[Federal Register Volume 84, Number 68 (Tuesday, April 9, 2019)]
[Rules and Regulations]
[Pages 14008-14009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07010]



[[Page 14008]]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 53

[TD 9855]
RIN 1545-BO80


Regulations To Prescribe Return and Time for Filing for Payment 
of Section 4960, 4966, 4967, and 4968 Taxes and To Update the Abatement 
Rules for Section 4966 and 4967 Taxes

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: This document contains final regulations specifying which 
return to use to pay certain excise taxes and the time for filing the 
return. The regulations also implement the statutory addition of two 
excise taxes to the first-tier taxes subject to abatement. These 
regulations affect applicable tax-exempt organizations and their 
related organizations, applicable educational institutions, sponsoring 
organizations that maintain certain donor advised funds, fund managers 
of such sponsoring organizations, and certain donors, donor advisors, 
and persons related to a donor or donor advisor of a donor advised 
fund.

DATES: 
    Effective date: These regulations are effective on April 9, 2019. 
Applicability date: These regulations apply on and after April 9, 2019. 
See also Sec.  53.6071-1(j)(3).

FOR FURTHER INFORMATION CONTACT: Amber L. MacKenzie, (202) 317-4086 or 
Ward L. Thomas, (202) 317-6173 (not toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Background

    This document contains final regulations amending 26 CFR part 53 
under chapter 42, subtitle D, section 4963 and chapter 61, subtitle F, 
sections 6011 and 6071 of the Internal Revenue Code (Code), to specify 
the return to accompany payment of excise taxes under sections 4960, 
4966, 4967, and 4968; to specify the time for filing that return; and 
to conform the regulations to the statutorily expanded definition of 
the first-tier taxes subject to abatement under section 4962.
    On November 7, 2018, the Department of the Treasury (Treasury 
Department) and the IRS published a notice of proposed rulemaking (REG-
107163-18) in the Federal Register (83 FR 55653) setting forth proposed 
regulations under sections 6011 and 6071. The proposed regulations 
specified Form 4720,``Return of Certain Excise Taxes Under Chapters 41 
and 42 of the Internal Revenue Code,'' as the return to accompany 
payment of excise taxes under sections 4960, 4966, 4967, and 4968; 
required that a person (including a governmental entity) required to 
file a return to report such tax file Form 4720 by the 15th day of the 
5th month after the end of the person's taxable year; and added 
sections 4966 and 4967 to the first-tier taxes subject to abatement 
under section 4962.
    Only one comment from the public was received, which did not raise 
any concerns or make any recommendations specific to the proposed 
regulation, and no hearing was requested or held. Therefore, the 
proposed regulations are adopted without change by this Treasury 
decision. (All comments are available at www.regulations.gov or upon 
request.)

Explanation of Provisions

1. Section 4962 Abatement

    These final regulations add section 4966 and section 4967 excise 
taxes to the definitions of ``first tier tax'' and ``taxable event'' in 
Sec.  53.4963-1. Qualified first tier taxes are subject to abatement 
under section 4962.

2. Requirement To File a Form 4720

    These final regulations amend Sec.  53.6011-1(b) to provide that 
persons (including governmental entities) that are liable for section 
4960, 4966, 4967, or 4968 excise taxes are required to file a return on 
Form 4720.

3. Deadline for Filing a Form 4720

    Under Sec.  53.6071-1(i) of these final regulations, a person 
required to file a Form 4720 to report an excise tax under section 
4960, 4966, 4967, or 4968 must file a Form 4720 by the 15th day of the 
fifth month after the end of the person's taxable year during which the 
excise tax liability was incurred.

4. Effective/Applicability Date

    These regulations are effective on April 9, 2019. These regulations 
apply on and after April 9, 2019. See also Sec.  53.6071-1(j)(3).

Availability of IRS Documents

    For copies of recently issued revenue procedures, revenue rulings, 
notices and other guidance published in the Internal Revenue Bulletin, 
please visit the IRS website at http://www.irs.gov or contact the 
Superintendent of Documents, U.S. Government Publishing Office, 
Washington, DC 20402.

