Disregarded Entities and the Indoor Tanning Services Excise Tax, 37806-37807 [2012-15422]
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37806
§ 206.32
D.
Federal Register / Vol. 77, No. 122 / Monday, June 25, 2012 / Rules and Regulations
Definitions applicable to subpart
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(a) The term substantial cause has the
same meaning as in section 202(b)(1)(B)
of the Trade Act.
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Issued: June 18, 2012.
By order of the Commission.
William R. Bishop,
Acting Secretary to the Commission.
[FR Doc. 2012–15346 Filed 6–22–12; 8:45 am]
BILLING CODE 7020–02–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[TD 9596]
RIN 1545–BK39
Disregarded Entities and the Indoor
Tanning Services Excise Tax
Internal Revenue Service (IRS),
Treasury.
ACTION: Final and temporary
regulations.
AGENCY:
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.
DATES: Effective Date: These regulations
are effective on June 25, 2012.
Applicability Date: For dates of
applicability, see §§ 1.1361–
4T(a)(8)(iii)(B) and 301.7701–2T(e)(9)(i).
FOR FURTHER INFORMATION CONTACT:
Michael H. Beker, (202) 622–3130 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
erowe on DSK2VPTVN1PROD with RULES
Background and Explanation of
Provisions
This document contains amendments
to the Income Tax Regulations (26 CFR
part 1) under section 1361 of the
Internal Revenue Code (Code) and the
Procedure and Administration
Regulations (26 CFR part 301) under
section 7701 of the Code.
Since January 1, 2008, §§ 1.1361–
4(a)(8) and 301.7701–2(c)(2)(v) have
treated a qualified subchapter S
VerDate Mar<15>2010
14:43 Jun 22, 2012
Jkt 226001
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.
Effective July 1, 2010, section 10907
of the Patient Protection and Affordable
Care Act, Public Law 111–148 (124 Stat.
119 (2010)), added new Chapter 49 to
the Code, which imposes an excise tax
on amounts paid for indoor tanning
services under section 5000B.
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.
For taxes imposed under section
5000B on amounts paid before July 1,
2012, the IRS will treat payments made
by a disregarded entity, or other actions
taken by a disregarded entity, with
respect to the indoor tanning services
excise tax as having been made or taken
by the owner of that entity. Thus, for
such periods, the owner of a disregarded
entity will be treated as satisfying its
obligations with respect to the indoor
tanning services excise tax if those
obligations are satisfied either: (i) By the
owner itself or (ii) by the disregarded
entity on behalf of the owner.
Special Analyses
It has been determined that this
Treasury decision is not a significant
regulatory action as defined in
PO 00000
Frm 00056
Fmt 4700
Sfmt 4700
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.
Drafting Information
The principal author of these
regulations is Michael H. Beker, Office
of the Associate Chief Counsel
(Passthroughs and Special Industries).
However, other personnel from the IRS
and the Treasury Department
participated in their development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes,
Excise taxes, Gift taxes, Income taxes,
Penalties, Reporting and recordkeeping
requirements.
Amendments to the Regulations
Accordingly, 26 CFR parts 1 and 301
are amended as follows:
PART 1—INCOME TAX
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.1361–4 is amended
by adding paragraph (a)(8)(iii) to read as
follows:
■
§ 1.1361–4
Effect of QSub election.
(a) * * *
(8) * * *
(iii) [Reserved]. For further guidance,
see § 1.1361–4T(a)(8)(iii).
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*
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*
*
■ Par. 3. Section 1.1361–4T is added to
read as follows:
§ 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).
E:\FR\FM\25JNR1.SGM
25JNR1
Federal Register / Vol. 77, No. 122 / Monday, June 25, 2012 / Rules and Regulations
PART 301—PROCEDURE AND
ADMINISTRATION
Par. 4. The authority citation for part
301 continues to read in part as follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 5. Section 301.7701–2 is
amended by adding new paragraphs
(c)(2)(vi) and (e)(9), and adding and
reserving paragraph (e)(8), to read as
follows:
■
Business entities;
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(c) * * *
(2) * * *
(vi) [Reserved]. For further guidance,
see § 301.7701–2T(c)(2)(vi).
