Reduced 2009 Estimated Income Tax Payments for Individuals With Small Business Income, 13221-13222 [2013-04680]
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Federal Register / Vol. 78, No. 39 / Wednesday, February 27, 2013 / Rules and Regulations
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52. These regulations are effective
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OMB, that this rule is not a ‘‘major rule’’
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Business Regulatory Enforcement
Fairness Act of 1996.
By the Commission.
Nathaniel J. Davis, Sr.,
Deputy Secretary.
[FR Doc. 2013–04430 Filed 2–26–13; 8:45 am]
BILLING CODE 6717–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9613]
RIN 1545–BI67
Reduced 2009 Estimated Income Tax
Payments for Individuals With Small
Business Income
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations and removal of
temporary regulations.
erowe on DSK2VPTVN1PROD with RULES
AGENCY:
SUMMARY: This document contains final
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 and does not apply to
any taxable years beginning before or
after 2009. The final regulations
implement changes to section 6654
made by the American Recovery and
Reinvestment Act of 2009. The final
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.
VerDate Mar<15>2010
15:05 Feb 26, 2013
Jkt 229001
Effective Date: These regulations
are effective on February 27, 2013.
Applicability Date: These regulations
apply for any taxable year that begins in
2009.
FOR FURTHER INFORMATION CONTACT:
Janet Engel Kidd at (202) 622–4940 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
DATES:
Background
This document contains final
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. It does not apply to
any taxable years beginning before or
after 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.
Section 6654(d)(1)(D) provides a
‘‘[s]pecial rule for 2009.’’ Under this
provision, 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
that begin in 2009. In other words, for
taxable years that begin 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.
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
13221
To implement the special rule for
2009, the Treasury Department and the
IRS published in the Federal Register
(75 FR 9141) on March 1, 2010, a notice
of proposed rulemaking (REG–117501–
09) proposing amendments to § 1.6654–
2, which provides exceptions to the
addition to tax for an individual’s
failure to pay estimated income tax. The
notice of proposed rulemaking crossreferenced temporary regulations (TD
9480) published in the Federal Register
(75 FR 9101) on the same day.
The IRS received one written public
comment responding to the proposed
regulations. The comment is available
for public inspection at https://
www.regulations.gov or upon request.
The commenter expressed appreciation
for efforts to simplify tax reporting by
small business owners. A public hearing
was not requested or held.
Explanation of Provisions
The final regulations adopt the
proposed regulations without change.
The final 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 (prior to the taxable year
that begins in 2009) 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 that
begins 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 final
regulations specify that the trade or
business must be a bona fide trade or
business of which the individual was an
owner. The final regulations provide
that a trade or business may be
organized as, or take the legal form of,
a corporation, partnership, limited
E:\FR\FM\27FER1.SGM
27FER1
13222
Federal Register / Vol. 78, No. 39 / Wednesday, February 27, 2013 / Rules and Regulations
liability company, or sole
proprietorship.
The final 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 final regulations will be
applicable for taxable years that begin in
2009. The reduced percentage in section
6654(d)(1)(D) is limited to taxable years
that begin in 2009 and does not apply
to taxable years that begin 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, as
supplemented by Executive Order
13563. Therefore, a regulatory
assessment is not required. It also has
been determined that section 553(b) of
the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these
regulations, and because the regulations
do not impose a collection of
information on small entities, the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to
section 7805(f) of the Code, the notice
of proposed rulemaking that preceded
these final regulations was submitted to
the Chief Counsel for Advocacy of the
Small Business Administration for
comment on its impact on small
business and no comments were
received.
Drafting Information
The principal author of these
regulations is Janet Engel Kidd, Office of
the Associate Chief Counsel, Procedure
and Administration.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
amended as follows:
erowe on DSK2VPTVN1PROD with RULES
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
■ Par. 2. Section 1.6654–2 is amended
by revising paragraphs (a) introductory
text, (a)(1)(ii), and (f) to read as follows:
§ 1.6654–2 Exceptions to imposition of the
addition to the tax in the case of
individuals.
(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) * * *
(ii) Special rule for taxable years
beginning in 2009. For any taxable year
beginning in 2009, for a qualified
individual, the amount described in
paragraph (a)(1)(i) of this section 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.
*
*
*
*
*
(f) Effective/applicability date.
Paragraph (a)(1)(ii) of this section
applies to any taxable year beginning in
2009 and does not apply to any taxable
years beginning before or after 2009.
Authority: 26 U.S.C. 7805 * * *
Section 1.6654–2 also issued under 26
U.S.C. 6654(m).
VerDate Mar<15>2010
15:05 Feb 26, 2013
Jkt 229001
PO 00000
Frm 00012
Fmt 4700
Sfmt 4700
§ 1.6654–2T
■
[Removed]
Par. 3. Section 1.6654–2T is removed.
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
Approved: February 22, 2013.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2013–04680 Filed 2–25–13; 4:15 pm]
BILLING CODE 4830–01–P
DEPARTMENT OF LABOR
Occupational Safety and Health
Administration
29 CFR Part 1984
[Docket Number OSHA–2011–0193]
RIN 1218–AC79
Procedures for the Handling of
Retaliation Complaints Under Section
1558 of the Affordable Care Act
Occupational Safety and Health
Administration, Labor.
