Employee Retirement Benefit Plan Returns Required on Magnetic Media, 58256-58261 [2014-23161]
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Federal Register / Vol. 79, No. 188 / Monday, September 29, 2014 / Rules and Regulations
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result whether the discrimination takes
place directly through payments or
services, or indirectly through
deductions from purchase invoices or
other similar means. In addition, the
giving or knowing inducement or
receipt of proportionally unequal
promotional allowances may be
challenged under sections 2(a) and 2(f)
of the Act, respectively, where no
promotional services are performed in
return for the payments, or where the
payments are not reasonably related to
the customer’s cost of providing the
promotional services. See, e.g.,
American Booksellers Ass’n v. Barnes &
Noble, 135 F. Supp. 2d 1031 (N.D. Cal.
2001); but see United Magazine Co. v.
Murdoch Magazines Distrib., Inc. 2001
U.S. Dist. Lexis 20878 (S.D.N.Y. 2001).
Sections 2(a) and 2(f) of the Act may be
enforced by disfavored customers,
among others.
Example 1: A customer should not induce
or receive advertising allowances for special
promotion of the seller’s product in
connection with the customer’s anniversary
sale or new store opening when the customer
knows or should know that such allowances,
or suitable alternatives, are not available on
proportionally equal terms to all other
customers competing with it in the
distribution of the seller’s product.
Example 2: Frequently the employees of
sellers or third parties, such as brokers,
perform in-store services for their grocery
retailer customers, such as stocking of
shelves, building of displays and checking or
rotating inventory, etc. A customer operating
a retail grocery business should not induce
or receive such services when the customer
knows or should know that such services (or
usable and suitable alternative services) are
not available on proportionally equal terms
to all other customers competing with it in
the distribution of the seller’s product.
Example 3: Where a customer has entered
into a contract, understanding, or
arrangement for the purchase of advertising
with a newspaper or other advertising
medium, such as the Internet, that provides
for a deferred rebate or other reduction in the
price of the advertising, the customer should
advise any seller from whom reimbursement
for the advertising is claimed that the
claimed rate of reimbursement is subject to
a deferred rebate or other reduction in price.
In the event that any rebate or adjustment in
the price is received, the customer should
refund to the seller the amount of any excess
payment or allowance.
Example 4: A customer should not induce
or receive an allowance in excess of that
offered in the seller’s advertising plan by
billing the seller at ‘‘vendor rates’’ or for any
other amount in excess of that authorized in
the seller’s promotional program.
(b) Third party liability. Third parties,
such as advertising media, may violate
section 5 of the Federal Trade
Commission Act through double or
fictitious rates or billing. An advertising
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medium, such as the Internet, a
newspaper, broadcast station, or printer
of catalogues, that publishes a rate
schedule containing fictitious rates (or
rates that are not reasonably expected to
be applicable to a representative number
of advertisers), may violate section 5 if
the customer uses such deceptive
schedule or invoice for a claim for an
advertising allowance, payment or
credit greater than that to which it
would be entitled under the seller’s
promotional offering. Similarly, an
advertising medium that furnishes a
customer with an invoice that does not
reflect the customer’s actual net
advertising cost may violate section 5 if
the customer uses the invoice to obtain
larger payments than it is entitled to
receive.
Example 1: A newspaper has a ‘‘national’’
rate and a lower ‘‘local’’ rate. A retailer
places an advertisement with the newspaper
at the local rate for a seller’s product for
which the retailer will seek reimbursement
under the seller’s cooperative advertising
plan. The newspaper should not send the
retailer two bills, one at the national rate and
another at the local rate actually charged.
Example 2: A newspaper has several
published rates. A large retailer has in the
past earned the lowest rate available. The
newspaper should not submit invoices to the
retailer showing a high rate by agreement
between them unless the invoice discloses
that the retailer may receive a rebate and
states the amount (or approximate amount) of
the rebate, if known, and if not known, the
amount of rebate the retailer could
reasonably anticipate.
Example 3: A radio station has a flat rate
for spot announcements, subject to volume
discounts. A retailer buys enough spots to
qualify for the discounts. The station should
not submit an invoice to the retailer that does
not show either the actual net cost or the
discount rate.
Example 4: An advertising agent buys a
large volume of newspaper advertising space
at a low, unpublished negotiated rate.
Retailers then buy the space from the agent
at a rate lower than they could buy this space
directly from the newspaper. The agent
should not furnish the retailers invoices
showing a rate higher than the retailers
actually paid for the space.
§ 240.14
Meeting competition.
A seller charged with discrimination
in violation of sections 2(d) and (e) may
defend its actions by showing that
particular payments were made or
services furnished in good faith to meet
equally high payments or equivalent
services offered or supplied by a
competing seller. This defense is
available with respect to payments or
services offered on an area-wide basis,
to those offered to new as well as old
customers, and regardless of whether
the discrimination has been caused by
a decrease or an increase in the
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payments or services offered. A seller
must reasonably believe that its offers
are necessary to meet a competitor’s
offer.
§ 240.15
Cost justification.
It is no defense to a charge of
unlawful discrimination in the payment
of an allowance or the furnishing of a
service for a seller to show that such
payment or service could be justified
through savings in the cost of
manufacture, sale or delivery.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2014–23137 Filed 9–26–14; 8:45 am]
BILLING CODE 6750–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[TD 9695]
RIN 1545–BL54
Employee Retirement Benefit Plan
Returns Required on Magnetic Media
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations.
AGENCY:
This document contains final
regulations relating to the requirements
for filing certain employee retirement
benefit plan statements, returns, and
reports on magnetic media. The term
magnetic media includes electronic
filing, as well as other magnetic media
specifically permitted under applicable
regulations, revenue procedures,
publications, forms, instructions, or
other guidance on the IRS.gov Internet
Web site. These regulations affect plan
administrators and employers
maintaining retirement plans that are
subject to various employee benefit
reporting requirements under the
Internal Revenue Code (Code).
DATES: Effective Date: These regulations
are effective September 29, 2014.
Applicability Date: For dates of
applicability, see §§ 301.6057–3(f),
301.6058–2(f), and 301.6059–2(f).
FOR FURTHER INFORMATION CONTACT:
William Gibbs or Pamela Kinard at (202)
317–6799 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
This document contains amendments
to 26 CFR part 301. On August 30, 2013,
a notice of proposed rulemaking (REG–
111837–13) relating to the requirements
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for filing certain employee retirement
benefit plan statements, returns, and
reports on magnetic media was
published in the Federal Register (78
FR 53704). The proposed regulations
provide that a plan administrator (or, in
certain situations, an employer
maintaining a plan) required by the
Code or regulations to file at least 250
returns during the calendar year that
includes the first day of the plan year
must use magnetic media to file certain
statements, returns, and reports required
under sections 6057, 6058, and 6059 of
the Code. Comments responding to the
notice of proposed rulemaking were
received. No public hearing was
requested or held. After consideration of
all the comments, the proposed
regulations are adopted as modified by
this Treasury decision.
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Summary of Comments and
Explanation of Revisions
I. Use of FIRE System for Filing Form
8955–SSA
The proposed regulations under
section 6057 provide that a registration
statement required under section
6057(a) or a notification required under
section 6057(b) must be filed on
magnetic media if the filer is required
by the Code or regulations to file at least
250 returns during the calendar year
that includes the first day of the plan
year. Magnetic media is defined as
electronic filing or other media
specifically permitted under applicable
regulations, revenue procedures,
publications, forms, instructions, or
other guidance on the IRS.gov Internet
Web site. See § 601.601(d)(2)(ii)(b) of
this chapter.
The form used to satisfy the
requirement to file the registration
statement under section 6057 is Form
8955–SSA, ‘‘Annual Registration
Statement Identifying Separated
Participants with Deferred Vested
Benefits.’’ The preamble to the proposed
regulations noted that many filers of the
Form 8955–SSA already voluntarily file
electronically with the IRS, but did not
identify the system currently used to file
electronically.
