[Federal Register Volume 65, Number 18 (Thursday, January 27, 2000)]
[Proposed Rules]
[Pages 4396-4400]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1898]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1, 31, and 301

[REG-105279-99]
RIN 1545-AX31


Extension of Due Date for Electronically Filed Information 
Returns; Limitation of Failure To Pay Penalty for Individuals During 
Period of Installment Agreement

AGENCY:  Internal Revenue Service (IRS), Treasury.

ACTION:  Notice of proposed rulemaking.

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SUMMARY:  This document contains proposed regulations implementing 
section 6071(b) relating to the extension of the due date for certain 
electronically filed information returns. The regulations also provide 
rules under section 6651(h) relating to a penalty reduction for certain 
individuals who have agreed with the IRS to make installment payments 
in satisfaction of their tax liability. The regulations relating to 
extension of filing dates affect payors required to file information 
returns after December 31, 1999. The regulations relating to penalty 
reduction affect individual taxpayers with installment agreements in 
effect during months beginning after December 31, 1999.

DATES:  Written or electronic comments and requests for a public 
hearing must be received by April 26, 2000.

ADDRESSES:  Send submissions to: CC:DOM:CORP:R (REG-105279-99), room 
5226, Internal Revenue Service, POB 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered Monday through 
Friday between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-
105279-99), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue NW., Washington, DC. Alternatively, taxpayers may submit 
comments electronically via the Internet by selecting the ``Tax Regs'' 
option on the IRS Home Page, or by submitting comments directly to the 
IRS Internet site at http://www.irs.ustreas.gov/tax__regs/reglist.html.

FOR FURTHER INFORMATION CONTACT:  Concerning the regulations relating 
to

[[Page 4397]]

the extension of due dates, Marilyn E. Brookens, (202) 622-4920; 
concerning the regulations relating to penalty reductions, Robert B. 
Taylor, (202) 622-4940; concerning submissions of comments, Guy 
Traynor, (202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    This document contains proposed amendments to the Income Tax 
Regulations, Employment Tax Regulations, and Procedure and 
Administration Regulations (26 CFR Parts 1, 31, and 301), and 
implements sections 6071(b) and 6651(h), which were added to the 
Internal Revenue Code (Code) by the Internal Revenue Service 
Restructuring and Reform Act of 1998, Public Law 105-206 (112 Stat. 
685, 724 (1998 Act)). Section 6071(b) was added to the Code by section 
2002 of the 1998 Act and extends the due date for information returns 
required by chapter 61, subchapter A, part III, subparts B and C 
(sections 6041 through 6053) that are filed electronically. Under 
section 6071(b) such information returns are due on or before March 31 
of the year following the calendar year to which the returns relate. 
Section 6071(b) applies to information returns required to be filed 
with the IRS or the Social Security Administration after December 31, 
1999.
    Section 6651(h) was added to the Code by section 3303 of the 1998 
Act and provides that, for individuals, the failure to pay penalty is 
reduced from 0.5 percent per month to 0.25 percent per month during the 
period an installment agreement under section 6159 is in effect with 
regard to a timely filed return. Section 6651(h) applies to any Federal 
tax liability of an individual (including a liability under subtitle C) 
and is effective for determining the addition to tax for months 
beginning after December 31, 1999.

