rp-08-15.pdf

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# Part III

Administrative, Procedural, and Miscellaneous

26 C.F.R. 702.9037-2T: Payments from the Presidential Primary Matching
Payment Account (temporary).

## Rev. Proc. 2008-15

### SECTION 1. PURPOSE

This revenue procedure provides procedures under § 9037 of the Internal
Revenue Code (26 U.S.C. § 9037 (2000)) and § 702.9037 of the Financing of
Presidential Election Campaigns Regulations (26 C.F.R. § 702.9037 (2007)) for
making payments from the Presidential Primary Matching Payment Account
(Primary Account). Under these procedures the Treasury Secretary (Treasury)
will make payments of amounts due to primary candidates at least once a week if
funds are available in the Primary Account. These payments will start during the
first week of January of an election year and will continue through the end of
September of the year following the presidential election. This revenue
procedure also provides procedures for determining amounts paid to candidates
when the balance in the Primary Account is not sufficient to pay all amounts
certified by the Federal Election Commission (Commission). When the Primary
Account is in shortfall, the Treasury will make payments pro rata from the

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Primary Account based on the amounts certified by the Commission for each
candidate adjusted for the length of time between the Treasury's receipt of the
certifications and the Treasury's making payments on the certifications (see
Sequencing Adjustment, as defined in section 3.05 of this revenue procedure).
SECTION 2. BACKGROUND

.01 Section 6096(a) permits individuals (other than nonresident aliens)
whose income tax liability for the taxable year is $3 or more to designate that $3
be paid to the Presidential Election Campaign Fund (Fund) in accordance with
the provisions of § 9006(a).

.02 Section 9006(a) establishes the Fund and provides that the Treasury
will transfer to the Fund, from time to time, an amount not in excess of the sums
designated by individual taxpayers under § 6096.

.03 Under § 9037(a), the Treasury is to maintain the Primary Account
within the Fund and will deposit amounts into the Primary Account from the Fund
after determining that there are sufficient amounts available in the Fund to make
payments described in § 9006 (payments for the general election) and § 9008
(payments for nomination conventions). The Primary Account contains amounts
for Presidential primary candidates who are certified for payments by the
Commission.

.04 Section 9037(b) specifies that the Treasury should pay certified
primary candidates promptly.

.05 Notice 96-13, 1996-1 C.B. 366, indicated that payment procedures
would be provided for payments from the Primary Account when the balance in

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the Primary Account is not sufficient to pay all amounts certified by the
Commission. The Notice states that when the Primary Account is in shortfall, the
Treasury may make an additional payment between regular payment dates,
promptly after funds become available.

.06 Notice 2007-96, 2007-49 I.R.B. 1091, superseded Notice 96-13 and
announced that the Treasury intends to change the procedures for making
payments from the Primary Account.

.07 Section 702.9037-2T(a) of the temporary Financing of Presidential
Election Campaigns Regulations provides that, pursuant to § 9036, the
Commission will certify to the Treasury the full amount of payment to which a
candidate is entitled under § 9034. The Treasury will pay promptly, but not
before the beginning of a Presidential election year, the amounts certified by the
Commission from the Primary Account to the candidate.

.08 Section 702.9037-2T(b) provides that the Internal Revenue Service
may provide additional rules and procedures for the Primary Account.

.09 This revenue procedure provides additional rules and procedures for
making payments from the Primary Account.

SECTION 3. DEFINITIONS

.01 Payment Date. A day on which the Treasury makes payments to
candidates from the Primary Account.

.02 Candidate's Actual Shortfall. The difference, if any, between the
amounts certified by the Commission for a candidate in certifications received by
the Treasury as of one day prior to the Payment Date, and the amount of

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payments previously received by the candidate on such certifications as of the
Payment Date, without taking into account the Sequencing Adjustment.

.03 Candidate's Adjusted Shortfall. The sum of a Candidate's Actual
Shortfall plus the Sequencing Adjustment.

.04 Aggregate Adjusted Shortfall. The sum of all Candidates' Adjusted
Shortfalls on a Payment Date.

.05 Sequencing Adjustment. A factor used to compute a candidate's
share of pro rata payments when the Primary Account is in shortfall. The
Sequencing Adjustment is computed at the noncorporate overpayment rate
specified under § 6621 starting with the day the Treasury receives certification
from the Commission that the candidate is entitled to receive an amount of
payment and ending on the Payment Date.

SECTION 4. PAYMENT PROCEDURES

#### .01 Timing of payments.

(a) Weekly payments. The Treasury will make payments due to
primary candidates at least once a week, to the extent funds are available in the
Primary Account. Payments will be based on (1) certifications which the
Treasury has received from the Commission, but not paid, as of one day prior to
a Payment Date, and (2) the balance in the Primary Account, as of one day prior
to a Payment Date.

(b) Payment period. The payments described in section 4.01(a) of
this revenue procedure will commence during the first week of January of an

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election year and will continue through the end of September of the year
following the presidential election.

.02 Amount of payment.

(a) No shortfall. If the amounts certified by the Commission in
certifications received by the Treasury as of one day prior to a Payment Date do
not exceed the balance in the Primary Account on a Payment Date, the Treasury
will pay the certified amounts to the candidates.

(b) Shortfall. If the amounts certified by the Commission in
certifications received by the Treasury as of one day prior to a Payment Date
exceed the balance in the Primary Account on a Payment Date, the amount paid
to a candidate is determined by multiplying the Candidate's Adjusted Shortfall (as
defined in section 3.03 of this revenue procedure) by the ratio of the balance in
the Primary Account as of one day prior to the Payment Date over the Aggregate
Adjusted Shortfall (as defined in section 3.04 of this revenue procedure).

(c) Limitation. In no event will the Treasury pay to a candidate
more than the amounts certified by the Commission for the candidate in
certifications received by the Treasury from the Commission.

.03 Allocation of payments. Payments described in section 4.02(b) of this
revenue procedure will be allocated among the amounts certified by the
Commission for a candidate based on the sequence in which the Treasury
received certifications from the Commission. For example, if the Treasury
receives on January 29, 2008, a certification from the Commission for a payment
of $100 to a candidate and receives on February 26, 2008, a certification for a

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payment of $70 to the same candidate, and the Treasury makes a payment of
$60 to that candidate pursuant to section 4.02(b) of this revenue procedure, that
payment is allocated to the certification the Treasury received on January 29,
2008. In determining the Candidate's Adjusted Shortfall for the next payment,
the Treasury will be considered to have received on January 29, 2008, a
certification for a payment of $40 to the candidate, and to have received on
February 26, 2008, a certification for a payment of $70 to the candidate.

### SECTION 5. NOTIFICATION

The Treasury will notify the Commission of the amount paid to each
candidate and the balance remaining in the Primary Account after making
disbursements from the Primary Account. The Treasury will also notify the
Commission if funds are not available in a week to make the payments to
candidates described in section 4.02 of this revenue procedure.

#### SECTION 6. RETURN OF FUNDS

Any amounts in the Primary Account on October 31 of the year following a
presidential election will be returned to the Fund for use in the next presidential
election.

##### SECTION 7. EFFECTIVE DATE

This revenue procedure provides procedures for payments from the
Primary Account in or after 2008. See Notice 96-13 for rules for payments made
to candidates when the Primary Account was in shortfall from February 2, 1996,
through 2007.

# DRAFTING INFORMATION

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The principal author of this revenue procedure is Karla M. Meola of the
Office of Associate Chief Counsel (Income Tax & Accounting). For further
information concerning this revenue procedure, please contact Ms. Meola at
(202) 622-4930 (not a toll-free call).