Internal Revenue Bulletin: 2007-8
February 20, 2007
Table of Contents
This document contains correction to final regulations (T.D. 9276, 2006-37 I.R.B. 423) 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.
The final regulations that are the subject of this correction are under sections 3401 and 3402 of the Internal Revenue Code.
As published, final regulations (T.D. 9276) contain an error that may prove to be misleading and is in need of clarification.
* * * * *
Accordingly, 26 CFR part 31 is corrected by making the following correcting amendment:
Paragraph 1. The authority citation for part 31 continues to read, in part, as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 31.3402(g)-1(a)(8) is amended by revising the last sentence of Example 3 paragraph (iv). The revision reads as follows:
(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.
* * * * *
LaNita Van Dyke,
Chief, Publications and Regulations Branch,
Legal Processing Division,
Associate Chief Counsel
(Procedure and Administration).
(Filed by the Office of the Federal Register on January 25, 2007, 8:45 a.m., and published in the issue of the Federal Register for January 26, 2007, 72 F.R. 3734)
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