Treasury Decision 9645

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Federal Register / Vol. 78, No. 230 / Friday, November 29, 2013 / Rules and Regulations

DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 31
[TD 9645]
RIN 1545–BK54

Rules Relating to Additional Medicare
Tax
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations.
AGENCY:

This document contains final
regulations relating to Additional
Hospital Insurance Tax on income
above threshold amounts (‘‘Additional
Medicare Tax’’), as added by the
Affordable Care Act. Specifically, these
final regulations provide guidance for
employers and individuals relating to
the implementation of Additional
Medicare Tax, including the
requirement to withhold Additional
Medicare Tax on certain wages and
compensation, the requirement to file a
return reporting Additional Medicare
Tax, the employer process for adjusting
underpayments and overpayments of
Additional Medicare Tax, and the
employer and individual processes for
filing a claim for refund for an
overpayment of Additional Medicare
Tax.
DATES: Effective date: These regulations
are effective on November 29, 2013.
Applicability date: For dates of
applicability, see §§ 1.1401–1(e),
31.3101–2(d), 31.3102–1(f), 31.3102–
4(d), 31.3202–1(h), 31.6011(a)–1(h),
31.6011(a)–2(e), 31.6205–1(e),
31.6402(a)–2(c), 31.6413(a)–1(c), and
31.6413(a)–2(e).
FOR FURTHER INFORMATION CONTACT:
Andrew K. Holubeck at (202) 317–4774
(not a toll-free number).
SUPPLEMENTARY INFORMATION:

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SUMMARY:

Paperwork Reduction Act
The collection of information
contained in these final regulations has
been reviewed and approved by the
Office of Management and Budget in
accordance with the Paperwork
Reduction Act (PRA) of 1995 (44 U.S.C.
3507(d)) under control number 1545–
2097. The collection of information in
these regulations is in §§ 31.6011(a)–1,
31.6011(a)–2, 31.6205–1, 31.6402(a)–2,
31.6413(a)–1, and 31.6413(a)–2. This
information is required by the IRS to
verify compliance with return
requirements under section 6011,
employment tax adjustments under
sections 6205 and 6413, and claims for
refund of overpayments under section

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6402. This information will be used to
determine whether the amount of tax
has been reported and calculated
correctly. The likely respondents are
employers and individuals.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid control
number assigned by the Office of
Management and Budget.
Books or records relating to a
collection of information must be
retained as long as their contents may
become material in the administration
of any internal revenue law. Generally,
tax returns and tax return information
are confidential, as required by 26
U.S.C. 6103.
Background
These final regulations are issued in
connection with the Additional Hospital
Insurance Tax on income above
threshold amounts (‘‘Additional
Medicare Tax’’), as added by section
9015 of the Patient Protection and
Affordable Care Act (PPACA), Public
Law 111–148 (124 Stat. 119 (2010)), and
as amended by section 10906 of the
PPACA and section 1402(b) of the
Health Care and Education
Reconciliation Act of 2010, Public Law
111–152 (124 Stat. 1029 (2010))
(collectively, the ‘‘Affordable Care
Act’’). The final regulations include
amendments to § 1.1401–1 of the
Income Tax Regulations, and
§§ 31.3101–2, 31.3102–1, 31.3102–4,
31.3202–1, 31.6011(a)–1, 31.6011(a)–2,
31.6205–1, 31.6402(a)–2, 31.6413(a)–1,
and 31.6413(a)–2 of the Employment
Tax Regulations. The final regulations
provide guidance for employers and
individuals relating to the
implementation of Additional Medicare
Tax, including the requirement to
withhold Additional Medicare Tax on
certain wages and compensation, the
requirement to file a return reporting
Additional Medicare Tax, the employer
process for adjusting underpayments
and overpayments of Additional
Medicare Tax, and the employer and
individual processes for filing a claim
for refund of Additional Medicare Tax.
A notice of proposed rulemaking
(REG–130074–11) was published in the
Federal Register (77 FR 72268) on
December 5, 2012. A public hearing was
scheduled for April 4, 2013. The IRS did
not receive any requests to testify at the
public hearing, and therefore the public
hearing was cancelled. Comments
responding to the proposed regulations
were received. All comments were
considered and are available for public
inspection and copying at http://
www.regulations.gov or upon request.

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After consideration of all the comments,
the proposed regulations are adopted as
amended by this Treasury decision. The
public comments and revisions are
discussed in this preamble.
Summary of Comments and
Explanation of Revisions
The IRS received five comments in
response to the proposed regulations.
One commenter expressed concern that
the 2013 Old Age, Survivors and
Disability Insurance (OASDI) tax rate for
employees of 6.2 percent was applied to
wages for services performed in the last
two weeks of 2012, when the OASDI tax
rate for employees was 4.2 percent. This
comment is outside the scope of these
regulations.
Another commenter requested that
the comment period for the proposed
regulations be extended by 60 days. The
Administrative Procedure Act does not
set a time frame for a comment period
on regulations. However, Executive
Order (E.O.) 12866 provides that
generally a comment period should be
no less than 60 days. The public was
given 90 days to comment on the
proposed regulations, which exceeds
the period required by E.O. 12866. The
IRS received only five comments during
the 90-day comment period, no
comments were received after the 90day comment period expired, and there
is no indication that more comments
would have been received if the
comment period had been extended.
Therefore, an extension of the comment
period beyond the 90 days provided in
the proposed regulations was not
warranted.
One commenter noted that because
Additional Medicare Tax will involve
new recordkeeping and withholding
procedures for employers and certain
employees, there may be inadvertent
errors involved with implementing the
tax, especially in the first year of
implementation. Therefore, the
commenter requested that the IRS grant
employers flexibility in correcting
overpayments and underpayments of
Additional Medicare Tax by allowing
additional time to correct errors,
allowing corrections for a certain period
without penalty, and granting an
exemption from penalties for de
minimis errors.
No such changes were made in these
final regulations. The regulations under
§§ 31.6205–1(a) and 31.6413(a)–2
already allow employers flexibility in
making interest-free adjustments of
underpayments and overpayments and,
to the extent an employer discovers an
error in withholding, paying, or
reporting Additional Medicare Tax, the
regulations provide procedures for

