Part IV. Items — Internal Revenue Bulletin 1996-17

Persons who wish to present oral comments at the hearing must submit written comments and an outline of the topics to be discussed and the time to be devoted to each topic (signed original and eight (8) copies) by June 19, 1996. A period of 10 minutes will be allotted to each person for making comments.

An agenda showing the scheduling of the speakers will be prepared after the deadline for receiving outlines has passed. Copies of the agenda will be available free of charge at the hearing.

Drafting Information

The principal author of these regulations is Vincent G. Surabian, Office of the Assistant Chief Counsel (Income Tax & Accounting), IRS. However, other personnel from the IRS and Treasury Department participated in their development.

List of Subjects

26 CFR Part 1

Income taxes, Reporting and recordkeeping requirements.

26 CFR Part 31

Employment taxes, Income taxes, Penalties, Pensions, Railroad retirement, Reporting and recordkeeping requirements, Social security, Unemployment compensation.

Proposed Amendments to the Regulations

Accordingly, 26 CFR parts 1 and 31 are proposed to be amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for part 1 is amended by adding the following entry to read as follows:

Authority: 26 U.S.C. 7805 * - Section 1.6302–4 also issued under 26 U.S.C. 6302(a) and (c). * - Par. 2. Section 1.6302–4 is added to read as follows:

§1.6302–4 Use of financial institutions in connection with individual income taxes.

[The text of this proposed section is

Notice of Proposed Rulemaking and Notice of Public Hearing

Federal Tax Deposits by Electronic Funds Transfer

IA–03–94

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary regulations and notice of public hearing.

SUMMARY: In the Rules and Regulations section of this issue of the Federal Register, the IRS is issuing temporary regulations relating to the deposit of Federal taxes by electronic funds transfer under section 6302 of the Internal Revenue Code. The text of the temporary regulations also serves as the comment document for this notice of proposed rulemaking. This document also provides notice of a public hearing on these proposed regulations.

DATES: Written comments and outlines of topics to be discussed at the public hearing scheduled for July 16, 1996, beginning at 10 a.m., must be received by June 19, 1996.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (IA–03–94), Room 5228, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. In the alternative, submissions may be hand delivered between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (IA–03–94), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC. The public hearing will be held in the Commissioner’s Conference Room, room 3313, 1111 Constitution Avenue, NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Vincent G. Surabian, 202622-6232 (not a toll-free number). Concerning submissions and the public hearing, Michael Slaughter, 202622-7190 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The temporary regulations published in the Rules and Regulations section of this issue of the Federal Register contain amendments to the Regulations on Employment Taxes and Collection of Income Tax at Source (26 CFR part 31) and an addition to the Income Tax Regulations (26 CFR part 1). These amendments relate to the deposit of Federal taxes by electronic funds transfer. The text of those temporary regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains these proposed regulations.

Special Analyses

It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in EO 12866. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do not apply to these rules and, therefore, a Regulatory Flexibility Analysis is not required. Pursuant to section 7805(f) of the Internal Revenue Code, a copy of this notice of proposed rulemaking will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business.

Comments and Public Hearing

Before these proposed regulations are adopted as final regulations, consideration will be given to any written comments (a signed original and eight (8) copies) that are timely submitted to the IRS. All comments will be available for public inspection and copying.

A public hearing has been scheduled for July 16, 1996, beginning at 10 a.m. in the Commissioner’s Conference Room, room 3313, Internal Revenue Building. Because of access restrictions, visitors will not be admitted beyond the building lobby more than 15 minutes before the hearing starts. The rules of 26 CFR 601.601(a)(3) apply to the hearing.

1996–26 I.R.B. 12

the same as the text of §1.6302–4T published elsewhere in this issue of the Federal Register].

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

Par. 3. The authority citation for part 31 continues to read in part as follows: Authority: 26 U.S.C. 7805 * - Par. 4. Proposed §31.6302–1(h), published July 11, 1994, (59 FR 35418) by cross-referencing temporary regulations published the same day (59 FR 35414) is amended as follows:

Paragraph (h)(1)(ii)(A) is redesignated as paragraph (h)(1)(ii)(A)( 1 ); the first sentence in the paragraph is removed, and three new sentences are added in its place; and, in the last sentence of the newly designated paragraph, the text preceding the table is revised.
Paragraph (h)(1)(ii)(A)( 2 ) is added.
Paragraphs (h)(2), (h)(3), (h)(7) and (h)(8) are revised.