1. Proposed Regulations Implementing Section 6071(b)

    Sections 6041 through 6053 of the Code require the filing of 
information returns that report income, payments, or gross proceeds 
resulting from certain transactions. Under current law, these returns 
are generally due to the IRS or the Social Security Administration by 
(1) February 28 of the year following the calendar year to which the 
returns relate or (2) the last day of February following the calendar 
year to which the returns relate. Certain returns, however, such as 
those required by section 6050I (relating to cash receipts of more than 
$10,000) are due on a date other than February 28 or the last day of 
February. The due date for filing information returns is the same 
whether the returns are filed on paper, electronically, or by other 
forms of magnetic media (such as magnetic tape, cartridges, and 
diskettes).
    As an incentive to filers of information returns to use electronic 
filing, section 6071(b) extends by 1 month the due date for certain 
information returns required by sections 6041 through 6053 if the 
return is filed electronically. H.R. Conf. Rep. No. 599, 105th Cong., 
2nd Sess. 235. Accordingly, beginning on January 1, 2000, information 
returns currently required by sections 6041 through 6053 to be filed by 
February 28, or the last day of February, of the year following the 
calendar year to which the returns relate may be filed electronically 
as late as March 31 of the year following the calendar year to which 
the returns relate. The information returns affected by the proposed 
regulations include the Form W-2 series, Form W-2G, the Form 1098 
series, the Form 1099 series, and Form 8027. Section 6071(b) does not 
affect information returns required to be filed on or before a date 
other than February 28 or the last day of February. Section 6071(b) 
also does not affect information returns filed on paper or by means of 
magnetic media (such as magnetic tape, cartridges or diskettes) other 
than electronic filing.
    The proposed regulations affect only information returns for which 
a due date is currently prescribed by regulation. Section 6071(b) also 
applies to other information returns required under sections 6041 
through 6053 and extends the due date for electronic filing of those 
returns in cases in which a due date of February 28 or the last day of 
February is prescribed by form or other nonregulatory guidance.
    The proposed regulations also remove references to two obsolete 
forms (Form 1099F and Form 1099L) and make ministerial changes to the 
phrasing and forms of citation used in various provisions.

2. Proposed Regulations Implementing Section 6651(h)

    Section 6651(a)(2) imposes a penalty for failure to pay the amount 
shown as tax on a return on or before the due date prescribed for 
payment of such tax (with regard to extensions), unless it is shown 
that such failure is due to reasonable cause and not due to willful 
neglect. The amount of the penalty is 0.5 percent of the amount of such 
tax if the failure is for not more than 1 month, with an additional 0.5 
percent for each additional month or fraction thereof during which such 
failure continues, not exceeding 25 percent in the aggregate.
    Section 6651(a)(3) imposes a penalty for failure to pay any amount 
in respect of any tax required to be shown on a return, which is not so 
shown, within 21 calendar days from the date of notice and demand 
therefor (10 business days if the amount for which such notice and 
demand is made equals or exceeds $100,000), unless it is shown that 
such failure is due to reasonable cause and not due to willful neglect. 
The amount of the penalty is 0.5 percent of the amount of tax stated in 
the notice and demand if the failure is for not more than 1 month, with 
an additional 0.5 percent for each additional month or fraction thereof 
during which such failure continues, not exceeding 25 percent in the 
aggregate.
    Section 6651(h), added to the Code by section 3303 of the 1998 Act, 
provides that for an individual who enters into an installment 
agreement under section 6159 with regard to a timely filed return, the 
failure to pay penalties will be reduced from 0.5 percent to 0.25 
percent during the period of the installment agreement. This provision 
was added to the Code because Congress believed that it was 
``inappropriate to apply the full penalty for failure to pay taxes to 
taxpayers who are in fact paying their taxes through an installment 
agreement.'' H.R. Rep. No. 364, 105th Cong., 1st Sess. 81; S. Rep. No. 
174, 105th Cong., 2nd Sess. 63. This provision is effective for 
purposes of determining additions to tax for months beginning after 
December 31, 1999.
    Accordingly, for an individual who enters into an installment 
agreement under section 6159 with regard to a timely filed return, the 
proposed regulations provide that the failure to pay penalties under 
section 6651(a)(2) and (3) will be reduced from 0.5 percent per month 
to 0.25 percent per month during the period of the installment 
agreement.

Proposed Effective Date

    The provisions of these regulations under section 6071(b) are 
proposed to be applicable for returns required to be filed after 
December 31, 1999. The provisions of these regulations under section 
6651(h) are proposed to be applicable for determining the addition to 
tax for months beginning after December 31, 1999.

