Inflation Adjustment of Civil Monetary Penalties, 15955-15956 [2019-07664]
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Federal Register / Vol. 84, No. 74 / Wednesday, April 17, 2019 / Rules and Regulations
sentence of paragraph (d)(4)(xi)(B) to
read as follows:
§ 1.199A–1
Operational rules.
*
*
*
*
*
(b) * * *
(10) * * * Other passthrough entities
including common trust funds as
described in § 1.6032–1T and religious
or apostolic organizations described in
section 501(d) are also treated as RPEs
if the entity files a Form 1065, U.S.
Return of Partnership Income, and is
owned, directly or indirectly, by at least
one individual, estate, or trust. * * *
*
*
*
*
*
(d) * * *
(4) * * *
(xi) * * *
(B) * * * Thus, F has overall net QBI
of $80,000 when all trades or businesses
are taken together ($200,000) plus
$150,000 minus $120,000 minus the
carryover loss of ($150,000). * * *
*
*
*
*
*
■ Par. 4. Section 1.199A–2 is amended
by revising the fifth sentence of
paragraph (b)(2)(iii)(A) to read as
follows:
§ 1.199A–2 Determination of W–2 wages
and unadjusted basis immediately after
acquisition of qualified properly.
*
*
*
*
*
(b) * * *
(2) * * *
(iii) * * *
(A) * * * Section 6071(c) provides
that Forms W–2 and W–3 must be filed
on or before January 31 of the year
following the calendar year to which
such returns relate (but see the special
rule in § 31.6071(a)–1T(a)(3)(i) of this
chapter for monthly returns filed under
§ 31.6011(a)–5(a) of this chapter). * * *
*
*
*
*
*
■ Par. 5. Section 1.199A–4 is amended
by revising the fourth sentence of
paragraph (c)(3), the first sentence of
paragraph (c)(4)(ii), and the third
sentence of paragraph (d)(15)(ii) to read
as follows:
§ 1.199A–4
amozie on DSK9F9SC42PROD with RULES
*
*
*
*
(c) * * *
(3) * * * However, an RPE may add
a newly created or newly acquired
(including through non-recognition
transfers) trade or business to an
existing aggregated trade or business
(including the aggregated trade or
business of a lower-tier RPE) if the
requirements of paragraph (b)(1) of this
section are satisfied. * * *
(4) * * *
(ii) * * * If an RPE fails to attach the
statement required in paragraph (c)(4)(i)
16:23 Apr 16, 2019
§ 1.199A–5 Specified service trades or
businesses and the trade or business of
performing services as an employee.
*
*
*
*
*
(b) * * *
(3) * * *
(xiv) * * * Several of the employees
and K have worked in the bicycle
business for many years, and have
acquired substantial skill and reputation
in the field. * * *
*
*
*
*
*
(d) * * *
(3) * * *
(iii) * * *
(B) * * * Unless the presumption is
rebutted with a showing that, under
Federal tax law, regulations, and
principles (including common-law
employee classification rules), C is not
an employee, C’s distributive share of
Law Firm 2 income (including any
guaranteed payments) will not be QBI
for purposes of section 199A.* * *
*
*
*
*
*
Martin V. Franks,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. 2019–07652 Filed 4–16–19; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Office of the Secretary of the Treasury
31 CFR Parts 27 and 50
Aggregation.
*
VerDate Sep<11>2014
of this section, the Commissioner may
disaggregate the RPE’s trades or
businesses. * * *
(d) * * *
(15) * * *
(ii) * * * If PRS2 does aggregate the
two businesses, PRS1 may not aggregate
its food service business with PRS2’s
aggregated trades or businesses. * * *
*
*
*
*
*
■ Par. 6. Section 1.199A–5 is amended
by revising the sixth sentence of
paragraph (b)(3)(xiv) and the eighth
sentence of paragraph (d)(3)(iii)((B) to
read as follows:
Jkt 247001
Inflation Adjustment of Civil Monetary
Penalties
Departmental Offices, Treasury.
Final rule.