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(e) * * *
(8) [Reserved]
(9) [Reserved]. For further guidance,
see § 301.7701–2T(e)(9).
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[FR Doc. 2012–15422 Filed 6–22–12; 8:45 am]
If
you have questions on this notice, call
or email LT Adrian Palomeque,
Prevention Department, Sector Detroit,
Coast Guard; telephone (313) 568–9508,
email Adrian.F.Palomeque@uscg.mil.
SUPPLEMENTARY INFORMATION: The Coast
Guard will enforce the following special
local regulations at the following times:
FOR FURTHER INFORMATION CONTACT:
Section 100.914 Trenton Rotary Roar
on the River, Trenton, MI
This special local regulation will be
enforced from 12 a.m. to 6 p.m. on July
20, 2012 and from 8 a.m. to 8 p.m. on
July 21 and 22, 2012.
This special local regulation will be
enforced from 10 a.m. to 6 p.m. on July
27, 28 and 29, 2012.
Section 100.919 International Bay
City River Roar, Bay City, MI
Coast Guard
This special local regulation will be
enforced from 9 a.m. to 6 p.m. on June
22, 23, and 24, 2012. In the case of
inclement weather on June 24, 2012,
this special local regulation will also be
enforced from 9 a.m. to 6 p.m. on June
25, 2011.
33 CFR Part 100
Section 100.920
Detroit, MI
BILLING CODE 4830–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard, DHS.
ACTION: Notice of enforcement of
regulation.
AGENCY:
The Coast Guard will enforce
various special local regulations for
annual regattas and marine parades in
the Captain of the Port Detroit zone from
9 a.m. on June 22, 2012 through 6 p.m.
on July 29, 2012. This action is
necessary and intended to ensure safety
SUMMARY:
(a) through (c)(2)(v) [Reserved]. For
further guidance, see § 301.7701–2(a)
through (c)(2)(v).
(vi) Tax liabilities with respect to the
indoor tanning services excise tax—(A)
Jkt 226001
Section 100.915 St. Clair River Classic
Offshore Race, St. Clair, MI
Regattas and Marine Parades; Great
Lakes Annual Marine Events
§ 301.7701–2T Business entities;
definitions (temporary).
14:43 Jun 22, 2012
of life on the navigable waters
immediately prior to, during, and
immediately after regattas or marine
parades. Enforcement of these special
local regulations rule will establish
restrictions upon, and control
movement of, vessels in specified areas
immediately prior to, during, and
immediately after regattas or marine
parades. During the enforcement
periods, no person or vessel may enter
the regulated areas without permission
of the Captain of the Port.
DATES: The regulations in 33 CFR
100.914, 100.915, 100.919, and 100.920
will be enforced at various times
between June 22, 2012 and July 29,
2012.
[Docket No. USCG–2012–0572]
Par. 6. Section 301.7701–2T is
amended as follows:
1. Paragraphs (a) through (e)(4) are
revised.
2. Paragraph (e)(9) is added.
The revisions and addition read as
follows:
■
VerDate Mar<15>2010
In general. Notwithstanding any other
provision of § 301.7701–2, § 301.7701–
2(c)(2)(i) (relating to certain wholly
owned entities) does not apply for
purposes of—
(1) Federal tax liabilities imposed by
Chapter 49 of the Internal Revenue
Code;
(2) Collection of tax imposed by
Chapter 49 of the Internal Revenue
Code; and
(3) Claims of a credit or refund related
to the tax imposed by Chapter 49 of the
Internal Revenue Code.
(B) Treatment of entity. An entity that
is disregarded as an entity separate from
its owner for any purpose under
§ 301.7701–2 is treated as a corporation
with respect to items described in
paragraph (c)(2)(vi)(A) of this section.
(d) through (e)(4) [Reserved]. For
further guidance, see § 301.7701–2(d)
through (e)(4).
*
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*
*
*
(9) Indoor tanning services excise
tax—(i) Effective/applicability date.
