Authority for Voluntary Withholding on Other Payments, 71476 [2013-28526]
Download as PDF
71476
Federal Register / Vol. 78, No. 230 / Friday, November 29, 2013 / Rules and Regulations
amounts that are excepted from the
definition of wages in section 3401(a).
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Explanation of Provisions
26 CFR Part 31
[TD 9646]
RIN 1545–BL93
Authority for Voluntary Withholding on
Other Payments
Internal Revenue Service (IRS),
Treasury.
ACTION: Temporary regulations.
AGENCY:
This document contains
temporary regulations under the
Internal Revenue Code (Code) relating to
voluntary withholding agreements. The
regulations allow the Secretary to issue
guidance in the Internal Revenue
Bulletin to describe payments for which
the Secretary finds that income tax
withholding under a voluntary
withholding agreement would be
appropriate. The text of these 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. These
temporary regulations affect persons
making and persons receiving payments
for which the IRS issues subsequent
guidance authorizing the parties to enter
into voluntary withholding agreements.
DATES: Effective Date: These regulations
are effective on November 27, 2013.
Applicability date: For date of
applicability, see § 31.3402(p)–1T(d).
FOR FURTHER INFORMATION CONTACT:
Linda L. Conway-Hataloski at (202)
317–6798 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
sroberts on DSK5SPTVN1PROD with RULES
SUMMARY:
Background
Section 3402(p) allows for voluntary
income tax withholding agreements.
Section 3402(p)(3) authorizes the
Secretary to provide regulations for
withholding from (A) remuneration for
services performed by an employee for
the employee’s employer which does
not constitute wages, and (B) from any
other payment with respect to which the
Secretary finds that withholding would
be appropriate, if the employer and
employee, or the person making and the
person receiving such other type of
payment, agree to such withholding.
Section 3402(p)(3) also authorizes the
Secretary to prescribe in regulations the
form and manner of such agreement.
Section 31.3402(p)–1 of the
Employment Tax Regulations describes
how an employer and an employee may
enter into an income tax withholding
agreement under section 3402(p) for
VerDate Mar<15>2010
20:31 Nov 27, 2013
Jkt 232001
These temporary regulations under
section 31.3402(p)–1T allow the
Secretary to describe other payments
subject to voluntary withholding
agreements in guidance to be published
in the Internal Revenue Bulletin (IRB).
The temporary regulations also provide
that the IRB guidance will set forth
requirements regarding the form and
duration of the voluntary withholding
agreement specific to the type of
payment from which withholding is
authorized.
Expanding the use of voluntary
withholding agreements to payments
designated by the Secretary as eligible
for voluntary withholding will permit
taxpayers to use the withholding regime
(rather than the estimated tax payment
process) to meet their tax payment
obligations on a timely basis, minimize
the risk of underpayment of taxes, and
achieve administrative simplification
for taxpayers and the IRS.
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 cross-reference
notice of proposed rulemaking
published elsewhere in this Federal
Register. Pursuant to section 7805(f) of
the Code, these regulations have been
submitted to the Chief Counsel for
Advocacy of the Small Business
Administration for comment on their
impact on small business.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR Part 31 is
amended as follows:
PART 31—EMPLOYMENT TAXES AND
COLLECTION OF INCOME TAX AT
SOURCE
Paragraph 1. The authority citation
for part 31 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. § 31.3402(p)–1T is added to
read as follows:
■
§ 31.3402(p)–1T Voluntary Withholding
Agreements (temporary).
(a)–(b) [Reserved] For further
guidance, see § 31.3402(p)–1(a) and (b).
(c) Other payments. The Secretary
may issue guidance by publication in
the Internal Revenue Bulletin (IRB)
(which will be available at
www.IRS.gov) describing other
payments for which withholding under
a voluntary withholding agreement
would be appropriate and authorizing
payors to agree to withhold income tax
on such payments if requested by the
payee. Requirements regarding the form
and duration of voluntary withholding
agreements authorized by this paragraph
(c) will be provided in the IRB guidance
issued regarding specific types of
payments.
(d) Effective/applicability date. (1)
This section applies on and after
November 27, 2013.
(2) The applicability of this section
expires on November 25, 2016.
John Dalrymple,
Deputy Commissioner for Services and
Enforcement.
Approved: November 21, 2013.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2013–28526 Filed 11–27–13; 8:45 am]
BILLING CODE 4830–01–P
Drafting Information
DEPARTMENT OF THE TREASURY
The principal author of these
regulations is Linda L. ConwayHataloski, Office of Associate Chief
Counsel (Tax Exempt and Government
Entities). However, other personnel
from the IRS and Treasury Department
participated in their development.
