Regulations To Prescribe Return and Time for Filing for Payment of Section 4960, 4966, 4967, and 4968 Taxes and To Update the Abatement Rules for Section 4966 and 4967 Taxes, 55653-55656 [2018-24285]
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Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Proposed Rules
The rules of 26 CFR 601.601(a)(3)
apply to the hearing. Persons who wish
to present oral comments at the hearing
must submit written or electronic
comments and an outline of the topics
to be discussed and the time to be
devoted to each topic by December 7,
2018. Such persons should submit a
signed paper original and eight (8)
copies or an electronic copy. A period
of ten (10) minutes will be allotted to
each person for making comments. An
agenda showing the scheduling of the
speakers will be prepared after the
deadline for receiving outlines has
passed. Copies of the agenda will be
available free of charge at the hearing.
Drafting Information
The principal author of these
regulations is Kathryn M. Sneade, Office
of Associate Chief Counsel (Financial
Institutions and Products), IRS.
However, other personnel from the
Treasury Department and the IRS
participated in their development.
Statement of Availability of IRS
Documents
The IRS notices and revenue
procedures cited in this preamble are
published in the Internal Revenue
Bulletin (or Cumulative Bulletin) and
are available from the Superintendent of
Documents, U.S. Government
Publishing Office, Washington, DC
20402, or by visiting the IRS website at
https://www.irs.gov.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
proposed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by removing the
entry for § 1.846–2(d), removing the
entry for §§ 1.846–1 through 1.846–4,
and adding an entry in numerical order
for § 1.846–1. The addition reads in part
as follows:
■
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Authority: 26 U.S.C. 7805 * * *
*
*
*
*
*
Section 1.846–1 also issued under 26
U.S.C. 846.
*
*
§ 1.846–0
*
*
*
[Removed]
Par. 2. Section 1.846–0 is removed.
Par. 3. Section 1.846–1 is amended
by:
■
■
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1. Removing ‘‘section 846(f)(3)’’ from
the first sentence of paragraph (a)(1) and
adding ‘‘section 846(e)(3)’’ in its place.
■ 2. Removing ‘‘and § 1.846–3(b)
contains guidance relating to discount
factors applicable to accident years prior
to the 1987 accident year’’ from the
third sentence of paragraph (a)(1).
■ 3. Removing the last sentence of
paragraph (a)(1).
■ 4. Removing paragraph (a)(2) and
redesignating paragraphs (a)(3) and (4)
as paragraphs (a)(2) and (3),
respectively.
■ 5. In the first sentence of paragraph
(b)(1), removing ‘‘section 846(f)(6)’’ and
adding ‘‘section 846(e)(6)’’ in its place;
and removing ‘‘, in § 1.846–2 (relating to
a taxpayer’s election to use its own
historical loss payment pattern)’’.
■ 6. Removing ‘‘for accident years after
1987’’ from the heading for paragraph
(b)(3)(i).
■ 7. Removing the designation ‘‘(A)’’
and the accompanying heading
‘‘Accident years after 1991’’ after the
heading of paragraph (b)(3)(ii).
■ 8. Removing paragraphs (b)(3)(ii)(B),
and (b)(3)(iii) and (iv).
■ 9. Removing paragraph (b)(4) and
redesignating paragraph (b)(5) as
paragraph (b)(4).
■ 10. Adding paragraphs (c), (d), and (e).
The additions read as follows:
■
§ 1.846–1
Application of discount factors.
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*
*
*
*
(c) Determination of annual rate. The
applicable interest rate is the annual
rate determined by the Secretary for any
calendar year on the basis of the
corporate bond yield curve (as defined
in section 430(h)(2)(D)(i), determined by
substituting ‘‘60-month period’’ for ‘‘24month period’’ therein). The annual rate
for any calendar year is determined on
the basis of a yield curve that reflects
the average, for the most recent 60month period ending before the
beginning of the calendar year, of
monthly yields on corporate bonds
described in section 430(h)(2)(D)(i). The
annual rate is the average of that yield
curve’s monthly spot rates with times to
maturity of not more than seventeen and
one-half years.
(d) Determination of loss payment
pattern—(1) In general. Under section
846(d)(1), the loss payment pattern
determined by the Secretary for each
line of business is determined by
reference to the historical loss payment
pattern applicable to such line of
business determined in accordance with
the method of determination set forth in
section 846(d)(2) and the computational
rules prescribed in section 846(d)(3) on
the basis of the annual statement data
from annual statements described in
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55653
section 846(d)(2)(A) and (B). However,
the Secretary may adjust the loss
payment pattern for any line of business
as provided in paragraph (d)(2) of this
section.