Paragraph (c)(2)(vi) of this section
applies to taxes imposed on amounts
paid on or after July 1, 2012.
(ii) Expiration date. The applicability
of paragraph (c)(2)(vi) of this section
expires on or before June 22, 2015 or
such earlier date as may be determined
under amendments to the regulations
issued after June 22, 2012.
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
Approved: June 11, 2012.
Emily S. McMahon,
Acting Assistant Secretary of the Treasury
(Tax Policy).
(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—
(1) Federal tax liabilities imposed by
Chapter 49 of the Internal Revenue
Code;
(2) Collection of tax imposed by
Chapter 49 of the Internal Revenue
Code; and
(3) Claims of a credit or refund related
to the tax imposed by Chapter 49 of the
Internal Revenue Code.
(B) Effective/applicability date for
Chapter 49 liabilities. Paragraph
(a)(8)(iii)(A) of this section applies to
taxes imposed on amounts paid on or
after July 1, 2012.
(C) Expiration date. The applicability
of paragraph (a)(8)(iii) of this section
expires on June 22, 2015 or such earlier
date as may be determined under
amendments to the regulations issued
after June 22, 2012.
(a)(9) through (d) [Reserved]. For
further guidance, see § 1.1361–4(a)(9)
through (d).
§ 301.7701–2
definitions.
37807
PO 00000
Frm 00057
Fmt 4700
Sfmt 4700
Tug Across the River,
This special local regulation will be
enforced from 6 p.m. to 7 p.m. on July
13, 2012.
Regulations
(1) In accordance with the general
regulations in 33 CFR 100.901, entry
into, transiting, or anchoring within
these regulated areas is prohibited
unless authorized by the Captain of the
Port Detroit, or his designated on-scene
representative.
(2) These regulated areas are closed to
all vessel traffic, except as may be
permitted by the Captain of the Port
E:\FR\FM\25JNR1.SGM
25JNR1
]]>Agencies
[Federal Register Volume 77, Number 122 (Monday, June 25, 2012)]
[Rules and Regulations]
[Pages 37806-37807]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-15422]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[TD 9596]
RIN 1545-BK39
Disregarded Entities and the Indoor Tanning Services Excise Tax
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final and temporary regulations.
-----------------------------------------------------------------------
SUMMARY: 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.
DATES: Effective Date: These regulations are effective on June 25,
2012.
Applicability Date: For dates of applicability, see Sec. Sec.
1.1361-4T(a)(8)(iii)(B) and 301.7701-2T(e)(9)(i).
FOR FURTHER INFORMATION CONTACT: Michael H. Beker, (202) 622-3130 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
This document contains amendments to the Income Tax Regulations (26
CFR part 1) under section 1361 of the Internal Revenue Code (Code) and
the Procedure and Administration Regulations (26 CFR part 301) under
section 7701 of the Code.
Since January 1, 2008, Sec. Sec. 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 Sec. 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.
Effective July 1, 2010, section 10907 of the Patient Protection and
Affordable Care Act, Public Law 111-148 (124 Stat. 119 (2010)), added
new Chapter 49 to the Code, which imposes an excise tax on amounts paid
for indoor tanning services under section 5000B.
Consistent with existing Sec. Sec. 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 Sec. 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.
For taxes imposed under section 5000B on amounts paid before July
1, 2012, the IRS will treat payments made by a disregarded entity, or
other actions taken by a disregarded entity, with respect to the indoor
tanning services excise tax as having been made or taken by the owner
of that entity. Thus, for such periods, the owner of a disregarded
entity will be treated as satisfying its obligations with respect to
the indoor tanning services excise tax if those obligations are
satisfied either: (i) By the owner itself or (ii) by the disregarded
entity on behalf of the owner.
Special Analyses
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.