AGENCY:
ACTION:
The Department of the
Treasury (‘‘Department’’ or ‘‘Treasury’’)
publishes this final rule to adjust its
civil monetary penalties (‘‘CMPs’’) for
inflation as mandated by the Federal
Civil Penalties Inflation Adjustment Act
of 1990, as amended by the Federal
Civil Penalties Inflation Adjustment Act
SUMMARY:
PO 00000
Frm 00007
Fmt 4700
Sfmt 4700
15955
Improvements Act of 2015 (collectively
referred to herein as ‘‘the Act’’). This
rule adjusts CMPs within the
jurisdiction of two components of the
Department to the maximum amount
required by the Act.
The final rule is effective April
17, 2019.
DATES:
For
information regarding the Terrorism
Risk Insurance Program’s CMPs, contact
Richard Ifft, Senior Insurance
Regulatory Policy Analyst, Federal
Insurance Office, Room 1410 MT,
Department of the Treasury, 1500
Pennsylvania Avenue NW, Washington,
DC 20220, at (202) 622–2922 (not a tollfree number), or Lindsey Baldwin,
Senior Policy Analyst, Federal
Insurance Office, at (202) 622–3220 (not
a toll free number). Persons who have
difficulty hearing or speaking may
access these numbers via TTY by calling
the toll-free Federal Relay Service at
(800) 877–8339.
For information regarding the
Treasury-wide CMP, contact Richard
Dodson, Senior Counsel, General Law,
Ethics, and Regulation, 202–622–9949.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
I. Background
In order to improve the effectiveness
of CMPs and to maintain their deterrent
effect, the Federal Civil Penalties
Inflation Adjustment Act of 1990, 28
U.S.C. 2461 note (‘‘the Inflation
Adjustment Act’’), as amended by the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (Pub. L. 114–74) (‘‘the 2015 Act’’),
requires Federal agencies to adjust each
CMP provided by law within the
jurisdiction of the agency. The 2015 Act
requires agencies to adjust the level of
CMPs with an initial ‘‘catch-up’’
adjustment through an interim final
rulemaking and to make subsequent
annual adjustments for inflation,
without needing to provide notice and
the opportunity for public comment
required by 5 U.S.C. 553. The
Department’s initial catch-up
adjustment interim final rules were
published on December 7, 2016
(Departmental Offices) (81 FR 88600),
and for 31 CFR part 27, on February 11,
2019 (84 FR 3105). The Department’s
2018 annual adjustment was published
on March 19, 2018 (83 FR 11876). The
2015 Act provides that any increase in
a CMP shall apply to CMPs that are
assessed after the date the increase takes
effect, regardless of whether the
E:\FR\FM\17APR1.SGM
17APR1
15956
Federal Register / Vol. 84, No. 74 / Wednesday, April 17, 2019 / Rules and Regulations
underlying violation predated such
increase.1
II. Method of Calculation
The method of calculating CMP
adjustments applied in this final rule is
required by the 2015 Act. Under the
2015 Act and the Office of Management
and Budget guidance required by the
2015 Act, annual inflation adjustments
subsequent to the initial catch-up
adjustment are to be based on the
percent change between the Consumer
Price Index for all Urban Consumers
(‘‘CPI–U’’) for the October preceding the
date of the adjustment and the prior
year’s October CPI–U. As set forth in
Office of Management and Budget
Memorandum M–19–04 of December
14, 2018, the adjustment multiplier for
2019 is 1.02522. In order to complete
the 2019 annual adjustment, each
current CMP is multiplied by the 2019
adjustment multiplier. Under the 2015
Act, any increase in CMP must be
rounded to the nearest multiple of $1.
David Dwyer,
Executive Secretary.
List of Subjects
[FR Doc. 2019–07664 Filed 4–16–19; 8:45 am]
31 CFR Part 27
Administrative practice and
procedure, Penalties.
BILLING CODE 4810–25–P
Coast Guard
Authority and Issuance
For the reasons set forth in the
preamble, parts 27 and 50 of title 31 of
the Code of Federal Regulations are
amended as follows:
Procedural Matters
1. Administrative Procedure Act
■
2. Regulatory Flexibility Act
3. Executive Order 12866
This rule is not a significant
regulatory action as defined in section
3.f of Executive Order 12866.