(2) Smoothing adjustments. The
Secretary may adjust the loss payment
pattern for any line of business using a
methodology described by the Secretary
in other published guidance if necessary
to avoid negative payment amounts and
otherwise produce a stable pattern of
positive discount factors less than one.
(e) Applicability date. (1) Except as
provided in paragraph (e)(2) of this
section, this section applies to taxable
years beginning after December 31,
1986.
(2) Paragraphs (c) and (d) of this
section apply to taxable years beginning
after December 31, 2017.
§ 1.846–2
■
§ 1.846–2T
■
[Removed]
Par. 7. Section 1.846–4 is removed.
§ 1.846–4T
■
[Removed]
Par. 6. Section 1.846–3 is removed.
§ 1.846–4
■
[Removed]
Par. 5. Section 1.846–2T is removed.
§ 1.846–3
■
[Removed]
Par. 4. Section 1.846–2 is removed.
[Removed]
Par. 8. Section 1.846–4T is removed.
Kirsten Wielobob,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2018–24367 Filed 11–5–18; 4:15 pm]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 53
[REG–107163–18]
RIN 1545–BO80
Regulations To Prescribe Return and
Time for Filing for Payment of Section
4960, 4966, 4967, and 4968 Taxes and
To Update the Abatement Rules for
Section 4966 and 4967 Taxes
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking.
AGENCY:
This document contains
proposed regulations specifying which
return to use to pay certain excise taxes
and the time for filing the return. The
regulations also implement the statutory
addition of two excise taxes to the firsttier taxes subject to abatement. These
regulations affect applicable tax-exempt
SUMMARY:
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Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Proposed Rules
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organizations and their related
organizations, applicable educational
institutions, sponsoring organizations
that maintain certain donor advised
funds, fund managers of such
sponsoring organizations, and certain
donors, donor advisors and persons
related to a donor or donor advisor of
a donor advised fund.
DATES: Written or electronic comments
and requests for a public hearing must
be received by December 7, 2018.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–107163–18), Room
5203, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions
may be hand-delivered Monday through
Friday between the hours of 8 a.m. and
4 p.m. to CC:PA:LPD:PR (REG–107163–
18), Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue NW,
Washington, DC 20224 or sent
electronically via the Federal
eRulemaking Portal at https://
www.regulations.gov (indicate IRS REG–
107163–18).
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Amber L. MacKenzie at (202) 317–4086
or Ward L. Thomas at (202) 317–6173;
concerning submission of comments
and request for hearing, Regina Johnson
at (202) 317–6901 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Background
This document contains proposed
regulations amending regulations under
section 6011 of the Internal Revenue
Code (Code) to specify the return to
accompany payment of excise taxes
under sections 4960, 4966, 4967, and
4968; amending regulations under
section 6071 to specify the time for
filing that return; and amending
regulations under section 4963 that
define the first-tier taxes subject to
abatement under section 4962.
These regulations affect applicable
tax-exempt organizations described in
section 4960(c)(1) and their related
organizations described in section
4960(c)(4)(B); applicable educational
institutions described in section
4968(b)(1); sponsoring organizations
described in section 4966(d)(1) that
maintain donor advised funds described
in section 4966(d)(2); fund managers of
such sponsoring organizations described
in sections 4966(d)(3); and donors,
donor advisors and persons related to a
donor or donor advisor of a donor
advised fund described in section
4967(d).
These regulations implement section
1231 of the Pension Protection Act of
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2006, Public Law 109–280, 120 Stat.
780, 1094 (‘‘PPA’’), as amended by
section 3(h) of the Tax Technical
Corrections Act of 2007, Public Law
110–172, 121 Stat. 2473, 2475, and
sections 13602 and 13701 of the Tax
Cuts and Jobs Act, Public Law 115–97,
131 Stat. 2054, 2157, 2167 (2017)
(‘‘TCJA’’).
The PPA added sections 4966 and
4967 to the Code. These sections impose
excise taxes related to certain
distributions from donor advised funds
(defined in section 4966(d)(2))
maintained by organizations that are
defined as sponsoring organizations in
section 4966(d)(1).
Section 4966(a)(1) imposes a 20
percent excise tax on each ‘‘taxable
distribution’’ from a donor advised
fund, payable by the sponsoring
organization of the donor advised fund.
Section 4966(a)(2) imposes a separate 5
percent excise tax on the agreement of
any fund manager (as defined in section
4966(d)(3)) to the making of the
distribution, knowing that it is a taxable
distribution. Section 4966(b)(1) states
that if more than one fund manager is
liable for the tax, all such managers are
jointly and severally liable with respect
to the taxable distribution. Section
4966(b)(2) provides that the maximum
amount of tax that may be imposed on
all fund managers for any one taxable
distribution is $10,000.
