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Rule

Flat Rate Supplemental Wage Withholding; Correction

Document Details

Information about this document as published in the Federal Register.

Published Document

This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

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AGENCY:

Internal Revenue Service (IRS), Treasury.

ACTION:

Correcting amendment.

SUMMARY:

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.

DATES:

The correction is effective January 1, 2007.

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FOR FURTHER INFORMATION CONTACT:

A.G. Kelley, (202) 622-6040 (not a toll-free number).

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SUPPLEMENTARY INFORMATION:

Background

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.

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List of Subjects in 26 CFR Part 31

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Correction of Publication

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Accordingly,

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PART 31—EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE

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

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Supplemental wage payments.

(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.

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LaNita Van Dyke,

Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration).

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[FR Doc. E7-1051 Filed 1-25-07; 8:45 am]

BILLING CODE 4830-01-P