Requirement of a Section 4959 Excise Tax Return and Time for Filing the Return, 49681-49682 [2013-19931]
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Federal Register / Vol. 78, No. 158 / Thursday, August 15, 2013 / Rules and Regulations
the duration of availability of fund
reservations for capital advances from
18 months to 24 months, with the
option of extending this period to 36
months, as approved by HUD on a caseby-case basis. This final rule followed a
March 28, 2012 (77 FR 18723) proposed
rule. The final rule became effective on
July 22, 2013.
In paragraph (a), revise the phrase ‘‘24
months from the date of initial closing’’
to read ‘‘24 months from the date of
issuance of the award letter to the date
of initial closing’’.
II. Technical Corrections
After publication of the final rule, it
came to HUD’s attention that there was
an error in the regulatory text. The final
rule amended 24 CFR 891.165(a) so that
‘‘the duration of the fund reservation for
a capital advance with construction
advances is 24 months from the date of
initial closing . . .’’ (Emphasis added).
However, the language in 24 CFR
891.165(a) should read that the duration
of the fund reservation is 24 months
from the date of issuance of the award
letter to the date of initial closing.
The preamble to the proposed rule (77
FR 18723) noted that the regulations
then governing the duration of the
availability of capital advance funds
limited the duration of the fund
reservations for the capital advances to
18 months from the date of issuance of
the fund reservation award (77 FR at
18726). The preamble went on to note
that the purpose of extending this
duration was to enable owners to focus
on projects to ensure that they reach
initial closing and start construction
within 24 months (77 FR at 18726). This
makes it clear that the intent of the rule
is to extend the duration of the fund
reservation for a capital advance from
the date of issuance of the award letter
so that owners could reach initial
closing, and not to extend the time after
the date of initial closing. This rule
makes a technical correction to the final
rule to fulfill that intent.
[FR Doc. 2013–19856 Filed 8–14–13; 8:45 am]
List of Subjects in 24 CFR Part 891
Aged, Grant programs—housing and
community development, Individuals
with disabilities, Loan programs—
housing and community development,
Rent subsidies, Reporting and
recordkeeping requirements.
Accordingly, HUD amends 24 CFR
part 891 as follows:
tkelley on DSK3SPTVN1PROD with RULES
PART 891—SUPPORTIVE HOUSING
FOR THE ELDERLY AND PERSONS
WITH DISABILITIES
1. The authority citation for part 891
continues to read as follows:
■
Authority: 12 U.S.C. 1701q; 42 U.S.C.
1437f, 3535(d), and 8013.
§ 891.165
■
[Amended]
2. Amend § 891.165 as follows:
VerDate Mar<15>2010
16:08 Aug 14, 2013
Jkt 229001
Dated: August 9, 2013.
Carol J. Galante,
Assistant Secretary for Housing—Federal
Housing Commissioner.
BILLING CODE 4210–67–P
DEPARTMENT OF THE TREASURY
26 CFR Part 53
[TD 9629]
RIN 1545–BL58
Requirement of a Section 4959 Excise
Tax Return and Time for Filing the
Return
Internal Revenue Service (IRS),
Treasury.
ACTION: Final and temporary
regulations.
AGENCY:
This document contains final
and temporary regulations that provide
guidance to charitable hospital
organizations regarding the requirement
of a return to accompany payment of the
excise tax, enacted as part of the Patient
Protection and Affordable Care Act of
2010, for failure to meet the community
health needs assessment (CHNA)
requirements for any taxable year. The
regulations affect charitable hospital
organizations. This action is necessary
to implement section 9007(b) of the
Patient Protection and Affordable Care
Act of 2010. The text of the temporary
regulations also 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 August 15, 2013.
Applicability Date: For dates of
applicability, see §§ 53.6011–1T(g) and
53.6071–1T(i) of these regulations.
FOR FURTHER INFORMATION CONTACT:
Amy F. Giuliano at (202) 622–6070 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
The Patient Protection and Affordable
Care Act, Public Law 111–148 (124 Stat.
119 (2010)), added sections 501(r) and
4959 to the Internal Revenue Code
(Code). A hospital organization seeking
to obtain or maintain tax-exempt status
as a charitable organization described in
section 501(c)(3) must comply with the
PO 00000
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Fmt 4700
Sfmt 4700
49681
requirements of section 501(r),
including the requirement to conduct a
CHNA under section 501(r)(3).