Section 4966(c)(1) defines the term
‘‘taxable distribution’’ as any
distribution from a donor advised fund:
(A) To any natural person; or (B) to any
other person if (i) the distribution is for
any purpose other than one specified in
section 170(c)(2)(B), or (ii) the
sponsoring organization does not
exercise expenditure responsibility in
accordance with section 4945(h) with
respect to such distribution. Section
4966(c)(2) excepts from the definition of
taxable distribution: (A) Distributions to
any organization described in section
170(b)(1)(A), other than a disqualified
supporting organization (as defined in
section 4966(d)(4)); (B) distributions to
the sponsoring organization of such
donor advised fund; and (C)
distributions to any other donor advised
fund.
Section 4967(a)(1) imposes a tax on
the advice of a donor, donor advisor, or
related person, described in subsection
(d), if a distribution from a donor
advised fund results in such person (or
any other person described in
subsection (d)) receiving, directly or
indirectly, a more than incidental
benefit (a ‘‘prohibited benefit’’). The tax,
which is equal to 125 percent of the
amount of the prohibited benefit, is paid
by any person described in subsection
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(d) who advises as to a distribution or
who receives a prohibited benefit as a
result of the distribution. Section
4967(c)(1) provides that if more than
one person is liable for the tax under
section 4967(a)(1), then all such persons
are jointly and severally liable for the
tax.
Section 4967(a)(2) imposes a tax on a
fund manager (defined in section
4966(d)(3)) who agrees to the making of
a distribution described in section
4967(a)(1), knowing that it would confer
a more than incidental benefit on a
donor, donor advisor, or related person.
Section 4967(a)(2) states that the tax is
equal to 10 percent of the amount of the
prohibited benefit. Section 4967(c)(1)
provides that if more than one fund
manager is liable for the tax, all such
fund managers are jointly and severally
liable. Section 4967(c)(2) provides that
the maximum amount of tax under
section 4967(a)(2) on all fund managers
for any one prohibited benefit
transaction is $10,000. Section 4967(b)
provides that no tax is imposed under
section 4967 if a tax has been imposed
with respect to the distribution under
section 4958 (taxing excess benefit
transactions).
In 2006, the PPA added section 4966
and section 4967 taxes to the definitions
of ‘‘first tier tax’’ in section 4963(a) and
‘‘taxable event’’ in section 4963(c). In
2007, section 4962(b) was amended by
the Tax Technical Corrections Act of
2007, Public Law 110–172, sec. 3(h),
121 Stat. 2473, 2475, to add subchapter
G of chapter 42 (i.e., section 4966 and
section 4967 taxes) to the definition of
‘‘qualified first tier tax’’ for purposes of
tax abatement. Thus under the Code,
section 4966 and section 4967 taxes are
subject to abatement under the generally
applicable rules. Treas. Reg. § 53.4963–
1 sets forth definitions with respect to
abatement of taxes.
The TCJA added sections 4960 and
4968 to the Code. Section 4960 imposes
an excise tax equal to the product of the
rate of tax under section 11 and the sum
of (1) so much of the remuneration paid
(other than any excess parachute
payment) by an applicable tax-exempt
organization for the taxable year with
respect to employment of any covered
employee in excess of $1,000,000, plus
(2) any excess parachute payment paid
by such an organization to any covered
employee. Section 4960(c)(4)(A)
provides that remuneration of a covered
employee by an applicable tax-exempt
organization includes any remuneration
paid with respect to employment of
such employee by any related person or
governmental entity. Section
4960(c)(4)(C) provides that when
remuneration from more than one
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Federal Register / Vol. 83, No. 216 / Wednesday, November 7, 2018 / Proposed Rules
employer is taken into account in
determining the tax imposed by
subsection (a), each such employer is
liable for a pro rata share of the tax
imposed by subsection (a) based on the
ratio of the amount of remuneration
paid by such employer with respect to
such employee to the amount of
remuneration paid by all such
employers to such employee.
Separately, section 4968 imposes an
excise tax on each applicable
educational institution based on the net
investment income of such institution
(including certain income of related
organizations) for the taxable year.
Section 6011(a) generally provides
that when required by regulations
prescribed by the Secretary, any person
liable for any tax imposed by the Code
shall make a return or statement
according to the forms and regulations
prescribed by the Secretary. Section
6071 generally provides that when not
otherwise provided for under the Code,
return filing dates are prescribed by
regulation. Treas. Reg. §§ 53.6011–1 and
53.6071–1 require persons subject to
certain enumerated excise taxes under
Chapter 42 of the Code to file a Form
4720 to accompany payment of those
excise taxes and provide the time for
filing the return. (Form 4720 is
denominated ‘‘Return of Certain Excise
Taxes Under Chapters 41 and 42 of the
Internal Revenue Code.’’) Sections 4960,
4966, 4967, and 4968 were added to
Chapter 42 of the Code, but are not
enumerated in Treas. Reg. §§ 53.6011–1
and 53.6071–1.