Commenters expressed concern that
not identifying the ‘‘Filing Information
Returns Electronically’’ (FIRE) system as
the system currently used to file the
Form 8955–SSA electronically could
imply that the use of the FIRE system is
not (or, in the near future, will not be)
an acceptable system to file the Form
8955–SSA electronically. In response to
this concern, the Department of the
Treasury and the IRS confirm that the
FIRE system is an acceptable electronic
system to file the Form 8955–SSA. If, in
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the future, the IRS replaces the FIRE
system with another electronic filing
system, sufficient time will be provided
to filers of the Form 8955–SSA to
accommodate programming and other
implementation needs.
Commenters also stated that certain
aspects of the FIRE system need
improvement, including the lack of an
efficient batch processing system and
costs associated with using the system.
The specific requirements of the FIRE
system are outside the scope of these
regulations, but comments on possible
FIRE system improvements have been
forwarded to the staff at the IRS
responsible for the FIRE system.
II. Application of the E-File Mandate to
One-Participant Plans
The proposed regulations under
section 6058 provide that a return
required under section 6058 must be
filed on magnetic media if the filer is
required by the Code or regulations to
file at least 250 returns during the
calendar year that includes the first day
of the plan year. The preamble to the
proposed regulations noted that filers of
the Form 5500, ‘‘Annual Return/Report
of Employee Benefit Plan,’’ and Form
5500–SF, ‘‘Short Form Annual Return/
Report of Small Employee Benefit
Plan,’’ are already required, pursuant to
Department of Labor (DOL) rules, to file
these returns electronically through the
computerized ERISA Filing Acceptance
System (EFAST2). The preamble to the
proposed regulations also noted that,
while electronic filing is not available
for the Form 5500–EZ, ‘‘Annual Return
of One-Participant (Owners and their
Spouses) Retirement Plan,’’ certain filers
that would otherwise file the Form
5500–EZ on paper may instead file the
Form 5500–SF electronically through
EFAST2.
One commenter asked whether the
proposed regulations impose additional
filing obligations, other than the
requirement to file electronically, on
one-participant plans that meet the 250return threshold for mandatory
electronic filing. In particular, the
commenter asked whether a oneparticipant plan would now be required
to file an actuarial report under section
6059 when filing the Form 5500–SF in
lieu of a paper Form 5500–EZ.
In response to this comment, the
Department of the Treasury and the IRS
confirm that a one-participant plan (or
a foreign plan) required to file
electronically must use the Form 5500–
SF to file the information required on
the Form 5500–EZ, but will not be
required to attach to the filing a
Schedule SB, ‘‘Single-Employer Defined
Benefit Plan Actuarial Information,’’ or
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Schedule MB, ‘‘Multiemployer Defined
Benefit Plan and Certain Money
Purchase Plan Actuarial Information.’’
III. Economic Hardship Waiver
As noted in the proposed regulations,
the Commissioner may waive the
requirement to file electronically in
cases of undue economic hardship.
Because the Department of the Treasury
and the IRS believe that electronic filing
will not impose significant burdens on
the taxpayers covered by these
regulations, the Commissioner
anticipates granting waivers of the
electronic filing requirement in only
exceptional cases. The Department of
the Treasury and the IRS anticipate
issuing guidance that will set forth
procedures whereby a taxpayer may
request a hardship waiver for
electronically filing the Form 8955–SSA
and the Form 5500 series. The
Department of the Treasury and the IRS
anticipate that the guidance would not
provide hardship waiver procedures for
any electronic filing requirement for a
form that a filer is already required to
file electronically, such as Form 5500
and Form 5500–SF, which filers are
already required to file electronically
through EFAST2.
IV. Request To Extend Proposed
Effective Date
Commenters requested that the
effective date of these regulations be
extended from the effective date set
forth in the proposed regulations. The
proposed regulations provided that they
would be effective for plan years that
begin on or after January 1, 2014, but
only for filings with a filing deadline
(not taking into account extensions)
after December 31, 2014. With respect to
the filing requirements under section
6057, commenters specifically requested
that the IRS confirm that the use of the
existing FIRE system will satisfy the
electronic filing requirement for the
Form 8955–SSA through 2016. Because
there is no current plan to change the
electronic system used to file the Form
8955–SSA prior to the end of calendar
year 2016, and significant changes to the
form itself are not anticipated, these
regulations generally retain the
proposed effective date for section 6057
filings. However, the regulations do
provide an extended effective date for
plans with short 2014 plan years by
providing that these regulations only
apply to filings with a filing deadline on
or after July 31, 2015. For example, a
plan with a short 2014 plan year ending
November 30, 2014, would have a filing
deadline of June 30, 2015, and thus
would not be required to file
electronically for that plan year.
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With respect to the filing
requirements under sections 6058 and
6059, these regulations extend the
effective date by 12 months, so that the
regulations generally apply to returns
and actuarial reports required to be filed
for plan years that begin on or after
January 1, 2015, but only for filings with
a filing deadline (not taking into
account extensions) after December 31,
2015. As announced in the proposed
regulations, the IRS anticipates adding
items on the Form 5500 and Form 5500–
SF relating solely to Code requirements
and intends to provide an optional
paper-only form containing those Coderelated items for use by small filers. It
is anticipated that the form will be
available to satisfy the filing
requirements with respect to the 2015
plan year.
V. Certain Delinquent Filers Required
To File on Paper
Notice 2014–35 (2014–23 IRB 1072)
provides administrative relief from IRS
penalties under sections 6652(d),
6652(e), and 6692 for a failure to file
timely in accordance with annual
reporting requirements under sections
6047(e), 6057, 6058, and 6059. This
administrative relief from IRS penalties
applies to late filers that satisfy the
requirements of the Delinquent Filer
Voluntary Compliance Program (‘‘DFVC
Program’’) administered by DOL. In
order to be eligible for relief from the
IRS penalties for a plan year, the late
filer, within a certain time period after
completing the filing under the DFVC
Program, must file on paper with the
IRS any delinquent Form 8955–SSA for
the plan year.
Similarly, Revenue Procedure 2014–
32 (2014–23 IRB 1073) establishes a
pilot program providing administrative
relief for late filers of the Form 5500–
EZ. In general, in order to receive relief
from IRS penalties, the late filer must
submit a complete Form 5500–EZ,
including all required schedules and
attachments, for each plan year for
which the late filer is seeking penalty
relief. A complete return for a plan year
consists of a signed, filled-out paper
version of the Form 5500–EZ for that
plan year.
Although the Department of the
Treasury and IRS generally encourage
filers to file electronically whenever
possible, the IRS currently does not
have the capability to accept electronic
filing of a delinquent Form 8955–SSA or
Form 5500–EZ. Thus, a delinquent
filing of a Form 8955–SSA or Form
5500–EZ that complies with the paper
filing requirements in Notice 2014–35
and Rev. Proc. 2014–32, is excluded
from the electronic filing requirements
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under these regulations. The IRS will
announce those statements and returns
that are excluded from electronic filing
under these regulations in its
publications, forms, and instructions.
Effective Date
The regulations apply to employee
retirement benefit plan statements and
notifications required to be filed under
section 6057 for plan years that begin on
or after January 1, 2014, but only for
filings with a filing deadline (not taking
into account extensions) on or after July
31, 2015.
For employee retirement benefit plan
returns and reports required to be filed
under sections 6058 and 6059, the
regulations apply for plan years that
begin on or after January 1, 2015, but
only for filings with a filing deadline
(not taking into account extensions)
after December 31, 2015.
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. It
has also been determined that 5 U.S.C.
533(b) of the Administrative Procedure
Act (5 U.S.C. chapter 5) does not apply
to these regulations. In addition, it is
hereby certified that any collection of
information contained in this regulation
will not have a significant economic
impact on a substantial number of small
entities, and therefore no flexibility
analysis under the Regulatory
Flexibility Act (5 U.S.C. chapter 6) is
required. Pursuant to section 7805(f) of
the Internal Revenue Code, these
regulations have been submitted to the
Office of Chief Counsel for Advocacy of
the Small Business Administration for
comments on its impact on small
businesses.