Section 501(r)(2)(A)(i) defines a
hospital organization to which section
501(r) applies as including any
organization that operates a facility that
is required by a state to be licensed,
registered, or similarly recognized as a
hospital. Section 501(r)(2)(B)(i) requires
a hospital organization that operates
more than one hospital facility to meet
the requirements of section 501(r)
separately with respect to each hospital
facility.
Section 501(r)(3) requires hospital
organizations to conduct a CHNA at
least once every three years and adopt
an implementation strategy to meet the
community health needs identified
through the CHNA. The requirements of
section 501(r)(3) are effective for taxable
years beginning after March 23, 2012.
Section 4959 imposes a tax equal to
$50,000 if a hospital organization to
which section 501(r) applies fails to
meet the requirements of section
501(r)(3) for any taxable year. A hospital
organization fails to meet the
requirements of section 501(r)(3) for any
taxable year if the hospital organization
fails to conduct a CHNA and adopt an
implementation strategy during the
three-year period ending on the last day
of any taxable year of the hospital
organization. For example, a hospital
organization reporting on a calendar
year basis that operates only one
hospital facility and that fails to conduct
a CHNA by the last day of 2013, and
that also did not conduct a CHNA in
2011 or 2012, will be subject to the tax
under section 4959 with respect to that
facility for its 2013 taxable year. The
same hospital organization that fails to
conduct a CHNA in 2014 also will be
subject to a tax under section 4959 with
respect to that facility for its 2014
taxable year (for failure to meet the
CHNA requirements during the threeyear period ending on the last day of
2014). See Joint Committee on Taxation,
Technical Explanation of the Revenue
Provisions of the ‘‘Reconciliation Act of
2010’’ As Amended, in Combination
With the ‘‘Patient Protection and
Affordable Care Act’’ (JCX–18–10)
(March 21, 2010), at 83 fn. 192 (and
accompanying text).
Section 6011 generally requires any
person liable for tax imposed by the
Code to make a return or statement
according to the forms and regulations
prescribed by the Secretary of the
Treasury. Section 6071 generally
provides that return filing dates are
prescribed by regulation. Section 6151
generally provides that a tax must be
paid when the return reporting the tax
E:\FR\FM\15AUR1.SGM
15AUR1
49682
Federal Register / Vol. 78, No. 158 / Thursday, August 15, 2013 / Rules and Regulations
is due, without regard to extensions of
time to file the return. Treas. Reg.
§§ 53.6011–1 and 53.6071–1 require
persons subject to certain excise taxes
under Chapters 41 and 42 of the Code
to file a Form 4720, ‘‘Return of Certain
Excise Taxes under Chapters 41 and 42
of the Internal Revenue Code,’’ to
accompany payment of those excise
taxes and provide the time for filing the
return. Section 4959 was added to
Chapter 42 of the Code.
On April 5, 2013, the Treasury
Department and the IRS published a
notice of proposed rulemaking in the
Federal Register (REG–130266–11; 78
FR 20523) containing proposed
regulations providing guidance to
hospital organizations on the CHNA
requirements of section 501(r)(3) and
the related excise tax of section 4959.
That notice of proposed rulemaking did
not include amendments to the
regulations under section 6011 and
section 6071 regarding the return to
accompany the payment of the excise
tax under section 4959 and the time for
filing such a return.
tkelley on DSK3SPTVN1PROD with RULES
Explanation of Provisions
Under § 53.6011–1(c) of these
temporary regulations, a charitable
hospital organization that is liable for
the section 4959 excise tax must file a
return on Form 4720. Under § 53.6071–
1(h) of these temporary regulations, a
hospital organization liable for the
section 4959 excise tax must file a Form
4720 by the 15th day of the fifth month
after the end of the organization’s
taxable year during which the liability
under section 4959 was incurred. Thus,
for example, a hospital organization
reporting on a calendar year basis that
failed to meet the requirements of
section 501(r)(3) by December 31, 2013,
would have to file a Form 4720 and pay
the section 4959 tax due by May 15,
2014.
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. For the applicability of the
Regulatory Flexibility Act (5 U.S.C.
chapter 6), refer to the Special Analyses
section of the preamble to the crossreference notice of proposed rulemaking
published in the Proposed Rules section
in this issue of the Federal Register.