The revised and added provisions read as follows:

§31.6302–1 Federal tax deposit rules for withheld income taxes and taxes under the Federal Insurance Contributions Act (FICA) attributable to payments made after December 31, 1992 .

[The text of paragraphs (h)(1)(ii)(A)( 1 ), (h)(1)(ii)(A)( 2 ), (h)(2), (h)(3), (h)(7) and (h)(8) is the same as the text of those paragraphs in §31.6302–1T published elsewhere in this issue of the Federal Register.]

Margaret Milner Richardson, Commissioner of Internal Revenue.

(Filed by the Office of the Federal Register on

March 20, 1996, 8:45 a.m., and published in the issue of the Federal Register for March 21, 1996, 61 F.R. 11595)

Employee Plans; Examination Guidelines

Announcement 96–25

The Internal Revenue Service has developed proposed examination guidelines for employee plans examiners to use when examining multi

employer plans. The guidelines provide technical background and guidance as to issues that should be considered during an examination. The guidelines are not intended to be all inclusive, and may be modified based on specific issues encountered by the examiners during an examination.

As with earlier examination guidelines, the Service is seeking public comments with respect to the proposed examination guidelines pertaining to multiemployer plans before those guidelines are finalized in the Internal Revenue Manual.

A copy of the proposed examination guidelines pertaining to multiemployer plans may be obtained by submitting a written request to the Internal Revenue Service, Attention: Assistant Commissioner (Employee Plans and Exempt Organizations), CP:E:EP:FC, 1111 Constitution Avenue, N.W., Washington, DC 20224. Written comments on the guidelines pertaining to multiemployer plans may be submitted on or before July 22, 1996, to the Internal Revenue Service, Attention: Assistant Commissioner (Employee Plans and Exempt Organizations), CP:E:EP:P:1, 1111 Constitution Avenue, N.W., Washington, DC 20224.

Refund Requests under Section 4972(c)(6)

Announcement 96–26

This announcement provides information to assist taxpayers in requesting refunds of the excise tax under § 4972 of the Internal Revenue Code for nondeductible contributions that were retroactively exempted from the § 4972 excise tax by the Retirement Protection Act of 1994 (RPA ’94).

Section 4972 imposes an excise tax on employers (other than governmental and tax exempt employers) equal to 10 percent of the nondeductible contributions made to a qualified employer plan. Section 4972(c)(6)(B), added by § 755 of RPA ’94, provides a limited exception to this excise tax. Under § 4972(c)(6)(B), the § 4972 excise tax does not apply to contributions to defined contribution plans that are nondeductible solely because of the § 404(a)(7) combined limit on deductions for contributions. The § 4972(c)(6)(B) exception to the § 4972 excise tax applies only if the

defined benefit plans of the employer taken into account under § 404(a)(7) have more than 100 participants under § 404(a)(1)(D), and only to the extent that nondeductible contributions to defined contribution plans do not exceed 6 percent of compensation paid or accrued to beneficiaries under the defined contribution plans.

Section 4972(c)(6)(B) is effective for taxable years ending on or after December 31, 1992. For some of the taxable years to which § 4972(c)(6)(B) applies, the § 4972 excise tax was due before the enactment of § 4972(c)(6)(B) in RPA ’94. Accordingly, employers that paid the § 4972 excise tax for taxable years ending on or after December 31, 1992, may be entitled to a refund.

In order to request a refund of the § 4972 excise tax on account of § 4972(c)(6)(B) for an employer’s taxable year, the employer must submit an amended Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, for that taxable year. The words ‘‘§ 4972(c)(6)(B) Refund Request’’ should be printed clearly and highlighted on the top right corner of the Form 5330. Under § 301.6402–2(b)(1) of the Procedure and Administration Regulations, a claim for refund must set forth in detail each ground upon which a refund is claimed and facts sufficient to apprise the Commissioner of the exact basis thereof. The Service has identified the information listed on the attached sample worksheet (Exhibit

as needed to provide sufficient facts to enable the Service to evaluate § 4972(c)(6)(B) claims. This information generally relates to contributions, limits on deductions and participant compensation for all relevant qualified employer plans. The § 4972 excise tax for the taxable year, calculated consistently with the computations shown in the sample worksheet, should be entered in line 12j of Form 5330, and the remainder of the form should be completed consistently with this calculation. Employers must also include copies of all previously filed Forms 5330 that reflect § 4972 tax liability for any of the taxable years affected, as well as any additional information relevant under the particular circumstances.

