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TREAS/IRS RIN: 1545-BP69 Publication ID: Fall 2020 
Title: Income Tax Withholding on Certain Periodic Retirement and Annuity Payments Under Section 3405(a) 
Abstract:

The Tax Cuts and Jobs Act, Public Law 115-97 (TCJA) amended 26 U.S.C. 3405(a)(4) to provide that the withholding rate for periodic retirement and annuity payments when no withholding certificate has been furnished (the default rate of withholding) shall be determined under rules prescribed by the Secretary. Prior to amendment by TCJA, 26 U.S.C. 3405(a)(4) provided that the default rate of withholding for periodic retirement and annuity payments shall be determined by treating the payee as a married individual claiming 3 withholding exemptions. The final regulations will implement the delegation of authority under TCJA to provide default withholding rules under section 3405(a)(4).

 
Agency: Department of the Treasury(TREAS)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
EO 13771 Designation: Not subject to, not significant 
CFR Citation: 26 CFR 31.3405(a)-1    26 CFR 35.3405-1T   
Legal Authority: 26 U.S.C. 7805    26 U.S.C. 3405(a)(4)   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  05/27/2020  85 FR 31714   
NPRM Comment Period End  07/27/2020 
Final Action  12/00/2020 
Additional Information: REG-100320-20 (Final) Drafter attorney: Kara Soderstrom (202) 317-6799 Reviewer attorney: Keith Kost (202) 317-6799 Treasury attorney: Amber Salotto (202) 622-6707 CC:EEE
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Federal, Local, State, Tribal 
Small Entities Affected: Businesses, Governmental Jurisdictions, Organizations  Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Kara Soderstrom
Attorney
Department of the Treasury
Internal Revenue Service
1111 Constitution Avenue NW., Room 5422,
Washington, DC 20224
Phone:202 317-6799
Fax:855 604-6086
Email: kara.m.soderstrom@irscounsel.treas.gov