Pursuant to section 7805(f) of the Code,
VerDate Mar<15>2010
16:08 Aug 14, 2013
Jkt 229001
these regulations were submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment
on their impact on small business, and
no comments were received.
Drafting Information
The principal author of these
regulations is Amy F. Giuliano, Office of
Associate Chief Counsel (Tax Exempt
and Government Entities). However,
other personnel from the IRS and
Treasury Department participated in
their development.
The applicability of paragraph (c) of this
section expires on or before August 12,
2016.
■ Par. 4. Section 53.6071–1 is amended
by:
■ 1. Revising paragraph (h).
■ 2. Adding paragraph (i).
The revision and addition read as
follows:
§ 53.6071–1
Time for filing returns.
Amendments to the Regulations
*
*
*
*
(h) [Reserved]. For further guidance,
see § 53.6071–1T(h).
(i) Effective/applicability date—(1)
Paragraph (g) of this section applies on
and after July 6, 2007.
(2) [Reserved]. For further guidance,
see § 53.6071–1T(i)(2).
Par. 5. Section 53.6071–1T is revised
to read as follows:
Accordingly, 26 CFR part 53 is
amended as follows:
§ 53.6071–1T
(temporary).
PART 53—FOUNDATION AND SIMILAR
EXCISE TAXES
(a) through (g) [Reserved]. For further
guidance, see § 53.6071–1(a) through (g).
(h) Taxes on failures by charitable
hospital organizations to satisfy the
community health needs assessment
requirements of section 501(r)(3). A
hospital organization liable for tax
imposed by section 4959 must file a
Form 4720, ‘‘Return of Certain Excise
Taxes Under Chapters 41 and 42 of the
Internal Revenue Code,’’ as required by
§ 53.6011–1(c), on or before the 15th day
of the fifth month after the end of the
hospital organization’s taxable year.
(i) Effective/applicability date—(1)
[Reserved]. For further guidance, see
§ 53.6071–1(i)(1).
(2) Paragraph (h) of this section
applies on and after August 15, 2013.
(3) The applicability of paragraph (h)
of this section expires on or before
August 12, 2016.
List of Subjects in 26 CFR Part 53
Excise taxes, Foundations,
Investments, Lobbying, Reporting and
recordkeeping requirements.
Paragraph 1. The authority citation
for part 53 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 53.6011–1 is amended
by:
■ 1. Redesignating paragraphs (c)
through (e) as (d) through (f).
■ 2. Adding new paragraphs (c) and (g).
The addition reads as follows:
■
§ 53.6011–1 General requirement of return,
statement or list.
*
*
*
*
*
(c) [Reserved]. For further guidance,
see § 53.6011–1T(c).
*
*
*
*
*
(g) [Reserved]. For further guidance,
see § 53.6011–1T(g).
■ Par. 3. Section 53.6011–1T is added to
read as follows:
§ 53.6011–1T General requirement of
return, statement or list (temporary).
(a) and (b) [Reserved]. For further
guidance, see § 53.6011–1(a) and (b).
(c) A hospital organization described
in section 501(r)(2)(A) that is liable for
tax imposed by section 4959 must file
an annual return on Form 4720 and
include the information required by the
form and instructions. The annual
return filed by a hospital organization
must include the required information
for each of the organization’s hospital
facilities that failed to meet the
requirements of section 501(r)(3) for the
taxable year.
(d) through (f) [Reserved]. For further
guidance, see § 53.6011–1(d) through (f).
(g) Paragraph (c) of this section
applies on and after August 15, 2013.
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Frm 00028
Fmt 4700
Sfmt 4700
*
Time for filing returns
Heather C. Maloy,
Acting Deputy Commissioner for Services and
Enforcement.
Approved: August 9, 2013.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2013–19931 Filed 8–14–13; 8:45 am]
BILLING CODE 4830–01–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4022
Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions
for Paying Benefits
Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
AGENCY:
E:\FR\FM\15AUR1.SGM
15AUR1
]]>Agencies
[Federal Register Volume 78, Number 158 (Thursday, August 15, 2013)]
[Rules and Regulations]
[Pages 49681-49682]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-19931]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
26 CFR Part 53
[TD 9629]
RIN 1545-BL58
Requirement of a Section 4959 Excise Tax Return and Time for
Filing the Return
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final and temporary regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final and temporary regulations that
provide guidance to charitable hospital organizations regarding the
requirement of a return to accompany payment of the excise tax, enacted
as part of the Patient Protection and Affordable Care Act of 2010, for
failure to meet the community health needs assessment (CHNA)
requirements for any taxable year. The regulations affect charitable
hospital organizations. This action is necessary to implement section
9007(b) of the Patient Protection and Affordable Care Act of 2010. The
text of the temporary regulations also 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 August 15,
2013.
