EMPLOYMENT TAX

Notice 2016–49 page 265. The Treasury Department and the IRS recently issued temporary and proposed regulations under section 7705 of the Internal Revenue Code (Code) addressing the requirements relating to an application for and maintenance of certification as a Certified Professional Employer Organization (CPEO), as well as a revenue procedure setting forth detailed procedures for applying for certification as a CPEO. In response to comments that certain requirements in the regulations and revenue procedure may inappropriately limit the ability of persons to apply for and maintain certification as a CPEO, this notice specifies revisions that are intended to be made to the temporary regulations and revenue procedure and provides reliance until further guidance containing those revisions is published. In addition, this notice provides CPEO applicants with additional time to submit a complete and accurate application for certification in order to be eligible for an effective date of certification of January 1, 2017.