[Federal Register Volume 67, Number 117 (Tuesday, June 18, 2002)]
[Proposed Rules]
[Pages 41362-41363]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15322]
[[Page 41362]]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[REG-103735-00; REG-110311-98]
RIN 1545-AX81; 1545-AW26
Modification of Tax Shelter Rules III
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations.
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SUMMARY: These proposed rules provide the public with additional
guidance needed to comply with the disclosure rules under section
6011(a) and the registration requirement under section 6111(d). These
rules also affect the list maintenance requirement under section 6112.
The proposed rules affect taxpayers participating in certain reportable
transactions, persons responsible for registering confidential
corporate tax shelters, and organizers of potentially abusive tax
shelters. In the rules and regulations portion of this issue of the
Federal Register, the IRS is issuing temporary regulations modifying
the rules relating to the requirement that certain taxpayers file a
statement with their Federal income tax returns under section 6011(a),
and the registration of confidential corporate tax shelters under
section 6111(d). 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 September 16, 2002.
ADDRESSES: Send submissions to: CC:ITA:RU (REG-103735-00; REG-110311-
98), room 5226, Internal Revenue Service, POB 7604, Ben Franklin
Station, Washington, DC 20044. Submissions may be hand delivered Monday
through Friday between the hours of 8 a.m. and 5 p.m. to: CC:ITA:RU
(REG-103735-00; REG-110311-98), 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.
FOR FURTHER INFORMATION CONTACT: Danielle M. Grimm or Tara P. Volungis,
202-622-3080 (not a toll-free number); concerning submissions, Sonya
Cruse, 202-622-7180 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information contained in this notice of proposed
rulemaking have been previously reviewed and approved by the Office of
Management and Budget in accordance with the Paperwork Reduction Act of
1995 (44 U.S.C. 3507(d)) under control number 1545-1685.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a valid
control number assigned by the Office of Management and Budget.
Books or records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and
tax return information are confidential, as required by 26 U.S.C. 6103.
Background
The temporary regulations amend 26 CFR part 1 regarding rules
relating to the filing and records requirements for certain taxpayers
under section 6011. The temporary regulations also amend 26 CFR part
301 regarding the registration of confidential corporate tax shelters
under section 6111.
The text of the temporary regulations also serves as the text of
these proposed regulations. The preamble to the temporary regulations
explains the regulations.
Special Analyses
It has been determined that this Treasury decision 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. 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 time
required to prepare or retain the disclosure is minimal and will not
have a significant impact on those small entities that are required to
provide disclosure. 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, these
temporary regulations will be submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on their
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 (preferably a
signed original and eight (8) copies) or electronically generated
comments that are submitted timely to the IRS. The IRS and Treasury
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 authors of these regulations are Danielle M. Grimm
and Tara P. Volungis, Office of the Associate Chief Counsel
(Passthroughs and Special Industries). However, other personnel from
the IRS and Treasury Department participated in their development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and record keeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR parts 1 and 301, which were proposed to be
amended at 66 FR 41169 (August 7, 2001), are proposed to be further
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 1.6011-4, as proposed at 66 FR 41169 (August 7,
2001), is amended as follows:
1. The heading of Sec. 1.6011-4 is amended by removing the language
``corporate''.
2. The heading of paragraph (a) is revised.
3. Paragraph (a) is amended by adding ``(1) In general.'' after the
heading.
4. Newly designated paragraph (a)(1) is amended by adding the
language
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``corporate'' before ``taxpayer'' in the first sentence, and by
removing the second sentence and adding three new sentences in its
place.
5. Paragraphs (a)(2) and (a)(3) are added.
6. Paragraph (b)(1) is amended by revising the first sentence.
7. Paragraphs (b)(1)(i) and (b)(1)(ii) are added.
8. Paragraph (b)(4)(i) is amended by removing the first sentence.
9. Paragraph (b)(5) Example 3 is amended by revising the seventh
sentence.
10. Paragraphs (c)(1)(iii) and (c)(1)(v) are revised.
11. Paragraph (c)(2) Example is amended by adding the language
``Example.'' after ``of this section:'' in the first sentence and by
adding ``as in effect at that time.'' to the end of the third sentence.
12. Paragraph (d)(1) is revised.
13. Paragraph (e) is amended by removing the language
``corporation's'' in the first sentence and adding ``taxpayer's'' in
its place.
14. Paragraph (g) is revised.
The revisions and additions read as follows:
Sec. 1.6011-4 Requirement of statement disclosing participation in
certain transactions by taxpayers.
[The text of the amendments to this proposed section is the same as
the text of the amendments to Sec. 1.6011-4T published elsewhere in
this issue of the Federal Register.]
PART 301--PROCEDURE AND ADMINISTRATION
Par. 3. The authority citation for part 301 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 4. Section 301.6111-2, as proposed to be added at 66 FR 41169
(August 7, 2001), is amended as follows:
1. Paragraph (a)(3) is amended by adding four sentences to the end
of the paragraph.
2. The heading for paragraph (h) is revised and the entire text
after the second sentence is removed and four new sentences are added
in their place.
The revision and additions read as follows:
Sec. 301.6111-2 Confidential corporate tax shelters.
[The text of the amendments to this proposed section is the same as
the text of the amendments to Sec. 301.6111-2T published elsewhere in
this issue of the Federal Register.]
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
[FR Doc. 02-15322 Filed 6-14-02; 11:32 am]
BILLING CODE 4830-01-P