The regulation implements the Unemployment Compensation Amendments of 1992 (Pub. L. No. 102-318), that imposed mandatory 20% income tax withholding on qualified plan distributions, unless they are transferred in a “direct rollover” transaction.
According to the Bureau of National Affairs (BNA), the IRS said comments should address:
- whether the collection of information has practical utility
- the accuracy of the agency’s estimates of the paperwork burden on taxpayers
- ways to enhance the quality, usefulness and clarity of information collected
- suggestions that would minimize the burden of collecting information
- estimates of capital or start-up costs
- costs of operation, maintenance, and purchase of services to provide information
Comments are due by September 17 and should be sent to Garrick Shear, IRS, Room 5244, 1111 Constitution Avenue N.W., Washington, D.C. 20224.