[Federal Register Volume 59, Number 244 (Wednesday, December 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31289]


[[Page Unknown]]

[Federal Register: December 21, 1994]


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DEPARTMENT OF THE TREASURY
26 CFR Part 31

[EE-45-93]
RIN 1545-AR67

 

Electronic Filing of Form W-4

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Withdrawal of notice of proposed rulemaking; notice of proposed 
rulemaking by cross-reference to temporary regulations.

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SUMMARY: This document withdraws proposed regulations published in the 
Federal Register at 59 FR 18057 on April 15, 1994. In the Rules and 
Regulations section of this issue of the Federal Register, the IRS is 
issuing temporary regulations relating to Form W-4, Employee's 
Withholding Allowance Certificate. The temporary regulations authorize 
employers to establish systems to permit employees to make certain 
changes to their Forms W-4 electronically. The temporary regulations 
provide employers and employees with guidance necessary to comply with 
the law and affect employers who choose to establish authorized systems 
and employees who use them. The text of those temporary regulations 
also serves as the text of these proposed regulations.

DATES: Written comments and requests for a public hearing must be 
received by February 21, 1995.

ADDRESSES: Send submissions to: CC:DOM:CORP:T:R (EE-45-93), room 5228, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. In the alternative, submissions may be hand delivered between 
the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:T:R (EE-45-93), 
Courier's Desk, Internal Revenue Service, room 5228, 1111 Constitution 
Avenue, NW, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning submissions, Michael 
Slaughter, 202-622-7190; concerning the regulations, Russ Weinheimer, 
202-622-6060. These are not toll-free numbers.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collection of information contained in this notice of proposed 
rulemaking has been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act (44 U.S.C. 
3504(h)). Comments on the collection of information should be sent to 
the Office of Management and Budget, Attn: Desk Officer for the 
Department of the Treasury, Office of Information and Regulatory 
Affairs, Washington, DC 20503, with copies to the Internal Revenue 
Service, Attn: IRS Reports Clearance Officer, PC:FP, Washington, DC 
20224.
    The collection of information is in Sec. 31.3402(f)(5)-2T. This 
information is required by the IRS to ensure that, if the IRS requests 
it, employers will be able to furnish a hard copy of the electronic 
Form W-4. This information will be used to verify that the employer 
used the electronic Form W-4 data properly. The likely respondents are 
state and local governments, business or other for-profit institutions, 
federal agencies or employees, nonprofit institutions, and small 
businesses or organizations. Estimated total annual reporting burden: 
40,000 hours. The estimated annual burden per respondent varies from 10 
minutes to 20 minutes, depending on individual circumstances, with an 
estimated average of 15 minutes.
    Estimated number of respondents: 2,000.
    Estimated annual frequency of responses: on occasion.

Background

    The temporary regulations published in the Rules and Regulations 
section of this issue of the Federal Register add Sec. 31.3402(f)(5)-2T 
to the Employment Tax Regulations.
    The text of those temporary regulations also serves as the text of 
these proposed regulations. The preamble to the temporary regulations 
explains the temporary regulations. Comments are specifically requested 
on whether electronic systems should be allowed for additional 
categories of Forms W-4 and the extent to which employers should be 
allowed to mandate the use of an electronic system, to assist the IRS 
in determining the appropriate balance between the advantages to 
employers of fully electronic systems, ensuring adequate employee 
access, and the IRS's concerns relating to enforcement.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866. Therefore, a regulatory assessment is not required. It has also 
been determined that section 553(b) of the Administrative Procedure Act 
(5 U.S.C. chapter 5) and the Regulatory Flexibility Act (5 U.S.C. 
chapter 6) do not apply to these regulations and, therefore, a 
Regulatory Flexibility Analysis is not required. Pursuant to section 
7805(f) of the Internal Revenue Code, this notice of proposed 
rulemaking will be submitted to the Chief Counsel for Advocacy of the 
Small Business Administration for comment on its impact on small 
business.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments (a signed original 
and eight (8) copies) that are submitted timely to the IRS. All 
comments will be available for public inspection and copying. A public 
hearing may be scheduled if requested in any 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 author of these proposed regulations is Russ 
Weinheimer, Office of the Associate Chief Counsel (Employee Benefits 
and Exempt Organizations), IRS. However, other personnel from the IRS 
and Treasury Department participated in their development.

List of Subjects in 26 CFR Part 31

    Employment taxes, Income taxes, Penalties, Pensions, Railroad 
retirement, Reporting and recordkeeping requirements, Social security, 
Unemployment compensation.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 31 is proposed to be amended as follows:

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

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

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

    Par. 2. Section 31.3402(f)(5)-2 is added to read as follows:


Sec. 31.3402(f)(5)-2  Electronic filing of withholding exemption 
certificates.

    [The text of this proposed section is the same as the text of 
Sec. 31.3402(f)(5)-2T published elsewhere in this issue of the 
Federal Register].
Margaret Milner Richardson,
Commissioner of Internal Revenue.
[FR Doc. 94-31289 Filed 12-20-94; 8:45 am]
BILLING CODE 4830-01-U