l-final supp wage comment letter

April 11, 2005 VIA ELECTRONIC AND HAND DELIVERY Internal Revenue Service CC:PA:RU (REG-157302-02) Courier's Desk 1111 Constitution Avenue, NW Washington, D.C. 20224 RE: Comments on Proposed Regulations For Supplemental Wage Withholding Dear Sir or Madam: I am writing on behalf of the member companies of the American Benefits Council (the "Council") to comment on the proposed regulations on the new supplemental wage withholding requirement enacted as part of the American Jobs Creation Act of 2004 (the "Jobs Act"). 70 Fed. Reg. 767 (Jan. 5, 2005) ("Proposed Regulations"). We appreciate the efforts of Treasury and the Internal Revenue Service to provide guidance within such a short period of time after the enactment of the Jobs Act. We also appreciate the helpful guidance included in the Proposed Regulations regarding the determination of "supplemental wages." Nevertheless, Council members have serious concerns regarding certain elements of the Proposed Regulations and the application of the new supplemental wage withholding requirement. Accordingly, we request that the Proposed Regulations be modified in certain respects and that Treasury and the Service provide both transition and ongoing administrative relief so that companies may implement the new rules. We also request a public hearing on these issues. The Council is a public policy organization representing principally Fortune 500 companies and other organizations that assist ...