[Federal Register Volume 59, Number 28 (Thursday, February 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3175]
[[Page Unknown]]
[Federal Register: February 10, 1994]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 31
[TD 8436]
RIN 1545-AP91
Deposits of Employment Taxes; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendment.
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SUMMARY: This document contains a correcting amendment to Treasury
Decision 8436 which was published in the Federal Register for Thursday,
September 24, 1992 (57 FR 44099). The final regulations relate to the
deposit of Federal employment taxes (including railroad retirement
taxes) under section 6302 of the Internal Revenue Code.
EFFECTIVE DATE: January 1, 1993.
FOR FURTHER INFORMATION CONTACT: Vincent G. Surabian at (202) 622-4940
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the subject of this correcting
amendment provide guidance under section 6302 relating to the deposit
of Federal employment taxes, effective January 1, 1993.
Need for Correction
As published, TD 8436 contains an ambiguity which may prove to be
misleading and is in need of clarification. Section 31.6302-1(f)(3)(ii)
of the regulations provides that the deposit makeup date for deposit
shortfalls for employers depositing under the Semi-weekly or One-Day
rule is the first Wednesday or Friday (whichever is earlier) falling on
or after the 15th day of the month following the month in which the
deposit was required to be made. Section 31.6302-1(h)(2) of the
regulations, however, provides that if the aggregate amount of taxes
reportable on the return for the return period exceeds the total amount
deposited by the employer with regard to the return period pursuant to
Sec. 31.6302-1, the balance due must be remitted in accordance with the
applicable forms and instructions. Under section 6151(a) of the
Internal Revenue Code, any balance due is required to be paid by the
due date of the return for the return period. The due date for Form
941, Employer's Quarterly Federal Tax Return, is the last day of the
first month following the close of the calendar quarter.
Under Sec. 31.6302-1 of the regulations, a deposit under the Semi-
weekly or One-Day rule with respect to a pay date occurring on the last
day of a return period (calendar quarter) is not due until after the
close of that return period. For example, an employer with a pay date
on Wednesday, March 31, 1993, must make a deposit by Thursday, April 1,
1993, if depositing under the One-Day rule, or by Wednesday, April 7,
1993, if depositing under the Semi-weekly rule. Under Sec. 31.6302-
1(f)(3)(ii), as drafted, a shortfall with respect to either deposit
would not be due until Wednesday, May 19, 1993, well after the return
due date (April 30) for the return period. This result was not
intended.
List of Subjects in Part 31
Employment taxes, Income taxes, Penalties, Pensions, Railroad
retirement, Reporting and recordkeeping requirements, Social security,
Unemployment compensation.
Accordingly, 26 CFR part 31 is corrected by making the following
correcting amendment:
PART 31--EMPLOYMENT TAXES AND COLLECTION OF INCOME AT SOURCE
Paragraph 1. The authority citation for part 31 continues to read
in part as follows:
Authority: 26 U.S.C. 7805 * * *
Sec. 31.6302-1 [Amended]
Par. 2. In Sec. 31.6302-1, paragraph (f)(3)(ii) is amended by
adding the language ``or, if earlier, the return due date for the
return period'' immediately after the last word in the paragraph and
before the period.
Dale D. Goode,
Federal Register Liaison Officer, Ass't Chief Counsel (Corporate).
[FR Doc. 94-3175 Filed 2-9-94; 8:45 am]
BILLING CODE 4830-01-U
