[Federal Register: August 12, 2004 (Volume 69, Number 155)]
[Proposed Rules]
[Page 49840-49841]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12au04-22]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[REG-124872-04]
RIN 1545-BD37
Clarification of Definitions
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations and notice of public hearing.
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SUMMARY: This issue of the Federal Register contains temporary
regulations that provide clarification of the definitions of a
corporation and a domestic entity in circumstances where the business
entity is considered to be created or organized in more than one
jurisdiction. These regulations will affect business entities that are
created or organized under the laws of more than one jurisdiction. The
text of those temporary regulations also serves as the text of these
proposed regulations. This document also provides a notice of a public
hearing on these proposed regulations.
DATES: Written or electronic comments and must be received by November
10, 2004. Requests to speak and outlines of topics to be discussed at
the public hearing scheduled for November 3, 2004 must be received by
October 15, 2004.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-124872-04), Room
5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may also be hand-delivered Monday
through Friday (excluding Federal holidays) between the hours of 8 a.m.
and 4 p.m. to CC:PA:LPD:PR (REG-124872-04), Courier's Desk, Internal
Revenue Service, 1111 Constitution Avenue NW., Washington, DC or sent
electronically, via either the IRS internet site at http://www.irs.gov/regs or
the Federal eRulemaking Portal at http://www.regulations.gov (IRS and
REG-124872-04). The public hearing will be held in the Auditorium,
Internal Revenue Building, 1111 Constitution Avenue NW., Washington,
DC.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Thomas Beem, (202) 622-3860; concerning submissions of comments or the
public hearing, Sonya Cruse, (202) 622-7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
Temporary regulations in this issue of the Federal Register amend
26 CFR part 301 relating to section 7701 of the Internal Revenue Code
of 1986 (Code). The temporary regulations provide guidance as to the
definitions of a corporation and of domestic and foreign entities in
circumstances in which an entity is created or organized under the laws
of more than one jurisdiction (a dually chartered entity). The text of
those regulations also serves as the text of these proposed
regulations. The preamble to the temporary regulations explains both
the temporary regulations and these proposed regulations.
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 7806(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 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 has been scheduled for November 3, 2004 at 10 a.m.
in the Auditorium of the Internal Revenue building, 1111 Constitution
Avenue NW., Washington, DC. Due to building security procedures,
visitors must enter at the Constitution Avenue entrance. In addition,
all visitors must present photo identification to enter the building.
Because of access restrictions, visitors will not be admitted beyond
the immediate entrance area earlier than 30 minutes prior to the start
of the hearing. For information about having your name placed on the
building access list to
[[Page 49841]]
attend the hearing, see the FOR FURTHER INFORMATION CONTACT section of
this preamble.
The rules of 26 CFR 601.601(a)(3) apply to this hearing. Persons
who wish to present oral comments at the hearing must submit electronic
or written comments and an outline of the topics to be discussed and
the time devoted to each topic (signed original and eight (8) copies)
by October 15, 2004. A period of ten minutes will be allotted to each
person for making comments. An agenda showing the scheduling of
speakers will be prepared after the deadline for receiving outlines has
passed. Copies of the agenda will be available free of charge at the
hearing.
Proposed Effective Date
The regulations proposed in this document would apply on August 12,
2004 to all business entities existing on or after that date.
Drafting Information
The principal author of these proposed regulations is Thomas Beem
of the Office of Associate Chief Counsel (International). However,
other personnel from the IRS and Treasury Department participated in
their development.
List of Subjects in 26 CFR Part 301
Employment taxes, Estate taxes, 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. In Sec. 301.7701-1, paragraph (d) is revised to read as
follows:
Sec. 301.7701-1 Classification of organizations for federal tax
purposes.
* * * * *
(d) [The text of the proposed amendment revising Sec. 301.7701-
1(d) is the same as the text of Sec. 301.7701-1T(d) published
elsewhere in this issue of the Federal Register.]
* * * * *
Par. 3. In Sec. 301.7701-2 paragraph (b)(9) is added to read as
follows:
Sec. 301.7701-2 Business entities; definitions.
* * * * *
(b) * * *
(9) [The text of the proposed amendment adding Sec. 301.7701-
2(b)(9) is the same as the text of Sec. 301.7701-2T(b)(9) published
elsewhere in this issue of the Federal Register.]
* * * * *
Par. 4. Section 301.7701-5 is revised to read as follows:
Sec. 301.7701-5 Domestic and foreign business entities.
[The text of the proposed amendment revising Sec. 301.7701-5 is
the same as the text of Sec. 301.7701-5T published elsewhere in this
issue of the Federal Register.]
Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 04-18481 Filed 8-11-04; 8:45 am]
BILLING CODE 4830-01-P