Special Analyses

    This regulation is not subject to review under section 6(b) of 
Executive Order 12866 pursuant to the Memorandum of Agreement (April 
11, 2018) between the Treasury Department and the Office of Management 
and Budget regarding review of tax regulations.
    Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it 
is hereby certified that the collection of information in these 
regulations will not have a significant economic impact on a 
substantial number of small entities. This certification is based on 
the fact that this rule merely provides guidance as to the timing and 
filing of Form 4720 for persons liable for the specified excise taxes 
and who have a statutory filing obligation. Completing the applicable 
portion of the Form 4720 imposes little incremental burden in time or 
expense as compared to any other filing method.
    In addition, a person may already be required to file the Form 4720 
under the existing final regulations in Sec. Sec.  53.6011-1 and 
53.6071-1 if it is liable for another excise tax for which filing of 
the Form 4720 is required. Therefore, 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, the notice of proposed 
rulemaking preceding these regulations was submitted to the Chief 
Counsel for Advocacy of the Small Business Administration for comment 
on its impact on small businesses, and no comment was received.

Drafting Information

    The principal authors of these regulations are Amber L. MacKenzie 
and Ward L. Thomas of the Office of Associate Chief Counsel (Employee 
Benefits, Exempt Organizations, and Employment Tax). However, other 
personnel from the Treasury Department and the IRS participated in 
their development.

List of Subjects in 26 CFR Part 53

    Excise taxes, Foundations, Investments, Lobbying, Reporting and 
recordkeeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR part 53 is amended as follows:

[[Page 14009]]

PART 53--FOUNDATION AND SIMILAR EXCISE TAXES

0
Paragraph 1. The authority citation for part 53 continues to read in 
part as follows:

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


Sec.  53.4963-1   [Amended]

0
Par. 2. Section 53.4963-1 is amended by:
0
1. In paragraph (a), removing the language ``4958, 4971'' and adding 
``4958, 4966, 4967, 4971'' in its place.
0
2. In paragraph (c), removing the language ``4958, 4971'' and adding 
``4958, 4966, 4967, 4971'' in its place.

0
Par. 3. Section 53.6011-1(b) is amended by:
0
1. Revising the first sentence.
0
2. Removing from the third sentence the language ``4958(a), or 
4965(a),'' and adding ``4958(a), 4960(a), 4965(a), 4966(a), or 
4967(a),'' in its place.
    The revision reads as follows:


Sec.  53.6011-1   General requirement of return, statement or list.

* * * * *
    (b) Every person (including a governmental entity) liable for tax 
imposed by sections 4941(a), 4942(a), 4943(a), 4944(a), 4945(a), 
4955(a), 4958(a), 4959, 4960(a), 4965(a), 4966(a), 4967(a), or 4968(a), 
and every private foundation and every trust described in section 
4947(a)(2) which has engaged in an act of self-dealing (as defined in 
section 4941(d)) (other than an act giving rise to no tax under section 
4941(a)) shall file an annual return on Form 4720,``Return of Certain 
Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code,'' 
and shall include therein the information required by such form and the 
instructions issued with respect thereto. * * *
* * * * *


Sec.  53.6071-1   [Amended]

0
Par. 4. Section 53.6071-1 is amended by:
0
1. Redesignating paragraph (i) as paragraph (j).
0
2. Adding new paragraphs (i) and (j)(3).
    The additions read as follows:


Sec.  53.6071-1   Time for filing returns.

* * * * *
    (i) Taxes under section 4960, 4966, 4967, or 4968. A person 
(including a governmental entity) required by Sec.  53.6011-1(b) to 
file a return for a tax imposed by section 4960(a), 4966(a), 4967(a), 
or 4968(a) in a taxable year must file the Form 4720 on or before the 
15th day of the fifth month after the end of the person's taxable year 
(or, if the person has not established a taxable year for Federal 
income tax purposes, the person's annual accounting period).
    (j) * * *
    (3) Paragraph (i) of this section applies on and after April 9, 
2019.

Kirsten Wielobob,
Deputy Commissioner for Services and Enforcement.

    Approved: March 25, 2019.
David J. Kautter,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2019-07010 Filed 4-5-19; 11:15 am]
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