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Federal Register / Vol. 78, No. 230 / Friday, November 29, 2013 / Rules and Regulations
correcting that error on an adjusted
employer return generally without
imposition of interest. Further, under
sections 6651 and 6656, penalties for
failure to pay or deposit Additional
Medicare Tax do not apply to the extent
the failure is due to reasonable cause
and not willful neglect.
To correct an overpayment of income
tax or Additional Medicare Tax, an
employer may make an adjustment only
if it repays or reimburses the employee
prior to the end of the calendar year in
which the wages or compensation was
paid. Similarly, to correct an
underpayment of income tax or
Additional Medicare Tax, an employer
may make an interest-free adjustment
only if the error is ascertained within
the calendar year in which the wages or
compensation was paid. Because
employees will report Additional
Medicare Tax on Form 1040, ‘‘U.S.
Individual Tax Return,’’ allowing
employers time beyond the end of the
calendar year in which the error was
made to correct overpayments and
underpayments would create
complexity and confusion for
individuals filing individual income tax
returns and would adversely affect tax
administration. Accordingly, these final
regulations do not include additional
procedures specifically for correcting
Additional Medicare Tax errors, but
rather generally rely on existing
procedures for correcting income tax
withholding errors.
One commenter questioned how
employers should treat repayment by an
employee of wage payments received by
the employee in a prior year for
Additional Medicare Tax purposes (for
example, sign on bonuses paid to
employees that are subject to repayment
if certain conditions are not satisfied).
Employers cannot make an adjustment
or file a claim for refund for Additional
Medicare Tax withholding when there
is a repayment of wages received by an
employee in a prior year because the
employee determines liability for
Additional Medicare Tax on the
employee’s income tax return for the
prior year; however, the employee may
be able to file an amended return
claiming a refund of the Additional
Medicare Tax.
More specifically, under current
employment tax adjustment procedures,
if the repayment occurs within the
period of limitations for refund, the
employer can repay or reimburse the
social security and Medicare taxes
withheld from the wage payment to the
employee and file a refund claim, or
make an interest-free adjustment, for the
social security and Medicare tax
overwithholding. However, under

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§ 31.6413(a)–1(a)(2)(ii) of these
regulations, an employer may adjust
overpaid Additional Medicare Tax
withheld from employees only in the
calendar year in which the wages or
compensation are paid, and only if the
employer repays or reimburses the
employee the amount of the
overcollection prior to the end of the
calendar year. Further, under
§ 31.6402(a)–2(a)(1)(iii) of these
regulations, employers may claim a
refund of overpaid Additional Medicare
Tax only if the employer did not deduct
or withhold the overpaid Additional
Medicare Tax from the employee’s
wages or compensation. Accordingly,
these regulations at § 31.6402(a)–
2(b)(3)(ii) provide that, in the case of an
overpayment of Additional Medicare
Tax for a year for which an individual
has filed Form 1040, a claim for refund
should be made by the individual on
Form 1040X, ‘‘Amended U.S. Individual
Income Tax Return.’’ Since a wage
repayment reduces the wages subject to
Additional Medicare Tax for the period
during which the wages were originally
paid, the employee is entitled to file an
amended return (on Form 1040X) to
recover Additional Medicare Tax with
respect to the repaid wages.1
Finally, one commenter expressed
concern about the impact of the
regulations on the small business and
individual community. The commenter
disagreed with the conclusion in the
proposed regulations that no regulatory
assessment was required under E.O.
12866 because the rulemaking is not a
significant regulatory action. The
commenter also disagreed with the
conclusion in the proposed regulations
that a regulatory flexibility analysis was
not required under the Regulatory
Flexibility Act (5 U.S.C. 601) (RFA)
because the collection of information
contained in the proposed regulations
will not have a significant economic
1 In this situation, Additional Medicare Tax is
treated differently than federal income tax. For
federal income tax purposes, wages paid in a year
are considered income to the employee in that year,
even when the wages are repaid by the employee
to the employer in a subsequent year. If an
employee repays wages to an employer in a year
following the year in which the wages were
originally paid, the employee cannot reduce the
federal income tax for the prior year (i.e., the
employee cannot file an amended income tax return
for the prior year using Form 1040X). Instead,
depending on the circumstances, the employee may
be entitled to a deduction for the repaid wages (or
in some cases, if the requirements of section 1341
are satisfied, a reduction of tax) on his or her
income tax return for the year of repayment. By
contrast, the Additional Medicare Tax is part of
FICA and, similar to social security tax and
Medicare tax, the repayment of wages reduces the
employee’s liability for Additional Medicare Tax for
the prior year.

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impact on a substantial number of small
entities.
Section 3(a)(4)(B) of E.O. 12866
requires agencies to prepare a regulatory
assessment for ‘‘significant regulatory
actions’’ as defined in section 3(f) of
E.O. 12866. As part of its definition of
significant regulatory actions, section
3(f) includes economically significant
regulations, that is, regulatory actions
that are likely to have an annual effect
on the economy of $100 million or
more. The commenter contends that the
skills equivalent to a junior associate
accountant would be needed to comply
with the regulations. The commentator
contends that, assuming a junior
associate reasonably bills for services at
the rate of $100 per hour, and using the
estimated annual reporting or
recordkeeping burden for these
regulations of 1,900,000 hours, the
estimated annual effect on the economy
is $190 million.
The Treasury Department and the IRS
do not agree with the commenter’s
assertion that all individuals and
entities subject to these regulations will
require the services of an accountant.
Many employers utilize payroll service
providers that are equipped to comply
with these regulations and that will
include Additional Medicare Tax as part
of the payroll services they provide.
Other employers and individuals will be
able to comply with these regulations
without assistance by following the
instructions that accompany tax forms
and by utilizing other information
provided by the IRS. Therefore, neither
the proposed regulations, nor these final
regulations, are significant regulatory
actions within the meaning of E.O.
12866, and a regulatory assessment is
not required.
The RFA requires agencies to prepare
a regulatory flexibility analysis
addressing the impact of proposed or
final regulations on small entities. The
proposed regulations certified that a
regulatory flexibility analysis is not
required because the collection of
information contained in the regulations
will not have a significant economic
impact on a substantial number of small
entities. The commenter challenged this
certification.
A ‘‘collection of information’’ is
defined in the RFA as a requirement
that a small entity report information to
the Federal Government, or maintain
specified records, regardless of whether
the information in those records is
reported to the Federal Government.
The regulations contain a collection of
information requirement.
The RFA does not define ‘‘substantial
number.’’ In general, for purposes of the
RFA, regulations with a broad effect on