The certification is based on the fact
that §§ 301.6057–1, 301.6058–1, and
301.6059–1 currently require filing with
the IRS of information under sections
6057, 6058, and 6059 in accordance
with applicable forms, schedules, and
accompanying instructions. The
regulations merely require that this
information be filed electronically by
persons required to file at least 250
returns for the calendar year, consistent
with section 6011(e)(2)(A), which
provides that, in prescribing regulations
providing standards for determining
which returns must be filed on magnetic
media or in other machine-readable
form, the Secretary shall not require any
person to file returns on magnetic media
unless the person is required to file at
least 250 returns during the calendar
year. Many small entities are unlikely to
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file 250 returns or more during the
calendar year. Filers of the Form 5500
and Form 5500–SF are already required
to file the returns electronically through
EFAST2 pursuant to DOL regulations. In
addition, many filers of the Form 8955–
SSA already voluntarily file
electronically with the IRS through the
use of the FIRE system.
Further, if a taxpayer’s operations are
computerized, reporting in accordance
with the regulations should be less
costly than filing on paper. The
Department of the Treasury and the IRS
have determined that taxpayers should
be able to comply at a reasonable cost
with the requirement in these
regulations to file employee retirement
statements, returns, and reports on
magnetic media. In addition, the
regulations provide that the IRS may
waive the electronic filing requirements
upon a showing of economic hardship.
Drafting Information
The principal authors of these
regulations are William Gibbs and
Pamela R. Kinard, Office of Division
Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities).
However, other personnel from the IRS
and the Treasury Department
participated in the development of these
regulations.
List of Subjects in 26 CFR Part 301
Administrative practice and
procedure, Alimony, Bankruptcy, Child
support, Continental shelf, Courts,
Crime, Employment taxes, Estate taxes,
Excise taxes, Gift taxes, Income taxes,
Investigations, Law enforcement, Oil
pollution, Penalties, Pensions,
Reporting and recordkeeping
requirements, Seals and insignia,
Statistics and Taxes.
Amendments to the Regulations
Accordingly, 26 CFR part 301 is
amended as follows:
PART 301—PROCEDURE AND
ADMINISTRATION
Par. 1. The authority for part 301
continues to read in part as follows:
■
Authority: 26 U.S.C. 7508* * *
Par. 2. Section 301.6057–3 is added to
read as follows:
■
§ 301.6057–3 Required use of magnetic
media for filing requirements relating to
deferred vested retirement benefit.
(a) Magnetic media filing
requirements under section 6057. A
registration statement required under
section 6057(a) or a notification
required under section 6057(b) with
respect to an employee benefit plan
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Federal Register / Vol. 79, No. 188 / Monday, September 29, 2014 / Rules and Regulations
must be filed on magnetic media if the
filer is required by the Internal Revenue
Code or regulations to file at least 250
returns during the calendar year that
includes the first day of the plan year.
Returns filed on magnetic media must
be made in accordance with applicable
revenue procedures, publications,
forms, instructions, or other guidance
on the IRS.gov Internet Web site. In
prescribing revenue procedures,
publications, forms, instructions, or
other guidance on the IRS.gov Internet
Web site, the Commissioner may direct
the type of magnetic media filing. See
§ 601.601(d)(2)(ii)(b) of this chapter.
(b) Economic hardship waiver. The
Commissioner may waive the
requirements of this section in cases of
undue economic hardship. The
principal factor in determining hardship
will be the amount, if any, by which the
cost of filing the registration statements
or notifications on magnetic media in
accordance with this section exceeds
the cost of filing the registration
statements or notifications on other
media. A request for a waiver must be
made in accordance with applicable
published guidance, publications,
forms, instructions, or other guidance
on the IRS.gov Internet Web site. See
§ 601.601(d)(2)(ii)(b) of this chapter. The
waiver will specify the type of filing
(that is, a registration statement or
notification under section 6057) and the
period to which it applies. In addition,
the waiver will be subject to such terms
and conditions regarding the method of
filing as may be prescribed by the
Commissioner.
(c) Failure to file. If a filer required to
file a registration statement or other
notification under section 6057 fails to
file the statement or other notification
on magnetic media when required to do
so by this section, the filer is deemed to
have failed to file the statement or other
notification. See section 6652(d) for the
amount imposed for the failure to file a
registration statement or other
notification required under section
6057. In determining whether there is
reasonable cause for the failure to file
the registration statement or notification
under section 6057, § 301.6652–3(b) and
rules similar to the rules in § 301.6724–
1(c)(3)(ii) (regarding undue economic
hardship related to filing information
returns on magnetic media) will apply.
(d) Meaning of terms. The following
definitions apply for purposes of this
section.
(1) Magnetic media. The term
magnetic media means electronic filing,
as well as other media specifically
permitted under applicable regulations,
revenue procedures, or publications,
forms, instructions, or other guidance
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on the IRS.gov Internet Web site. See
§ 601.601(d)(2)(ii)(b) of this chapter.
(2) Registration statement required
under section 6057(a). The term
registration statement required under
section 6057(a) means a Form 8955–
SSA (or its successor).
(3) Notification required under section
6057(b). The term notification required
under section 6057(b) means either a
Form 8955–SSA (or its successor) or a
return in the Form 5500 series (or its
successor).
(4) Determination of 250 returns—(i)
In general. For purposes of this section,
a filer is required to file at least 250
returns if, during the calendar year that
includes the first day of the plan year,
the filer is required to file at least 250
returns of any type, including
information returns (for example, Forms
W–2 and Forms 1099), income tax
returns, employment tax returns, and
excise tax returns.
(ii) Definition of filer. For purposes of
this section, the term filer means the
plan administrator within the meaning
of section 414(g). If the plan
administrator within the meaning of
section 414(g) is the employer, the
special rules in § 1.6058–2(d)(3)(iii) will
apply.
(e) Example. The following example
illustrates the provisions of paragraph
(d)(4) of this section:
Example. In 2015, P, the plan
administrator of Plan B, is required to file
252 returns (including Forms 1099–R,
‘‘Distributions From Pensions, Annuities,
Retirement or Profit-Sharing Plans, IRAs,
Insurance Contracts, etc.;’’ Form 8955–SSA,
‘‘Annual Registration Statement Identifying
Separated Participants with Deferred Vested
Benefits;’’ Form 5500, ‘‘Annual Return/
Report of Employee Benefit Plan;’’ and Form
945, ‘‘Annual Return of Withheld Federal
Income Tax’’). Plan B’s plan year is the
calendar year. Because P is required to file
at least 250 returns during the 2015 calendar
year, P must file the 2015 Form 8955–SSA for
Plan B electronically.
(f) Effective/applicability date. This
section is applicable for registration
statements and other notifications
required to be filed under section 6057
for plan years that begin on or after
January 1, 2014, but only for filings with
a filing deadline (not taking into
account extensions) on or after July 31,
2015.
■ Par. 3. Section 301.6058–2 is added to
read as follows:
§ 301.6058–2 Required use of magnetic
media for filing requirements relating to
information required in connection with
certain plans of deferred compensation.
(a) Magnetic media filing
requirements under section 6058. A
return required under section 6058 with
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58259
respect to an employee benefit plan
must be filed on magnetic media if the
filer is required by the Internal Revenue
Code or regulations to file at least 250
returns during the calendar year that
includes the first day of the plan year.
Returns filed on magnetic media must
be made in accordance with applicable
revenue procedures, publications,
forms, instructions, or other guidance
on the IRS.gov Internet Web site. In
prescribing revenue procedures,
publications, forms, and instructions, or
other guidance on the IRS.gov Internet
site, the Commissioner may direct the
type of magnetic media filing. See
§ 601.601(d)(2)(ii)(b) of this chapter.
(b) Economic hardship waiver. The
Commissioner may waive the
requirements of this section in cases of
undue economic hardship. The
principal factor in determining hardship
will be the amount, if any, by which the
cost of filing the return on magnetic
media in accordance with this section
exceeds the cost of filing the returns on
other media. A request for a waiver
must be made in accordance with
applicable published guidance,
publications, forms, instructions, or
other guidance on the IRS.gov Internet
Web site. See § 601.601(d)(2)(ii)(b) of
this chapter. The waiver will specify the
type of filing (that is, a return required
under section 6058) and the period to
which it applies. In addition, the waiver
will be subject to such terms and
conditions regarding the method of
filing as may be prescribed by the
Commissioner.