Explanation of Provisions
1. Section 4962 Abatement
These proposed regulations add
section 4966 and section 4967 taxes to
the definitions of ‘‘first tier tax’’ and
‘‘taxable event’’ in Treas. Reg.
§ 53.4963–1. Qualified first tier taxes are
subject to abatement under section
4962.
2. Requirement To File a Form 4720
These proposed regulations amend
Treas. Reg. § 53.6011–1(b) to provide
that persons (including governmental
entities) that are liable for section 4960,
4966, 4967, or 4968 excise taxes are
required to file a return on Form 4720.
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3. Deadline for Filing a Form 4720
Under § 53.6071–1(i) of these
proposed regulations, a person required
to file a Form 4720 to report an excise
tax under section 4960, 4966, 4967, or
4968 must file a Form 4720 by the 15th
day of the fifth month after the end of
the person’s taxable year during which
the excise tax liability was incurred.
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Thus, for example, an organization
reporting on a calendar-year basis that
incurred excise tax during the calendar
year ending December 31, 2018, would
be required to file a Form 4720 and pay
the tax due by May 15, 2019.
4. Effective/Applicability Date
These regulations are proposed to
apply as of the date of publication of the
final rule in the Federal Register.
Special Analyses
This regulation is not subject to
review under section 6(b) of Executive
Order 12866 pursuant to the
Memorandum of Agreement (April 11,
2018) between the Department of the
Treasury and the Office of Management
and Budget regarding review of tax
regulations. It is hereby certified that the
collection of information in these
regulations will not have a significant
economic impact on a substantial
number of small entities. This rule
merely provides guidance as to the
timing and filing of Form 4720 for
persons liable for the specified excise
taxes and who have a statutory filing
obligation. Completing the applicable
portion of the Form 4720 imposes little
incremental burden in time or expense
as compared to any other filing method.
In addition, a person may already be
required to file the Form 4720 under the
existing final regulations in §§ 53.6011–
1 and 53.6071–1 if it is liable for another
excise tax for which filing of the Form
is required. Therefore, a regulatory
flexibility analysis under the Regulatory
Flexibility Act (5 U.S.C. chapter 6) is
not required. Pursuant to section 7805(f)
of the Code, this regulation will be
submitted to the Chief Counsel for
Advocacy of the Small Business
Administration for comment on its
impact on small entities.
Comments and Requests for Public
Hearing
Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
comments that are timely submitted to
the IRS as prescribed in the preamble
under the ADDRESSES section. All
comments submitted will be made
available at www.regulations.gov or
upon request.
A public hearing will be scheduled if
requested in writing by any person that
timely submits written comments. If a
public hearing is scheduled, notice of
the date, time, and place for the hearing
will be published in the Federal
Register.
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Drafting Information
The principal authors of these
regulations are Amber L. MacKenzie
and Ward L. Thomas, 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.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 53 is
proposed to be amended as follows:
PART 53—FOUNDATION AND SIMILAR
EXCISE TAXES
Paragraph 1. The authority citation
for part 53 continues to read, in part, as
follows:
■
Authority: 26 U.S.C. 7805 * * *
§ 53.4963–1
[Amended]
Par. 2. Section 53.4963–1 is amended
as follows:
■ 1. Paragraph (a) is amended by
removing the language ‘‘4958, 4971’’
and adding ‘‘4958, 4966, 4967, 4971’’ in
its place.
■ 2. Paragraph (c) is amended by
removing the language ‘‘4958, 4971’’
and adding ‘‘4958, 4966, 4967, 4971’’ in
its place.
■ Par. 3. Section 53.6011–1 is amended
by:
■ 1. Revising the first sentence of
paragraph (b).
■ 2. Removing from the third sentence
of paragraph (b) the language ‘‘4958(a),
or 4965(a),’’ and adding ‘‘4958(a),
4960(a), 4965(a), 4966(a), or 4967(a),’’ in
its place.
The revision reads as follows:
■
§ 53.6011–1 General requirement of return,
statement or list.
*
*
*
*
*
(b) Every person (including a
governmental entity) liable for tax
imposed by sections 4941(a), 4942(a),
4943(a), 4944(a), 4945(a), 4955(a),
4958(a), 4959, 4960(a), 4965(a), 4966(a),
4967(a), or 4968(a), and every private
foundation and every trust described in
section 4947(a)(2) which has engaged in
an act of self-dealing (as defined in
section 4941(d)) (other than an act
giving rise to no tax under section
4941(a)) shall file an annual return on
Form 4720 and shall include therein the
information required by such form and
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the instructions issued with respect
thereto. * * *
*
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*
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§ 53.6071–1
[Amended]
Par. 4. Section 53.6071–1 is amended
by:
■ 1. Redesignating paragraph (i) as
paragraph (j).
