Internal Revenue Service (IRS), Treasury.
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.
The correction is effective January 1, 2007.Start Further Info
FOR FURTHER INFORMATION CONTACT:
A.G. Kelley, (202) 622-6040 (not a toll-free number).End Further Info End Preamble Start Supplemental Information
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.Start List of Subjects
List of Subjects in 26 CFR Part 31
- Employment taxes
- Income taxes
- Railroad retirement
- Reporting and recordkeeping requirements
- Social Security
- Unemployment compensation
Correction of PublicationStart Amendment Part
Accordingly,End Amendment Part Start Part
PART 31—EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCEEnd Part Start Amendment Part
End Amendment Part Start Amendment Part
End Amendment Part
(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