[Federal Register Volume 76, Number 218 (Thursday, November 10, 2011)]
[Rules and Regulations]
[Page 70057]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-29087]



[[Page 70057]]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 9554]
RIN 1545-BJ07


Extending Religious and Family Member FICA and FUTA Exceptions to 
Disregarded Entities; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final and temporary regulations.

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SUMMARY: This document describes a correction to final and temporary 
regulations (TD 9554) extending the exceptions from taxes under the 
Federal Insurance Contributions Act (``FICA'') and the Federal 
Unemployment Tax Act (``FUTA'') under sections 3121(b)(3) (concerning 
individuals who work for certain family members), 3127 (concerning 
members of religious faiths), and 3306(c)(5) (concerning persons 
employed by children and spouses and children under 21 employed by 
their parents) of the Internal Revenue Code (``Code'') to entities that 
are disregarded as separate from their owners for Federal tax purposes. 
The temporary regulations also clarify the existing rule that the 
owners of disregarded entities, except for qualified subchapter S 
subsidiaries, are responsible for backup withholding and related 
information reporting requirements under section 3406. These 
regulations were published in the Federal Register on Tuesday, November 
1, 2011 (76 FR 67363).

DATES: This correction is effective on November 10, 2011, and is 
applicable on November 1, 2011.

FOR FURTHER INFORMATION CONTACT: Joseph Perera, (202) 622-6040 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The correction notice that is the subject of this document is under 
section 7701 of the Internal Revenue Code.

Need for Correction

    As published, final and temporary regulations (TD 9554) contain an 
error that may prove to be misleading and is in need of clarification.

Correction of Publication

    Accordingly, the publication of final and temporary regulations (TD 
9554), which was the subject of FR Doc. 2011-28176, is corrected as 
follows:
    On page 67366, column 1, under an amendatory instruction, the 
language ``Par. 9. Section 301.7701-2T is revised to read as follows:'' 
is removed and is replaced with the new language ``Par. 9. Section 
301.7701-2T is added to read as follows:'' in its place.

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, Procedure and Administration.
[FR Doc. 2011-29087 Filed 11-9-11; 8:45 am]
BILLING CODE 4830-01-P