■ 2. Adding new paragraphs (i) and
(j)(3).
The additions read as follows:
■
§ 53.6071–1
Time for filing returns.
*
*
*
*
*
(i) Taxes under section 4960, 4966,
4967, or 4968. A person (including a
governmental entity) required by
§ 53.6011–1(b) to file a return for a tax
imposed by section 4960(a), 4966(a),
4967(a), or 4968(a) in a taxable year
must file the Form 4720 on or before the
15th day of the fifth month after the end
of the person’s taxable year (or, if the
person has not established a taxable
year for Federal income tax purposes,
the person’s annual accounting period).
(j) * * *
(3) Paragraph (i) of this section
applies on and after the date of
publication of the Treasury decision
adopting these rules as final regulations
in the Federal Register.
Kirsten Wielobob,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2018–24285 Filed 11–5–18; 4:15 pm]
BILLING CODE 4830–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R08–OAR–2018–0606; FRL–9986–09–
Region 8]
Approval and Promulgation of Air
Quality Implementation Plans;
Wyoming; Revisions to Regional Haze
State Implementation Plan; Revisions
to Regional Haze Federal
Implementation Plan
Environmental Protection
Agency (EPA).
ACTION: Proposed rule; extension of
comment period.
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AGENCY:
On October 11, 2018, the
Environmental Protection Agency (EPA)
published in the Federal Register a
proposed rule pertaining to revisions to
the regional haze State Implementation
Plan (SIP) and Federal Implementation
Plan (FIP) for Wyoming and requested
comments by November 13, 2018. The
EPA is extending the comment period
SUMMARY:
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for the proposed rule until December 10,
2018.
DATES: Written comments must be
received on or before December 10,
2018.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R08–
OAR–2018–0606, to the Federal
Rulemaking Portal: https://
www.regulations.gov. Follow the online
instructions for submitting comments.
Once submitted, comments cannot be
edited or removed from
www.regulations.gov. The EPA may
publish any comment received to its
public docket. Do not submit
electronically any information you
consider to be Confidential Business
Information (CBI) or other information
whose disclosure is restricted by statute.
Multimedia submissions (audio, video,
etc.) must be accompanied by a written
comment. The written comment is
considered the official comment and
should include discussion of all points
you wish to make. The EPA will
generally not consider comments or
comment contents located outside of the
primary submission (i.e., on the web,
cloud, or other file sharing system). For
additional submission methods, the full
EPA public comment policy,
information about CBI or multimedia
submissions, and general guidance on
making effective comments, please visit
https://www.epa.gov/dockets/
commenting-epa-dockets.
Docket: All documents in the docket
are listed in the www.regulations.gov
index. Although listed in the index,
some information is not publicly
available, e.g., CBI or other information
whose disclosure is restricted by statute.
Certain other material, such as
copyrighted material, will be publicly
available only in hard copy. Publicly
available docket materials are available
either electronically in
www.regulations.gov or in hard copy at
the Air Program, Environmental
Protection Agency (EPA), Region 8,
1595 Wynkoop Street, Denver, Colorado
80202–1129. The EPA requests that, if at
all possible, you contact the individual
listed in the FOR FURTHER INFORMATION
CONTACT section to view the hard copy
of the docket. You may view the hard
copy of the docket Monday through
Friday, 8:00 a.m. to 4:00 p.m., excluding
federal holidays.
FOR FURTHER INFORMATION CONTACT:
Jaslyn Dobrahner, Air Program, EPA,
Region 8, Mailcode 8P–AR, 1595
Wynkoop Street, Denver, Colorado,
80202–1129, (303) 312–6252,
dobrahner.jaslyn@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document wherever
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‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean
the EPA.
On October 11, 2018 (83 FR 51403),
we published in the Federal Register a
proposed rule pertaining to revisions to
the regional haze SIP and FIP for
Wyoming and requested comment by
November 13, 2018. Specifically, the
SIP revisions modify the sulfur dioxide
(SO2) emissions reporting requirements
for Laramie River Station Units 1 and 2.
The revisions to the FIP revise the
nitrogen oxides (NOX) best available
retrofit technology (BART) emission
limits for Laramie River Units 1—3 and
establish a SO2 emission limit averaged
annually across both Laramie River
Station Units 1 and 2.
We received a request from several
organizations to extend the comment
period and, in response, we are
extending the comment period to
December 10, 2018.1
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Incorporation by
reference, Intergovernmental relations,
Nitrogen dioxide, Particulate matter,
Sulfur oxides.
Authority: 42 U.S.C. 7401 et seq.
Dated: November 2, 2018.
Douglas Benevento,
Regional Administrator, Region 8.