1 However,
the increased CMPs apply only with
respect to underlying violations occurring after the
date of enactment of the 2015 Act, i.e., after
November 2, 2015.
16:23 Apr 16, 2019
Authority: 31 U.S.C. 321, 333.
2. Amend § 27.3 by revising paragraph
(c) to read as follows:
■
Assessment of civil penalties.
*
*
*
*
*
(c) Civil penalty. An assessing official
may impose a civil penalty on any
person who violates the provisions of
paragraph (a) of this section. The
amount of a civil monetary penalty shall
not exceed $7,975 for each and every
use of any material in violation of
paragraph (a), except that such penalty
shall not exceed $39,873 for each and
every use if such use is in a broadcast
or telecast.
*
*
*
*
*
PART 50—TERRORISM RISK
INSURANCE PROGRAM
3. The authority citation for part 50
continues to read as follows:
■
Because no notice of proposed
rulemaking is required, the provisions
of the Regulatory Flexibility Act (5
U.S.C. 601 et seq.) do not apply.
VerDate Sep<11>2014
1. The authority citation for part 27
continues to read as follows:
§ 27.3
Jkt 247001
Authority: 5 U.S.C. 301; 31 U.S.C. 321;
Title I, Pub. L. 107–297, 116 Stat. 2322, as
amended by Pub. L. 109–144, 119 Stat. 2660,
Pub. L. 110–160, 121 Stat. 1839 and Pub. L.
114–1, 129 Stat. 3 (15 U.S.C. 6701 note); Pub.
L. 114–74, 129 Stat. 601, Title VII (28 U.S.C.
2461 note).
4. Amend § 50.83 by revising
paragraph (a) to read as follows:
■
§ 50.83 Adjustment of civil monetary
penalty amount.
(a) Inflation adjustment. Any penalty
under the Act and the regulations in this
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
part may not exceed the greater of
$1,394,837 and, in the case of any
failure to pay, charge, collect or remit
amounts in accordance with the Act or
the regulations in this part such amount
in dispute.
*
*
*
*
*
DEPARTMENT OF HOMELAND
SECURITY
31 CFR Part 50
Insurance, Terrorism.
PART 27—CIVIL PENALTY
ASSESSMENT FOR MISUSE OF
DEPARTMENT OF THE TREASURY
NAMES, SYMBOLS, ETC.
The Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015 (Section 701(b)) requires agencies,
beginning in 2017, to make annual
adjustments for inflation to CMPs,
without needing to provide notice and
the opportunity for public comment and
a delayed effective date required by 5
U.S.C. 553. Additionally, the
methodology used, effective 2017, for
adjusting CMPs for inflation is provided
by statute, with no discretion provided
to agencies regarding the substance of
the adjustments for inflation to CMPs.
The Department is charged only with
performing ministerial computations to
determine the dollar amount of
adjustments for inflation to CMPs.
Accordingly, prior public notice, an
opportunity for public comment, and a
delayed effective date are not required
for this rule.
amozie on DSK9F9SC42PROD with RULES
4. Paperwork Reduction Act
The provisions of the Paperwork
Reduction Act of 1995, Public Law 104–
13, 44 U.S.C. Chapter 35, and its
implementing regulations, 5 CFR part
1320, do not apply to this rule because
there are no new or revised
recordkeeping or reporting
requirements.
33 CFR Part 100
[Docket Number USCG–2019–0205]
RIN 1625–AA08
Special Local Regulation; Lake of the
Ozarks, Village of Four Seasons, MO
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
The Coast Guard is
establishing a temporary special local
regulation for certain waters of the
Osage Arm of the Lake of the Ozarks
from mile marker (MM) 5 to MM 9 in
Village of Four Seasons, MO. This
special local regulation is necessary to
protect the public, participants,
spectators, and the marine environment
from potential hazards during the Lake
Race 2019. Entry of persons or vessels
into this regulated area is prohibited
unless authorized by the Captain of the
Port Sector Upper Mississippi River or
a designated representative.