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

[[Page 4398]]

has also been determined that section 553(b) of the Administrative 
Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations, 
and, because the regulations do not impose a collection of information 
on small entities, 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, 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 (a signed original and eight 
(8) copies) or electronic comments that are submitted timely to the 
IRS. The IRS and Treasury Department request comments on the clarity of 
the proposed rules and how they can be made easier to understand. All 
comments will be available for public inspection and copying. A public 
hearing may be scheduled if requested by any person that timely submits 
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 the regulations relating to the extension 
of due dates under section 6071(b) is Marilyn E. Brookens, Office of 
Assistant Chief Counsel (Income Tax & Accounting). The principal author 
of the regulations relating to the reduction in the penalty under 
section 6651(h) is Robert B. Taylor, Office of Assistant Chief Counsel 
(Income Tax & Accounting). 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.

26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR parts 1, 31, and 301 are proposed to be amended 
as follows:

PART 1--NCOME TAXES

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

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

    Par. 2. In Sec. 1.6041-2, paragraph (a)(3)(ii) is revised to read 
as follows:


Sec. 1.6041-2  Return of information as to payments to employees.

    (a) * * *
    (3) * * *
    (ii) Exception. In a case where an employer is not required to file 
Forms W-3 and W-2 under Sec. 31.6011(a)-4 or 31.6011(a)-5 of this 
chapter, returns on Forms W-3 and W-2 required under this paragraph for 
any calendar year shall be filed on or before February 28 (March 31 if 
filed electronically) of the following year.
* * * * *
    Par. 3. In Sec. 1.6041-6, the first sentence is revised to read as 
follows:


Sec. 1.6041-6  Returns made on Forms 1096 and 1099 under section 6041; 
contents and time and place for filing.

    Returns made under section 6041 on Forms 1096 and 1099 for any 
calendar year shall be filed on or before February 28 (March 31 if 
filed electronically) of the following year with any of the Internal 
Revenue Service Centers, the addresses of which are listed in the 
instructions for such forms. * * *
    Par. 4. In Sec. 1.6042-2, the first sentence of paragraph (c) is 
revised to read as follows:


Sec. 1.6042-2  Returns of information as to dividends paid in calendar 
years after 1962.

* * * * *
    (c) Time and place for filing. The returns required under this 
section for any calendar year shall be filed after September 30 of such 
year, but not before the payer's final payment for the year, and on or 
before February 28 (March 31 if filed electronically) of the following 
year with any of the Internal Revenue Service Centers, the addresses of 
which are listed in the instructions for Form 1096.* * *
* * * * *
    Par. 5. In Sec. 1.6043-2, paragraph (a) is revised to read as 
follows:


Sec. 1.6043-2  Return of information respecting distributions in 
liquidation.

    (a) Unless the distribution is one in respect of which information 
is required to be filed pursuant to Sec. 1.332-6(b), Sec. 1.368-3(a), 
or 1.1081-11, every corporation making any distribution of $600 or more 
during a calendar year to any shareholder in liquidation of the whole 
or any part of its capital stock shall file a return of information on 
Forms 1096 and 1099, giving all the information required by such form 
and by the regulations in this part. A separate Form 1099 must be 
prepared for each shareholder to whom such distribution was made, 
showing the name and address of such shareholder, the number and class 
of shares owned by him in liquidation of which such distribution was 
made, and the total amount distributed to him on each class of stock. 
If the amount distributed to such shareholder on any class of stock 
consisted in whole or in part of property other than money, the return 
on such form shall in addition show the amount of money distributed, if 
any, and shall list separately each class of property other than money 
distributed, giving a description of the property in each such class 
and a statement of its fair market value at the time of the 
distribution. Such forms, accompanied by transmittal Form 1096 showing 
the number of Forms 1099 filed therewith, shall be filed on or before 
February 28 (March 31 if filed electronically) of the year following 
the calendar year in which such distribution was made with any of the 
Internal Revenue Service Centers, the addresses of which are listed in 
the instructions for Form 1096.
* * * * *
    Par. 6. In Sec. 1.6044-2, the first sentence of paragraph (d) is 
revised to read as follows:


Sec. 1.6044-2  Returns of information as to payments of patronage 
dividends with respect to patronage occurring in taxable years 
beginning after 1962.