Applicability Date: For dates of applicability, see Sec. Sec.
53.6011-1T(g) and 53.6071-1T(i) of these regulations.
FOR FURTHER INFORMATION CONTACT: Amy F. Giuliano at (202) 622-6070 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The Patient Protection and Affordable Care Act, Public Law 111-148
(124 Stat. 119 (2010)), added sections 501(r) and 4959 to the Internal
Revenue Code (Code). A hospital organization seeking to obtain or
maintain tax-exempt status as a charitable organization described in
section 501(c)(3) must comply with the requirements of section 501(r),
including the requirement to conduct a CHNA under section 501(r)(3).
Section 501(r)(2)(A)(i) defines a hospital organization to which
section 501(r) applies as including any organization that operates a
facility that is required by a state to be licensed, registered, or
similarly recognized as a hospital. Section 501(r)(2)(B)(i) requires a
hospital organization that operates more than one hospital facility to
meet the requirements of section 501(r) separately with respect to each
hospital facility.
Section 501(r)(3) requires hospital organizations to conduct a CHNA
at least once every three years and adopt an implementation strategy to
meet the community health needs identified through the CHNA. The
requirements of section 501(r)(3) are effective for taxable years
beginning after March 23, 2012.
Section 4959 imposes a tax equal to $50,000 if a hospital
organization to which section 501(r) applies fails to meet the
requirements of section 501(r)(3) for any taxable year. A hospital
organization fails to meet the requirements of section 501(r)(3) for
any taxable year if the hospital organization fails to conduct a CHNA
and adopt an implementation strategy during the three-year period
ending on the last day of any taxable year of the hospital
organization. For example, a hospital organization reporting on a
calendar year basis that operates only one hospital facility and that
fails to conduct a CHNA by the last day of 2013, and that also did not
conduct a CHNA in 2011 or 2012, will be subject to the tax under
section 4959 with respect to that facility for its 2013 taxable year.
The same hospital organization that fails to conduct a CHNA in 2014
also will be subject to a tax under section 4959 with respect to that
facility for its 2014 taxable year (for failure to meet the CHNA
requirements during the three-year period ending on the last day of
2014). See Joint Committee on Taxation, Technical Explanation of the
Revenue Provisions of the ``Reconciliation Act of 2010'' As Amended, in
Combination With the ``Patient Protection and Affordable Care Act''
(JCX-18-10) (March 21, 2010), at 83 fn. 192 (and accompanying text).
Section 6011 generally requires any person liable for tax imposed
by the Code to make a return or statement according to the forms and
regulations prescribed by the Secretary of the Treasury. Section 6071
generally provides that return filing dates are prescribed by
regulation. Section 6151 generally provides that a tax must be paid
when the return reporting the tax
[[Page 49682]]
is due, without regard to extensions of time to file the return. Treas.
Reg. Sec. Sec. 53.6011-1 and 53.6071-1 require persons subject to
certain excise taxes under Chapters 41 and 42 of the Code to file a
Form 4720, ``Return of Certain Excise Taxes under Chapters 41 and 42 of
the Internal Revenue Code,'' to accompany payment of those excise taxes
and provide the time for filing the return. Section 4959 was added to
Chapter 42 of the Code.
On April 5, 2013, the Treasury Department and the IRS published a
notice of proposed rulemaking in the Federal Register (REG-130266-11;
78 FR 20523) containing proposed regulations providing guidance to
hospital organizations on the CHNA requirements of section 501(r)(3)
and the related excise tax of section 4959. That notice of proposed
rulemaking did not include amendments to the regulations under section
6011 and section 6071 regarding the return to accompany the payment of
the excise tax under section 4959 and the time for filing such a
return.