The Service is issuing a field directive to the affected Internal Revenue Service Centers, to assist those Service Centers in processing refund requests under § 4972(c)(6)(B).

13 1996–26 I.R.B.

Exhibit 1

Worksheet for Computation of Corrected Section 4972 Excise Tax

General Information

Employer’s taxable year ending (month/day/year): EIN:

List of Plans subject to 404(a)(7)

Name of defined benefit plan(s): Plan No.

Name of money purchase pension plan(s): Plan No.

Name of profit-sharing and stock bonus plan(s): Plan No.

Contributions to defined benefit and money purchase pension plans that are deductible (before giving effect to section 404(a)(7))

Contributions paid for year:

(a) to defined benefit plans listed above

(b) to money purchase plans listed above

Nondeductible carryover from prior years (carryover under section 404(a)(1)(E))
Deductible limit for year (taking into account section 404(a)(1)(D), but not section 404(a)(7))
Amount deductible before giving effect to section 404(a)(7) (lesser of the sum of lines (1)(a), (1)(b) and (2), or line (3))

Contributions to profit-sharing and stock bonus plans listed above that are deductible (before giving effect to section 404(a)(7))

Contributions paid for year to profit-sharing and stock bonus plans listed above
Nondeductible carryover from prior years (carryover under section 404(a)(3)(A)(ii))
Deductible limit for year (before giving effect to section 404(a)(7))
Amount deductible before giving effect to section 404(a)(7) (lesser of the sum of lines (5) and (6), or line (7))

1996–26 I.R.B. 14

Determination of Section 404(a)(7) Deductible Limit

Total compensation under section 404(a)(7)(A)(i)
25% of line 9
Amount of contributions made to defined benefit plans necessary to satisfy the minimum funding standard of section 412 (treating the minimum required contribution as not less than the unfunded current liability, for any plan to which section 404(a)(1)(D) applies)
Section 404(a)(7) limit (greater of line 10 or line 11)

Determination of deductible contribution amount

Deductible contributions without regard to section 404(a)(7) (line 4 plus line 8)
Deductible contributions under section 404(a)(7) without section 404(a)(7)(B) carryover (lesser of line 12 or line 13)
Contributions carried over from prior years under section 404(a)(7)(B), consisting of contributions:

(a) Attributable to contributions to defined benefit plans and/or defined contribu tion plans that were not exempted from section 4972 tax for the taxable year in which contributed

(b) Attributable to contributions to defined contribution plans that were exempted

from the section 4972 tax for the taxable year in which contributed

Note: Line 15(c) is not necessarily the same as the sum of lines 2 and 6.

Deductible section 404(a)(7)(B) carryover (lesser of line 15(c), or line 10 minus line 14, but not less than zero)
Total deductible contribution amount (line 14 plus line 16)

Determination of nondeductible contributions exempt from section 4972 tax

Nondeductible contributions for the year exempted from section 4972 tax (least of: (1) line 13 minus line 14; (2) line 1(b) plus line 5; or (3) 6% of compensation of participants in the employer’s defined contribution plans)
Deductible portion of nondeductible carryover contributions exempt from section 4972 tax for the taxable year in which contributed (lesser of (1) line 16 minus line 15(a), with the result not less than zero, and (2) line 15(b))
Net section 404(a)(7) nondeductible carryover contributions exempt from section 4972 tax (line 15(b) minus line 19)
Total nondeductible contributions and carryovers exempted from the section 4972 tax for the current year (line 18 plus line 20)

Determination of corrected section 4972 excise tax

Contributions subject to section 4972 tax (sum of all contributions made for the year or carried over from previous years under section 404(a)(1)(E), 404(a)(3)(A)(ii), or 404(a)(7)(B), minus the sum of lines 17 and 21)
Section 4972 excise tax (10% times line 22)

15 1996–26 I.R.B.