* * * * *
    (d) Time and place for filing. The return required under this 
section on Forms 1096 and 1099 for any calendar year shall be filed 
after September 30 of such year, but not before the payer's final 
payment for the year, and on or before February 28 (March 31 if filed 
electronically) of the following year, with any of the Internal Revenue 
Service Centers, the addresses of which are listed in the instructions 
for such forms. * * *
* * * * *
    Par. 7. Section Sec. 1.6045-1 is amended by adding paragraph (r) to 
read as follows:


Sec. 1.6045-1  Returns of information of brokers and barter exchanges.

* * * * *

[[Page 4399]]

    (r) Electronic filing. Notwithstanding the time prescribed for 
filing in paragraph (j) of this section, Forms 1096 and 1099 required 
under this section for reporting periods ending during a calendar year 
shall, if filed electronically, be filed after the last calendar day of 
the reporting period elected by the broker or barter exchange and on or 
before March 31 of the following calendar year.
    Par. 8. In Sec. 1.6045-2, paragraph (g)(3) is revised to read as 
follows:


Sec. 1.6045-2  Furnishing statement required with respect to certain 
substitute payments.

* * * * *
    (g) * * *
    (3) Time and place of filing. The returns required under this 
paragraph (g) for any calendar year shall be filed after September 30 
of such year, but not before the final substitute payment for the year 
is received by the broker, and on or before February 28 (March 31 if 
filed electronically) of the following year with any of the Internal 
Revenue Service Centers, the addresses of which are listed in the 
instructions for Form 1096.
* * * * *
    Par. 9. In Sec. 1.6045-4, the first sentence of paragraph (j) is 
revised to read as follows:


Sec. 1.6045-4  Information reporting on real estate transactions with 
dates of closing on or after January 1, 1991.

* * * * *
    (j) Time and place for filing. A reporting person shall file the 
information returns required by this section with respect to a real 
estate transaction after December 31 of the calendar year that includes 
the date of closing (as determined under paragraph (h)(2)(ii) of this 
section) and on or before February 28 (March 31 if filed 
electronically) of the following calendar year. * * *
* * * * *
    Par. 10. In Sec. 1.6047-1, the first sentence of paragraph (a)(6) 
is revised to read as follows:


Sec. 1.6047-1  Information to be furnished with regard to employee 
retirement plan covering an owner-employee.

    (a) * * *
    (6) Time and place for filing. The return required under this 
section for any calendar year shall be filed after the close of that 
year and on or before February 28 (March 31 if filed electronically) of 
the following year with any of the Internal Revenue Service Centers, 
the addresses of which are listed in the instructions for Form 1096. * 
* *
* * * * *
    Par. 11. Section 1.6049-4 is amended by:
    1. Revising the first sentence of paragraph (g)(1).
    2. Revising the first sentence of paragraph (g)(2).
    The revisions read as follows:


Sec. 1.6049-4  Return of information as to interest paid and original 
issue discount includible in gross income after December 31, 1982.

* * * * *
    (g) * * * (1) Annual return. Except as provided in paragraph (g)(2) 
of this section, the returns required under this section for any 
calendar year for the payment of interest shall be filed after 
September 30 of such year, but not before the payor's final payment to 
the payee for the year, and on or before February 28 (March 31 if filed 
electronically) of the following year. * * *
    (2) Transactional return. In the case of a return under paragraph 
(e) of this section, relating to returns on a transactional basis, such 
return shall be filed at any time but in no event later than February 
28 (March 31 if filed electronically) of the year following the 
calendar year in which the interest was paid. * * *
* * * * *
    Par. 12. In Sec. 1.6049-7, the first sentence of paragraph 
(b)(2)(iv) is revised to read as follows:


Sec. 1.6049-7  Returns of information with respect to REMIC regular 
interests and collateralized debt obligations.

* * * * *
    (b) * * *
    (2) * * *
    (iv) Time and place for filing a return with respect to amounts 
includible as interest. The returns required under paragraph (b)(2) of 
this section for any calendar year must be filed after September 30 of 
that year, but not before the payor's final payment to the payee for 
the year, and on or before February 28 (March 31 if filed 
electronically) of the following year. * * *
* * * * *
    Par. 13. In Sec. 1.6050A-1, paragraph (b) is revised to read as 
follows:


Sec. 1.6050A-1  Reporting requirements of certain fishing boat 
operators.