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business are presumed to have an
impact on a substantial number of small
entities. Since these regulations have a
broad effect on business, these
regulations will have an impact on a
substantial number of small entities.
The RFA also does not define
‘‘significant economic impact.’’ As
stated in connection with the discussion
of E.O. 12866, the commenter assumed
a billing rate of $100 per hour, and
multiplied that rate by the estimated
aggregate annual PRA reporting or
recordkeeping burden for these
regulations of 1,900,000 hours, to
estimate the annual effect on the
economy to be $190 million. Based on
this calculation, the commenter
concluded that the collection of
information had a significant economic
impact on a substantial number of small
entities.
The commenter’s approach is not an
appropriate measure of the economic
impact of these regulations on small
entities. The 1,900,000 hours estimated
to be the aggregate annual PRA burden
for these regulations represents an
estimated 1,900,000 respondents with
an estimated average annual burden per
respondent of 1 hour. The number of
respondents comprises all respondents
affected by these regulations, including
individuals as well as entities. It is not
an estimated number of affected entities
only. The IRS estimates that
approximately 325,000 entities report
Medicare wages to one or more
individuals in excess of the $200,000
Additional Medicare Tax withholding
threshold. Thus, approximately 325,000
entities, encompassing both large and
small entities, are affected by these
regulations. Therefore, the reporting or
recordkeeping burden of these
regulations on small entities is
estimated to be significantly less than
1,900,000 hours. The commenter’s use
of this number to assess the annual
economic impact of these regulations on
small entities is incorrect.
In addition, to the extent that there is
a significant economic impact, the
economic impact principally results
directly from the underlying statutes.
For example, the statute imposing
Additional Medicare Tax requires the
employer to withhold the tax from
wages paid to the employee. Other
provisions of the Internal Revenue Code
(Code) require the employer to report
and pay the correct amount of withheld
tax to the government. Similarly, the
collection of information required with
regard to interest-free adjustments and
claims for refund apply existing
statutory rules to Additional Medicare
Tax. The regulations implement the
underlying statutes and provide

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guidance for employers and individuals
relating to the requirement to file a
return reporting Additional Medicare
Tax, the employer process for making
adjustments of underpayments and
overpayments of Additional Medicare
Tax, and the employer and individual
processes for filing a claim for refund
for an overpayment of Additional
Medicare Tax. As a result, the estimated
annual PRA burden per taxpayer for
these regulations is very low.
Consequently, the economic impact of
these regulations is not expected to be
significant, and neither the proposed
regulations nor these final regulations
will have a significant economic impact
on a substantial number of small entities
within the meaning of the RFA.
Therefore a regulatory flexibility
analysis is not required.
The proposed regulations provided
that if the employer deducts less than
the correct amount of Additional
Medicare Tax, it is nevertheless liable
for the correct amount of tax that it was
required to withhold, unless and until
the employee pays the tax. Consistent
with section 3102(f)(3) of the Code, the
proposed regulations also provided that
if an employee subsequently pays the
tax that the employer failed to deduct,
the tax will not be collected from the
employer. These final regulations
further provide that an employer is not
relieved of its liability for payment of
any Additional Medicare Tax required
to be withheld unless it can show that
the tax has been paid by the employee.
Section 3102(f)(3) contains language
similar to section 3402(d) of the Code,
and this provision of the final
regulations is consistent with the
approach used in the regulations under
section 3402(d). Employers will use
Form 4669, ‘‘Statement of Payments
Received,’’ and Form 4670, ‘‘Request for
Relief from Payment of Income Tax
Withholding,’’ the same forms used for
requesting federal income tax
withholding relief, to request relief from
paying Additional Medicare Tax that
has already been paid by the employee.
The final regulations also amend the
proposed regulations to comply with
formatting requirements of the Office of
the Federal Register.
Special Analyses
It has been determined that this
Treasury decision is not a significant
regulatory action as defined in E.O.
12866, and supplemented by E.O.
13653. The regulations implement the
underlying statutes and the economic
impact is principally a result of the
underlying statutes, rather than the
regulations. Therefore, a regulatory
assessment is not required. It has also

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been determined that section 553(b) of
the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these
regulations.
Sections 603 and 604 of the RFA (5
U.S.C. chapter 6) generally require
agencies to prepare a regulatory
flexibility analysis addressing the
impact of proposed and final
regulations, respectively, on small
entities. Section 605(b) of the RFA,
however, provides that sections 603 and
604 shall not apply if the head of the
agency certifies that the rule will not
have a significant economic impact on
a substantial number of small entities.
For the reasons discussed in the
Summary of Comments section of the
preamble, as well as the reasons set
forth in the succeeding paragraphs, it is
hereby certified that the collection of
information requirements contained in
these regulations will not have a
significant economic impact on a
substantial number of small entities.
The regulations under sections 6205,
6402, and 6413 affect all taxpayers that
file employment tax returns or claims
for refund of employment taxes. Many
small entities fall into this category.
Therefore, it has been determined that
these regulations will affect a
substantial number of small entities. It
also has been determined, however, that
the economic impact on entities affected
by these regulations will not be
significant.
As stated above, the regulations
implement the underlying statutes and
the economic impact is principally a
result of the underlying statutes, rather
than the regulations. The regulations
require taxpayers that file employment
tax returns and that make interest-free
adjustments to the returns for
underpayments or overpayments of
Additional Medicare Tax, or that file
claims for refund of an overpayment of
Additional Medicare Tax, to provide an
explanation setting forth the basis for
the correction or the claim in detail,
designating the return period in which
the error was ascertained and the return
period being corrected, and setting forth
such other information as may be
required by the instructions to the form.
In addition, for adjustments of
overpayments of Additional Medicare
Tax, employers must obtain and retain
the written receipt of the employee
showing the date and amount of the
repayment to the employee or retain
evidence of reimbursement. The
requirement to collect this information
is not newly imposed by these
regulations. The regulations merely
apply procedures from existing
regulations, with appropriate

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Federal Register / Vol. 78, No. 230 / Friday, November 29, 2013 / Rules and Regulations
modifications, to corrections of
Additional Medicare Tax.
It is estimated that the annual PRA
burden per taxpayer to comply with the
collection of information requirements
in these regulations is one hour. This
minimal burden does not constitute a
significant economic impact.
Accordingly, a regulatory flexibility
analysis is not required.
Pursuant to section 7805(f) of the
Code, the proposed regulations
preceding these regulations were
submitted to the Chief Counsel for
Advocacy of the Small Business
Administration for comment on its
impact on small business.
Drafting Information
The principal author of the
regulations is Andrew Holubeck of the
Office of the Division Counsel/Associate
Chief Counsel (Tax Exempt and
Government Entities). However, other
personnel from the IRS and the 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.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 1 and 31
are amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:

■

Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 1.1401–1 is amended
by revising paragraph (b) and adding
paragraphs (d) and (e) to read as follows:

■

§ 1.1401–1
income.