DATES: This rule is effective from 8 a.m.
through 6 p.m. on June 1, 2019.
ADDRESSES: To view documents
mentioned in this preamble as being
available in the docket, go to https://
www.regulations.gov, type USCG–2019–
0205 in the ‘‘SEARCH’’ box and click
‘‘SEARCH.’’ Click on Open Docket
Folder on the line associated with this
rule.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this rule, call or
email Lieutenant Commander Christian
Barger, Waterways Management
Division, Sector Upper Mississippi
River, U.S. Coast Guard; telephone 314–
269–2560, email Christian.J.Barger@
uscg.mil.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Table of Abbreviations
CFR Code of Federal Regulations
COTP Captain of the Port Sector Upper
Mississippi River
E:\FR\FM\17APR1.SGM
17APR1
]]>Agencies
- DEPARTMENT OF THE TREASURY
- Office of the Secretary of the Treasury
[Federal Register Volume 84, Number 74 (Wednesday, April 17, 2019)]
[Rules and Regulations]
[Pages 15955-15956]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07664]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of the Secretary of the Treasury
31 CFR Parts 27 and 50
Inflation Adjustment of Civil Monetary Penalties
AGENCY: Departmental Offices, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury (``Department'' or
``Treasury'') publishes this final rule to adjust its civil monetary
penalties (``CMPs'') for inflation as mandated by the Federal Civil
Penalties Inflation Adjustment Act of 1990, as amended by the Federal
Civil Penalties Inflation Adjustment Act Improvements Act of 2015
(collectively referred to herein as ``the Act''). This rule adjusts
CMPs within the jurisdiction of two components of the Department to the
maximum amount required by the Act.
DATES: The final rule is effective April 17, 2019.
FOR FURTHER INFORMATION CONTACT: For information regarding the
Terrorism Risk Insurance Program's CMPs, contact Richard Ifft, Senior
Insurance Regulatory Policy Analyst, Federal Insurance Office, Room
1410 MT, Department of the Treasury, 1500 Pennsylvania Avenue NW,
Washington, DC 20220, at (202) 622-2922 (not a toll-free number), or
Lindsey Baldwin, Senior Policy Analyst, Federal Insurance Office, at
(202) 622-3220 (not a toll free number). Persons who have difficulty
hearing or speaking may access these numbers via TTY by calling the
toll-free Federal Relay Service at (800) 877-8339.
For information regarding the Treasury-wide CMP, contact Richard
Dodson, Senior Counsel, General Law, Ethics, and Regulation, 202-622-
9949.
SUPPLEMENTARY INFORMATION:
I. Background
In order to improve the effectiveness of CMPs and to maintain their
deterrent effect, the Federal Civil Penalties Inflation Adjustment Act
of 1990, 28 U.S.C. 2461 note (``the Inflation Adjustment Act''), as
amended by the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (Pub. L. 114-74) (``the 2015 Act''), requires
Federal agencies to adjust each CMP provided by law within the
jurisdiction of the agency. The 2015 Act requires agencies to adjust
the level of CMPs with an initial ``catch-up'' adjustment through an
interim final rulemaking and to make subsequent annual adjustments for
inflation, without needing to provide notice and the opportunity for
public comment required by 5 U.S.C. 553. The Department's initial
catch-up adjustment interim final rules were published on December 7,
2016 (Departmental Offices) (81 FR 88600), and for 31 CFR part 27, on
February 11, 2019 (84 FR 3105). The Department's 2018 annual adjustment
was published on March 19, 2018 (83 FR 11876). The 2015 Act provides
that any increase in a CMP shall apply to CMPs that are assessed after
the date the increase takes effect, regardless of whether the
[[Page 15956]]