Deletion from Cumulative List of Organizations Contributions to Which Are Deductible Under Section 170 of the Code

Announcement 96–27

The name of an organization that no longer qualifies as an organization described in section 170(c)(2) of the Internal Revenue Code of 1986 is listed below.

Generally, the Service will not disallow deductions for contributions made to a listed organization on or before the date of announcement in the Internal Revenue Bulletin that an organization no longer qualifies. However, the Service is not precluded from disallowing a deduction for any contributions made after an organization ceases to qualify under section 170(c)(2) if the organization has not timely filed a suit for declaratory judgment under section 7428 and if the contributor (1) had knowledge of the revocation of the ruling or determination letter, (2) was aware that such revocation was imminent, or (3) was in part responsible for or was aware of the activities or omissions of the organization that brought about this revocation.

If on the other hand a suit for declaratory judgment has been timely filed, contributions from individuals and organizations described in section 170(c)(2) that are otherwise allowable will continue to be deductible. Protection under section 7428(c) would begin on April 22, 1996, and would end on the date the court first determines that the organization is not described in section 170(c)(2) as more particularly set forth in section 7428(c)(1). For individual contributors, the maximum deduction protected is $1,000, with a husband and wife treated as one contributor. This benefit is not extended to any individual who was responsible, in whole or in part, for the acts or omissions of the organization that were the basis for revocation. American Flag Defender, Inc.

Berlin, MD

Nonbank Trustee Net Worth Requirements; Correction

Announcement 96–28

AGENCY: Internal Revenue Service, Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains corrections to final regulations (TD 8635 [1996–3 I.R.B. 5]) which were published in the Federal Register on Wednesday, December 20, 1995 (60 FR 65547), and relates to nonbank trustees with respect to the adequacy of net worth requirements that must be satisfied in order to be or remain an approved nonbank trustee.

EFFECTIVE DATE: December 20, 1995.

FOR FURTHER INFORMATION CONTACT: Marjorie Hoffman, (202) 622-6030 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the subject of these corrections are under sections 401 and 408 of the Internal Revenue Code.

Need for Correction

As published, the final regulations (TD 8635) contain errors that are misleading and in need of clarification.

Correction of Publication

Accordingly, the publication of the final regulations (TD 8635), which was the subject of FR Doc. 95–30684, is corrected as follows:

§ 1.401(f)–1 [Corrected]

On page 65549, column 1, amendatory instruction 2. under ‘‘Par. 4.’’, line 1 is corrected by adding a closed quotation mark following the number ‘‘401(d)(1)’’.

§ 1.408–2 [Corrected]

On page 65549, column 1, amendatory instruction 8. under ‘‘Par. 5.’’, line 3, the language ‘‘the language ’(n)(3) to (n)(7)’ and’’ is corrected to read ‘‘the language ’(n)(3) to (7)’ and’’.
On page 65549, column 1, amendatory instruction 9. under ‘‘Par. 5.’’, line 5, the language ‘‘adding ’the address prescribed by the’ is corrected

to read ’’adding ’address prescribed by the’; and in the last two lines, the language ‘‘(e)(6)(9)(iv), and in the first sentence of newly designated (e)(6)(v)(B).’’ is corrected to read ‘‘(e)(5)(iv), and in the first sentence of newly designated (e)(7)(v)(B).’’