[FR Doc. 2018–24366 Filed 11–6–18; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R08–OAR–2018–0607; FRL–9986–03–
Region 8]
Approval and Promulgation of Air
Quality Implementation Plans;
Wyoming; Revisions to Regional Haze
State Implementation Plan
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
The Environmental Protection
Agency (EPA) is proposing to approve a
source-specific revision to the Wyoming
State Implementation Plan (SIP) that
provides an alternative to Best Available
Retrofit Technology (BART) for Unit 3 at
the Naughton Power Plant (‘‘the SIP
revision’’) that is owned and operated
by PacifiCorp. The EPA proposes to find
that the BART alternative for Naughton
Unit 3 would provide greater reasonable
progress toward natural visibility
SUMMARY:
1 A copy of the letter requesting the extension
appears in the docket for this action.
E:\FR\FM\07NOP1.SGM
07NOP1
]]>Agencies
[Federal Register Volume 83, Number 216 (Wednesday, November 7, 2018)]
[Proposed Rules]
[Pages 55653-55656]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24285]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 53
[REG-107163-18]
RIN 1545-BO80
Regulations To Prescribe Return and Time for Filing for Payment
of Section 4960, 4966, 4967, and 4968 Taxes and To Update the Abatement
Rules for Section 4966 and 4967 Taxes
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This document contains proposed regulations specifying which
return to use to pay certain excise taxes and the time for filing the
return. The regulations also implement the statutory addition of two
excise taxes to the first-tier taxes subject to abatement. These
regulations affect applicable tax-exempt
[[Page 55654]]
organizations and their related organizations, applicable educational
institutions, sponsoring organizations that maintain certain donor
advised funds, fund managers of such sponsoring organizations, and
certain donors, donor advisors and persons related to a donor or donor
advisor of a donor advised fund.
DATES: Written or electronic comments and requests for a public hearing
must be received by December 7, 2018.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-107163-18), Room
5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
107163-18), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue NW, Washington, DC 20224 or sent electronically via the Federal
eRulemaking Portal at https://www.regulations.gov (indicate IRS REG-
107163-18).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Amber L. MacKenzie at (202) 317-4086 or Ward L. Thomas at (202) 317-
6173; concerning submission of comments and request for hearing, Regina
Johnson at (202) 317-6901 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
This document contains proposed regulations amending regulations
under section 6011 of the Internal Revenue Code (Code) to specify the
return to accompany payment of excise taxes under sections 4960, 4966,
4967, and 4968; amending regulations under section 6071 to specify the
time for filing that return; and amending regulations under section
4963 that define the first-tier taxes subject to abatement under
section 4962.
These regulations affect applicable tax-exempt organizations
described in section 4960(c)(1) and their related organizations
described in section 4960(c)(4)(B); applicable educational institutions
described in section 4968(b)(1); sponsoring organizations described in
section 4966(d)(1) that maintain donor advised funds described in
section 4966(d)(2); fund managers of such sponsoring organizations
described in sections 4966(d)(3); and donors, donor advisors and
persons related to a donor or donor advisor of a donor advised fund
described in section 4967(d).
These regulations implement section 1231 of the Pension Protection
Act of 2006, Public Law 109-280, 120 Stat. 780, 1094 (``PPA''), as
amended by section 3(h) of the Tax Technical Corrections Act of 2007,
Public Law 110-172, 121 Stat. 2473, 2475, and sections 13602 and 13701
of the Tax Cuts and Jobs Act, Public Law 115-97, 131 Stat. 2054, 2157,
2167 (2017) (``TCJA'').
The PPA added sections 4966 and 4967 to the Code. These sections
impose excise taxes related to certain distributions from donor advised
funds (defined in section 4966(d)(2)) maintained by organizations that
are defined as sponsoring organizations in section 4966(d)(1).
Section 4966(a)(1) imposes a 20 percent excise tax on each
``taxable distribution'' from a donor advised fund, payable by the
sponsoring organization of the donor advised fund. Section 4966(a)(2)
imposes a separate 5 percent excise tax on the agreement of any fund
manager (as defined in section 4966(d)(3)) to the making of the
distribution, knowing that it is a taxable distribution. Section
4966(b)(1) states that if more than one fund manager is liable for the
tax, all such managers are jointly and severally liable with respect to
the taxable distribution. Section 4966(b)(2) provides that the maximum
amount of tax that may be imposed on all fund managers for any one
taxable distribution is $10,000.
Section 4966(c)(1) defines the term ``taxable distribution'' as any
distribution from a donor advised fund: (A) To any natural person; or
(B) to any other person if (i) the distribution is for any purpose
other than one specified in section 170(c)(2)(B), or (ii) the
sponsoring organization does not exercise expenditure responsibility in
accordance with section 4945(h) with respect to such distribution.
