May 5, 1992
TO: PENSION COMMITTEE NO. 18-92
RE: REGULATORY BURDEN REDUCTION INITIATIVE
__________________________________________________________
As part of the President's Regulatory Burden Reduction
Initiative, the Treasury Department and the IRS have issued the
attached Notice 92-12 (Attachment A) announcing their intention
to close certain regulations projects and withdraw certain
proposed regulations.
Included among the regulations projects to be closed are
projects under section 72(t), concerning the ten-percent
additional tax on early distributions from retirement plans, and
section 6047(d), concerning tax reporting of retirement plan
distributions. According to the most recent semiannual
regulatory agenda (Attachment B), the regulations under section
72(t) would have provided guidance concerning the application of
the tax to early distributions and an explanation of the
exceptions, such as substantially equal periodic payments. The
regulations under section 6047(d) would have required the payor
of a qualified plan distribution (or the plan administrator) to
calculate the taxable amount and to report it on the appropriate
information return.
The Notice also proposes withdrawing proposed regulations
relating to IRAs and SEPs. Copies of these regulations as
proposed are attached (Attachment C).
The Notice solicits comments concerning these proposed
actions as well as additional projects to be closed or withdrawn,
regulations projects that should be finalized on a priority
basis, and existing regulations that should be modified to reduce
taxpayer burden. Please contact the undersigned with any
comments by Monday, June 1.
Kathy D. Ireland
Associate Counsel - Pension
Attachments