On page 65549, column 2, the amendatory instruction 17. under ‘‘Par. 5.’’ is corrected to read as follows:
Removing the language ‘‘subparagraph, subdivision (n)(3)(v)’’ and adding ‘‘paragraph (e)(5), and paragraph (e)(2)(v)’’ in its place, and removing the language ‘‘subparagraph (n)(8)’’ and adding ‘‘paragraph (e)(7)’’ in its place, in newly designated paragraph (e)(5)(viii).
On page 65549, column 2, amendatory instruction 18. under ‘‘Par. 5.’’, line 3, the language ’(e)(5)(i)(A)(3)’ in its place, and‘‘ is corrected to read ’(e)(5)(i)(A)( 3 )’ in its place, and’’.
On page 65549, column 2, amendatory instruction 20. under ‘‘Par. 5.’’ is corrected to read as follows:
Adding new paragraph (e)(5)(ii)(A) and (D).
On page 65549, column 2, § 1.408–2 (e)(5)(ii)(A), second line from the bottom of the paragraph, the reference to ‘‘paragraph (e)(6)(ii)(B) and (C)’’ is corrected to read ‘‘paragraph (e)(5)(ii)(B) and (C)’’.
On page 65549, column 3, § 1.408–2 (e)(5)(ii)(D), sixth line from the top of the column, the reference to ‘‘paragraph (e)(5)(ii)(B)(2)’’ is corrected to read ‘‘paragraph (e)(5)(ii)(B)( 2 )’’.
On page 65549, column 3, § 1.408–2 (e)(5)(ii)(D), eighth line from the top of the column, the reference to ‘‘paragraph (e)(5)(ii)(C)(2)’’ is corrected to read ‘‘paragraph (e)(5)(ii)(C)( 2 )’’.
On page 65549, column 3, § 1.408–2 (e)(5)(ii)(D), ( ii ) paragraph (c) of the Example, line 2, the reference to ‘‘§ 1.408–2 (e)(6)(ii)(B)’’ is corrected to read ‘‘§ 1.408–2 (e)(5)(ii)(B)’’.
On page 65550, column 1, § 1.408–2 (e)(5)(ii)(D), ( ii ) paragraph (d) of the Example, line 2, the reference to ‘‘§ 1.408–2 (e)(6)(ii)(C)’’ is corrected to read ‘‘§ 1.408–2 (e)(5)(ii)(C)’’.

Michael L. Slaughter, Acting Chief, Regulations Unit Assistant Chief Counsel (Corporate).

1996–26 I.R.B. 16

Disclosure of Returns and Return Information to Procure Property or Services for Tax Administration Purposes; Correction

Announcement 96–30

AGENCY: Internal Revenue Service, Treasury.

ACTION: Correction to notice of proposed rulemaking.

SUMMARY: This document contains corrections to the notice of proposed rulemaking which was published in the Federal Register for Friday, December 15, 1995 (60 FR 64402). The proposed regulations relate to the disclosure of returns and return information in connection with the procurement of property and services for tax administration purposes.

FOR FURTHER INFORMATION CONTACT: Donald Squires, (202) 622-4570 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The notice of proposed rulemaking that is the subject of this correction is under section 6103 of the Internal Revenue Code.

Need for Correction

As published, the notice of proposed rulemaking contains errors that are in need of clarification.

Correction of Publication

Accordingly, the publication of the notice of proposed rulemaking which is the subject of FR Doc. 95–30505, is corrected as follows:

On page 64402, column three, in the heading, the ‘‘Agency number’’ ‘‘[DL–01–95]’’ is corrected to read ‘‘[DL–40–95]’’.
On page 64402, column three, in the preamble following the ‘‘ AD- DRESSES: ’’ caption, lines 2 and 8, the language ‘‘(DL–01–95)’’ is corrected to read ‘‘(DL–40–95)’’.

Cynthia E. Grigsby, Chief, Regulations Unit Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

March 19, 1996, 8:45 a.m., and published in the issue of the Federal Register for March 20, 1996, 61 F.R. 11307)

Backup Withholding, Statement Mailing Requirements, and Due Diligence; Correction

Announcement 96–29

AGENCY: Internal Revenue Service, Treasury.

ACTION: Correction to final and temporary regulations.

SUMMARY: This document contains corrections to final and temporary regulations (TD 8637 [1996–4 I.R.B. 29]) which were published in the Federal Register Thursday, December 21, 1995 (60 FR 66105), providing final and temporary rules on backup withholding, statement mailing requirements, and due diligence.

EFFECTIVE DATE: December 21, 1995.

FOR FURTHER INFORMATION CONTACT: Renay France of the Office of Assistant Chief Counsel (Income Tax and Accounting) with respect to domestic transactions, (202) 622-4910 (not a toll-free call); and Teresa Burridge Hughes of the Office of Assistant Chief Counsel (International) with respect to international transactions, (202) 622-3880 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final and temporary regulations that are the subject of these corrections are under sections 3406, 6042, 6044, 6049, and 6050N of the Internal Revenue Code.

Need for Correction

As published, the final and temporary regulations (TD 8637) contain errors which may prove to be misleading and are in need of clarification.