Internal Revenue Service
List of Subjects in 26 CFR Part 31
Employment taxes, Income taxes,
Penalties, Pensions, Railroad retirement,
Reporting and recordkeeping
requirements, Social Security,
Unemployment compensation.
PO 00000
Frm 00042
Fmt 4700
Sfmt 4700
26 CFR Parts 57 and 602
[TD 9643]
RIN 1545–BL20
Health Insurance Providers Fee
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations.
AGENCY:
This document contains final
regulations relating to the annual fee
SUMMARY:
E:\FR\FM\29NOR1.SGM
29NOR1
Agencies
[Federal Register Volume 78, Number 230 (Friday, November 29, 2013)]
[Rules and Regulations]
[Page 71476]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-28526]
[[Page 71476]]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 31
[TD 9646]
RIN 1545-BL93
Authority for Voluntary Withholding on Other Payments
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Temporary regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains temporary regulations under the
Internal Revenue Code (Code) relating to voluntary withholding
agreements. The regulations allow the Secretary to issue guidance in
the Internal Revenue Bulletin to describe payments for which the
Secretary finds that income tax withholding under a voluntary
withholding agreement would be appropriate. The text of these 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. These
temporary regulations affect persons making and persons receiving
payments for which the IRS issues subsequent guidance authorizing the
parties to enter into voluntary withholding agreements.
DATES: Effective Date: These regulations are effective on November 27,
2013.
Applicability date: For date of applicability, see Sec.
31.3402(p)-1T(d).
FOR FURTHER INFORMATION CONTACT: Linda L. Conway-Hataloski at (202)
317-6798 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
Section 3402(p) allows for voluntary income tax withholding
agreements. Section 3402(p)(3) authorizes the Secretary to provide
regulations for withholding from (A) remuneration for services
performed by an employee for the employee's employer which does not
constitute wages, and (B) from any other payment with respect to which
the Secretary finds that withholding would be appropriate, if the
employer and employee, or the person making and the person receiving
such other type of payment, agree to such withholding. Section
3402(p)(3) also authorizes the Secretary to prescribe in regulations
the form and manner of such agreement. Section 31.3402(p)-1 of the
Employment Tax Regulations describes how an employer and an employee
may enter into an income tax withholding agreement under section
3402(p) for amounts that are excepted from the definition of wages in
section 3401(a).
Explanation of Provisions
These temporary regulations under section 31.3402(p)-1T allow the
Secretary to describe other payments subject to voluntary withholding
agreements in guidance to be published in the Internal Revenue Bulletin
(IRB). The temporary regulations also provide that the IRB guidance
will set forth requirements regarding the form and duration of the
voluntary withholding agreement specific to the type of payment from
which withholding is authorized.
Expanding the use of voluntary withholding agreements to payments
designated by the Secretary as eligible for voluntary withholding will
permit taxpayers to use the withholding regime (rather than the
estimated tax payment process) to meet their tax payment obligations on
a timely basis, minimize the risk of underpayment of taxes, and achieve
administrative simplification for taxpayers and the IRS.
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 cross-reference
notice of proposed rulemaking published elsewhere in this Federal
Register. Pursuant to section 7805(f) of the Code, these regulations
have been submitted to the Chief Counsel for Advocacy of the Small
Business Administration for comment on their impact on small business.
Drafting Information
The principal author of these regulations is Linda L. Conway-
Hataloski, 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 31
Employment taxes, Income taxes, Penalties, Pensions, Railroad
retirement, Reporting and recordkeeping requirements, Social Security,
Unemployment compensation.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR Part 31 is amended as follows:
PART 31--EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE
0
Paragraph 1. The authority citation for part 31 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Sec. 31.3402(p)-1T is added to read as follows:
Sec. 31.3402(p)-1T Voluntary Withholding Agreements (temporary).
(a)-(b) [Reserved] For further guidance, see Sec. 31.3402(p)-1(a)
and (b).
(c) Other payments. The Secretary may issue guidance by publication
in the Internal Revenue Bulletin (IRB) (which will be available at
www.IRS.gov) describing other payments for which withholding under a
voluntary withholding agreement would be appropriate and authorizing
payors to agree to withhold income tax on such payments if requested by
the payee. Requirements regarding the form and duration of voluntary
withholding agreements authorized by this paragraph (c) will be
provided in the IRB guidance issued regarding specific types of
payments.
(d) Effective/applicability date. (1) This section applies on and
after November 27, 2013.
(2) The applicability of this section expires on November 25, 2016.
John Dalrymple,
Deputy Commissioner for Services and Enforcement.
Approved: November 21, 2013.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2013-28526 Filed 11-27-13; 8:45 am]
BILLING CODE 4830-01-P