[Federal Register Volume 61, Number 56 (Thursday, March 21, 1996)]
[Proposed Rules]
[Pages 11595-11596]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-6719]



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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 31

[IA-03-94]
RIN 1545-AS79


Federal Tax Deposits by Electronic Funds Transfer

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations and notice of public hearing.

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations relating to 
the deposit of Federal taxes by electronic funds transfer under section 
6302 of the Internal Revenue Code. The text of the temporary 
regulations also serves as the comment document for this notice of 
proposed rulemaking. This document also provides notice of a public 
hearing on these proposed regulations.

DATES: Written comments and outlines of topics to be discussed at the 
public hearing scheduled for July 16, 1996, beginning at 10 a.m., must 
be received by June 19, 1996.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (IA-03-94), 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:R (IA-03-94), Courier's 
Desk, Internal Revenue Service, 1111 Constitution Avenue, NW., 
Washington, DC. The public hearing will be held in the Commissioner's 
Conference Room, room 3313, 1111 Constitution Avenue, NW., Washington, 
DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Vincent G. 
Surabian, 202-622-6232 (not a toll-free number). Concerning submissions 
and the public hearing, Michael Slaughter, 202-622-7190 (not a toll-
free number).

SUPPLEMENTARY INFORMATION:

Background

    The temporary regulations published in the Rules and Regulations 
section of this issue of the Federal Register contain amendments to the 
Regulations on Employment Taxes and Collection of Income Tax at Source 
(26 CFR part 31) and an addition to the Income Tax Regulations (26 CFR 
part 1). These amendments relate to the deposit of Federal taxes by 
electronic funds transfer. The text of those temporary regulations also 
serves as the text of these proposed regulations. The preamble to the 
temporary regulations explains these proposed regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in EO 12866. Therefore, 
a regulatory assessment is not required. It also has 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 rules and, therefore, a Regulatory Flexibility 
Analysis is not required. Pursuant to section 7805(f) of the Internal 
Revenue Code, a copy of 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 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 timely submitted to the IRS. All 
comments will be available for public inspection and copying.
    A public hearing has been scheduled for July 16, 1996, beginning at 
10 a.m. in the Commissioner's Conference Room, room 3313, Internal 
Revenue Building. Because of access restrictions, visitors will not be 
admitted beyond the building lobby more than 15 minutes before the 
hearing starts.
    The rules of 26 CFR 601.601(a)(3) apply to the hearing.
    Persons who wish to present oral comments at the hearing must 
submit written comments and an outline of the topics to be discussed 
and the time to be devoted to each topic (signed original and eight (8) 
copies) by June 19, 1996.
    A period of 10 minutes will be allotted to each person for making 
comments.
    An agenda showing the scheduling of the speakers will be prepared 
after the deadline for receiving outlines has passed. Copies of the 
agenda will be available free of charge at the hearing.

[[Page 11596]]


Drafting Information

    The principal author of these regulations is Vincent G. Surabian, 
Office of the Assistant Chief Counsel (Income Tax & Accounting), IRS. 
However, other personnel from the IRS and Treasury Department 
participated in their development.

List of Subjects

26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

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 parts 1 and 31 are proposed to be amended as 
follows:

PART 1--INCOME TAXES

    Paragraph 1. The authority citation for part 1 is amended by adding 
the following entry to read as follows:

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

    Section 1.6302-4 also issued under 26 U.S.C. 6302(a) and (c). * 
* *

    Par. 2. Section 1.6302-4 is added to read as follows:


Sec. 1.6302-4   Use of financial institutions in connection with 
individual income taxes.

    [The text of this proposed section is the same as the text of 
Sec. 1.6302-4T published elsewhere in this issue of the Federal 
Register].

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

    Par. 3. The authority citation for part 31 continues to read in 
part as follows:

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

    Par. 4. Proposed Sec. 31.6302-1(h), published July 11, 1994 (59 FR 
35418), by cross-referencing temporary regulations published the same 
day (59 FR 35414) is amended as follows:
    1. Paragraph (h)(1)(ii)(A) is redesignated as paragraph 
(h)(1)(ii)(A)(1); the first sentence in the paragraph is removed, and 
three new sentences are added in its place; and, in the last sentence 
of the newly designated paragraph, the text preceding the table is 
revised.
    2. Paragraph (h)(1)(ii)(A)(2) is added.
    3. Paragraphs (h)(2), (h)(3), (h)(7) and (h)(8) are revised.
    The revised and added provisions read as follows:


Sec. 31.6302-1  Federal tax deposit rules for withheld income taxes and 
taxes under the Federal Insurance Contributions Act (FICA) attributable 
to payments made after December 31, 1992.

    [The text of paragraphs (h)(1)(ii)(A)(1), (h)(1)(ii)(A)(2), (h)(2), 
(h)(3), (h)(7) and (h)(8) is the same as the text of those paragraphs 
in Sec. 31.6302-1T published elsewhere in this issue of the Federal 
Register.]
Margaret Milner Richardson,
Commissioner of Internal Revenue.
[FR Doc. 96-6719 Filed 3-20-96; 8:45 am]
BILLING CODE 4830-01-P