(c) Failure to file. If a filer required to
file a return under section 6058 fails to
file the return on magnetic media when
required to do so by this section, the
filer is deemed to have failed to file the
return. See section 6652(e) for the
amount imposed for the failure to file a
return required under section 6058. In
determining whether there is reasonable
cause for failure to file the return,
§ 301.6652–3(b) and rules similar to the
rules in § 301.6724–1(c)(3)(ii) (regarding
undue economic hardship related to
filing information returns on magnetic
media) will apply.
(d) Meaning of terms. The following
definitions apply for purposes of this
section.
(1) Magnetic media. The term
magnetic media means electronic filing,
as well as other media specifically
permitted under applicable regulations,
revenue procedures, or publications,
forms, instructions, or other guidance
on the IRS.gov Internet Web site. See
§ 601.601(d)(2)(ii)(b) of this chapter.
(2) Return required under section
6058. The term return required under
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Federal Register / Vol. 79, No. 188 / Monday, September 29, 2014 / Rules and Regulations
section 6058 means a return in the Form
5500 series (or its successor).
(3) Determination of 250 returns—(i)
In general. For purposes of this section,
a filer is required to file at least 250
returns if, during the calendar year that
includes the first day of the plan year,
the filer is required to file at least 250
returns of any type, including
information returns (for example, Forms
W–2 and Forms 1099), income tax
returns, employment tax returns, and
excise tax returns.
(ii) Definition of filer. For purposes of
this section, the term filer means the
employer or employers maintaining the
plan and the plan administrator within
the meaning of section 414(g).
(iii) Special rules relating to
determining 250 returns. For purposes
of applying paragraph (d)(3)(ii) of this
section, the aggregation rules of section
414(b), (c), (m), and (o) will apply to a
filer that is or includes an employer.
Thus, for example, a filer that is a
member of a controlled group of
corporations within the meaning of
section 414(b) must file the Form 5500
series on magnetic media if the
aggregate number of returns required to
be filed by all members of the controlled
group of corporations is at least 250.
(e) Example. The following example
illustrates the provisions of paragraph
(d)(3) of this section:
wreier-aviles on DSK5TPTVN1PROD with RULES
Example. In 2016 Employer X (the plan
sponsor of Plan A) and P (the plan
administrator of Plan A) are required to file
267 returns. Employer X is required to file
the following: one Form 1120, ‘‘U.S.
Corporation Income Tax Return;’’ 195 Forms
W–2, ‘‘Wage and Tax Statement;’’ 25 Forms
1099–DIV, ‘‘Dividends and Distributions;’’
one Form 940, ‘‘Employer’s Annual Federal
Unemployment (FUTA) Tax Return;’’ and
four Forms 941, ‘‘Employer’s Quarterly
Federal Tax Return.’’ P is required to file 40
Forms 1099–R, ‘‘Distributions From
Pensions, Annuities, Retirement, ProfitSharing Plans, IRAs, Insurance Contracts,
etc.’’ P and Employer X are jointly required
to file one Form 5500 series return. Plan A’s
plan year is the calendar year. Because P and
Employer X, in the aggregate, are required to
file at least 250 returns during the calendar
year, the 2016 Form 5500 for Plan A must be
filed electronically.
(f) Effective/applicability date. This
section is applicable for returns required
to be filed under section 6058 for plan
years that begin on or after January 1,
2015, but only for filings with a filing
deadline (not taking into account
extensions) after December 31, 2015.
Par. 4. Section 301.6059–2 is added to
read as follows:
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14:58 Sep 26, 2014
Jkt 232001
§ 301.6059–2 Required use of magnetic
media for filing requirements relating to
periodic report of actuary.
(a) Magnetic media filing
requirements under section 6059. An
actuarial report required under section
6059 with respect to an employee
benefit plan must be filed on magnetic
media if the filer is required by the
Internal Revenue Code or regulations to
file at least 250 returns during the
calendar year that includes the first day
of the plan year. Actuarial reports filed
on magnetic media must be made in
accordance with applicable revenue
procedures, publications, forms,
instructions, or other guidance on the
IRS.gov Internet Web site. In prescribing
revenue procedures, publications,
forms, instructions, or other guidance
on the IRS.gov Internet Web site, the
Commissioner may direct the type of
magnetic media filing. See
§ 601.601(d)(2)(ii)(b) of this chapter.
(b) Economic hardship waiver. The
Commissioner may waive the
requirements of this section in cases of
undue economic hardship. The
principal factor in determining hardship
will be the amount, if any, by which the
cost of filing the reports on magnetic
media in accordance with this section
exceeds the cost of filing the reports on
other media. A request for a waiver
must be made in accordance with
applicable published guidance,
publications, forms, instructions, or
other guidance on the IRS.gov Internet
Web site. See § 601.601(d)(2)(ii)(b) of
this chapter. The waiver will specify the
type of filing (that is, an actuarial report
required under section 6059) and the
period to which it applies. In addition,
the waiver will be subject to such terms
and conditions regarding the method of
filing as may be prescribed by the
Commissioner.
(c) Failure to file. If a filer required to
file an actuarial report under section
6059 fails to file the report on magnetic
media when required to do so by this
section, the filer is deemed to have
failed to file the report. See section 6692
for the penalty for the failure to file an
actuarial report. In determining whether
there is reasonable cause for failure to
file the report, § 301.6692–1(c) and rules
similar to the rules in § 301.6724–
1(c)(3)(ii) (regarding undue economic
hardship related to filing information
returns on magnetic media) will apply.
(d) Meaning of terms. The following
definitions apply for purposes of this
section.
(1) Magnetic media. The term
magnetic media means electronic filing,
as well as other media specifically
permitted under applicable regulations,
revenue procedures, or publications,
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Frm 00020
Fmt 4700
Sfmt 4700
forms, instructions, or other guidance
on the IRS.gov Internet Web site. See
§ 601.601(d)(2)(ii)(b) of this chapter.
(2) Actuarial report required under
section 6059—(i) Single employer plans.
For a single employer plan, the term
actuarial report required under section
6059 means the Schedule SB, ‘‘SingleEmployer Defined Benefit Plan
Actuarial Information,’’ of the Form
5500 series (or its successor).
(ii) Multiemployer and certain money
purchase plans. For multiemployer and
certain money purchase plans, the term
actuarial report required under section
6059 means the Schedule MB,
‘‘Multiemployer Defined Benefit Plan
and Certain Money Purchase Plan
Actuarial Information,’’ of the Form
5500 series (or its successor).
(3) Determination of 250 returns—(i)
In general. For purposes of this section,
a filer is required to file at least 250
returns if, during the calendar year that
includes the first day of the plan year,
the filer is required to file at least 250
returns of any type, including
information returns (for example, Forms
W–2 and Forms 1099), income tax
returns, employment tax returns, and
excise tax returns.
(ii) Definition of filer. For purposes of
this section, the term filer means the
plan administrator within the meaning
of section 414(g). If the plan
administrator within the meaning of
section 414(g) is the employer, the
special rules in § 1.6058–2(d)(3)(iii) will
apply.
(e) Example. The following example
illustrates the provisions of paragraph
(d)(3) of this section:
Example. In 2016, P, the plan
administrator of Plan B (a single employer
defined benefit plan), is required to file 266
returns (including Forms 1099–R
‘‘Distributions From Pensions, Annuities,
Retirement, Profit-Sharing Plans, IRAs,
Insurance Contracts, etc.’’ and one Form 5500
series). Plan B’s plan year is the calendar
year. Because P is required to file at least 250
returns during the calendar year, P must file
the 2016 Schedule SB of the Form 5500
series return for Plan B electronically.