Tax on self-employment

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*

*
*
*
*
(b) The rates of tax on selfemployment income are as follows
(these regulations do not reflect off-Code
revisions to the following rates):
(1) For Old-age, Survivors, and
Disability Insurance:
Taxable year
Beginning after December
31, 1983 and before January 1, 1988 ........................

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Percent

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Taxable year

Percent

Beginning after December
31, 1987 and before January 1, 1990 ........................
Beginning after December
31, 1989 ............................

12.12
12.40

(2)(i) For Hospital Insurance:
Taxable year

Percent

Beginning after December
31, 1983 and before January 1, 1985 ........................
Beginning after December
31, 1984 and before January 1, 1986 ........................
Beginning after December
31, 1985 ............................

2.60
2.70
2.90

(ii) For Additional Medicare Tax:
Taxable year

Percent

Beginning after December
31, 2012 ............................

0.9

*

*
*
*
*
(d) Special rules regarding Additional
Medicare Tax. (1) General rule. An
individual is liable for Additional
Medicare Tax to the extent that his or
her self-employment income exceeds
the following threshold amounts.
Filling status

Threshold

Married individual filing a
joint return .........................
Married individual filing a
separate return ..................
Any other case .....................

$250,000
125,000
200,000

Note: These threshold amounts are
specified under section 1401(b)(2)(A).
(2) Coordination with Federal
Insurance Contributions Act. (i) General
rule. Under section 1401(b)(2)(B), the
applicable threshold specified under
section 1401(b)(2)(A) is reduced (but not
below zero) by the amount of wages (as
defined in section 3121(a)) taken into
account in determining Additional
Medicare Tax under section 3101(b)(2)
with respect to the taxpayer. This rule
does not apply to Railroad Retirement
Tax Act (RRTA) compensation (as
defined in section 3231(e)).
(ii) Examples. The rules provided in
paragraph (d)(2)(i) of this section are
illustrated by the following examples:
Example 1. A, a single filer, has $130,000
in self-employment income and $0 in wages.
A is not liable to pay Additional Medicare
Tax.
Example 2. B, a single filer, has $220,000
in self-employment income and $0 in wages.
B is liable to pay Additional Medicare Tax
on $20,000 ($220,000 in self-employment
income minus the threshold of $200,000).

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Example 3. C, a single filer, has $145,000
in self-employment income and $130,000 in
wages. C’s wages are not in excess of
$200,000 so C’s employer did not withhold
Additional Medicare Tax. However, the
$130,000 of wages reduces the selfemployment income threshold to $70,000
($200,000 threshold minus the $130,000 of
wages). C is liable to pay Additional
Medicare Tax on $75,000 of self-employment
income ($145,000 in self-employment
income minus the reduced threshold of
$70,000).
Example 4. E, who is married and files a
joint return, has $140,000 in self-employment
income. F, E’s spouse, has $130,000 in wages.
F’s wages are not in excess of $200,000 so F’s
employer did not withhold Additional
Medicare Tax. However, the $130,000 of F’s
wages reduces E’s self-employment income
threshold to $120,000 ($250,000 threshold
minus the $130,000 of wages). E and F are
liable to pay Additional Medicare Tax on
$20,000 of E’s self-employment income
($140,000 in self-employment income minus
the reduced threshold of $120,000).
Example 5. D, who is married and files
married filing separately, has $150,000 in
self-employment income and $200,000 in
wages. D’s wages are not in excess of
$200,000 so D’s employer did not withhold
Additional Medicare Tax. However, the
$200,000 of wages reduces the selfemployment income threshold to $0
($125,000 threshold minus the $200,000 of
wages). D is liable to pay Additional
Medicare Tax on $75,000 of wages ($200,000
in wages minus the $125,000 threshold for a
married filing separately return) and on
$150,000 of self-employment income
($150,000 in self-employment income minus
the reduced threshold of $0).

(e) Effective/applicability date.
Paragraphs (b) and (d) of this section
apply to quarters beginning on or after
November 29, 2013.
PART 31—EMPLOYMENT TAXES AND
COLLECTION OF INCOME TAX AT THE
SOURCE
Par. 3. The authority citation for part
31 continues to read in part as follows:

■

Authority: 26 U.S.C. 7805 * * *

Par. 4. Revise § 31.3101–2 to read as
follows:
§ 31.3101–2 Rates and computation of
employee tax.

(a) Old-Age, Survivors, and Disability
Insurance. The rates of employee tax for
Old-Age, Survivors, and Disability
Insurance (OASDI) with respect to
wages received in calendar years after
1983 are as follows (these regulations do
not reflect off-Code revisions to the
following rates):
Calendar year
1984, 1985, 1986, or 1987 ...
1988 or 1989 ........................
1990 and subsequent years

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Percent
5.7
6.06
6.2

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(b)(1) Hospital Insurance. The rates of
employee tax for Hospital Insurance (HI)
with respect to wages received in
calendar years after 1973 are as follows:
Calendar year

Percent

1974, 1975, 1976, or 1977 ...
1978 ......................................
1979 or 1980 ........................
1981, 1982, 1983, or 1984 ...
1985 ......................................
1986 and subsequent years

0.90
1.00
1.05
1.30
1.35
1.45

(2) Additional Medicare Tax. (i) The
rate of Additional Medicare Tax with
respect to wages received in taxable
years beginning after December 31,
2012, is as follows:

§ 31.3102–1 Collection of, and liability for,
employee tax; in general.

(a) * * * For special rules relating to
Additional Medicare Tax imposed
under section 3101(b)(2), see § 31.3102–
4.
*
*
*
*
*
(f) Effective/applicability date.
Paragraph (a) of this section applies to
quarters beginning on or after November
29, 2013.
Par. 6. Section 31.3102–4 is added to
read as follows:
§ 31.3102–4 Special rules regarding
Additional Medicare Tax.