* * * * *
    (b) Time and place for filing. Returns required to be made under 
this section on Form 1099-MISC shall be filed with the Internal Revenue 
Service Center, designated in the instructions for Form 1099-MISC, on 
or before February 28 (March 31 if filed electronically) of the year 
following the calendar year in which the relevant services were 
performed.
* * * * *
    Par. 14. In Sec. 1.6050D-1, paragraph (b) is revised to read as 
follows:


Sec. 1.6050D-1  Information returns relating to energy grants and 
financing.

* * * * *
    (b) Time and place for filing. Returns required to be made under 
this section shall be filed with the Internal Revenue Service Center 
designated in the instructions for Form 6497 or 1099-G on or before the 
last day of February (March 31 if filed electronically) of the year 
following the calendar year for which the return is made.
    Par. 15. In Sec. 1.6050E-1, the first sentence of paragraph (h) is 
revised to read as follows:


Sec. 1.6050E-1  Reporting of State and local income tax refunds.

* * * * *
    (h) Time and place for filing. The returns required under this 
section for any calendar year shall be filed after September 30 of that 
calendar year, but not before the refund officer's final payment (or 
allowance of credit or offset) for the year, and on or before February 
28 (March 31 if filed electronically) of the following year. * * *
* * * * *
    Par. 16. In Sec. 1.6050H-2, the first and second sentences of 
paragraph (a)(4) are revised to read as follows:


Sec. 1.6050H-2  Time, form, and manner of reporting interest received 
on qualified mortgage.

    (a) * * *
    (4) Time and place for filing return. An interest recipient must 
file a return required by paragraph (a) of this section on or before 
February 28 (March 31 if filed electronically) of the year following 
the calendar year for which it receives the mortgage interest. If no 
interest is required to be reported for the calendar year, but a 
reimbursement of interest on a qualified mortgage is required to be 
reported for the calendar year, then a return required by paragraph (a) 
of this section must be filed on or before February 28 (March 31 if 
filed electronically) of the year following the calendar year in which 
the reimbursement was made. * * *
* * * * *
    Par. 17. In Sec. 1.6050J-1T, A-33 is revised to read as follows:


Sec. 1.6050J-1T  Questions and answers concerning information returns 
relating to foreclosures and abandonments of security (temporary).

* * * * *

[[Page 4400]]

    A-33: The return or returns must be filed on or before February 28 
(March 31 if filed electronically) of the year following the calendar 
year in which the acquisition of an interest in the property occurs or 
in which the lender knows or has reason to know of the abandonment of 
the property.
* * * * *
    Par. 18. In Sec. 1.6050P-1, paragraph (a)(4)(i) is revised to read 
as follows:


Sec. 1.6050P-1  Information reporting for discharges of indebtedness by 
certain financial entities.

    (a) * * *
    (4) * * * (i) In general. Except as provided in paragraph 
(a)(4)(ii) of this section, returns required by this section must be 
filed with the Internal Revenue Service office designated in the 
instructions for Form 1099-C on or before February 28 (March 31 if 
filed electronically) of the year following the calendar year in which 
the identifiable event occurs.
* * * * *
    Par. 19. In Sec. 1.6052-1, paragraph (b)(1)(ii) is revised to read 
as follows:


Sec. 1.6052-1  Information returns regarding payment of wages in the 
form of group-term life insurance.

* * * * *
    (b) * * * (1) * * *
    (ii) Exception. In a case where an employer is not required to file 
Forms W-3 and W-2 under Sec. 31.6011(a)-4 or Sec. 31.6011(a)-5 of this 
chapter, returns on Forms W-3 and W-2 required under paragraph (a) of 
this section for any calendar year shall be filed on or before February 
28 (March 31 if filed electronically) of the following year.
* * * * *

PART 31--EMPLOYMENT TAXES

    Par. 20. The authority citation for part 31 continues to read in 
part as follows:

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

    Par. 21. In Sec. 31.3402(q)-1, the first sentence of paragraph 
(f)(1) is revised to read as follows:


Sec. 31.3402(q)-1  Extension of withholding to certain gambling 
winnings.