Section 4966(c)(2) excepts from the definition of taxable distribution:
(A) Distributions to any organization described in section
170(b)(1)(A), other than a disqualified supporting organization (as
defined in section 4966(d)(4)); (B) distributions to the sponsoring
organization of such donor advised fund; and (C) distributions to any
other donor advised fund.
Section 4967(a)(1) imposes a tax on the advice of a donor, donor
advisor, or related person, described in subsection (d), if a
distribution from a donor advised fund results in such person (or any
other person described in subsection (d)) receiving, directly or
indirectly, a more than incidental benefit (a ``prohibited benefit'').
The tax, which is equal to 125 percent of the amount of the prohibited
benefit, is paid by any person described in subsection (d) who advises
as to a distribution or who receives a prohibited benefit as a result
of the distribution. Section 4967(c)(1) provides that if more than one
person is liable for the tax under section 4967(a)(1), then all such
persons are jointly and severally liable for the tax.
Section 4967(a)(2) imposes a tax on a fund manager (defined in
section 4966(d)(3)) who agrees to the making of a distribution
described in section 4967(a)(1), knowing that it would confer a more
than incidental benefit on a donor, donor advisor, or related person.
Section 4967(a)(2) states that the tax is equal to 10 percent of the
amount of the prohibited benefit. Section 4967(c)(1) provides that if
more than one fund manager is liable for the tax, all such fund
managers are jointly and severally liable. Section 4967(c)(2) provides
that the maximum amount of tax under section 4967(a)(2) on all fund
managers for any one prohibited benefit transaction is $10,000. Section
4967(b) provides that no tax is imposed under section 4967 if a tax has
been imposed with respect to the distribution under section 4958
(taxing excess benefit transactions).
In 2006, the PPA added section 4966 and section 4967 taxes to the
definitions of ``first tier tax'' in section 4963(a) and ``taxable
event'' in section 4963(c). In 2007, section 4962(b) was amended by the
Tax Technical Corrections Act of 2007, Public Law 110-172, sec. 3(h),
121 Stat. 2473, 2475, to add subchapter G of chapter 42 (i.e., section
4966 and section 4967 taxes) to the definition of ``qualified first
tier tax'' for purposes of tax abatement. Thus under the Code, section
4966 and section 4967 taxes are subject to abatement under the
generally applicable rules. Treas. Reg. Sec. 53.4963-1 sets forth
definitions with respect to abatement of taxes.
The TCJA added sections 4960 and 4968 to the Code. Section 4960
imposes an excise tax equal to the product of the rate of tax under
section 11 and the sum of (1) so much of the remuneration paid (other
than any excess parachute payment) by an applicable tax-exempt
organization for the taxable year with respect to employment of any
covered employee in excess of $1,000,000, plus (2) any excess parachute
payment paid by such an organization to any covered employee. Section
4960(c)(4)(A) provides that remuneration of a covered employee by an
applicable tax-exempt organization includes any remuneration paid with
respect to employment of such employee by any related person or
governmental entity. Section 4960(c)(4)(C) provides that when
remuneration from more than one
[[Page 55655]]
employer is taken into account in determining the tax imposed by
subsection (a), each such employer is liable for a pro rata share of
the tax imposed by subsection (a) based on the ratio of the amount of
remuneration paid by such employer with respect to such employee to the
amount of remuneration paid by all such employers to such employee.
Separately, section 4968 imposes an excise tax on each applicable
educational institution based on the net investment income of such
institution (including certain income of related organizations) for the
taxable year.
Section 6011(a) generally provides that when required by
regulations prescribed by the Secretary, any person liable for any tax
imposed by the Code shall make a return or statement according to the
forms and regulations prescribed by the Secretary. Section 6071
generally provides that when not otherwise provided for under the Code,
return filing dates are prescribed by regulation. Treas. Reg.
Sec. Sec. 53.6011-1 and 53.6071-1 require persons subject to certain
enumerated excise taxes under Chapter 42 of the Code to file a Form
4720 to accompany payment of those excise taxes and provide the time
for filing the return. (Form 4720 is denominated ``Return of Certain
Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code.'')
Sections 4960, 4966, 4967, and 4968 were added to Chapter 42 of the
Code, but are not enumerated in Treas. Reg. Sec. Sec. 53.6011-1 and
53.6071-1.
Explanation of Provisions
1. Section 4962 Abatement
These proposed regulations add section 4966 and section 4967 taxes
to the definitions of ``first tier tax'' and ``taxable event'' in
Treas. Reg. Sec. 53.4963-1. Qualified first tier taxes are subject to
abatement under section 4962.