(a) Collection of tax from employee.
An employer is required to collect from
each of its employees the tax imposed
by section 3101(b)(2) (Additional
Taxable year
Percent
Medicare Tax) with respect to wages for
employment performed for the
Beginning after December
employer by the employee only to the
31, 2012 ............................
0.9
extent the employer pays wages to the
employee in excess of $200,000 in a
(ii) Individuals are liable for
calendar year. This rule applies
Additional Medicare Tax with respect to regardless of the employee’s filing status
wages received in taxable years
or other income. Thus, the employer
beginning after December 31, 2012,
disregards any amount of wages or
which are in excess of:
Railroad Retirement Tax Act (RRTA)
compensation paid to the employee’s
Filling status
Threshold
spouse. The employer also disregards
any RRTA compensation paid by the
Married individual filing a
employer to the employee or any wages
joint return .........................
$250,000
or RRTA compensation paid to the
Married individual filing a
separate return ..................
125,000 employee by another employer.
Any other case .....................

200,000

(c) Computation of employee tax. The
employee tax is computed by applying
to the wages received by the employee
the rates in effect at the time such wages
are received.

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Example. In 1989, A performed services for
X which constituted employment (see
§ 31.3121(b)–2). In 1990 A receives from X
$1,000 as remuneration for such services.
The tax is payable at the 6.2 percent OASDI
rate and the 1.45 percent HI rate in effect for
the calendar year 1990 (the year in which the
wages are received) and not at the 6.06
percent OASDI rate and the 1.45 percent HI
rate which were in effect for the calendar
year 1989 (the year in which the services
were performed).

(d) Effective/applicability date.
Paragraphs (a) (b), and (c) of this section
apply to quarters beginning on or after
November 29, 2013. Taxpayers may rely
on the rules contained in the proposed
regulations for quarters beginning before
November 29, 2013.
Par. 5. Section 31.3102–1 is amended
by adding a sentence at the end of
paragraph (a) and adding paragraph (f)
to read as follows:

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Example. H, who is married and files a
joint return, receives $100,000 in wages from
his employer for the calendar year. I, H’s
spouse, receives $300,000 in wages from her
employer for the same calendar year. H’s
wages are not in excess of $200,000, so H’s
employer does not withhold Additional
Medicare Tax. I’s employer is required to
collect Additional Medicare Tax only with
respect to wages it pays which are in excess
of the $200,000 threshold (that is, $100,000)
for the calendar year.

(b) Collection of amounts not
withheld. To the extent the employer
does not collect Additional Medicare
Tax imposed on the employee by
section 3101(b)(2), the employee is
liable to pay the tax.
Example. J, who is married and files a joint
return, receives $190,000 in wages from his
employer for the calendar year. K, J’s spouse,
receives $150,000 in wages from her
employer for the same calendar year. Neither
J’s nor K’s wages are in excess of $200,000,
so neither J’s nor K’s employers are required
to withhold Additional Medicare Tax. J and
K are liable to pay Additional Medicare Tax
on $90,000 ($340,000 minus the $250,000
threshold for a joint return).

(c) Employer’s liability for tax. If the
employer deducts less than the correct
amount of Additional Medicare Tax, or
if it fails to deduct any part of

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Additional Medicare Tax, it is
nevertheless liable for the correct
amount of tax that it was required to
withhold, unless and until the employee
pays the tax. If an employee
subsequently pays the tax that the
employer failed to deduct, the tax will
not be collected from the employer. The
employer will not be relieved of its
liability for payment of the tax required
to be withheld unless it can show that
the tax under section 3101(b)(2) has
been paid. The employer, however, will
remain subject to any applicable
penalties or additions to tax resulting
from the failure to withhold as required.
(d) Effective/applicability date. This
section applies to quarters beginning on
or after November 29, 2013.
Par. 7. Section 31.3202–1 is amended
by adding paragraphs (g) and (h) to read
as follows:
§ 31.3202–1 Collection of, and liability for,
employee tax.

*

*
*
*
*
(g) Special rules regarding Additional
Medicare Tax. (1) An employer is
required to collect from each of its
employees the portion of the tax
imposed by section 3201(a) (as
calculated under section 3101(b)(2))
(Additional Medicare Tax) with respect
to compensation for employment
performed for the employer by the
employee only to the extent the
employer pays compensation to the
employee in excess of $200,000 in a
calendar year. This rule applies
regardless of the employee’s filing status
or other income. Thus, the employer
disregards any amount of compensation
or Federal Insurance Contributions Act
(FICA) wages paid to the employee’s
spouse. The employer also disregards
any FICA wages paid by the employer
to the employee or any compensation or
FICA wages paid to the employee by
another employer.
Example. A, who is married and files a
joint return, receives $100,000 in
compensation from her employer for the
calendar year. B, A’s spouse, receives
$300,000 in compensation from his employer
for the same calendar year. A’s compensation
is not in excess of $200,000, so A’s employer
does not withhold Additional Medicare Tax.
B’s employer is required to collect Additional
Medicare Tax only with respect to
compensation it pays to B that is in excess
of the $200,000 threshold (that is, $100,000)
for the calendar year.

(2) To the extent the employer does
not collect Additional Medicare Tax
imposed on the employee by section
3201(a) (as calculated under section
3101(b)(2)), the employee is liable to
pay the tax.

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Federal Register / Vol. 78, No. 230 / Friday, November 29, 2013 / Rules and Regulations
Example. C, who is married and files a
joint return, receives $190,000 in
compensation from her employer for the
calendar year. D, C’s spouse, receives
$150,000 in compensation from his employer
for the same calendar year. Neither C’s nor
D’s compensation is in excess of $200,000, so
neither C’s nor D’s employers are required to
withhold Additional Medicare Tax. C and D
are liable to pay Additional Medicare Tax on
$90,000 ($340,000 minus the $250,000
threshold for a joint return).

(3) If the employer deducts less than
the correct amount of Additional
Medicare Tax, or if it fails to deduct any
part of Additional Medicare Tax, it is
nevertheless liable for the correct
amount of tax that it was required to
withhold, unless and until the employee
pays the tax. If an employee
subsequently pays the tax that the
employer failed to deduct, the tax will
not be collected from the employer. The
employer will not be relieved of its
liability for payment of the tax required
to be withheld unless it can show that
the tax under section 3201(a) (as
calculated under section 3101(b)(2)) has
been paid. The employer, however, will
remain subject to any applicable
penalties or additions to tax resulting
from the failure to withhold as required.
(h) Effective/applicability date.
Paragraph (g) of this section applies to
quarters beginning on or after November
29, 2013.
Par. 8. Section 31.6011(a)–1 is
amended by:
■ 1. Designating paragraph (g) as
paragraph (h) and adding a sentence to
the end.
■ 2. Adding new paragraph (g).
The additions read as follows:
■

§ 31.6011(a)–1 Returns under Federal
Insurance Contributions Act.