(f) Effective/applicability date. This
section is applicable for actuarial
reports required to be filed under
section 6059 for plan years that begin on
or after January 1, 2015, but only for
filings with a filing deadline (not taking
E:\FR\FM\29SER1.SGM
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Federal Register / Vol. 79, No. 188 / Monday, September 29, 2014 / Rules and Regulations
John Dalrymple,
Deputy Commissioner for Services and
Enforcement.
Approved: September 23, 2014.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2014–23161 Filed 9–26–14; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE INTERIOR
National Park Service
36 CFR Part 51
[NPS–WASO–16649; PX.XVPAD0517.00.1]
RIN 1024–AE22
Concession Contracts
National Park Service, Interior.
Final rule.
AGENCY:
We are amending our
concessions contracts regulations to
clarify that the Director may amend or
extend a prospectus soliciting proposals
for a concession contract prior to and
including the proposal due date and
may award a temporary concession
contract. We are also updating
consolidated information collection
requirements.
SUMMARY:
This rule is effective September
29, 2014.
FOR FURTHER INFORMATION CONTACT: Jo
Pendry, National Park Service Acting
Chief of Commercial Services, by
telephone: 202–513–7156 or email: jo_
pendry@nps.gov.
SUPPLEMENTARY INFORMATION:
wreier-aviles on DSK5TPTVN1PROD with RULES
DATES:
Background
The National Park Service (NPS)
issues concession contracts to provide
commercial visitor services in over 150
units of the National Park System under
the authority of the NPS Concessions
Management Improvement Act of 1998
(Pub. L. 105–391; 16 U.S.C. 5951–5966
(1998 Act). Title 36 CFR Part 51,
adopted in 2000, implements the 1998
Act. This rule clarifies an ambiguity in
36 CFR 51.11, eliminates outdated
procedural restrictions in 36 CFR 51.24,
and updates 36 CFR 51.104. You may
view information about the NPS
Commercial Services Program at https://
concessions.nps.gov.
Amending or Extending a Prospectus
(36 CFR 51.11)
Title 36 CFR 51.11 describes when the
NPS may amend or extend the
VerDate Sep<11>2014
14:58 Sep 26, 2014
Jkt 232001
solicitation period for a prospectus
seeking proposals for a concession
contract opportunity. As written, the
regulation could be interpreted to limit
the agency’s needed ability to amend or
extend a solicitation on the date the
solicitation period expires. This rule
clarifies that the NPS may amend a
prospectus or extend the submission
date prior to and on the proposal due
date.
these limitations, and this provision is
no longer needed.
We are also making two conforming
amendments. We are deleting the
current reference to § 51.24(b) in
§ 51.22, and we are also revising the
current reference to § 51.24(b) stated in
§ 51.24(c) and replacing it with a
reference to § 51.24(a).
Awarding a Temporary Concession
Contract (36 CFR 51.24)
into account extensions) after December
31, 2015.
ACTION:
58261
In November 2013, the Office of
Management and Budget (OMB)
approved our request to consolidate the
information collection requirements
associated with applying for and
operating NPS concessions (previously
approved under four separate control
numbers: 1024–0029, 1024–0125, 1024–
0126, and 1024–0231) into one single
control number, 1024–0029. Upon
receiving OMB approval for the renewal
and consolidation of 1024–0029, we
discontinued OMB Control Numbers
1024–0125, 1024–0126, and 1024–0231.
We are amending § 51.104 to reflect this
change.
Under the 1998 Act, the NPS may
award temporary concession contracts
for a term not to exceed three years in
order to avoid an interruption of
services to the public. (16 U.S.C.
5952(11)).
The current 36 CFR 51.24 describes
the circumstances under which the NPS
may award a temporary concession
contract. When the NPS promulgated 36
CFR Part 51 in 2000, it provided in
§ 51.24 that, except in limited
circumstances, the Director could not
issue a temporary concession contract to
continue visitor services provided under
an extended contract. This regulatory
restriction was the result of a policy
decision of the NPS rather than a
requirement of the 1998 Act. Although
the NPS has successfully awarded
replacement contracts within the term
limits of contracts and authorized
extension periods, the inventory of
concession contracts currently includes
several extended, complex contracts
with respect to which the NPS may
need the flexibility to award a
temporary contract upon contract
expiration in order to assure that visitor
services continue uninterrupted. This
rule amends § 51.24(a) to provide this
flexibility. The NPS anticipates it will
exercise this authority sparingly and
only when the award of a temporary
contract is the only practical alternative
to an interruption of visitor services.
In addition, the NPS is deleting the
text of 36 CFR 51.24(b) in its entirety
except for the last sentence in the
current subsection, which will be
moved to become the last sentence in
the amended § 51.24(a) for purposes of
determining the existence of a preferred
offeror when awarding a temporary
concession contract to continue services
under an extended concession contract.
The current § 51.24(b) only applies to
contracts that were in effect as of
November 13, 1998, and that either had
been extended as of that date or were
due to expire by December 31, 1998,
and were subsequently extended. There
are no longer any existing NPS
concession contracts that fall within
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Fmt 4700
Sfmt 4700
Update to OMB Approval of Information
Collection (36 CFR 51.104)
Summary of Public Comments
We published the proposed rule at 79
FR 45390 (August 5, 2014). We accepted
comments through the mail, hand
delivery, and through the Federal
eRulemaking Portal at https://
www.regulations.gov. Comments were
accepted through September 4, 2014,
and we received two timely comments.
Both comments supported the proposed
rule and did not request any change.
After considering the public comments
and after additional review, we did not
make any changes in the final rule.
Compliance With Other Laws,
Executive Orders, and Department
Policy
Regulatory Planning and Review
(Executive Orders 12866 and 13563)
Executive Order 12866 provides that
the Office of Information and Regulatory
Affairs (OIRA) in the Office of
Management and Budget will review all
significant rules. OIRA has determined
that this rule is not significant.
Executive Order 13563 reaffirms the
principles of Executive Order 12866
while calling for improvements in the
nation’s regulatory system to promote
predictability, to reduce uncertainty,
and to use the best, most innovative,
and least burdensome tools for
achieving regulatory ends. The
Executive Order directs agencies to
consider regulatory approaches that
reduce burdens and maintain flexibility
and freedom of choice for the public
where these approaches are relevant,
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]]>Agencies
[Federal Register Volume 79, Number 188 (Monday, September 29, 2014)]
[Rules and Regulations]
[Pages 58256-58261]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-23161]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[TD 9695]
RIN 1545-BL54
Employee Retirement Benefit Plan Returns Required on Magnetic
Media
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final regulations relating to the
requirements for filing certain employee retirement benefit plan
statements, returns, and reports on magnetic media. The term magnetic
media includes electronic filing, as well as other magnetic media
specifically permitted under applicable regulations, revenue
procedures, publications, forms, instructions, or other guidance on the
IRS.gov Internet Web site. These regulations affect plan administrators
and employers maintaining retirement plans that are subject to various
employee benefit reporting requirements under the Internal Revenue Code
(Code).
DATES: Effective Date: These regulations are effective September 29,
2014.
Applicability Date: For dates of applicability, see Sec. Sec.
301.6057-3(f), 301.6058-2(f), and 301.6059-2(f).
FOR FURTHER INFORMATION CONTACT: William Gibbs or Pamela Kinard at
(202) 317-6799 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments to 26 CFR part 301. On August 30,
2013, a notice of proposed rulemaking (REG-111837-13) relating to the
requirements
[[Page 58257]]
for filing certain employee retirement benefit plan statements,
returns, and reports on magnetic media was published in the Federal
Register (78 FR 53704). The proposed regulations provide that a plan
administrator (or, in certain situations, an employer maintaining a
plan) required by the Code or regulations to file at least 250 returns
during the calendar year that includes the first day of the plan year
must use magnetic media to file certain statements, returns, and
reports required under sections 6057, 6058, and 6059 of the Code.
Comments responding to the notice of proposed rulemaking were received.
No public hearing was requested or held. After consideration of all the
comments, the proposed regulations are adopted as modified by this
Treasury decision.