Correction of Publication

Accordingly, the publication of the final regulations (TD 8637), which was

the subject of FR Doc. 95–30733, is corrected as follows:

§ 1.6049–6 [Corrected]

On page 66111, column 2, in the Par. 4. amendatory instruction, an amendatory instruction is added after 2.c. to read ‘‘d. Paragraph (a), fifth sentence.’’

§ 31.3406(d)–4 [Corrected]

On page 66126, column 1, § 31.3406(d)–4 (a)(3), line 18, the language ‘‘as described in sections 3406(a)(1)(B) or’’ is corrected to read ‘‘as described in section 3406(a)(1)(B) or’’.
On page 66126, column 2, § 31.3406(d)–4 (b)(1)(iii), line 4, the language ‘‘subject to withholding under sections’’ is corrected to read ‘‘subject to withholding under section’’.

§ 31.3406(h)–2 [Corrected]

On page 66130, column 3, § 31.3406(h)–2 (b)(2)(i), line 5, the language ‘‘under section 3406 31 percent of the fair’’ is corrected to read ‘‘under section 3406, 31 percent of the fair’’.

PART 35a—[CORRECTED]

On page 66134, columns 1 and 2, Par. 12 and Par. 13 amendatory instructions are corrected to read as follows:

Par. 12. The authority citation for part 35a continues to read in part as follows:

Authority: 26 U.S.C. 7805 * - Par. 13. Section 35a.3406–2 is amended by adding paragraph (l) to read as follows:

§ 35a.3406–2 Imposition of backup withholding for notified payee underreporting of reportable interest or dividend payments.

- - - - -

(1) Effective date . This section is effective until December 31, 1996.

Michael L. Slaughter, Acting Chief, Regulations Unit Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

March 19, 1996, 8:45 a.m., and published in the issue of the Federal Register for March 20, 1996, 61 F.R. 11307)

17 1996–26 I.R.B.

(Filed by the Office of the Federal Register on

March 13, 1996, 8:45 a.m., and published in the issue of the Federal Register for March 14, 1996, 61 F.R. 10489)

Reissuance of Mortgage Credit Certificates; Hearing

Announcement 96–32

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of public hearing on proposed rulemaking.

SUMMARY: This document provides notice of a public hearing on proposed regulations relating to implementing a provision of the Tax Reform Act of 1984 permitting the reissuance of mortgage credit certificates.

DATES: The public hearing will be held on Wednesday, May 22, 1996, beginning at 10:00 a.m. Requests to speak and outlines of oral comments must be received by Wednesday, May 1, 1996.

ADDRESSES: The public hearing will be held in the Internal Revenue Service Commissioner’s Conference Room, Room 3313, Internal Revenue Building, 1111 Constitution Avenue, N.W., Washington, D.C. 20044. Requests to speak and outlines of oral comments should be mailed to the Internal Revenue Service, P.O. Box 7604, Ben F r a n k l i n S t a t i o n, A t t n : CC:DOM:CORP:R [FI–47–92], Room 5228, Washington, D.C., 20044.

FOR FURTHER INFORMATION CONTACT: Evangelista Lee of the Regulations Unit, Assistant Chief Counsel (Corporate), (202) 622-8452 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

The subject of the public hearing is proposed amendments to the Income Tax Regulations under section 25 of the Internal Revenue Code. The proposed regulations appeared in the Federal Register for Wednesday, December 22, 1993 (58 FR 67745). The rules of §601.601(a)(3) of the ‘‘Statement of Procedural Rules’’ (26 CFR Part 601) shall apply with respect to the public hearing. Persons who have submitted written comments

(Filed by the Office of the Federal Register on

March 8, 1996, 8:45 a.m., and published in the issue of the Federal Register for March 11, 1996, 61 F.R. 9660)

Allocation of Accrued Benefits Between Employer and Employee Contributions; Correction

Announcement 96–31

AGENCY: Internal Revenue Service, Treasury.

ACTION: Correction to notice of proposed rulemaking.

SUMMARY: This document contains corrections to the notice of proposed rulemaking (EE–35–95 [1996–5 I.R.B. 19]) which was published in the Federal Register on Friday, December 22, 1995 (60 FR 66532), relating to proposed regulations that provide guidance on calculation of an employee’s accrued benefit derived from the employee’s contributions to a qualified defined pension plan.