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*

*
*
*
*
(g) Returns by employees in respect of
Additional Medicare Tax. An employee
who is paid wages, as defined in
sections 3121(a), subject to the tax
under section 3101(b)(2) (Additional
Medicare Tax), must make a return for
the taxable year in respect of such tax.
The return shall be made on Form 1040,
‘‘U.S. Individual Income Tax Return.’’
The form to be used by residents of the
U.S. Virgin Islands, Guam, American
Samoa, or the Northern Mariana Islands
is Form 1040–SS, ‘‘U.S. SelfEmployment Tax Return (Including
Additional Child Tax Credit for Bona
Fide Residents of Puerto Rico).’’ The
form to be used by residents of Puerto
Rico is either Form 1040–SS or Form
1040–PR, ‘‘Planilla para la Declaracio´n
de la Contribucio´n Federal sobre el
Trabajo por Cuenta Propia (Incluyendo
el Cre´dito Tributario Adicional por

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Hijos para Residentes Bona Fide de
Puerto Rico).’’
(h) * * * Paragraph (g) of this section
applies to taxable years beginning on or
after November 29, 2013.
Par. 9. Section 31.6011(a)–2 is
amended by adding paragraphs (d) and
(e) to read as follows:

■

§ 31.6011(a)–2 Returns under Railroad
Retirement Tax Act.

*

*
*
*
*
(d) Returns by employees and
employee representatives in respect of
Additional Medicare Tax. An employee
or employee representative who is paid
compensation, as defined in section
3231(e), subject to the tax under
sections 3201(a) (as calculated under
section 3101(b)(2)) or section 3211(a) (as
calculated under section 3101(b)(2))
(Additional Medicare Tax), must make a
return for the taxable year in respect of
such tax. The return shall be made on
Form 1040, ‘‘U.S. Individual Income
Tax Return.’’ The form to be used by
residents of the U.S. Virgin Islands,
Guam, American Samoa, or the
Northern Mariana Islands is Form 1040–
SS, ‘‘U.S. Self-Employment Tax Return
(Including Additional Child Tax Credit
for Bona Fide Residents of Puerto
Rico).’’ The form to be used by residents
of Puerto Rico is either Form 1040–SS
or Form 1040–PR, ‘‘Planilla para la
Declaracio´n de la Contribucio´n Federal
sobre el Trabajo por Cuenta Propia
(Incluyendo el Cre´dito Tributario
Adicional por Hijos para Residentes
Bona Fide de Puerto Rico).’’
(e) Effective/applicability date.
Paragraph (d) of this section applies to
taxable years beginning on or after
November 29, 2013.
Par. 10. Section 31.6205–1 is
amended by:
■ 1. Revising the first sentence in
paragraph (b)(2)(i).
■ 2. Adding a sentence after the first
sentence in paragraphs (b)(2)(ii) and
(iii).
■ 3. Adding two sentences after the
sixth sentence in paragraph (b)(3).
■ 4. Adding paragraphs (b)(4) and (e).
■ 5. Revising paragraph (d)(1).
The revisions and additions read as
follows:
■

§ 31.6205–1 Adjustments of
underpayments.

*

*
*
*
*
(b) * * *
(2) * * * (i) If an employer files a
return on which FICA tax or RRTA tax
is required to be reported, and reports
on the return less than the correct
amount of employee or employer FICA
or RRTA tax with respect to a payment

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71473

of wages or compensation, and if the
employer ascertains the error after filing
the return, the employer shall correct
the error through an interest-free
adjustment as provided in this section,
except as provided in paragraph (b)(4) of
this section for Additional Medicare
Tax. * * *
(ii) * * * However, if the employer
also reported less than the correct
amount of Additional Medicare Tax, the
employer shall correct the
underwithheld and underpaid
Additional Medicare Tax in accordance
with paragraph (b)(4) of this section.
* * *
(iii) * * * However, if the employer
also reported less than the correct
amount of Additional Medicare Tax, the
employer shall correct the
underwithheld and underpaid
Additional Medicare Tax in accordance
with paragraph (b)(4) of this section.
* * *
(3) * * * However, an adjustment of
Additional Medicare Tax required to be
withheld under section 3101(b)(2) or
section 3201(a) may only be reported
pursuant to this section if the error is
ascertained within the same calendar
year that the wages or compensation
were paid to the employee, or if section
3509 applies to determine the amount of
the underpayment, or if the adjustment
is reported on a Form 2504 or Form
2504–WC. See paragraph (b)(4) of this
section. * * *
(4) Additional Medicare Tax. If an
employer files a return on which FICA
tax or RRTA tax is required to be
reported, and reports on the return less
than the correct amount of Additional
Medicare Tax required to be withheld
with respect to a payment of wages or
compensation, and if the employer
ascertains the error after filing the
return, the employer shall correct the
error through an interest-free adjustment
as provided in this section. An
adjustment of Additional Medicare Tax
may only be reported pursuant to this
paragraph (b)(4) if the error is
ascertained within the same calendar
year that the wages or compensation
were paid to the employee, unless the
underpayment is attributable to an
administrative error (that is, an error
involving the inaccurate reporting of the
amount actually withheld), section 3509
applies to determine the amount of the
underpayment, or the adjustment is
reported on a Form 2504 or Form 2504–
WC. The employer shall adjust the
underpayment of Additional Medicare
Tax by reporting the additional amount
due on an adjusted return for the return
period in which the wages or
compensation were paid, accompanied
by a detailed explanation of the amount