Summary of Comments and Explanation of Revisions
I. Use of FIRE System for Filing Form 8955-SSA
The proposed regulations under section 6057 provide that a
registration statement required under section 6057(a) or a notification
required under section 6057(b) must be filed on magnetic media if the
filer is required by the Code or regulations to file at least 250
returns during the calendar year that includes the first day of the
plan year. Magnetic media is defined as electronic filing or other
media specifically permitted under applicable regulations, revenue
procedures, publications, forms, instructions, or other guidance on the
IRS.gov Internet Web site. See Sec. 601.601(d)(2)(ii)(b) of this
chapter.
The form used to satisfy the requirement to file the registration
statement under section 6057 is Form 8955-SSA, ``Annual Registration
Statement Identifying Separated Participants with Deferred Vested
Benefits.'' The preamble to the proposed regulations noted that many
filers of the Form 8955-SSA already voluntarily file electronically
with the IRS, but did not identify the system currently used to file
electronically.
Commenters expressed concern that not identifying the ``Filing
Information Returns Electronically'' (FIRE) system as the system
currently used to file the Form 8955-SSA electronically could imply
that the use of the FIRE system is not (or, in the near future, will
not be) an acceptable system to file the Form 8955-SSA electronically.
In response to this concern, the Department of the Treasury and the IRS
confirm that the FIRE system is an acceptable electronic system to file
the Form 8955-SSA. If, in the future, the IRS replaces the FIRE system
with another electronic filing system, sufficient time will be provided
to filers of the Form 8955-SSA to accommodate programming and other
implementation needs.
Commenters also stated that certain aspects of the FIRE system need
improvement, including the lack of an efficient batch processing system
and costs associated with using the system. The specific requirements
of the FIRE system are outside the scope of these regulations, but
comments on possible FIRE system improvements have been forwarded to
the staff at the IRS responsible for the FIRE system.
II. Application of the E-File Mandate to One-Participant Plans
The proposed regulations under section 6058 provide that a return
required under section 6058 must be filed on magnetic media if the
filer is required by the Code or regulations to file at least 250
returns during the calendar year that includes the first day of the
plan year. The preamble to the proposed regulations noted that filers
of the Form 5500, ``Annual Return/Report of Employee Benefit Plan,''
and Form 5500-SF, ``Short Form Annual Return/Report of Small Employee
Benefit Plan,'' are already required, pursuant to Department of Labor
(DOL) rules, to file these returns electronically through the
computerized ERISA Filing Acceptance System (EFAST2). The preamble to
the proposed regulations also noted that, while electronic filing is
not available for the Form 5500-EZ, ``Annual Return of One-Participant
(Owners and their Spouses) Retirement Plan,'' certain filers that would
otherwise file the Form 5500-EZ on paper may instead file the Form
5500-SF electronically through EFAST2.
One commenter asked whether the proposed regulations impose
additional filing obligations, other than the requirement to file
electronically, on one-participant plans that meet the 250-return
threshold for mandatory electronic filing. In particular, the commenter
asked whether a one-participant plan would now be required to file an
actuarial report under section 6059 when filing the Form 5500-SF in
lieu of a paper Form 5500-EZ.
In response to this comment, the Department of the Treasury and the
IRS confirm that a one-participant plan (or a foreign plan) required to
file electronically must use the Form 5500-SF to file the information
required on the Form 5500-EZ, but will not be required to attach to the
filing a Schedule SB, ``Single-Employer Defined Benefit Plan Actuarial
Information,'' or Schedule MB, ``Multiemployer Defined Benefit Plan and
Certain Money Purchase Plan Actuarial Information.''
III. Economic Hardship Waiver
As noted in the proposed regulations, the Commissioner may waive
the requirement to file electronically in cases of undue economic
hardship. Because the Department of the Treasury and the IRS believe
that electronic filing will not impose significant burdens on the
taxpayers covered by these regulations, the Commissioner anticipates
granting waivers of the electronic filing requirement in only
exceptional cases. The Department of the Treasury and the IRS
anticipate issuing guidance that will set forth procedures whereby a
taxpayer may request a hardship waiver for electronically filing the
Form 8955-SSA and the Form 5500 series. The Department of the Treasury
and the IRS anticipate that the guidance would not provide hardship
waiver procedures for any electronic filing requirement for a form that
a filer is already required to file electronically, such as Form 5500
and Form 5500-SF, which filers are already required to file
electronically through EFAST2.
IV. Request To Extend Proposed Effective Date
Commenters requested that the effective date of these regulations
be extended from the effective date set forth in the proposed
regulations. The proposed regulations provided that they would be
effective for plan years that begin on or after January 1, 2014, but
only for filings with a filing deadline (not taking into account
extensions) after December 31, 2014. With respect to the filing
requirements under section 6057, commenters specifically requested that
the IRS confirm that the use of the existing FIRE system will satisfy
the electronic filing requirement for the Form 8955-SSA through 2016.
Because there is no current plan to change the electronic system used
to file the Form 8955-SSA prior to the end of calendar year 2016, and
significant changes to the form itself are not anticipated, these
regulations generally retain the proposed effective date for section
6057 filings. However, the regulations do provide an extended effective
date for plans with short 2014 plan years by providing that these
regulations only apply to filings with a filing deadline on or after
July 31, 2015. For example, a plan with a short 2014 plan year ending
November 30, 2014, would have a filing deadline of June 30, 2015, and
thus would not be required to file electronically for that plan year.
[[Page 58258]]
With respect to the filing requirements under sections 6058 and
6059, these regulations extend the effective date by 12 months, so that
the regulations generally apply to returns and actuarial reports
required to be filed for plan years that begin on or after January 1,
2015, but only for filings with a filing deadline (not taking into
account extensions) after December 31, 2015. As announced in the
proposed regulations, the IRS anticipates adding items on the Form 5500
and Form 5500-SF relating solely to Code requirements and intends to
provide an optional paper-only form containing those Code-related items
for use by small filers. It is anticipated that the form will be
available to satisfy the filing requirements with respect to the 2015
plan year.
V. Certain Delinquent Filers Required To File on Paper
Notice 2014-35 (2014-23 IRB 1072) provides administrative relief
from IRS penalties under sections 6652(d), 6652(e), and 6692 for a
failure to file timely in accordance with annual reporting requirements
under sections 6047(e), 6057, 6058, and 6059. This administrative
relief from IRS penalties applies to late filers that satisfy the
requirements of the Delinquent Filer Voluntary Compliance Program
(``DFVC Program'') administered by DOL. In order to be eligible for
relief from the IRS penalties for a plan year, the late filer, within a
certain time period after completing the filing under the DFVC Program,
must file on paper with the IRS any delinquent Form 8955-SSA for the
plan year.
Similarly, Revenue Procedure 2014-32 (2014-23 IRB 1073) establishes
a pilot program providing administrative relief for late filers of the
Form 5500-EZ. In general, in order to receive relief from IRS
penalties, the late filer must submit a complete Form 5500-EZ,
including all required schedules and attachments, for each plan year
for which the late filer is seeking penalty relief. A complete return
for a plan year consists of a signed, filled-out paper version of the
Form 5500-EZ for that plan year.
Although the Department of the Treasury and IRS generally encourage
filers to file electronically whenever possible, the IRS currently does
not have the capability to accept electronic filing of a delinquent
Form 8955-SSA or Form 5500-EZ. Thus, a delinquent filing of a Form
8955-SSA or Form 5500-EZ that complies with the paper filing
requirements in Notice 2014-35 and Rev. Proc. 2014-32, is excluded from
the electronic filing requirements under these regulations. The IRS
will announce those statements and returns that are excluded from
electronic filing under these regulations in its publications, forms,
and instructions.
Effective Date
The regulations apply to employee retirement benefit plan
statements and notifications required to be filed under section 6057
for plan years that begin on or after January 1, 2014, but only for
filings with a filing deadline (not taking into account extensions) on
or after July 31, 2015.
For employee retirement benefit plan returns and reports required
to be filed under sections 6058 and 6059, the regulations apply for
plan years that begin on or after January 1, 2015, but only for filings
with a filing deadline (not taking into account extensions) after
December 31, 2015.