ACTION: Interim final rule; request for
comments.
AGENCY:
SUMMARY: This document provides the
interim final regulations governing the
employee protection (whistleblower)
provision of section 1558 of the
Affordable Care Act, which added
section 18C of the Fair Labor Standards
Act, to provide protections to employees
of health insurance issuers or other
employers who may have been subject
to retaliation for reporting potential
violations of the law’s consumer
protections (e.g., the prohibition on
denials of insurance due to pre-existing
conditions) or affordability assistance
provisions (e.g., access to health
insurance premium tax credits). This
interim rule establishes procedures and
time frames for the handling of
retaliation complaints under section
18C, including procedures and time
frames for employee complaints to the
Occupational Safety and Health
Administration (OSHA), investigations
by OSHA, appeals of OSHA
determinations to an administrative law
judge (ALJ) for a hearing de novo,
hearings by ALJs, review of ALJ
decisions by the Administrative Review
Board (ARB) (acting on behalf of the
Secretary of Labor), and judicial review
of the Secretary’s final decision.
DATES: This interim final rule is
effective on February 27, 2013.
Comments and additional materials
must be submitted (post-marked, sent or
received) by April 29, 2013.
E:\FR\FM\27FER1.SGM
27FER1
]]>Agencies
[Federal Register Volume 78, Number 39 (Wednesday, February 27, 2013)]
[Rules and Regulations]
[Pages 13221-13222]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-04680]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9613]
RIN 1545-BI67
Reduced 2009 Estimated Income Tax Payments for Individuals With
Small Business Income
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations and removal of temporary regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final 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 and does not apply to any taxable
years beginning before or after 2009. The final regulations implement
changes to section 6654 made by the American Recovery and Reinvestment
Act of 2009. The final 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.
DATES: Effective Date: These regulations are effective on February 27,
2013.
Applicability Date: These regulations apply for any taxable year
that begins in 2009.
FOR FURTHER INFORMATION CONTACT: Janet Engel Kidd at (202) 622-4940
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains final 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. It does not apply to any taxable years beginning before or after
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.
Section 6654(d)(1)(D) provides a ``[s]pecial rule for 2009.'' Under
this provision, 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 that begin in
2009. In other words, for taxable years that begin 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.
To implement the special rule for 2009, the Treasury Department and
the IRS published in the Federal Register (75 FR 9141) on March 1,
2010, a notice of proposed rulemaking (REG-117501-09) proposing
amendments to Sec. 1.6654-2, which provides exceptions to the addition
to tax for an individual's failure to pay estimated income tax. The
notice of proposed rulemaking cross-referenced temporary regulations
(TD 9480) published in the Federal Register (75 FR 9101) on the same
day.
The IRS received one written public comment responding to the
proposed regulations. The comment is available for public inspection at
https://www.regulations.gov or upon request. The commenter expressed
appreciation for efforts to simplify tax reporting by small business
owners. A public hearing was not requested or held.
Explanation of Provisions
The final regulations adopt the proposed regulations without
change. The final 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 (prior to the taxable year that
begins in 2009) 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 that begins 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 final regulations specify that the trade or business must be a bona
fide trade or business of which the individual was an owner. The final
regulations provide that a trade or business may be organized as, or
take the legal form of, a corporation, partnership, limited
[[Page 13222]]
liability company, or sole proprietorship.
The final 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 final regulations will be applicable for taxable years that
begin in 2009. The reduced percentage in section 6654(d)(1)(D) is
limited to taxable years that begin in 2009 and does not apply to
taxable years that begin 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, as
supplemented by Executive Order 13563. Therefore, a regulatory
assessment is not required. It also has been determined that section
553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does
not apply to these regulations, and because the regulations do not
impose a collection of information on small entities, the Regulatory
Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to
section 7805(f) of the Code, the notice of proposed rulemaking that
preceded these final regulations was submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on its impact
on small business and no comments were received.
Drafting Information
The principal author of these regulations is Janet Engel Kidd,
Office of the Associate Chief Counsel, Procedure and Administration.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 1 is amended as follows:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.6654-2 also issued under 26 U.S.C. 6654(m).
0
Par. 2. Section 1.6654-2 is amended by revising paragraphs (a)
introductory text, (a)(1)(ii), and (f) to read as follows:
Sec. 1.6654-2 Exceptions to imposition of the addition to the tax in
the case of individuals.
(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) * * *
(ii) Special rule for taxable years beginning in 2009. For any
taxable year beginning in 2009, for a qualified individual, the amount
described in paragraph (a)(1)(i) of this section 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.
* * * * *
(f) Effective/applicability date. Paragraph (a)(1)(ii) of this
section applies to any taxable year beginning in 2009 and does not
apply to any taxable years beginning before or after 2009.
Sec. 1.6654-2T [Removed]
0
Par. 3. Section 1.6654-2T is removed.
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
Approved: February 22, 2013.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2013-04680 Filed 2-25-13; 4:15 pm]
BILLING CODE 4830-01-P
