[Federal Register Volume 72, Number 17 (Friday, January 26, 2007)]
[Rules and Regulations]
[Page 3734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-1051]


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

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 31

[TD 9276]
RIN 1545-BD96


Flat Rate Supplemental Wage Withholding; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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

SUMMARY: This document contains correction to final regulations (TD 
9276) that were published in the Federal Register on Tuesday, July 25, 
2006 (71 FR 42049), amending the regulations that provide for 
determining the amount of income tax withholding on supplemental wages. 
These regulations apply to all employers and others making supplemental 
wage payments to employees.

DATES: The correction is effective January 1, 2007.

FOR FURTHER INFORMATION CONTACT: A.G. Kelley, (202) 622-6040 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of this correction are 
under sections 3401 and 3402 of the Internal Revenue Code.

Need for Correction

    As published, final regulations (TD 9276) contain an error that may 
prove to be misleading and is in need of clarification.

List of Subjects in 26 CFR Part 31

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

Correction of Publication

0
Accordingly, 26 CFR part 31 is corrected by making the following 
correcting amendment:

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

0
Paragraph 1. The authority citation for part 31 continues to read, in 
part, as follows:

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


0
Par. 2. Section 31.3402(g)-1(a)(8) is amended by revising the last 
sentence of Example 3 paragraph (iv). The revision reads as follows:


Sec.  31.3402(g)-1  Supplemental wage payments.

    (a) * * *
    (8) * * *
    Example 3. * * *
    (iv) * * * If R elects to use optional flat rate withholding 
provided under paragraph (a)(7)(iii)(F) of this section, withholding 
would be calculated at 25 percent of the $1,000,000 portion of the 
payment and would be $250,000.
* * * * *

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. E7-1051 Filed 1-25-07; 8:45 am]
BILLING CODE 4830-01-P