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. It has also been
determined that 5 U.S.C. 533(b) of the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these regulations. In addition, it
is hereby certified that any collection of information contained in
this regulation will not have a significant economic impact on a
substantial number of small entities, and therefore no flexibility
analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is
required. Pursuant to section 7805(f) of the Internal Revenue Code,
these regulations have been submitted to the Office of Chief Counsel
for Advocacy of the Small Business Administration for comments on its
impact on small businesses.
The certification is based on the fact that Sec. Sec. 301.6057-1,
301.6058-1, and 301.6059-1 currently require filing with the IRS of
information under sections 6057, 6058, and 6059 in accordance with
applicable forms, schedules, and accompanying instructions. The
regulations merely require that this information be filed
electronically by persons required to file at least 250 returns for the
calendar year, consistent with section 6011(e)(2)(A), which provides
that, in prescribing regulations providing standards for determining
which returns must be filed on magnetic media or in other machine-
readable form, the Secretary shall not require any person to file
returns on magnetic media unless the person is required to file at
least 250 returns during the calendar year. Many small entities are
unlikely to file 250 returns or more during the calendar year. Filers
of the Form 5500 and Form 5500-SF are already required to file the
returns electronically through EFAST2 pursuant to DOL regulations. In
addition, many filers of the Form 8955-SSA already voluntarily file
electronically with the IRS through the use of the FIRE system.
Further, if a taxpayer's operations are computerized, reporting in
accordance with the regulations should be less costly than filing on
paper. The Department of the Treasury and the IRS have determined that
taxpayers should be able to comply at a reasonable cost with the
requirement in these regulations to file employee retirement
statements, returns, and reports on magnetic media. In addition, the
regulations provide that the IRS may waive the electronic filing
requirements upon a showing of economic hardship.
Drafting Information
The principal authors of these regulations are William Gibbs and
Pamela R. Kinard, Office of Division Counsel/Associate Chief Counsel
(Tax Exempt and Government Entities). However, other personnel from the
IRS and the Treasury Department participated in the development of
these regulations.
List of Subjects in 26 CFR Part 301
Administrative practice and procedure, Alimony, Bankruptcy, Child
support, Continental shelf, Courts, Crime, Employment taxes, Estate
taxes, Excise taxes, Gift taxes, Income taxes, Investigations, Law
enforcement, Oil pollution, Penalties, Pensions, Reporting and
recordkeeping requirements, Seals and insignia, Statistics and Taxes.
Amendments to the Regulations
Accordingly, 26 CFR part 301 is amended as follows:
PART 301--PROCEDURE AND ADMINISTRATION
0
Par. 1. The authority for part 301 continues to read in part as
follows:
Authority: 26 U.S.C. 7508* * *
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Par. 2. Section 301.6057-3 is added to read as follows:
Sec. 301.6057-3 Required use of magnetic media for filing
requirements relating to deferred vested retirement benefit.
(a) Magnetic media filing requirements under section 6057. A
registration statement required under section 6057(a) or a notification
required under section 6057(b) with respect to an employee benefit plan
[[Page 58259]]
must be filed on magnetic media if the filer is required by the
Internal Revenue Code or regulations to file at least 250 returns
during the calendar year that includes the first day of the plan year.
Returns filed on magnetic media must be made in accordance with
applicable revenue procedures, publications, forms, instructions, or
other guidance on the IRS.gov Internet Web site. In prescribing revenue
procedures, publications, forms, instructions, or other guidance on the
IRS.gov Internet Web site, the Commissioner may direct the type of
magnetic media filing. See Sec. 601.601(d)(2)(ii)(b) of this chapter.
(b) Economic hardship waiver. The Commissioner may waive the
requirements of this section in cases of undue economic hardship. The
principal factor in determining hardship will be the amount, if any, by
which the cost of filing the registration statements or notifications
on magnetic media in accordance with this section exceeds the cost of
filing the registration statements or notifications on other media. A
request for a waiver must be made in accordance with applicable
published guidance, publications, forms, instructions, or other
guidance on the IRS.gov Internet Web site. See Sec.
601.601(d)(2)(ii)(b) of this chapter. The waiver will specify the type
of filing (that is, a registration statement or notification under
section 6057) and the period to which it applies. In addition, the
waiver will be subject to such terms and conditions regarding the
method of filing as may be prescribed by the Commissioner.
(c) Failure to file. If a filer required to file a registration
statement or other notification under section 6057 fails to file the
statement or other notification on magnetic media when required to do
so by this section, the filer is deemed to have failed to file the
statement or other notification. See section 6652(d) for the amount
imposed for the failure to file a registration statement or other
notification required under section 6057. In determining whether there
is reasonable cause for the failure to file the registration statement
or notification under section 6057, Sec. 301.6652-3(b) and rules
similar to the rules in Sec. 301.6724-1(c)(3)(ii) (regarding undue
economic hardship related to filing information returns on magnetic
media) will apply.
(d) Meaning of terms. The following definitions apply for purposes
of this section.
(1) Magnetic media. The term magnetic media means electronic
filing, as well as other media specifically permitted under applicable
regulations, revenue procedures, or publications, forms, instructions,
or other guidance on the IRS.gov Internet Web site. See Sec.
601.601(d)(2)(ii)(b) of this chapter.
(2) Registration statement required under section 6057(a). The term
registration statement required under section 6057(a) means a Form
8955-SSA (or its successor).
(3) Notification required under section 6057(b). The term
notification required under section 6057(b) means either a Form 8955-
SSA (or its successor) or a return in the Form 5500 series (or its
successor).
(4) Determination of 250 returns--(i) In general. For purposes of
this section, a filer is required to file at least 250 returns if,
during the calendar year that includes the first day of the plan year,
the filer is required to file at least 250 returns of any type,
including information returns (for example, Forms W-2 and Forms 1099),
income tax returns, employment tax returns, and excise tax returns.
(ii) Definition of filer. For purposes of this section, the term
filer means the plan administrator within the meaning of section
414(g). If the plan administrator within the meaning of section 414(g)
is the employer, the special rules in Sec. 1.6058-2(d)(3)(iii) will
apply.
(e) Example. The following example illustrates the provisions of
paragraph (d)(4) of this section:
Example. In 2015, P, the plan administrator of Plan B, is
required to file 252 returns (including Forms 1099-R,
``Distributions From Pensions, Annuities, Retirement or Profit-
Sharing Plans, IRAs, Insurance Contracts, etc.;'' Form 8955-SSA,
``Annual Registration Statement Identifying Separated Participants
with Deferred Vested Benefits;'' Form 5500, ``Annual Return/Report
of Employee Benefit Plan;'' and Form 945, ``Annual Return of
Withheld Federal Income Tax''). Plan B's plan year is the calendar
year. Because P is required to file at least 250 returns during the
2015 calendar year, P must file the 2015 Form 8955-SSA for Plan B
electronically.
(f) Effective/applicability date. This section is applicable for
registration statements and other notifications required to be filed
under section 6057 for plan years that begin on or after January 1,
2014, but only for filings with a filing deadline (not taking into
account extensions) on or after July 31, 2015.
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Par. 3. Section 301.6058-2 is added to read as follows:
Sec. 301.6058-2 Required use of magnetic media for filing
requirements relating to information required in connection with
certain plans of deferred compensation.
(a) Magnetic media filing requirements under section 6058. A return
required under section 6058 with respect to an employee benefit plan
must be filed on magnetic media if the filer is required by the
Internal Revenue Code or regulations to file at least 250 returns
during the calendar year that includes the first day of the plan year.
Returns filed on magnetic media must be made in accordance with
applicable revenue procedures, publications, forms, instructions, or
other guidance on the IRS.gov Internet Web site. In prescribing revenue
procedures, publications, forms, and instructions, or other guidance on
the IRS.gov Internet site, the Commissioner may direct the type of
magnetic media filing. See Sec. 601.601(d)(2)(ii)(b) of this chapter.
(b) Economic hardship waiver. The Commissioner may waive the
requirements of this section in cases of undue economic hardship. The
principal factor in determining hardship will be the amount, if any, by
which the cost of filing the return on magnetic media in accordance
with this section exceeds the cost of filing the returns on other
media. A request for a waiver must be made in accordance with
applicable published guidance, publications, forms, instructions, or
other guidance on the IRS.gov Internet Web site. See Sec.
