SECTION 2. BACKGROUND

.01 Section 6011(a) of the Internal Revenue Code provides that any person

subject to the tax imposed by § 4261(a) and purchased mileage that does not meet either of these conditions.

These rules apply to amounts paid after September 30, 1997. However, any amount paid after June 11, 1997, by one member of a controlled group for a mileage award that is furnished by another member of the controlled group after September 30, 1997, is treated as paid after September 30, 1997.

The principal author of this notice is Patrick S. Kirwan of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this notice contact Mr. Kirwan at (202) 622-3130 (not a toll-free call).

Inflation-Adjusted Amounts for 2001

Notice 2001–12

PURPOSE

This notice clarifies Rev. Proc. 2001–13, 2001–3 I.R.B. (Jan. 16, 2001), to provide that the inflation-adjustment amounts set forth in Part I of section 3 of that revenue procedure are the applicable amounts for 2001 in light of recently enacted legislation.

BACKGROUND

Section 3 of Rev. Proc. 2001–13, released on December 15, 2000, set forth two alternative sets of inflation adjustment figures for 2001 for certain items. Part I of section 3 provided the figures for these items that would apply if certain legislation, pending on the date of release, were to be enacted. Part II of section 3 provided alternative figures for these items that would apply if the pending legislation were not enacted. Section 2.02 of Rev. Proc. 2001–13 stated that the Service would issue subsequent notification clarifying whether the amounts set forth in Part I or Part II of section 3 are in fact the appropriate figures for 2001.

The then-pending legislation was subsequently enacted as section 308 of H.R. 5662, the Community Renewal Tax Relief Act of 2000 (the “Act”), the text of which was incorporated by reference in section

1(a)(7) of the Consolidated Appropriations Act of 2001, Public Law 106–554, 106th Cong., 2nd Sess. (Dec. 21, 2000).

APPLICATION

As a result of section 308 of the Act, the tax tables and other items adjusted for inflation for 2001 in Rev. Proc. 2001–13 are required to reflect the unpublished corrections made by the Bureau of Labor Statistics in the Consumer Price Index for All Urban Consumers for September 1999 through December 1999. Thus, the applicable inflation-adjusted amounts for 2001 are those set forth in Part I of section 3 of Rev. Proc. 2001–13. Part II of section 3 should be disregarded. The specific items that are affected are:

(1) the tax rate tables (set forth in section 3.01);

(2) certain figures relating to the earned income tax credit (section 3.03);

(3) the aggregate amount of gifts received from foreign persons for purposes of information reporting under § 6039F (section 3.22); and

(4) the amount used to determine the validity of certain tax liens under § 6323(b)(7) (section 3.23).

EFFECT ON OTHER DOCUMENTS

Rev. Proc. 2001–13 is clarified.

DRAFTING INFORMATION

The principal author of this notice is Paul E. Tellier of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information regarding this notice contact Mr. Tellier at (202) 622-4930 (not a toll-free call).

26 CFR. 601.602: Tax forms and instructions. (Also Part I, secs. 6011, 6061, 6071, 6651; 31.6011(a)–3, 31.6011(a)–7, 31.6061–1, 301.6061–1, 31.6071(a)–1, 301.6651–1)

Rev. Proc. 2001–9

Table of Contents SECTION 1. PURPOSE SECTION 2. BACKGROUND SECTION 3. SCOPE SECTION 4. DEFINITIONS SECTION 5. APPLICATION FOR THE FORM 940 e-file PROGRAM

January 16, 2001 328 2001–3 I.R.B.

liable for any tax imposed by this title, or for the collection thereof, must make a return or statement according to the forms and regulations prescribed by the Secretary. Every person required to make a return or statement must include therein the information required by such forms or regulations.

.02 Section 31.6011(a)–3 of the Regulations on Employment Taxes and Collection of Income Tax at Source provides in general that every person must make a return of tax under the Federal Unemployment Tax Act for each calendar year in which the person is an employer as defined in section 31.3306(a)–1. Except as otherwise provided, Form 940 is the form prescribed for making the return.

.03 Section 31.6011(a)–7 provides that each return, together with any prescribed copies or supporting data, must be filled in and disposed of in accordance with the forms, instructions, and regulations applicable thereto. The return may be made by an agent in the name of the person required to make the return if an acceptable power of attorney is filed with the Internal Revenue Service office with which such person is required to file returns and if such a return includes all taxes required to be reported by such person on such return. Form 8655, Reporting Agent Authorization for Magnetic Tape/Electronic Filers, is an acceptable power of attorney, if prepared in accordance with the requirements set forth in Rev. Proc. 96–17, 1996–1 C.B. 633, as modified by section 18 of this revenue procedure.

.04 Section 31.6061–1 provides that the return may be signed for the taxpayer by an agent that is fully authorized in accordance with section 31.6011(a)–7 to make such return. An agent may sign the Form 940 on behalf of a taxpayer that has a valid form on file with the Service.

.05 Section 301.6061–1 of the Regulations on Procedure and Administration provides that the Secretary may prescribe in forms, instructions, or other appropriate guidance the method for signing any return, statement, or other document required to be made under any provision of the internal revenue laws or regulations. The Service has prescribed in Publication 3715 that an electronicallyfiled Form 940 is signed by the entry of the Authorized Signatory’s Personal

Identification Number (“PIN”).

.06 Section 31.6071(a)–1(c) generally provides that each return of the tax imposed by the Federal Unemployment Tax Act required to be made under section 31.6011(a)–3 must be filed on or before the last day of the first calendar month following the period for which it is made. However, that regulation also provides that a return may be filed on or before the 10th day of the second calendar month following the tax period if timely deposits under section 6302(c) of the Code and the regulations thereunder have been made in full payment of such tax due for the period.

.07 Procedures for the magnetic filing of Form 940 are in Rev. Proc. 96–18, 1996–1 C.B. 637, and the specifications are in Publication 1314. For further information, see Publication 1314, Form 940—Employer’s Federal Unemployment Tax Return (FUTA): File Specifications, Processing Criteria, and Record Layouts for Magnetic Tape Filing.