[Federal Register: August 5, 2004 (Volume 69, Number 150)]
[Proposed Rules]
[Page 47395-47396]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05au04-24]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-171386-03]
RIN 1545-BD16
Time and Manner of Making Section 163(d)(B) Election to Treat
Qualified Dividend Income as Investment Income
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 section of this issue of the
Federal Register, the IRS is issuing temporary regulations relating to
an election that may be made by noncorporate taxpayers to treat
qualified dividend income as investment income for purposes of
calculating the deduction for investment interest. The text of those
temporary regulations also serves as the text of these proposed
regulations.
DATES: Written or electronic comments and requests for a public hearing
must be received by November 3, 2004.
[[Page 47396]]
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-171386-03), room
5203, Internal Revenue Service, POB 7604, Ben Franklin Station,
Washington, DC 20044. Alternatively, submissions may be hand-delivered
Monday through Friday between the hours of 8 a.m. and 4 p.m. to:
CC:PA:LPD:PR (REG-171386-03), Courier's Desk, Internal Revenue Service,
1111 Constitution Avenue, NW., Washington, DC. Taxpayers also may
submit comments electronically to the IRS Internet site at http://www.irs.gov/regs or via the Federal eRulemaking Portal at http://www.regulations.gov
(indicate IRS and REG-171386-03 or RIN 1545-BD16).
FOR FURTHER INFORMATION CONTACT: Concerning submission of comments or
requesting a hearing, LaNita Van Dyke, (202) 622-7180; concerning the
proposed regulations, Amy Pfalzgraf, (202) 622-4950 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
Temporary regulations in the Rules and Regulations section of this
issue of the Federal Register amend the Income Tax Regulations (26 CFR
part 1) relating to section 163(d)(4)(B) of the Internal Revenue Code.
The temporary regulations provide rules regarding the time and manner
for making an election under section 163(d)(4)(B) to treat qualified
dividend income as investment income for purposes of calculating the
deduction for investment interest. The text of the temporary
regulations also serves as the text of these proposed regulations. The
preamble to the temporary regulations explains the amendments.
Special Analyses
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 also has
been determined that section 553(b) of the Administrative Procedure Act
(5 U.S.C. chapter 5) does not apply to these regulations, and because
the regulations do not impose a collection of information on small
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not
apply. Pursuant to section 7805(f) of the Internal Revenue Code, this
notice of proposed rulemaking 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 a Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written comments (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 for the public hearing
will be published in the Federal Register.
Drafting Information
The principal author of these regulations is Amy Pfalzgraf of the
Office of Associate Chief Counsel (Income Tax & Accounting). However,
other personnel from the IRS and Treasury Department participated in
their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 1 is proposed to be amended as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 continues to read,
in part, as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.163(d)-1 is revised to read as follows:
Sec. 1.163(d)-1 Time and manner for making elections under the
Omnibus Budget Reconciliation Act of 1993 and the Jobs and Growth Tax
Relief Reconciliation Act of 2003.
[The text of proposed paragraphs (a), (b), (c), and (d) is the same
as the text of paragraphs (a), (b), (c), and (d) of Sec. 1.163(d)-1T
published elsewhere in this issue of the Federal Register.]
Nancy J. Jardini,
Acting Deputy Commissioner for Services and Enforcement.
[FR Doc. 04-17797 Filed 8-4-04; 8:45 am]
BILLING CODE 4830-01-P