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, 14008-14009 [2019-07010]
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14008
Federal Register / Vol. 84, No. 68 / Tuesday, April 9, 2019 / Rules and Regulations
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 53
[TD 9855]
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: Final regulations.
AGENCY:
This document contains final
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
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:
Effective date: These regulations are
effective on April 9, 2019. Applicability
date: These regulations apply on and
after April 9, 2019. See also § 53.6071–
1(j)(3).
FOR FURTHER INFORMATION CONTACT:
Amber L. MacKenzie, (202) 317–4086 or
Ward L. Thomas, (202) 317–6173 (not
toll-free numbers).
SUPPLEMENTARY INFORMATION:
SUMMARY:
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Background
This document contains final
regulations amending 26 CFR part 53
under chapter 42, subtitle D, section
4963 and chapter 61, subtitle F, sections
6011 and 6071 of the Internal Revenue
Code (Code), to specify the return to
accompany payment of excise taxes
under sections 4960, 4966, 4967, and
4968; to specify the time for filing that
return; and to conform the regulations to
the statutorily expanded definition of
the first-tier taxes subject to abatement
under section 4962.
On November 7, 2018, the Department
of the Treasury (Treasury Department)
and the IRS published a notice of
proposed rulemaking (REG–107163–18)
in the Federal Register (83 FR 55653)
setting forth proposed regulations under
sections 6011 and 6071. The proposed
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16:07 Apr 08, 2019
Jkt 247001
regulations specified Form
4720,‘‘Return of Certain Excise Taxes
Under Chapters 41 and 42 of the
Internal Revenue Code,’’ as the return to
accompany payment of excise taxes
under sections 4960, 4966, 4967, and
4968; required that a person (including
a governmental entity) required to file a
return to report such tax file Form 4720
by the 15th day of the 5th month after
the end of the person’s taxable year; and
added sections 4966 and 4967 to the
first-tier taxes subject to abatement
under section 4962.
Only one comment from the public
was received, which did not raise any
concerns or make any recommendations
specific to the proposed regulation, and
no hearing was requested or held.
Therefore, the proposed regulations are
adopted without change by this
Treasury decision. (All comments are
available at www.regulations.gov or
upon request.)
Explanation of Provisions
1. Section 4962 Abatement
These final regulations add section
4966 and section 4967 excise taxes to
the definitions of ‘‘first tier tax’’ and
‘‘taxable event’’ in § 53.4963–1.
Qualified first tier taxes are subject to
abatement under section 4962.
2. Requirement To File a Form 4720
These final regulations amend
§ 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 § 53.6071–1(i) of these final
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.
4. Effective/Applicability Date
These regulations are effective on
April 9, 2019. These regulations apply
on and after April 9, 2019. See also
§ 53.6071–1(j)(3).
Availability of IRS Documents
For copies of recently issued revenue
procedures, revenue rulings, notices and
other guidance published in the Internal
Revenue Bulletin, please visit the IRS
website at https://www.irs.gov or contact
the Superintendent of Documents, U.S.
Government Publishing Office,
Washington, DC 20402.
PO 00000
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Fmt 4700
Sfmt 4700
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 Treasury Department
and the Office of Management and
Budget regarding review of tax
regulations.
Pursuant to the Regulatory Flexibility
Act (5 U.S.C. chapter 6), 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 certification is based on the fact
that 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
4720 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, the notice of proposed rulemaking
preceding these regulations was
submitted to the Chief Counsel for
Advocacy of the Small Business
Administration for comment on its
impact on small businesses, and no
comment was received.
Drafting Information
The principal authors of these
regulations are Amber L. MacKenzie
and Ward L. Thomas of the Office of
Associate Chief Counsel (Employee
Benefits, Exempt Organizations, and
Employment Tax). However, other
personnel from the Treasury
Department and the IRS participated in
their development.
List of Subjects in 26 CFR Part 53
Excise taxes, Foundations,
Investments, Lobbying, Reporting and
recordkeeping requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 53 is
amended as follows:
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09APR1
Federal Register / Vol. 84, No. 68 / Tuesday, April 9, 2019 / Rules and Regulations
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
by:
■ 1. In paragraph (a), removing the
language ‘‘4958, 4971’’ and adding
‘‘4958, 4966, 4967, 4971’’ in its place.