FOR FURTHER INFORMATION CONTACT: Janet A. Laufer, (202) 622-4606, (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The notice of proposed rulemaking that is the subject of this correction proposes amendments that reflect changes made to section 411(c)(2) by the Omnibus Budget Reconciliation Act of 1987 and the Omnibus Budget Reconciliation Act of 1989.

Need for Correction

As published, the notice of proposed rulemaking (EE–35–95) contains errors which may prove to be misleading and are in need of clarification.

Correction of Publication

Accordingly, the publication of the notice of proposed rulemaking (EE–35– 95), which was the subject of FR Doc. 95–31006, is corrected as follows:

§ 1.411(c)–1 [Corrected]

On page 66535, column 1, § 1.411(c)–1 (c)(6)(ii), paragraphs (1)

through (8) of Example 1., are correctly designated as paragraphs (A) through (H) of Example 1.

On page 66535, column 1, § 1.411(c)–1 (c)(6)(ii), newly designated paragraph (D) of Example 1., line 4, the language ‘‘determined in paragraph (3) of this Example ’’ is corrected to read ‘‘determined in paragraph (C) of this Example ’’.
On page 66535, column 1, § 1.411(c)–1 (c)(6)(ii), newly designated paragraph (D) of Example 1., the last line, the language ‘‘$11,913 — 9.196 = $1,295.’’ is corrected to read ‘‘$11,913 - 9.196 = $1,295.’’
On page 66535, column 1, § 1.411(c)–1 (c)(6)(ii), newly designated paragraph (H) of Example 1., second and third lines from the bottom of the column, the language ‘‘contributions, the sum of paragraphs (4) and (7) of this Example 1. ($1,295 + $1,654 =’’ is corrected to read ‘‘contributions, the sum of paragraphs (D) and (G) of this Example 1. ($1,295 + $1,654 =’’.
On page 66535, column 2, § 1.411(c)–1 (c)(6)(ii), paragraphs (1) through (5) of Example 2. are correctly designated as paragraphs (A) through (E) of Example 2.
On page 66535, column 2, § 1.411(c)–1 (c)(6)(ii), newly designated paragraph (B) of Example 2., last line, the language ‘‘($6,480 from paragraph 2 of Example 1 ).’’ is corrected to read ‘‘($6,480 from paragraph (B) of Example 1 ).’’
On page 66535, column 2, § 1.411(c)–1 (c)(6)(ii), newly designated paragraph (C) of Example 2., last line, the language ‘‘from paragraph 3 of Example 1 ).’’ is corrected to read ‘‘from paragraph (C) of Example 1 ).’’
On page 66535, column 2, § 1.411(c)–1 (c)(6)(ii), newly designated paragraph (D) of Example 2., line 4, the language ‘‘determined in paragraph (3) of this Example ’’ is corrected to read ‘‘determined in paragraph (C) of this Example ’’.
On page 66535, column 2, § 1.411(c)–1 (c)(6)(ii), newly designated paragraph (D) of Example 2., last line, the language ‘‘($1,295 from paragraph 4 of Example 1 )’’ is corrected to read ‘‘($1,295 from paragraph (D) of Example 1 )’’.

Cynthia E. Grigsby, Chief, Regulations Unit Assistant Chief Counsel (Corporate).

1996–26 I.R.B. 18

within the time prescribed in the notice of proposed rulemaking and who also desire to present oral comments at the hearing on the proposed regulations should submit not later than Wednesday, May 1, 1996, an outline of the oral comments/testimony to be presented at the hearing and the time they wish to devote to each subject.

Each speaker (or group of speakers representing a single entity) will be

limited to 10 minutes for an oral presentation exclusive of the time consumed by the questions from the panel for the government and answer thereto.

Because of controlled access restrictions, attenders cannot be admitted beyond the lobby of the Internal Revenue Building until 9:45 a.m.

An agenda showing the scheduling of the speakers will be made after

outlines are received from the persons testifying. Copies of the agenda will be available free of charge at the hearing.

Cynthia E. Grigsby, Chief, Regulations Unit Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

April 4, 1996, 8:45 a.m., and published in the issue of the Federal Register for April 5, 1996, 61 F.R. 15204)

19 1996–26 I.R.B.