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being reported on the adjusted return
and any other information as may be
required by this section and by the
instructions relating to the adjusted
return. The reporting of the
underpayment on an adjusted return
constitutes an adjustment within the
meaning of this section only if the
adjusted return is filed within the
period of limitations for assessment for
the return period being corrected, and
by the due date for filing the return for
the return period in which the error is
ascertained. For purposes of the
preceding sentence, the due date for
filing the adjusted return is determined
by reference to the return being
corrected, without regard to the
employer’s current filing requirements.
For example, an employer with a
current annual filing requirement who
is correcting an error on a previously
filed quarterly return must file the
adjusted return by the due date for filing
a quarterly return for the quarter in
which the error is ascertained. The
amount of the underpayment adjusted
in accordance with this section must be
paid to the IRS by the time the adjusted
return is filed. If an adjustment is
reported pursuant to this section, but
the amount of the adjustment is not paid
when due, interest accrues from that
date (see section 6601).
*
*
*
*
*
(d) * * *
(1) * * * If an employer collects less
than the correct amount of employee
FICA or RRTA tax from an employee
with respect to a payment of wages or
compensation, the employer must
collect the amount of the
undercollection by deducting the
amount from remuneration of the
employee, if any, paid after the
employer ascertains the error. If an
employer collects less than the correct
amount of Additional Medicare Tax
required to be withheld under section
3101(b)(2) or section 3201(a), the
employer must collect the amount of the
undercollection on or before the last day
of the calendar year by deducting the
amount from remuneration of the
employee, if any, paid after the
employer ascertains the error. Such
deductions may be made even though
the remuneration, for any reason, does
not constitute wages or compensation.
The correct amount of employee tax
must be reported and paid, as provided
in paragraph (b) of this section, whether
or not the undercollection is corrected
by a deduction made as prescribed in
this paragraph (d)(1), and even if the
deduction is made after the return on
which the employee tax must be
reported is due. If such a deduction is

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not made, the obligation of the
employee to the employer with respect
to the undercollection is a matter for
settlement between the employee and
the employer. If an employer makes an
erroneous collection of employee tax
from two or more of its employees, a
separate settlement must be made with
respect to each employee. An
overcollection of employee tax from one
employee may not be used to offset an
undercollection of such tax from
another employee. For provisions
relating to the employer’s liability for
the tax, whether or not it collects the tax
from the employee, see §§ 31.3102–1(d),
31.3102–4(c), and 31.3202–1. This
paragraph (d)(1) does not apply if
section 3509 applies to determine the
employer’s liability.
*
*
*
*
*
(e) Effective/applicability date.
Paragraphs (b) and (d) of this section
apply to adjusted returns filed on or
after November 29, 2013.
Par. 11. Section 31.6402(a)–2 is
amended by:
■ 1. Revising paragraph (a)(1)(i) and the
first sentence in paragraph (a)(1)(ii).
■ 2. Redesignating paragraphs (a)(1)(iii)
through (vi), as paragraphs (a)(1)(iv)
through (vii), respectively.
■ 3. Revising newly-redesignated
paragraphs (a)(1)(iv) and (a)(1)(v).
■ 4. Adding new paragraph (a)(1)(iii).
■ 5. Revising paragraph (b).
■ 6. Adding paragraph (c).
The revisions and additions read as
follows:
■

§ 31.6402(a)–2 Credit or refund of tax
under Federal Insurance Contributions Act
or Railroad Retirement Tax Act.

(a) * * *
(1) * * *
(i) Except as provided in paragraph
(a)(1)(iii) of this section, any person may
file a claim for credit or refund for an
overpayment (except to the extent that
the overpayment must be credited
pursuant to § 31.3503–1) if the person
paid to the Internal Revenue Service
(IRS) more than the correct amount of
employee Federal Insurance
Contributions Act (FICA) tax under
section 3101 or employer FICA tax
under section 3111, employee Railroad
Retirement Tax Act (RRTA) tax under
section 3201, employee representative
RRTA tax under section 3211, or
employer RRTA tax under section 3221,
or interest, addition to the tax,
additional amount, or penalty with
respect to any such tax.
(ii) Except as provided in paragraph
(a)(1)(iii) of this section, the claim for
credit or refund must be made in the
manner and subject to the conditions
stated in this section. * * *

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(iii) Additional Medicare Tax. No
refund or credit to the employer will be
allowed for the amount of any
overpayment of Additional Medicare
Tax imposed under section 3101(b)(2) or
section 3201(a) (as calculated under
section 3101(b)(2)), which the employer
deducted or withheld from an
employee.
(iv) For adjustments without interest
of overpayments of FICA or RRTA taxes,
including Additional Medicare Tax, see
§ 31.6413(a)–2.
(v) For corrections of FICA and RRTA
tax paid under the wrong chapter, see
§ 31.6205–1(b)(2)(ii) and (b)(2)(iii) and
§ 31.3503–1.
*
*
*
*
*
(b) Claim by employee—(1) In general.
Except as provided in (b)(3) of this
section, if more than the correct amount
of employee tax under section 3101 or
section 3201 is collected by an employer
from an employee and paid to the IRS,
the employee may file a claim for refund
of the overpayment if—
(i) The employee does not receive
repayment or reimbursement in any
manner from the employer and does not
authorize the employer to file a claim
and receive refund or credit,
(ii) The overcollection cannot be
corrected under § 31.3503–1, and
(iii) In the case of overpaid employee
social security tax due to having
received wages or compensation from
multiple employers, the employee has
not taken the overcollection into
account in claiming a credit against, or
refund of, his or her income tax, or if so,
such claim has been rejected. See
§ 31.6413(c)–1.
(2) Statements supporting employee’s
claim. (i) Except as provided in (b)(3) of
this section, each employee who makes
a claim under paragraph (b)(1) of this
section shall submit with such claim a
statement setting forth (a) the extent, if
any, to which the employer has repaid
or reimbursed the employee in any
manner for the overcollection, and (b)
the amount, if any, of credit or refund
of such overpayment claimed by the
employer or authorized by the employee
to be claimed by the employer. The
employee shall obtain such statement, if
possible, from the employer, who
should include in such statement the
fact that it is made in support of a claim
against the United States to be filed by
the employee for refund of employee tax
paid by such employer to the IRS. If the
employer’s statement is not submitted
with the claim, the employee shall make
the statement to the best of his or her
knowledge and belief, and shall include
therein an explanation of his or her
inability to obtain the statement from
the employer.

