[Federal Register: July 20, 2004 (Volume 69, Number 138)]
[Proposed Rules]
[Page 43369-43370]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20jy04-20]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[REG-131786-03]
RIN 1545-BC32
Deemed Election To Be an Association Taxable as a Corporation for
a Qualified Electing S Corporation
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross reference to temporary
regulations.
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SUMMARY: In the rules and regulations portion of this issue of the
Federal Register, the IRS is issuing temporary regulations that deem
certain eligible entities that file timely S corporation elections to
have elected to be classified as associations taxable as corporations.
The text of those temporary regulations also serves as the text of
these proposed regulations. These regulations affect certain eligible
entities filing timely elections to be S corporations on or after July
20, 2004.
DATES: A request for a public hearing and written or electronic
comments must be received by October 18, 2004.
ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-131786-03), room 5203,
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington,
DC, 20044. Submissions may be hand delivered between the hours of 8
a.m. and 4 p.m. to CC:PA:LPD:PR (REG-131786-03), Courier's Desk,
Internal Revenue Service, 1111 Constitution Avenue, NW., Washington,
DC, or sent electronically, via the IRS Internet site at: http://www.irs.gov/regs
or via the Federal E-Rulemaking Portal at www.regulations.gov (IRS
and REG-131786-03).
FOR FURTHER INFORMATION CONTACT: Rebekah A. Myers at (202) 622-3050
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
Temporary regulations published elsewhere in this issue of the
Federal Register amend Sec. 301.7701-3T(c)(1)(v)(C) to provide that
certain eligible entities that file timely S corporation elections are
deemed to have elected to be classified as associations taxable as
corporations. The text of the temporary regulations also serves as the
text of these proposed regulations. The preamble to the temporary
regulations explains the temporary regulations.
[[Page 43370]]
Special Analysis
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
12866. Therefore a regulatory assessment is not required. It is hereby
certified that the collection of information in these regulations will
not have a significant economic impact on a substantial number of small
entities. This certification is based upon the fact that the purpose of
the regulation is to decrease the number of entities required to file
an entity classification election, Form 8832. Therefore, a Regulatory
Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C.
chapter 6) is not required. Pursuant to section 7805(f) of the Internal
Revenue Code, this Notice of proposed regulation will be submitted to
the Chief Counsel for Advocacy of the Small Business Administration for
comment on its impact on small business.
Comments and Requests for Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written (a signed original and eight
(8) copies) or electronic comments that are submitted timely to the
IRS. The IRS and Treasury Department request comments on the clarity of
the proposed rules and how they can be made easier to understand. All
comments will be available for public inspection and copying. A public
hearing will be scheduled if requested in writing by any person that
timely submits written comments. If a public hearing is scheduled,
notice of the date, time, and place of the public hearing will be
published in the Federal Register.
Drafting Information
The principal author of this regulation is Rebekah A. Myers, Office
of Associate Chief Counsel (Passthroughs and Special Industries), IRS.
However, other personnel from the IRS and Treasury Department
participated in their development.
List of Subjects in 26 CFR Part 301
Employment taxes, Estate and excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 301 is proposed to be amended as follows:
PART 301--PROCEDURE AND ADMINISTRATION
Paragraph 1. The authority citation for part 301 continues to read,
in part, as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 301.7701-3 is amended by adding paragraphs
(c)(1)(v)(C) and (h)(3) to read as follows:
Sec. 301.7701-3 Classification of certain business entities.
[The text of the proposed amendment is the same as the text of
Sec. 301.7701-3T published elsewhere in this issue of the Federal
Register].
Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 04-16233 Filed 7-19-04; 8:45 am]
BILLING CODE 4830-01-P