[Federal Register Volume 75, Number 114 (Tuesday, June 15, 2010)]
[Proposed Rules]
[Pages 33740-33741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14396]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 40 and 49

[REG-112841-10]
RIN 1545-BJ40


Indoor Tanning Services; Cosmetic Services; Excise Taxes

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations that provide 
guidance on the indoor tanning services excise tax imposed by the 
Patient Protection and Affordable Care Act. These regulations affect 
users and providers of indoor tanning services. The text of the 
temporary regulations also serves as the text of the proposed 
regulations.

DATES: Written and electronic comments and requests for a public 
hearing must be received by September 13, 2010.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-112841-10), Room 
5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand-delivered to: 
CC:PA:LPD:PR Monday through Friday between the hours of 8 a.m. and 4 
p.m. to: CC:PA:LPD:PR (REG-112841-10), Courier's Desk, Internal Revenue 
Service, 1111 Constitution Avenue, NW., Washington, DC, or sent 
electronically via the Federal eRulemaking Portal at http://www.regulations.gov (REG-112841-10).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Taylor Cortright, (202) 622-3130; concerning submissions of comments 
and requests for a public hearing, Regina Johnson, (202) 622-7180 (not 
toll-free numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collection of information contained in this notice of proposed 
rulemaking has been approved by the Office of Management and Budget in 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) 
and assigned control number 1545-2177. 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, 
SE:W:CAR:MP:T:T:SP, Washington, DC 20224. Comments on the collection of 
information should be received by September 13, 2010. Comments are 
specifically requested concerning:
    Whether the proposed collection of information is necessary for the 
proper performance of the functions of the Internal Revenue Service, 
including whether the information will have practical utility;
    The accuracy of the estimated burden associated with the proposed 
collection of information;
    How the quality, utility, and clarity of the information to be 
collected may be enhanced;
    How the burden of complying with the proposed collections of 
information may be minimized, including through the application of 
automated collection techniques or other forms of information 
technology; and
    Estimates of capital or start-up costs of operation, maintenance, 
and purchase of service to provide information.
    The collection of information in this proposed regulation is in 
proposed Sec.  49.5000B-1(d)(2). This information is required to be 
maintained in order for providers of indoor tanning services to 
accurately calculate the tax on indoor tanning services when those 
services are offered with other goods and services. The likely 
recordkeepers are providers of indoor tanning services.
    Estimated total average annual recordkeeping burden: 10,000 hours.
    Estimated average annual burden hours per recordkeeper: 30 minutes.
    Estimated number of recordkeepers: 20,000.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid control number assigned by the Office of 
Management and Budget.
    Books or records relating to a collection of information must be 
retained as long as their contents may become material in the 
administration of any internal revenue law. Generally, tax returns and 
tax return information are confidential, as required by 26 U.S.C. 6103.

Background

    This document contains proposed amendments to the Excise Tax 
Procedural Regulations (26 CFR part 40) and the Facilities and Services 
Excise Tax Regulations (26 CFR part 49) under section 5000B of the 
Internal Revenue Code (Code). Section 5000B of the Code was enacted by 
section 10907 of the Patient Protection and Affordable Care Act, Public 
Law 111-148 (124 Stat. 119 (2010)) to impose an excise tax on indoor 
tanning services. The text of temporary regulations published in this 
issue of the Federal Register also serves as the text of these proposed 
regulations. The preamble to the temporary regulations explains the 
temporary regulations.

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 been 
determined that section 553(b) of the Administrative Procedure Act (5 
U.S.C. chapter 5) does not apply to these regulations. It is hereby 
certified that these regulations will not have a significant economic 
impact on a substantial number of small entities. This certification is 
based on the fact that these regulations are designed to accommodate 
the recordkeeping methods currently used by small entities that provide 
indoor tanning services. The regulations merely implement the tax 
imposed by section 5000B of the Code, and section 6001 of the Code 
already requires taxpayers to keep books and records sufficient to show 
whether or not they are liable for tax. The information necessary to 
prepare these records is readily available to providers, and this 
recordkeeping will take little additional time to complete. 
Accordingly, 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 regulation has been 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) or electronic comments

[[Page 33741]]

that are submitted timely to the IRS. The IRS and the Treasury 
Department request comments on the clarity of the proposed rules and 
how they can be made easier to understand. As described in the preamble 
to the temporary regulations, comments are also requested regarding 
whether the presumption relating to section 5000B(c)(2) (that the 
amount paid by the payor to the provider includes the tax if the tax is 
not separately stated) is consistent with the manner in which providers 
maintain books and records and specifically whether such a rule is 
useful for purposes of minimizing recordkeeping burdens of the 
providers.
    All comments will be available for public inspection and copying. A 
public hearing may be scheduled if requested in 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 regulations is Taylor Cortright, 
Office of the Associate Chief Counsel (Passthroughs and Special 
Industries). However, other personnel from the IRS and the Treasury 
Department participated in their development.

List of Subjects

26 CFR Part 40

    Excise taxes, Reporting and recordkeeping requirements.

26 CFR Part 49

    Excise taxes, Reporting and recordkeeping requirements, Telephone, 
Transportation.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR parts 40 and 49 are proposed to be amended as 
follows:

PART 40--EXCISE TAX PROCEDURAL REGULATIONS

    Paragraph 1. The authority citation for part 40 continues to read 
in part as follows:

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

    Par. 2. Section 40.0-1 is amended by revising paragraph (d) to read 
as follows:


Sec.  40.0-1  Introduction.

* * * * *
    (d) [The text of this proposed Sec.  40.0-1(d) is the same as the 
text of Sec.  40.0-1T(d) published elsewhere in this issue of the 
Federal Register].
    (e) [The text of this proposed Sec.  40.0-1(e) is the same as the 
text of Sec.  40.0-1T(e) published elsewhere in this issue of the 
Federal Register].
* * * * *
    Par. 3. Section 40.6302(c)-1 is amended by adding paragraph (g) to 
read as follows:


Sec.  40.6302(c)-1  Use of government depositaries.

* * * * *
    (g) [The text of this proposed Sec.  40.6302(c)-1(g) is the same as 
the text of Sec.  40.6302(c)-1T(g) published elsewhere in this issue of 
the Federal Register].

PART 49--FACILITIES AND SERVICES EXCISE TAX

    Par. 4. The authority citation for part 49 continues to read in 
part as follows:

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

    Par. 5. Section 49.0-3 is added to read as follows:


Sec.  49.0-3  Introduction; cosmetic services.

    [The text of this proposed Sec.  49.0-3 is the same as the text of 
Sec.  49.0-3T published elsewhere in this issue of the Federal 
Register].
    Par. 6. Subpart G is added to read as follows:

Subpart G--Cosmetic Services


Sec.  49.5000B-1  Indoor tanning services.

    [The text of this proposed Sec.  49.5000B-1 is the same as the text 
of Sec.  49.5000B-1T(a) through (h) published elsewhere in this issue 
of the Federal Register].

Steven Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2010-14396 Filed 6-11-10; 11:15 am]
BILLING CODE 4830-01-P