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(ii) Except as provided in paragraph
(b)(3) of this section, each individual
who makes a claim under paragraph
(b)(1) of this section also shall submit
with such claim a statement setting
forth whether the individual has taken
the amount of the overcollection into
account in claiming a credit against, or
refund of, his or her income tax, and the
amount, if any, so claimed (see
§ 31.6413(c)–1).
(3) Additional Medicare Tax. (i) If
more than the correct amount of
Additional Medicare Tax under section
3101(b)(2) or section 3201(a) (as
calculated under section 3101(b)(2)), is
collected by an employer from an
employee and paid to the IRS, the
employee may file a claim for refund of
the overpayment and receive a refund or
credit if the overcollection cannot be
corrected under § 31.3503–1 and if the
employee has not received repayment or
reimbursement from the employer in the
context of an interest-free adjustment.
The claim for refund shall be made on
Form 1040, ‘‘U.S. Individual Income
Tax Return,’’ by taking the
overcollection into account in claiming
a credit against, or refund of, tax. The
form to be used by residents of the U.S.
Virgin Islands, Guam, American Samoa,
or the Northern Mariana Islands is Form
1040–SS, ‘‘U.S. Self-Employment Tax
Return (Including Additional Child Tax
Credit for Bona Fide Residents of Puerto
Rico).’’ The form to be used by residents
of Puerto Rico is either Form 1040–SS
or Form 1040–PR, ‘‘Planilla para la
Declaracio´n de la Contribucio´n Federal
sobre el Trabajo por Cuenta Propia
(Incluyendo el Cre´dito Tributario
Adicional por Hijos para Residentes
Bona Fide de Puerto Rico).’’ The
employee may not authorize the
employer to claim the credit or refund
for the employee. See § 31.6402(a)–
2(a)(1)(iii).
(ii) In the case of an overpayment of
Additional Medicare Tax under section
3101(b)(2) or section 3201(a) for a
taxable year of an individual for which
a Form 1040 (or other applicable return
in the Form 1040 series) has been filed,
a claim for refund shall be made by the
individual on Form 1040X, ‘‘Amended
U.S. Individual Income Tax Return.’’
(c) Effective/applicability date. This
section applies to claims for refund filed
on or after November 29, 2013.
Par. 12. Section 31.6413(a)–1 is
amended by:
■ 1. Revising the first sentence in
paragraph (a)(2)(i).
■ 2. Redesignating paragraphs (a)(2)(ii)
through (vii) as paragraphs (a)(2)(iii)
through (viii), respectively.
■

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3. Revising newly-designated
paragraph (a)(2)(viii).
■ 3. Adding paragraph (a)(2)(ii).
■ 4. Adding a sentence after the first
sentence in newly-redesignated
paragraph (a)(2)(iv).
■ 5. Adding a sentence at the end of
newly-redesignated paragraph (a)(2)(v).
■ 6. Adding paragraph (c).
The revisions and additions read as
follows:
■

§ 31.6413(a)–1 Repayment or
reimbursement by employer of tax
erroneously collected from employee.

(a) * * *
(2) * * * (i) Except as provided in
paragraph (a)(2)(ii) of this section, if an
employer files a return for a return
period on which FICA tax or RRTA tax
is reported, collects from an employee
and pays to the IRS more than the
correct amount of the employee FICA or
RRTA tax, and if the employer
ascertains the error after filing the return
and within the applicable period of
limitations on credit or refund, the
employer shall repay or reimburse the
employee in the amount of the
overcollection prior to the expiration of
such limitations period. * * *
(ii) If an employer files a return for a
return period on which Additional
Medicare Tax under section 3101(b)(2)
or section 3201(a) is reported, collects
from an employee and pays to the IRS
more than the correct amount of
Additional Medicare Tax required to be
withheld from wages or compensation,
and if the employer ascertains the error
after filing the return but before the end
of the calendar year in which the wages
or compensation were paid, the
employer shall repay or reimburse the
employee in the amount of the
overcollection prior to the end of the
calendar year. However, this paragraph
does not apply to the extent that, after
reasonable efforts, the employer cannot
locate the employee.
*
*
*
*
*
(iv) * * * However, for purposes of
overcollected Additional Medicare Tax
under section 3101(b)(2) or section
3201(a), the employer shall reimburse
the employee by applying the amount of
the overcollection against the employee
FICA or RRTA tax which attaches to
wages or compensation paid by the
employer to the employee in the
calendar year in which the
overcollection is made. * * *
(v) * * * This paragraph (a)(2)(v)
does not apply for purposes of
overcollected Additional Medicare Tax
under section 3101(b)(2) or section
3201(a) which must be repaid or
reimbursed to the employee in the

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calendar year in which the
overcollection is made.
*
*
*
*
*
(viii) For corrections of FICA and
RRTA tax paid under the wrong chapter,
see § 31.6205–1(b)(2)(ii) and (iii) and
§ 31.3503–1.
*
*
*
*
*
(c) Effective/applicability date.
Paragraph (a) of this section applies to
adjusted returns filed on or after
November 29, 2013.
Par. 13. Section 31.6413(a)–2 is
amended by:
■ 1. Adding a sentence after the first
sentence in paragraph (a)(1).
■ 2. Adding a sentence after the second
sentence in paragraph (b)(2)(i).
■ 3. Adding paragraph (e).
The additions read as follows:
■

§ 31.6413(a)–2 Adjustments of
overpayments.

(a) * * *
(1) * * * However, this section only
applies to overcollected or overpaid
Additional Medicare Tax under section
3101(b)(2) or section 3201(a) if the
employer has repaid or reimbursed the
amount of the overcollection of such tax
to the employee in the year in which the
overcollection was made. * * *
*
*
*
*
*
(b) * * *
(2) * * *
(i) * * * However, for purposes of
Additional Medicare Tax under section
3101(b)(2) or section 3201(a), if the
amount of the overcollection is not
repaid or reimbursed to the employee
under § 31.6413(a)–1(a)(2)(ii), there is
no overpayment to be adjusted under
this section and the employer may only
adjust an overpayment of such tax
attributable to an administrative error,
that is, an error involving the inaccurate
reporting of the amount withheld,
pursuant to this section. * * *
*
*
*
*
*
(e) Effective/applicability date.
Paragraphs (a) and (b) of this section
apply to adjusted returns filed on or
after November 29, 2013. Taxpayers
may rely on the rules contained in the
proposed regulations for adjusted
returns filed before November 29, 2013.
John Dalrymple,
Deputy Commissioner for Services and
Enforcement.
Approved: November 18, 2013.
Mark J. Mazur,
Assistant Secretary of the Treasury.
[FR Doc. 2013–28411 Filed 11–26–13; 4:15 pm]
BILLING CODE 4830–01–P

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