of any installment of estimated tax if,
on or before the date prescribed for payment of the installment, the
total amount of all payments of estimated tax made equals or exceeds
the lesser of the amount in Sec. 1.6654-2(a)(1) or the amount in Sec.
1.6654-2(a)(2).
(1)(i) [Reserved]. For further guidance, see Sec. 1.6654-
2(a)(1)(i).
(ii) Special rule for taxable years beginning in 2009. For any
taxable year beginning in 2009, for a qualified individual, the amount
described in Sec. 1.6654-2(a)(1)(i) is reduced to 90 percent of that
amount.
(A) Qualified individual means any individual whose adjusted gross
income shown on the individual's return for the preceding taxable year
is less than $500,000 and who certifies, as prescribed in paragraph
(a)(1)(ii)(D) of this section, that more than 50 percent of the gross
income shown on the return for the preceding taxable year was income
from a small business.
(B) Income from a small business means income from the operation of
a bona fide trade or business of which the individual was an owner
during calendar year 2009, and that on average had fewer than 500
employees in calendar year 2008.
(C) The trade or business may be organized as, or take the legal
form of, a corporation, partnership, limited liability company, or sole
proprietorship.
(D) A qualified individual shall file a certification of the
individual's qualification in the manner and at the time prescribed by
the Internal Revenue Service in forms, publications, or other guidance.
(a)(2) through (e) [Reserved]. For further guidance, see Sec.
1.6654-2(a)(2) through (e).
(f) Effective/applicability date. Paragraph (a) of this section
applies to any taxable year beginning in 2009.
(g) Expiration date. The applicability of paragraph (a) of this
section expires on or before February 26, 2013.
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
Approved: February 18, 2010.
Michael F. Mundaca,
Acting Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2010-4126 Filed 2-26-10; 8:45 am]
BILLING CODE 4830-01-P