Explanation of Provisions
Under Sec. 53.6011-1(c) of these temporary regulations, a
charitable hospital organization that is liable for the section 4959
excise tax must file a return on Form 4720. Under Sec. 53.6071-1(h) of
these temporary regulations, a hospital organization liable for the
section 4959 excise tax must file a Form 4720 by the 15th day of the
fifth month after the end of the organization's taxable year during
which the liability under section 4959 was incurred. Thus, for example,
a hospital organization reporting on a calendar year basis that failed
to meet the requirements of section 501(r)(3) by December 31, 2013,
would have to file a Form 4720 and pay the section 4959 tax due by May
15, 2014.
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. For the applicability of the Regulatory
Flexibility Act (5 U.S.C. chapter 6), refer to the Special Analyses
section of the preamble to the cross-reference notice of proposed
rulemaking published in the Proposed Rules section in this issue of the
Federal Register. Pursuant to section 7805(f) of the Code, these
regulations were submitted to the Chief Counsel for Advocacy of the
Small Business Administration for comment on their impact on small
business, and no comments were received.
Drafting Information
The principal author of these regulations is Amy F. Giuliano,
Office of Associate Chief Counsel (Tax Exempt and Government Entities).
However, other personnel from the IRS and Treasury Department
participated in their development.
List of Subjects in 26 CFR Part 53
Excise taxes, Foundations, Investments, Lobbying, Reporting and
recordkeeping requirements.
Amendments to the Regulations
Accordingly, 26 CFR part 53 is amended as follows:
PART 53--FOUNDATION AND SIMILAR EXCISE TAXES
0
Paragraph 1. The authority citation for part 53 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 53.6011-1 is amended by:
0
1. Redesignating paragraphs (c) through (e) as (d) through (f).
0
2. Adding new paragraphs (c) and (g).
The addition reads as follows:
Sec. 53.6011-1 General requirement of return, statement or list.
* * * * *
(c) [Reserved]. For further guidance, see Sec. 53.6011-1T(c).
* * * * *
(g) [Reserved]. For further guidance, see Sec. 53.6011-1T(g).
0
Par. 3. Section 53.6011-1T is added to read as follows:
Sec. 53.6011-1T General requirement of return, statement or list
(temporary).
(a) and (b) [Reserved]. For further guidance, see Sec. 53.6011-
1(a) and (b).
(c) A hospital organization described in section 501(r)(2)(A) that
is liable for tax imposed by section 4959 must file an annual return on
Form 4720 and include the information required by the form and
instructions. The annual return filed by a hospital organization must
include the required information for each of the organization's
hospital facilities that failed to meet the requirements of section
501(r)(3) for the taxable year.
(d) through (f) [Reserved]. For further guidance, see Sec.
53.6011-1(d) through (f).
(g) Paragraph (c) of this section applies on and after August 15,
2013. The applicability of paragraph (c) of this section expires on or
before August 12, 2016.
0
Par. 4. Section 53.6071-1 is amended by:
0
1. Revising paragraph (h).
0
2. Adding paragraph (i).
The revision and addition read as follows:
Sec. 53.6071-1 Time for filing returns.
* * * * *
(h) [Reserved]. For further guidance, see Sec. 53.6071-1T(h).
(i) Effective/applicability date--(1) Paragraph (g) of this section
applies on and after July 6, 2007.
(2) [Reserved]. For further guidance, see Sec. 53.6071-1T(i)(2).
Par. 5. Section 53.6071-1T is revised to read as follows:
Sec. 53.6071-1T Time for filing returns (temporary).
(a) through (g) [Reserved]. For further guidance, see Sec.
53.6071-1(a) through (g).
(h) Taxes on failures by charitable hospital organizations to
satisfy the community health needs assessment requirements of section
501(r)(3). A hospital organization liable for tax imposed by section
4959 must file a Form 4720, ``Return of Certain Excise Taxes Under
Chapters 41 and 42 of the Internal Revenue Code,'' as required by Sec.
53.6011-1(c), on or before the 15th day of the fifth month after the
end of the hospital organization's taxable year.
(i) Effective/applicability date--(1) [Reserved]. For further
guidance, see Sec. 53.6071-1(i)(1).
(2) Paragraph (h) of this section applies on and after August 15,
2013.
(3) The applicability of paragraph (h) of this section expires on
or before August 12, 2016.
Heather C. Maloy,
Acting Deputy Commissioner for Services and Enforcement.
Approved: August 9, 2013.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2013-19931 Filed 8-14-13; 8:45 am]
BILLING CODE 4830-01-P
