[Federal Register: August 13, 2004 (Volume 69, Number 156)]
[Proposed Rules]
[Page 50108-50109]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13au04-19]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-116265-04]
RIN 1545-BD25
Additional Rules for Exchanges of Personal Property Under Section
1031(a)
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 final and temporary regulations
replacing the use of the Standard Industrial Classification (SIC)
system with the North American Industry Classification System (NAICS)
for determining what properties are of a like class for purposes of
section 1031 of the Internal Revenue Code (Code). 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 12, 2004.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-116265-04), room
5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station,
Washington, DC 20044. 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-
116265-04), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC. Alternatively, taxpayers may submit
electronic comments directly to the IRS internet site at http://www.irs.gov/regs or via the Federal eRulemaking Portal at http://www.regulations.gov
(IRS and REG-116265-04).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
J. Peter Baumgarten, 202-622-4920; concerning submissions of comments
and/or requests for a public hearing, Guy Traynor, 202-622-7180 (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 26 CFR part 1 relating to section
1031(a)(1). The temporary regulations substitute NAICS classification
codes for the SIC classification codes in the regulatory text and
permit the use of NAICS codes for determining product classes, and
therefore property of like kind, of depreciable tangible personal
property exchanged under section 1031. The text of those 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 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.
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 these proposed regulations and how they may 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 J. Peter Baumgarten,
Office of Associate Chief Counsel (Income Tax and 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 for part 1 continues to read, in part,
as follows:
Authority: 26 U.S.C. 7805 * * *.
Par. 2. In Sec. 1.1031(a)-2, paragraphs (b)(3) through (b)(6), and
Example 3 and Example 4 of paragraph (b)(7) are revised to read as
follows:
Sec. 1.1031(a)-2 Additional rules for exchanges of personal property.
[The text of proposed Sec. 1.1031(a)-2, paragraphs (b)(3) through
(b)(6), and Example 3 and Example 4 of paragraph (b)(7) is the same as
the text of Sec. 1.1031(a)-2T, paragraphs (b)(3) through (b)(6), and
Example 3 and Example 4 of paragraph (b)(7) published elsewhere in this
issue of the Federal Register.]
Sec. 1.1031(j)-1 [Amended]
Par. 3. Section 1.1031(j)-1 is amended by removing the language
``(SIC Code
[[Page 50109]]
3531)'' in Example 3(ii)(C) and Example 5(i) of paragraph (d) and
adding the language ``(NAICS code 333120)'' in its place.
Linda M. Kroening,
Acting Deputy Commissioner for Services and Enforcement.
[FR Doc. 04-18480 Filed 8-12-04; 8:45 am]
BILLING CODE 4830-01-P