* * * * *
    (f) * * * (1) In general. Every person making payment of winnings 
for which a statement is required under paragraph (e) of this section 
shall file a return on Form W-2G with the Internal Revenue Service 
Center serving the district in which is located the principal place of 
business of the person making the return on or before February 28 
(March 31 if filed electronically) of the calendar year following the 
calendar year in which the payment of winnings is made. * * *
* * * * *
    Par. 22. In Sec. 31.6053-3, the first sentence of paragraph (a)(4) 
is revised to read as follows:


Sec. 31.6053-3  Reporting by certain large food or beverage 
establishments with respect to tips.

    (a) * * *
    (4) Time and place for filing. The information return required by 
this paragraph shall be filed on or before the last day of February 
(March 31 if filed electronically) of the year following the calendar 
year for which the return is made with the Internal Revenue Service 
Center specified by the Form 8027 or its instructions. * * *
* * * * *
    Par. 23. In Sec. 31.6071(a)-1, paragraph (a)(3)(i) is revised to 
read as follows:


Sec. 31.6071(a)-1  Time for filing returns and other documents.

    (a) * * *
    (3) * * * (i) General rule. Each information return in respect of 
wages as defined in the Federal Insurance Contributions Act or of 
income tax withheld from wages which is required to be made under 
Sec. 31.6051-2 shall be filed on or before the last day of February 
(March 31 if filed electronically) of the year following the calendar 
year for which it is made, except that, if a tax return under 
Sec. 31.6011(a)-5(a) is filed as a final return for a period ending 
prior to December 31, the information statement shall be filed on or 
before the last day of the second calendar month following the period 
for which the tax return is filed.
* * * * *

PART 301--PROCEDURE AND ADMINISTRATION

    Par. 24. The authority citation for part 301 continues to read in 
part as follows:

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

    Par. 25. Section 301.6651-1 is amended by:
    1. Revising the last sentence in paragraph (a)(2).
    2. Revising the second sentence in paragraph (a)(3).
    3. Adding paragraph (a)(4).
    The revisions and additions read as follows:


Sec. 301.6651-1  Failure to file tax return or to pay tax.

    (a) * * *
    (2) * * * Except as provided in paragraph (a)(4) of this section, 
the amount to be added to the tax is 0.5 percent of the amount of tax 
shown on the return if the failure is for not more than 1 month, with 
an additional 0.5 percent for each additional month or fraction thereof 
during which the failure continues, but not to exceed 25 percent in the 
aggregate.
    (3) * * * Except as provided in paragraph (a)(4) of this section, 
the amount to be added to the tax is 0.5 percent of the amount stated 
in the notice and demand if the failure is for not more than 1 month, 
with an additional 0.5 percent for each additional month or fraction 
thereof during which the failure continues, but not to exceed 25 
percent in the aggregate. * * *
    (4) Reduction of failure to pay penalty during the period an 
installment agreement is in effect--(i) In general. In the case of a 
return filed by an individual on or before the due date for the return 
(including extensions)--
    (A) The amount added to tax for a month or fraction thereof is 
determined by substituting 0.25 percent for 0.5 percent under paragraph 
(a)(2) of this section if at any time during the month an installment 
agreement under section 6159 is in effect for the payment of such tax; 
and
    (B) The amount added to tax for a month or fraction thereof is 
determined by substituting 0.25 percent for 0.5 percent under paragraph 
(a)(3) of this section if at any time during the month an installment 
agreement under section 6159 is in effect for the payment of such tax.
    (ii) Effective date. This paragraph (a)(4) applies for purposes of 
determining additions to tax for months beginning after December 31, 
1999.
* * * * *

Robert E. Wenzel,
Deputy Commissioner Internal Revenue.
[FR Doc. 00-1898 Filed 1-26-00; 8:45 am]
BILLING CODE 4830-01-U