[Federal Register Volume 59, Number 28 (Thursday, February 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3175]


[[Page Unknown]]

[Federal Register: February 10, 1994]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 31

[TD 8436]
RIN 1545-AP91

 

Deposits of Employment Taxes; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

-----------------------------------------------------------------------

SUMMARY: This document contains a correcting amendment to Treasury 
Decision 8436 which was published in the Federal Register for Thursday, 
September 24, 1992 (57 FR 44099). The final regulations relate to the 
deposit of Federal employment taxes (including railroad retirement 
taxes) under section 6302 of the Internal Revenue Code.

EFFECTIVE DATE: January 1, 1993.

FOR FURTHER INFORMATION CONTACT: Vincent G. Surabian at (202) 622-4940 
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of this correcting 
amendment provide guidance under section 6302 relating to the deposit 
of Federal employment taxes, effective January 1, 1993.

Need for Correction

    As published, TD 8436 contains an ambiguity which may prove to be 
misleading and is in need of clarification. Section 31.6302-1(f)(3)(ii) 
of the regulations provides that the deposit makeup date for deposit 
shortfalls for employers depositing under the Semi-weekly or One-Day 
rule is the first Wednesday or Friday (whichever is earlier) falling on 
or after the 15th day of the month following the month in which the 
deposit was required to be made. Section 31.6302-1(h)(2) of the 
regulations, however, provides that if the aggregate amount of taxes 
reportable on the return for the return period exceeds the total amount 
deposited by the employer with regard to the return period pursuant to 
Sec. 31.6302-1, the balance due must be remitted in accordance with the 
applicable forms and instructions. Under section 6151(a) of the 
Internal Revenue Code, any balance due is required to be paid by the 
due date of the return for the return period. The due date for Form 
941, Employer's Quarterly Federal Tax Return, is the last day of the 
first month following the close of the calendar quarter.
    Under Sec. 31.6302-1 of the regulations, a deposit under the Semi-
weekly or One-Day rule with respect to a pay date occurring on the last 
day of a return period (calendar quarter) is not due until after the 
close of that return period. For example, an employer with a pay date 
on Wednesday, March 31, 1993, must make a deposit by Thursday, April 1, 
1993, if depositing under the One-Day rule, or by Wednesday, April 7, 
1993, if depositing under the Semi-weekly rule. Under Sec. 31.6302-
1(f)(3)(ii), as drafted, a shortfall with respect to either deposit 
would not be due until Wednesday, May 19, 1993, well after the return 
due date (April 30) for the return period. This result was not 
intended.

List of Subjects in Part 31

    Employment taxes, Income taxes, Penalties, Pensions, Railroad 
retirement, Reporting and recordkeeping requirements, Social security, 
Unemployment compensation.
    Accordingly, 26 CFR part 31 is corrected by making the following 
correcting amendment:

PART 31--EMPLOYMENT TAXES AND COLLECTION OF INCOME AT SOURCE

    Paragraph 1. The authority citation for part 31 continues to read 
in part as follows:

    Authority: 26 U.S.C. 7805 * * *


Sec. 31.6302-1  [Amended]

    Par. 2. In Sec. 31.6302-1, paragraph (f)(3)(ii) is amended by 
adding the language ``or, if earlier, the return due date for the 
return period'' immediately after the last word in the paragraph and 
before the period.
Dale D. Goode,
Federal Register Liaison Officer, Ass't Chief Counsel (Corporate).
[FR Doc. 94-3175 Filed 2-9-94; 8:45 am]
BILLING CODE 4830-01-U