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]

Download as PDF 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: amozie on DSK9F9SC42PROD with RULES 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 VerDate Sep<11>2014 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 http://www.irs.gov or contact the Superintendent of Documents, U.S. Government Publishing Office, Washington, DC 20402. PO 00000 Frm 00010 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: E:\FR\FM\09APR1.SGM 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. amozie on DSK9F9SC42PROD with RULES * * * * * (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 VerDate Sep<11>2014 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] BILLING CODE P 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 PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 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 http://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]
 BILLING CODE P