2. Requirement To File a Form 4720
These proposed regulations amend Treas. Reg. Sec. 53.6011-1(b) to
provide that persons (including governmental entities) that are liable
for section 4960, 4966, 4967, or 4968 excise taxes are required to file
a return on Form 4720.
3. Deadline for Filing a Form 4720
Under Sec. 53.6071-1(i) of these proposed regulations, a person
required to file a Form 4720 to report an excise tax under section
4960, 4966, 4967, or 4968 must file a Form 4720 by the 15th day of the
fifth month after the end of the person's taxable year during which the
excise tax liability was incurred. Thus, for example, an organization
reporting on a calendar-year basis that incurred excise tax during the
calendar year ending December 31, 2018, would be required to file a
Form 4720 and pay the tax due by May 15, 2019.
4. Effective/Applicability Date
These regulations are proposed to apply as of the date of
publication of the final rule in the Federal Register.
Special Analyses
This regulation is not subject to review under section 6(b) of
Executive Order 12866 pursuant to the Memorandum of Agreement (April
11, 2018) between the Department of the Treasury and the Office of
Management and Budget regarding review of tax regulations. It is hereby
certified that the collection of information in these regulations will
not have a significant economic impact on a substantial number of small
entities. This rule merely provides guidance as to the timing and
filing of Form 4720 for persons liable for the specified excise taxes
and who have a statutory filing obligation. Completing the applicable
portion of the Form 4720 imposes little incremental burden in time or
expense as compared to any other filing method. In addition, a person
may already be required to file the Form 4720 under the existing final
regulations in Sec. Sec. 53.6011-1 and 53.6071-1 if it is liable for
another excise tax for which filing of the Form is required. Therefore,
a regulatory flexibility analysis under the Regulatory Flexibility Act
(5 U.S.C. chapter 6) is not required. Pursuant to section 7805(f) of
the Code, this regulation will be submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on its impact
on small entities.
Comments and Requests for Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any comments that are timely submitted
to the IRS as prescribed in the preamble under the ADDRESSES section.
All comments submitted will be made available at www.regulations.gov or
upon request.
A public hearing will be scheduled if requested in writing by any
person that timely submits written comments. If a public hearing is
scheduled, notice of the date, time, and place for the hearing will be
published in the Federal Register.
Drafting Information
The principal authors of these regulations are Amber L. MacKenzie
and Ward L. Thomas, 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.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 53 is proposed to be 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 * * *
Sec. 53.4963-1 [Amended]
0
Par. 2. Section 53.4963-1 is amended as follows:
0
1. Paragraph (a) is amended by removing the language ``4958, 4971'' and
adding ``4958, 4966, 4967, 4971'' in its place.
0
2. Paragraph (c) is amended by removing the language ``4958, 4971'' and
adding ``4958, 4966, 4967, 4971'' in its place.
0
Par. 3. Section 53.6011-1 is amended by:
0
1. Revising the first sentence of paragraph (b).
0
2. Removing from the third sentence of paragraph (b) the language
``4958(a), or 4965(a),'' and adding ``4958(a), 4960(a), 4965(a),
4966(a), or 4967(a),'' in its place.
The revision reads as follows:
Sec. 53.6011-1 General requirement of return, statement or list.
* * * * *
(b) Every person (including a governmental entity) liable for tax
imposed by sections 4941(a), 4942(a), 4943(a), 4944(a), 4945(a),
4955(a), 4958(a), 4959, 4960(a), 4965(a), 4966(a), 4967(a), or 4968(a),
and every private foundation and every trust described in section
4947(a)(2) which has engaged in an act of self-dealing (as defined in
section 4941(d)) (other than an act giving rise to no tax under section
4941(a)) shall file an annual return on Form 4720 and shall include
therein the information required by such form and
[[Page 55656]]
the instructions issued with respect thereto. * * *
* * * * *
Sec. 53.6071-1 [Amended]
0
Par. 4. Section 53.6071-1 is amended by:
0
1. Redesignating paragraph (i) as paragraph (j).
0
2. Adding new paragraphs (i) and (j)(3).
The additions read as follows:
Sec. 53.6071-1 Time for filing returns.
* * * * *
(i) Taxes under section 4960, 4966, 4967, or 4968. A person
(including a governmental entity) required by Sec. 53.6011-1(b) to
file a return for a tax imposed by section 4960(a), 4966(a), 4967(a),
or 4968(a) in a taxable year must file the Form 4720 on or before the
15th day of the fifth month after the end of the person's taxable year
(or, if the person has not established a taxable year for Federal
income tax purposes, the person's annual accounting period).
(j) * * *
(3) Paragraph (i) of this section applies on and after the date of
publication of the Treasury decision adopting these rules as final
regulations in the Federal Register.
Kirsten Wielobob,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2018-24285 Filed 11-5-18; 4:15 pm]
BILLING CODE 4830-01-P