underlying violation predated such increase.\1\
---------------------------------------------------------------------------
\1\ However, the increased CMPs apply only with respect to
underlying violations occurring after the date of enactment of the
2015 Act, i.e., after November 2, 2015.
---------------------------------------------------------------------------
II. Method of Calculation
The method of calculating CMP adjustments applied in this final
rule is required by the 2015 Act. Under the 2015 Act and the Office of
Management and Budget guidance required by the 2015 Act, annual
inflation adjustments subsequent to the initial catch-up adjustment are
to be based on the percent change between the Consumer Price Index for
all Urban Consumers (``CPI-U'') for the October preceding the date of
the adjustment and the prior year's October CPI-U. As set forth in
Office of Management and Budget Memorandum M-19-04 of December 14,
2018, the adjustment multiplier for 2019 is 1.02522. In order to
complete the 2019 annual adjustment, each current CMP is multiplied by
the 2019 adjustment multiplier. Under the 2015 Act, any increase in CMP
must be rounded to the nearest multiple of $1.
Procedural Matters
1. Administrative Procedure Act
The Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (Section 701(b)) requires agencies, beginning in 2017, to
make annual adjustments for inflation to CMPs, without needing to
provide notice and the opportunity for public comment and a delayed
effective date required by 5 U.S.C. 553. Additionally, the methodology
used, effective 2017, for adjusting CMPs for inflation is provided by
statute, with no discretion provided to agencies regarding the
substance of the adjustments for inflation to CMPs. The Department is
charged only with performing ministerial computations to determine the
dollar amount of adjustments for inflation to CMPs. Accordingly, prior
public notice, an opportunity for public comment, and a delayed
effective date are not required for this rule.
2. Regulatory Flexibility Act
Because no notice of proposed rulemaking is required, the
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do
not apply.
3. Executive Order 12866
This rule is not a significant regulatory action as defined in
section 3.f of Executive Order 12866.
4. Paperwork Reduction Act
The provisions of the Paperwork Reduction Act of 1995, Public Law
104-13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR
part 1320, do not apply to this rule because there are no new or
revised recordkeeping or reporting requirements.
List of Subjects
31 CFR Part 27
Administrative practice and procedure, Penalties.
31 CFR Part 50
Insurance, Terrorism.
Authority and Issuance
For the reasons set forth in the preamble, parts 27 and 50 of title
31 of the Code of Federal Regulations are amended as follows:
PART 27--CIVIL PENALTY ASSESSMENT FOR MISUSE OF DEPARTMENT OF THE
TREASURY NAMES, SYMBOLS, ETC.
0
1. The authority citation for part 27 continues to read as follows:
Authority: 31 U.S.C. 321, 333.
0
2. Amend Sec. 27.3 by revising paragraph (c) to read as follows:
Sec. 27.3 Assessment of civil penalties.
* * * * *
(c) Civil penalty. An assessing official may impose a civil penalty
on any person who violates the provisions of paragraph (a) of this
section. The amount of a civil monetary penalty shall not exceed $7,975
for each and every use of any material in violation of paragraph (a),
except that such penalty shall not exceed $39,873 for each and every
use if such use is in a broadcast or telecast.
* * * * *
PART 50--TERRORISM RISK INSURANCE PROGRAM
0
3. The authority citation for part 50 continues to read as follows:
Authority: 5 U.S.C. 301; 31 U.S.C. 321; Title I, Pub. L. 107-
297, 116 Stat. 2322, as amended by Pub. L. 109-144, 119 Stat. 2660,
Pub. L. 110-160, 121 Stat. 1839 and Pub. L. 114-1, 129 Stat. 3 (15
U.S.C. 6701 note); Pub. L. 114-74, 129 Stat. 601, Title VII (28
U.S.C. 2461 note).
0
4. Amend Sec. 50.83 by revising paragraph (a) to read as follows:
Sec. 50.83 Adjustment of civil monetary penalty amount.
(a) Inflation adjustment. Any penalty under the Act and the
regulations in this part may not exceed the greater of $1,394,837 and,
in the case of any failure to pay, charge, collect or remit amounts in
accordance with the Act or the regulations in this part such amount in
dispute.
* * * * *
David Dwyer,
Executive Secretary.
[FR Doc. 2019-07664 Filed 4-16-19; 8:45 am]
BILLING CODE 4810-25-P
