81 FR 65542 - Requirement To Notify the IRS of Intent To Operate as a Section 501(c)(4) Organization; Correction

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 81, Issue 185 (September 23, 2016)

Page Range		65542-65542
FR Document		2016-22939

This document contains a correction to final and temporary regulations (TD 9775) that were published in the Federal Register on July 12, 2016 (81 FR 45008). The final and temporary regulations are relating to the requirement, added by the Protecting Americans from Tax Hikes Act of 2015, that organizations must notify the IRS of their intent to operate under section 501(c)(4) of the Internal Revenue Code.

Federal Register, Volume 81 Issue 185 (Friday, September 23, 2016)

[Federal Register Volume 81, Number 185 (Friday, September 23, 2016)]
[Rules and Regulations]
[Page 65542]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-22939]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 9775]
RIN 1545-BN26


Requirement To Notify the IRS of Intent To Operate as a Section 
501(c)(4) Organization; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final and temporary regulations; correction.

-----------------------------------------------------------------------

SUMMARY: This document contains a correction to final and temporary 
regulations (TD 9775) that were published in the Federal Register on 
July 12, 2016 (81 FR 45008). The final and temporary regulations are 
relating to the requirement, added by the Protecting Americans from Tax 
Hikes Act of 2015, that organizations must notify the IRS of their 
intent to operate under section 501(c)(4) of the Internal Revenue Code.

DATES: This correction is effective on September 23, 2016 and 
applicable on July 12, 2016.

FOR FURTHER INFORMATION CONTACT: Chelsea Rubin at (202) 317-5800 (not a 
toll free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final and temporary regulations (TD 9775) that are the subject 
of this correction are under section 501(c)(4) of the Internal Revenue 
Code.

Need for Correction

    As published, the final and temporary regulations (TD 9775) contain 
errors that may prove to be misleading and are in need of 
clarification.

Correction of Publication

    Accordingly, the final and temporary regulations (TD 9775), that 
are the subject of FR Doc. 2016-16338, is corrected as follows:
    1. On page 45010, in the preamble, the first column, the tenth line 
of the second full paragraph, the language ``2016-41, 2016-30 IRB xxxx, 
which'' is corrected to read ``2016-41, 2016-30 IRB 165, which''.
    2. On page 45010, in the preamble, the third column, under the 
paragraph heading ``5. Separate Procedure by Which an Organization May 
Request an IRS Determination That It Qualifies for Section 501(c)(4) 
Exempt Status'', the twenty-first line of the first full paragraph, the 
language ``prescribed in Revenue Procedure 2016-'' is corrected to read 
``prescribed in Rev. Proc. 2016-''.

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2016-22939 Filed 9-22-16; 8:45 am]
 BILLING CODE 4830-01-P

