Tax Notes logo

Rev. Proc. 67-9


Rev. Proc. 67-9; 1967-1 C.B. 583

DATED
DOCUMENT ATTRIBUTES
  • Language
    English
  • Tax Analysts Electronic Citation
    not available
Citations: Rev. Proc. 67-9; 1967-1 C.B. 583

Amplified by Rev. Proc. 69-10 Amplified by Rev. Proc. 68-5

Rev. Proc. 67-9 1

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to restate Revenue Procedure 65-33, C.B., 1965-2, 1038, and bring up to date the procedure to be followed in computing reductions in the credit against tax reportable on Form 940, Employer's Annual Federal Unemployment Tax Return, for 1961 and subsequent years.

SEC. 2. BACKGROUND.

Section 3302 of the Internal Revenue Code of 1954 provides for credits against the Federal unemployment tax imposed by section 3301 of the Code on employers of four or more employees. Reductions in the amount of credit otherwise allowable are provided for in section 3302(c) of the Code and in section 104 of the Temporary Unemployment Compensation Act of 1958. The reductions may occur if an employer pays wages for services performed in a State which has not restored to the U.S. Treasury amounts which were made available under title XII of the Social Security Act or under the Temporary Unemployment Compensation Act of 1958. Credit reductions for 1963 or any subsequent year may be forestalled if a State restores to the U.S. Treasury before November 10 of that year an amount approximately equal to the additional Federal tax which otherwise would be due for that year as a result of the credit reductions.

SEC. 3. CREDIT REDUCTIONS FOR 1961 AND 1962.

Regulations relating to reductions in credit under section 3302(c) of the Code for the calendar years 1961 and 1962 are set forth in section 31.3302(c)-1 of the Employment Tax Regulations, as amended by Treasury Decision 6658, C.B., 1963-2, 426. The credit reductions are computed by applying the following percentages to wages paid for services performed in the following States:

 ======================================================================

 

                                           Percentages applicable to

 

                                                wages paid in--

 

         States in which services          ----------------------------

 

              were performed                   1961          1962

 

 ______________________________________________________________________

 

                                              Percent       Percent

 

 

 Alaska.................................         0.15           0.3

 

 Michigan...............................      .......            .15

 

 ______________________________________________________________________

 

 

SEC. 4. CREDIT REDUCTIONS FOR 1963 AND SUBSEQUENT YEARS.

Public Law 88-173, approved November 7, 1963, C.B. 1963-2, 699, amended section 3302(c)(2) of the Code and section 104 of the Temporary Unemployment Compensation Act of 1958, effective for 1963 and subsequent years. Under the amended law, credit reductions apply in the following percentages to wages paid for services performed in the following States:

                 Percentages applicable to 1963 wages

 

 ======================================================================

 

        States in which     Sec. 3302(c)(2),   Sec. 104 of  Aggregate

 

    services were performed  I.R.C. of 1954     TUCA 1958  percentage

 

 ______________________________________________________________________

 

                                Percent          Percent     Percent

 

 

 Alaska....................         0.15             0.15        0.3

 

 California................  ...............          .15         .15

 

 Delaware..................  ...............          .15         .15

 

 Indiana...................  ...............          .15         .15

 

 Massachusetts.............  ...............          .15         .15

 

 Michigan..................          .15              .15         .3

 

 Minnesota.................  ...............          .15         .15

 

 New Jersey................  ...............          .15         .15

 

 West Virginia.............  ...............          .15         .15

 

 ______________________________________________________________________

 

 

                 Percentages applicable to 1964 wages

 

 ======================================================================

 

        States in which     Sec. 3302(c)(2),   Sec. 104 of  Aggregate

 

    services were performed  I.R.C. of 1954     TUCA 1958  percentage

 

 ______________________________________________________________________

 

                                Percent          Percent     Percent

 

 

 Alaska....................         0.15             0.3        0.45

 

 California................  ...............          .3         .3

 

 Delaware..................  ...............          .3         .3

 

 Indiana...................  ...............          .3         .3

 

 Massachusetts.............  ...............          .3         .3

 

 Michigan..................  ...............          .3         .3

 

 Minnesota.................  ...............          .3         .3

 

 New Jersey................  ...............          .3         .3

 

 West Virginia.............  ...............          .3         .3

 

 ______________________________________________________________________

 

 

                 Percentages applicable to 1965 wages

 

 ======================================================================

 

        States in which     Sec. 3302(c)(2),   Sec. 104 of  Aggregate

 

    services were performed  I.R.C. of 1954     TUCA 1958  percentage

 

 ______________________________________________________________________

 

                                Percent          Percent     Percent

 

 

 Alaska....................         0.15             0.3        0.45

 

 New Jersey................  ...............          .3         .3

 

 West Virginia.............  ...............          .3         .3

 

 ______________________________________________________________________

 

 

                 Percentages applicable to 1966 wages

 

 ======================================================================

 

        States in which     Sec. 3302(c)(2),   Sec. 104 of  Aggregate

 

    services were performed  I.R.C. of 1954     TUCA 1958  percentage

 

 ______________________________________________________________________

 

                                Percent          Percent     Percent

 

 

 Alaska....................         0.15        ..........      0.15

 

 New Jersey................  ...............         0.3         .3

 

 West Virginia.............  ...............          .3         .3

 

 ______________________________________________________________________

 

 

SEC. 5. PROCEDURE.

The computation of credit allowable is reported in schedule A of Form 940, Employer's Annual Federal Unemployment Tax Return. If a credit reduction applies, the amount of credit otherwise allowable is first computed in schedule A of Form 940, and the amount of the credit reduction is subtracted from the amount otherwise allowable. The remainder is then subtracted from the gross Federal tax shown on Form 940. If the employer is using a schedule A which was not designed for the particular year for which the computation is being made, the schedule A should be appropriately altered, or the computation should be shown on an attached sheet.

SEC. 6. EFFECT ON OTHER DOCUMENTS.

Revenue Procedure 65-33, C.B. 1965-2, 1038, is hereby superseded.

1 Based on Technical Information Release 874, dated Dec. 27, 1966.

DOCUMENT ATTRIBUTES
  • Language
    English
  • Tax Analysts Electronic Citation
    not available
Copy RID