Rev. Proc. 69-10

Section 3302(c)(2) of the Federal Unemployment Tax Act (chapter 23, subtitle C, Internal Revenue Code of 1954) provides that certain reductions must be made in the amount of otherwise allowable credits against the Federal unemployment tax imposed by section 3301 of the Code. These reductions applied to employers who paid wages for services performed in States that had not paid into the United States Treasury amounts that were made available under title XII of the Social Security Act or under the Temporary Unemployment Compensation Act of 1958. However, these credit reductions could be forestalled if a State restored to the Treasury before November 10 an amount approximately equal to the additional Federal tax that would otherwise be due for that year as a result of the credit reductions.

Revenue Procedure 67-9, C.B. 1967-1, 583, lists the rates of credit reductions for the years 1961 through 1966, identifies the States previously affected, and describes the computation to be made on Form 940, Employer's Annual Federal Unemployment Tax Return. Revenue Procedure 68-5, C.B. 1968-1, 747, states that there will be no credit reduction for 1967 or any subsequent year under section 104 of the Temporary Unemployment Compensation Act of 1958 as amended (42 U.S.C. 1400c) and as further amended by Public Law 88-173, approved November 7, 1963, C.B. 1963-2, 699.

All amounts that were advanced to certain States, including Alaska and Michigan, pursuant to title XII of the Social Security Act have been restored to the United States Treasury. Accordingly, there will be no credit reduction for 1968 or any subsequent year.

Revenue Procedure 67-9 and Revenue Procedure 68-5 are hereby amplified. Since all amounts made available to the various States under title XII of the Social Security Act and section 104 of the Temporary Unemployment Compensation Act of 1958 have been restored to the United States Treasury, no further amplifications of those Revenue Procedures are contemplated.