Drafting Information
The principal author of these regulations is Michael H. Beker,
Office of the Associate Chief Counsel (Passthroughs and Special
Industries). However, other personnel from the IRS and the Treasury
Department participated in their development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
Amendments to the Regulations
Accordingly, 26 CFR parts 1 and 301 are amended as follows:
PART 1--INCOME TAX
0
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.1361-4 is amended by adding paragraph (a)(8)(iii) to
read as follows:
Sec. 1.1361-4 Effect of QSub election.
(a) * * *
(8) * * *
(iii) [Reserved]. For further guidance, see Sec. 1.1361-
4T(a)(8)(iii).
* * * * *
0
Par. 3. Section 1.1361-4T is added to read as follows:
Sec. 1.1361-4T Effect of QSub election (temporary).
(a)(1) through (a)(8)(ii) [Reserved]. For further guidance, see
Sec. 1.1361-4(a)(1) through (a)(8)(ii).
[[Page 37807]]
(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--
(1) Federal tax liabilities imposed by Chapter 49 of the Internal
Revenue Code;
(2) Collection of tax imposed by Chapter 49 of the Internal Revenue
Code; and
(3) Claims of a credit or refund related to the tax imposed by
Chapter 49 of the Internal Revenue Code.
(B) Effective/applicability date for Chapter 49 liabilities.
Paragraph (a)(8)(iii)(A) of this section applies to taxes imposed on
amounts paid on or after July 1, 2012.
(C) Expiration date. The applicability of paragraph (a)(8)(iii) of
this section expires on June 22, 2015 or such earlier date as may be
determined under amendments to the regulations issued after June 22,
2012.
(a)(9) through (d) [Reserved]. For further guidance, see Sec.
1.1361-4(a)(9) through (d).
PART 301--PROCEDURE AND ADMINISTRATION
0
Par. 4. The authority citation for part 301 continues to read in part
as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 5. Section 301.7701-2 is amended by adding new paragraphs
(c)(2)(vi) and (e)(9), and adding and reserving paragraph (e)(8), to
read as follows:
Sec. 301.7701-2 Business entities; definitions.
* * * * *
(c) * * *
(2) * * *
(vi) [Reserved]. For further guidance, see Sec. 301.7701-
2T(c)(2)(vi).
* * * * *
(e) * * *
(8) [Reserved]
(9) [Reserved]. For further guidance, see Sec. 301.7701-2T(e)(9).
0
Par. 6. Section 301.7701-2T is amended as follows:
1. Paragraphs (a) through (e)(4) are revised.
2. Paragraph (e)(9) is added.
The revisions and addition read as follows:
Sec. 301.7701-2T Business entities; definitions (temporary).
(a) through (c)(2)(v) [Reserved]. For further guidance, see Sec.
301.7701-2(a) through (c)(2)(v).
(vi) Tax liabilities with respect to the indoor tanning services
excise tax--(A) In general. Notwithstanding any other provision of
Sec. 301.7701-2, Sec. 301.7701-2(c)(2)(i) (relating to certain wholly
owned entities) does not apply for purposes of--
(1) Federal tax liabilities imposed by Chapter 49 of the Internal
Revenue Code;
(2) Collection of tax imposed by Chapter 49 of the Internal Revenue
Code; and
(3) Claims of a credit or refund related to the tax imposed by
Chapter 49 of the Internal Revenue Code.
(B) Treatment of entity. An entity that is disregarded as an entity
separate from its owner for any purpose under Sec. 301.7701-2 is
treated as a corporation with respect to items described in paragraph
(c)(2)(vi)(A) of this section.
(d) through (e)(4) [Reserved]. For further guidance, see Sec.
301.7701-2(d) through (e)(4).
* * * * *
(9) Indoor tanning services excise tax--(i) Effective/applicability
date. Paragraph (c)(2)(vi) of this section applies to taxes imposed on
amounts paid on or after July 1, 2012.
(ii) Expiration date. The applicability of paragraph (c)(2)(vi) of
this section expires on or before June 22, 2015 or such earlier date as
may be determined under amendments to the regulations issued after June
22, 2012.
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
Approved: June 11, 2012.
Emily S. McMahon,
Acting Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2012-15422 Filed 6-22-12; 8:45 am]
BILLING CODE 4830-01-P