65542 Federal Register / Vol. 81, No. 185 / Friday, September 23, 2016 / Rules and Regulations

Correction of Publication Correction of Publication SUPPLEMENTARY INFORMATION:
Accordingly, the final regulations (TD Accordingly, the final and temporary Executive Summary
9774), that are the subject of FR Doc. regulations (TD 9775), that are the
2016–16149, is corrected as follows: subject of FR Doc. 2016–16338, is Purpose of the Regulatory Action
1. On page 44512, in the preamble, corrected as follows: This final rule is needed to reduce the
the first column, under the heading ‘‘7. 1. On page 45010, in the preamble, financial burden of PBGC’s late
Accounting Method Changes’’, the ninth the first column, the tenth line of the premium penalties. The rulemaking
line of the second full paragraph, the second full paragraph, the language reduces penalty rates for all plans and
language ‘‘Proc. 2016–39 (2016–30 IRB), ‘‘2016–41, 2016–30 IRB xxxx, which’’ is waives most of the penalty for plans that
which’’ is corrected to read ‘‘Proc. corrected to read ‘‘2016–41, 2016–30 meet a standard for good compliance
2016–39 (2016–30 IRB 164), which’’. IRB 165, which’’. with premium requirements.
2. On page 45010, in the preamble, PBGC’s legal authority for this action
Martin V. Franks, the third column, under the paragraph comes from section 4002(b)(3) of the
Chief, Publications and Regulations Branch, heading ‘‘5. Separate Procedure by Employee Retirement Income Security
Legal Processing Division, Associate Chief Which an Organization May Request an
Counsel (Procedure and Administration). Act of 1974 (ERISA), which authorizes
IRS Determination That It Qualifies for PBGC to issue regulations to carry out
[FR Doc. 2016–22950 Filed 9–22–16; 8:45 am] Section 501(c)(4) Exempt Status’’, the the purposes of title IV of ERISA, and
BILLING CODE 4830–01–P twenty-first line of the first full section 4007 of ERISA, which gives
paragraph, the language ‘‘prescribed in PBGC authority to assess late payment
Revenue Procedure 2016–’’ is corrected penalties.
DEPARTMENT OF THE TREASURY to read ‘‘prescribed in Rev. Proc.
2016–’’. Major Provisions of the Regulatory
Internal Revenue Service Action
Martin V. Franks,
26 CFR Parts 1 and 602 Chief, Publications and Regulations Branch,
The penalty for late payment of a
Legal Processing Division, Associate Chief premium is a percentage of the amount
[TD 9775] paid late multiplied by the number of
Counsel, (Procedure and Administration).
RIN 1545–BN26 [FR Doc. 2016–22939 Filed 9–22–16; 8:45 am] full or partial months the amount is late,
BILLING CODE 4830–01–P
subject to a floor of $25 (or the amount
Requirement To Notify the IRS of Intent of premium paid late, if less). There are
To Operate as a Section 501(c)(4) two levels of penalty, which heretofore
Organization; Correction have been 1 percent per month (with a
PENSION BENEFIT GUARANTY
50 percent cap) and 5 percent per month
AGENCY: Internal Revenue Service (IRS), CORPORATION
(capped at 100 percent). The lower rate
Treasury. applies to ‘‘self-correction’’—that is,
29 CFR Part 4007
ACTION: Final and temporary where the premium underpayment is
regulations; correction. RIN 1212–AB32 corrected before PBGC gives notice that
there is or may be an underpayment.
SUMMARY: This document contains a Payment of Premiums; Late Payment
This final rule cuts the rates and caps
correction to final and temporary Penalty Relief
in half (to 1⁄2 percent with a 25 percent
regulations (TD 9775) that were
AGENCY: Pension Benefit Guaranty cap and 21⁄2 percent with a 50 percent
published in the Federal Register on
Corporation. cap, respectively) and eliminates the
July 12, 2016 (81 FR 45008). The final
ACTION: Final rule. floor.
and temporary regulations are relating
The rulemaking also creates a new
to the requirement, added by the SUMMARY: The Pension Benefit Guaranty penalty waiver that applies to
Protecting Americans from Tax Hikes Corporation (PBGC) is lowering the rates underpayments by plans with good
Act of 2015, that organizations must of penalty charged for late payment of compliance histories if corrected
notify the IRS of their intent to operate premiums by all plans, and providing a promptly after notice from PBGC. PBGC
under section 501(c)(4) of the Internal waiver of most of the penalty for plans will waive 80 percent of the penalty
Revenue Code. with a demonstrated commitment to assessed for such a plan.
DATES: This correction is effective on premium compliance.
September 23, 2016 and applicable on DATES: Effective date: This rule is Background
July 12, 2016. effective on October 24, 2016. PBGC administers the pension plan
FOR FURTHER INFORMATION CONTACT: Applicability date: The changes made termination insurance program under
Chelsea Rubin at (202) 317–5800 (not a by this rule apply to late premium title IV of the Employee Retirement
toll free number). payments for plan years beginning after Income Security Act of 1974 (ERISA).
SUPPLEMENTARY INFORMATION: 2015. Under ERISA sections 4006 and 4007,
FOR FURTHER INFORMATION CONTACT: plans covered by title IV must pay
Background Deborah C. Murphy, Assistant General premiums to PBGC. PBGC’s premium
The final and temporary regulations Counsel for Regulatory Affairs regulations—on Premium Rates (29 CFR
(TD 9775) that are the subject of this (murphy.deborah@pbgc.gov), Office of part 4006) and on Payment of Premiums
correction are under section 501(c)(4) of the General Counsel, Pension Benefit (29 CFR part 4007)—implement ERISA
Guaranty Corporation, 1200 K Street sections 4006 and 4007.
rmajette on DSK2TPTVN1PROD with RULES

the Internal Revenue Code.
NW., Washington DC 20005–4026; 202– ERISA section 4007(b)(1) provides
Need for Correction 326–4400 extension 3451. (TTY and that if a premium is not paid when due,
As published, the final and temporary TDD users may call the Federal relay PBGC is authorized to assess a penalty
regulations (TD 9775) contain errors that service toll-free at 800–877–8339 and up to 100 percent of the overdue
may prove to be misleading and are in ask to be connected to 202–326–4400 amount. The statute does not condition
need of clarification. extension 3451.) exercise of this authority on a finding of

VerDate Sep<11>2014 15:10 Sep 22, 2016 Jkt 238001 PO 00000 Frm 00012 Fmt 4700 Sfmt 4700 E:\FR\FM\23SER1.SGM 23SER1

Document Created: 2016-09-23 01:43:36
Document Modified: 2016-09-23 01:43:36

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final and temporary regulations; correction.
Dates		This correction is effective on September 23, 2016 and applicable on July 12, 2016.
Contact		Chelsea Rubin at (202) 317-5800 (not a toll free number).
FR Citation		81 FR 65542
RIN Number		1545-BN26
CFR Citation		26 CFR 1 26 CFR 602

81 FR 65542 - Requirement To Notify the IRS of Intent To Operate as a Section 501(c)(4) Organization; Correction

DEPARTMENT OF THE TREASURYInternal Revenue Service

Federal Register Volume 81, Issue 185 (September 23, 2016)

DEPARTMENT OF THE TREASURY
Internal Revenue Service