■ 2. In paragraph (c), removing the
language ‘‘4958, 4971’’ and adding
‘‘4958, 4966, 4967, 4971’’ in its place.
■ Par. 3. Section 53.6011–1(b) is
amended by:
■ 1. Revising the first sentence.
■ 2. Removing from the third sentence
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,‘‘Return of Certain Excise
Taxes Under Chapters 41 and 42 of the
Internal Revenue Code,’’ and shall
include therein the information required
by such form and the instructions
issued with respect thereto. * * *
*
*
*
*
*
§ 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.
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*
*
*
*
*
(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
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16:07 Apr 08, 2019
Jkt 247001
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 April 9, 2019.
Kirsten Wielobob,
Deputy Commissioner for Services and
Enforcement.
Approved: March 25, 2019.
David J. Kautter,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2019–07010 Filed 4–5–19; 11:15 am]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[TD 9856]
RIN 1545–BN63
Disclosures of Return Information
Reflected on Returns to Officers and
Employees of the Department of
Commerce for Certain Statistical
Purposes and Related Activities
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulation and removal of
temporary regulation.
AGENCY:
This document contains a
final regulation that authorizes the
disclosure of specified items of return
information to the Bureau of the Census
(Census Bureau). This regulation
finalizes a proposed regulation crossreferencing a temporary regulation that
was made pursuant to a request from the
Secretary of Commerce. This final
regulation requires no action by
taxpayers and has no effect on their tax
liabilities. No taxpayers are likely to be
affected by the disclosures authorized
by this guidance.
DATES:
Effective date: This regulation is
effective on April 9, 2019.
Applicability date: For dates of
applicability, see § 301.6103(j)(1)–1(e).
FOR FURTHER INFORMATION CONTACT:
William Rowe, (202) 317–6834 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
This document contains amendments
to 26 CFR part 301 (Procedure and
Administration Regulations). Section
6103(j)(1)(A) of the Internal Revenue
Code authorizes the Secretary of the
Treasury (Secretary) to furnish, upon
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14009
written request by the Secretary of
Commerce, such returns or return
information as the Secretary may
prescribe by regulation to officers and
employees of the Census Bureau for the
purpose of, but only to the extent
necessary in, the structuring of censuses
and national economic accounts and
conducting related statistical activities
authorized by law. Section
301.6103(j)(1)–1 of the existing
regulations further defines such
purposes by reference to 13 U.S.C.
chapter 5 and provides an itemized
description of the return information
authorized to be disclosed for such
purposes.
By letter dated August 2, 2016, the
Secretary of Commerce requested
amendments to § 301.6103(j)(1)–1 to
allow disclosure of several additional
items of return information to the
Census Bureau for purposes of its
economic statistics program, structuring
the censuses, and related program
evaluations. The Secretary of
Commerce’s letter lists the additional
items of return information requested
based on the Census Bureau’s specific
need for each item of information. The
Secretary of Commerce asserted that
good cause exists to amend
§ 301.6103(j)(1)–1 to add these
additional items to the list of items of
return information that may be
disclosed to the Census Bureau. The
Department of the Treasury (Treasury
Department) and the IRS agree that
amending existing regulations to permit
disclosure of these items to the Census
Bureau is appropriate to meet the needs
of the Census Bureau.
On December 9, 2016, a temporary
regulation (TD 9802) was published in
the Federal Register (81 FR 89004). The
text of the temporary regulation also
serves as the text of the proposed
regulation set forth in a notice of
proposed rulemaking (REG–133353–16)
published in the Federal Register on the
same day (81 FR 89022). The preamble
to the temporary regulation describes
the categories of information requested
by the Secretary of Commerce. No
public hearing was requested or held.
No comments were received in response
to the notice of proposed rulemaking.
Accordingly, the proposed regulation,
the contents of which are described in
the following Explanation of Provisions,
is adopted by this Treasury decision
without change, and the corresponding
temporary regulation is removed,
applicable to disclosures on or after
December 9, 2016.