601.601(d)(2)(ii)(b) of this chapter. The waiver will specify the type
of filing (that is, a return required under section 6058) and the
period to which it applies. In addition, the waiver will be subject to
such terms and conditions regarding the method of filing as may be
prescribed by the Commissioner.
(c) Failure to file. If a filer required to file a return under
section 6058 fails to file the return on magnetic media when required
to do so by this section, the filer is deemed to have failed to file
the return. See section 6652(e) for the amount imposed for the failure
to file a return required under section 6058. In determining whether
there is reasonable cause for failure to file the return, Sec.
301.6652-3(b) and rules similar to the rules in Sec. 301.6724-
1(c)(3)(ii) (regarding undue economic hardship related to filing
information returns on magnetic media) will apply.
(d) Meaning of terms. The following definitions apply for purposes
of this section.
(1) Magnetic media. The term magnetic media means electronic
filing, as well as other media specifically permitted under applicable
regulations, revenue procedures, or publications, forms, instructions,
or other guidance on the IRS.gov Internet Web site. See Sec.
601.601(d)(2)(ii)(b) of this chapter.
(2) Return required under section 6058. The term return required
under
[[Page 58260]]
section 6058 means a return in the Form 5500 series (or its successor).
(3) Determination of 250 returns--(i) In general. For purposes of
this section, a filer is required to file at least 250 returns if,
during the calendar year that includes the first day of the plan year,
the filer is required to file at least 250 returns of any type,
including information returns (for example, Forms W-2 and Forms 1099),
income tax returns, employment tax returns, and excise tax returns.
(ii) Definition of filer. For purposes of this section, the term
filer means the employer or employers maintaining the plan and the plan
administrator within the meaning of section 414(g).
(iii) Special rules relating to determining 250 returns. For
purposes of applying paragraph (d)(3)(ii) of this section, the
aggregation rules of section 414(b), (c), (m), and (o) will apply to a
filer that is or includes an employer. Thus, for example, a filer that
is a member of a controlled group of corporations within the meaning of
section 414(b) must file the Form 5500 series on magnetic media if the
aggregate number of returns required to be filed by all members of the
controlled group of corporations is at least 250.
(e) Example. The following example illustrates the provisions of
paragraph (d)(3) of this section:
Example. In 2016 Employer X (the plan sponsor of Plan A) and P
(the plan administrator of Plan A) are required to file 267 returns.
Employer X is required to file the following: one Form 1120, ``U.S.
Corporation Income Tax Return;'' 195 Forms W-2, ``Wage and Tax
Statement;'' 25 Forms 1099-DIV, ``Dividends and Distributions;'' one
Form 940, ``Employer's Annual Federal Unemployment (FUTA) Tax
Return;'' and four Forms 941, ``Employer's Quarterly Federal Tax
Return.'' P is required to file 40 Forms 1099-R, ``Distributions
From Pensions, Annuities, Retirement, Profit-Sharing Plans, IRAs,
Insurance Contracts, etc.'' P and Employer X are jointly required to
file one Form 5500 series return. Plan A's plan year is the calendar
year. Because P and Employer X, in the aggregate, are required to
file at least 250 returns during the calendar year, the 2016 Form
5500 for Plan A must be filed electronically.
(f) Effective/applicability date. This section is applicable for
returns required to be filed under section 6058 for plan years that
begin on or after January 1, 2015, but only for filings with a filing
deadline (not taking into account extensions) after December 31, 2015.
Par. 4. Section 301.6059-2 is added to read as follows:
Sec. 301.6059-2 Required use of magnetic media for filing
requirements relating to periodic report of actuary.
(a) Magnetic media filing requirements under section 6059. An
actuarial report required under section 6059 with respect to an
employee benefit plan must be filed on magnetic media if the filer is
required by the Internal Revenue Code or regulations to file at least
250 returns during the calendar year that includes the first day of the
plan year. Actuarial reports filed on magnetic media must be made in
accordance with applicable revenue procedures, publications, forms,
instructions, or other guidance on the IRS.gov Internet Web site. In
prescribing revenue procedures, publications, forms, instructions, or
other guidance on the IRS.gov Internet Web site, the Commissioner may
direct the type of magnetic media filing. See Sec.
601.601(d)(2)(ii)(b) of this chapter.
(b) Economic hardship waiver. The Commissioner may waive the
requirements of this section in cases of undue economic hardship. The
principal factor in determining hardship will be the amount, if any, by
which the cost of filing the reports on magnetic media in accordance
with this section exceeds the cost of filing the reports on other
media. A request for a waiver must be made in accordance with
applicable published guidance, publications, forms, instructions, or
other guidance on the IRS.gov Internet Web site. See Sec.
601.601(d)(2)(ii)(b) of this chapter. The waiver will specify the type
of filing (that is, an actuarial report required under section 6059)
and the period to which it applies. In addition, the waiver will be
subject to such terms and conditions regarding the method of filing as
may be prescribed by the Commissioner.
(c) Failure to file. If a filer required to file an actuarial
report under section 6059 fails to file the report on magnetic media
when required to do so by this section, the filer is deemed to have
failed to file the report. See section 6692 for the penalty for the
failure to file an actuarial report. In determining whether there is
reasonable cause for failure to file the report, Sec. 301.6692-1(c)
and rules similar to the rules in Sec. 301.6724-1(c)(3)(ii) (regarding
undue economic hardship related to filing information returns on
magnetic media) will apply.
(d) Meaning of terms. The following definitions apply for purposes
of this section.
(1) Magnetic media. The term magnetic media means electronic
filing, as well as other media specifically permitted under applicable
regulations, revenue procedures, or publications, forms, instructions,
or other guidance on the IRS.gov Internet Web site. See Sec.
601.601(d)(2)(ii)(b) of this chapter.
(2) Actuarial report required under section 6059--(i) Single
employer plans. For a single employer plan, the term actuarial report
required under section 6059 means the Schedule SB, ``Single-Employer
Defined Benefit Plan Actuarial Information,'' of the Form 5500 series
(or its successor).
(ii) Multiemployer and certain money purchase plans. For
multiemployer and certain money purchase plans, the term actuarial
report required under section 6059 means the Schedule MB,
``Multiemployer Defined Benefit Plan and Certain Money Purchase Plan
Actuarial Information,'' of the Form 5500 series (or its successor).
(3) Determination of 250 returns--(i) In general. For purposes of
this section, a filer is required to file at least 250 returns if,
during the calendar year that includes the first day of the plan year,
the filer is required to file at least 250 returns of any type,
including information returns (for example, Forms W-2 and Forms 1099),
income tax returns, employment tax returns, and excise tax returns.
(ii) Definition of filer. For purposes of this section, the term
filer means the plan administrator within the meaning of section
414(g). If the plan administrator within the meaning of section 414(g)
is the employer, the special rules in Sec. 1.6058-2(d)(3)(iii) will
apply.
(e) Example. The following example illustrates the provisions of
paragraph (d)(3) of this section:
Example. In 2016, P, the plan administrator of Plan B (a single
employer defined benefit plan), is required to file 266 returns
(including Forms 1099-R ``Distributions From Pensions, Annuities,
Retirement, Profit-Sharing Plans, IRAs, Insurance Contracts, etc.''
and one Form 5500 series). Plan B's plan year is the calendar year.
Because P is required to file at least 250 returns during the
calendar year, P must file the 2016 Schedule SB of the Form 5500
series return for Plan B electronically.
(f) Effective/applicability date. This section is applicable for
actuarial reports required to be filed under section 6059 for plan
years that begin on or after January 1, 2015, but only for filings with
a filing deadline (not taking
[[Page 58261]]
into account extensions) after December 31, 2015.
John Dalrymple,
Deputy Commissioner for Services and Enforcement.
Approved: September 23, 2014.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2014-23161 Filed 9-26-14; 8:45 am]
BILLING CODE 4830-01-P