Explanation of Provisions
The proposed regulation authorized
disclosure of additional expense items
E:\FR\FM\09APR1.SGM
09APR1
]]>Agencies
[Federal Register Volume 84, Number 68 (Tuesday, April 9, 2019)]
[Rules and Regulations]
[Pages 14008-14009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07010]
[[Page 14008]]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 53
[TD 9855]
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: Final regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final 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 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:
Effective date: These regulations are effective on April 9, 2019.
Applicability date: These regulations apply on and after April 9, 2019.
See also Sec. 53.6071-1(j)(3).
FOR FURTHER INFORMATION CONTACT: Amber L. MacKenzie, (202) 317-4086 or
Ward L. Thomas, (202) 317-6173 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
This document contains final regulations amending 26 CFR part 53
under chapter 42, subtitle D, section 4963 and chapter 61, subtitle F,
sections 6011 and 6071 of the Internal Revenue Code (Code), to specify
the return to accompany payment of excise taxes under sections 4960,
4966, 4967, and 4968; to specify the time for filing that return; and
to conform the regulations to the statutorily expanded definition of
the first-tier taxes subject to abatement under section 4962.
On November 7, 2018, the Department of the Treasury (Treasury
Department) and the IRS published a notice of proposed rulemaking (REG-
107163-18) in the Federal Register (83 FR 55653) setting forth proposed
regulations under sections 6011 and 6071. The proposed regulations
specified Form 4720,``Return of Certain Excise Taxes Under Chapters 41
and 42 of the Internal Revenue Code,'' as the return to accompany
payment of excise taxes under sections 4960, 4966, 4967, and 4968;
required that a person (including a governmental entity) required to
file a return to report such tax file Form 4720 by the 15th day of the
5th month after the end of the person's taxable year; and added
sections 4966 and 4967 to the first-tier taxes subject to abatement
under section 4962.
Only one comment from the public was received, which did not raise
any concerns or make any recommendations specific to the proposed
regulation, and no hearing was requested or held. Therefore, the
proposed regulations are adopted without change by this Treasury
decision. (All comments are available at www.regulations.gov or upon
request.)
Explanation of Provisions
1. Section 4962 Abatement
These final regulations add section 4966 and section 4967 excise
taxes to the definitions of ``first tier tax'' and ``taxable event'' in
Sec. 53.4963-1. Qualified first tier taxes are subject to abatement
under section 4962.
2. Requirement To File a Form 4720
These final regulations amend 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 final 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.
4. Effective/Applicability Date
These regulations are effective on April 9, 2019. These regulations
apply on and after April 9, 2019. See also Sec. 53.6071-1(j)(3).
Availability of IRS Documents
For copies of recently issued revenue procedures, revenue rulings,
notices and other guidance published in the Internal Revenue Bulletin,
please visit the IRS website at https://www.irs.gov or contact the
Superintendent of Documents, U.S. Government Publishing Office,
Washington, DC 20402.
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 Treasury Department and the Office of Management
and Budget regarding review of tax regulations.
Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), 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 certification is based on
the fact that 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 4720 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, the notice of proposed
rulemaking preceding these regulations was submitted to the Chief
Counsel for Advocacy of the Small Business Administration for comment
on its impact on small businesses, and no comment was received.
Drafting Information
The principal authors of these regulations are Amber L. MacKenzie
and Ward L. Thomas of the Office of Associate Chief Counsel (Employee
Benefits, Exempt Organizations, and Employment Tax). However, other
personnel from the Treasury Department and the IRS participated in
their development.
List of Subjects in 26 CFR Part 53
Excise taxes, Foundations, Investments, Lobbying, Reporting and
recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 53 is amended as follows:
[[Page 14009]]
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 by:
0
1. In paragraph (a), removing the language ``4958, 4971'' and adding
``4958, 4966, 4967, 4971'' in its place.
0
2. In paragraph (c), removing the language ``4958, 4971'' and adding
``4958, 4966, 4967, 4971'' in its place.
0
Par. 3. Section 53.6011-1(b) is amended by:
0
1. Revising the first sentence.
0
2. Removing from the third sentence 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,``Return of Certain
Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code,''
and shall include therein the information required by such form and 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 April 9,
2019.
Kirsten Wielobob,
Deputy Commissioner for Services and Enforcement.
Approved: March 25, 2019.
David J. Kautter,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2019-07010 Filed 4-5-19; 11:15 am]
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