Classification of Certain Foreign Entities, 19697-19698 [05-6716]
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Federal Register / Vol. 70, No. 71 / Thursday, April 14, 2005 / Rules and Regulations
designated in the employee notice
earlier furnished to the employee under
this paragraph (g)(2) that new certificate
and a written statement to support the
claims made by the employee on the
new certificate.
(3) Definition of employer. For
purposes of this paragraph (g), the term
employer includes any person
authorized by the employer to receive
withholding exemption certificates, to
make withholding computations, or to
make payroll distributions.
(4) Effective date. This paragraph (g)
applies on April 14, 2005. The
applicability of this paragraph (g)
expires on or before April 14, 2008.
I Par. 4. Section 31.3402(f)(5)–1 is
amended by revising paragraph (a) to
read as follows:
(2) Effective date. This paragraph (a)
applies on April 14, 2005. The
applicability of this paragraph (a)
expires on or before April 14, 2008.
(b) through (c) [Reserved]. For further
guidance, see § 31.3402(f)(5)–1(b)
through (c).
Mark E. Matthews,
Deputy Commissioner for Services and
Enforcement.
Approved: March 28, 2005.
Eric Solomon,
Acting Deputy Assistant Secretary of the
Treasury.
[FR Doc. 05–6718 Filed 4–13–05; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
§ 31.3402(f)(5)–1 Form and contents of
withholding exemption certificates.
Internal Revenue Service
(a) For further guidance, see
§ 31.3402(f)(5)–1T(a).
*
*
*
*
*
I Par. 5. Section 31.3402(f)(5)–1T is
added to read as follows:
26 CFR Part 301
[TD 9197]
RIN 1545–BD78
§ 31.3402(f)(5)–1T Form and contents of
withholding exemption certificates
(temporary).
(a)(1) Form W–4. Form W–4,
‘‘Employee’s Withholding Allowance
Certificate,’’ is the form prescribed for
the withholding exemption certificate
required to be furnished under section
3402(f)(2). A withholding exemption
certificate must be prepared in
accordance with the instructions and
regulations applicable thereto, and must
set forth fully and clearly the data
therein called for. Blank copies of paper
Forms W–4 will be supplied to
employers upon request to the Internal
Revenue Service (IRS). An employer
may also download and print Form W–
4 from the IRS Internet site at https://
www.irs.gov. In lieu of the prescribed
form, employers may prepare and use a
form the provisions of which are
identical with those of the prescribed
form, but only if employers also provide
employees with all the tables,
instructions, and worksheets contained
in the Form W–4 in effect at that time
and only if employers comply with all
revenue procedures relating to
substitute forms in effect at that time.
Employers may refuse to accept a
substitute form developed by an
employee and the employee submitting
such form will be treated as failing to
furnish a withholding exemption
certificate. For further guidance
regarding the employer’s obligations
when an employee is treated as failing
to furnish a withholding exemption
certificate, see § 31.3402(f)(2)–1.
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Jkt 205001
Classification of Certain Foreign
Entities
Internal Revenue Service (IRS),
Treasury.
ACTION: Final and temporary
regulations.
AGENCY:
SUMMARY: This document contains
temporary and final regulations relating
to certain business entities included on
the list of foreign business entities that
are always classified as corporations for
Federal tax purposes. The text of the
temporary regulations also serves as the
text of the proposed regulations set forth
in the notice of proposed rulemaking on
this subject in the Proposed Rules
section in this issue of the Federal
Register.
Effective Date: These regulations
are effective on October 7, 2004.
Applicability Date: For the dates of
applicability of these regulations, see
§ 301.7701–2T(e).
FOR FURTHER INFORMATION CONTACT:
Ronald M. Gootzeit, (202) 622–3860 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
DATES:
Background
The IRS and Treasury Department
issued final regulations concerning the
classification of entities under section
7701 of the Internal Revenue Code
(Code) on December 18, 1996 (final
regulations). See generally TD 8697
(1997–1 C.B. 215) and §§ 301.7701–1
through 301.7701–3. Under the final
regulations, a business entity that is not
specifically classified as a corporation is
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19697
an eligible entity that can elect its
classification for Federal tax purposes
under certain circumstances. However,
§ 301.7701–2(b)(8) provides a list of
certain foreign business entities that are
always classified as corporations for
Federal tax purposes (the per se
corporation list). These foreign business
entities are generally referred to as per
se corporations.
On October 8, 2001, the Council of the
European Union adopted Council
Regulation 2157/2001 2001 O.J. (L 294)
(the EU Regulation) to provide for a new
business entity, the European public
limited liability company (Societas
Europaea or SE). The EU Regulation
entered into force on October 8, 2004,
and has effect in all the Member States
of the European Economic Area (which
includes all Member States of the
European Union plus Norway, Iceland,
and Liechtenstein). An SE must have a
registered office in one of the Member
States.
The SE is a public limited liability
company. The EU Regulation provides
general rules that govern the formation
and operation of an SE and supplements
those rules for specified issues and
issues it does not address by reference
to the laws with respect to public
limited liability companies for the
country in which the SE has its
registered office. Most of the countries
in which an SE can have its registered
office have a business entity that
constitutes a public limited liability
company and that currently is on the
per se corporation list. However, an SE
can have its registered office in the
following countries that have a business
entity that is a public limited liability
company but that is not yet on the per
se corporation list: Estonia, Latvia,
Lithuania, Slovenia, and Liechtenstein.
Explanation of Provisions
In Notice 2004–68 (2004–43 IRB 706),
the IRS and Treasury stated that the SE
is properly classified as a per se
corporation because it will function as
a public limited liability company. The
Notice also stated that the IRS and
Treasury will issue temporary and
proposed regulations that will modify
§ 301.7701–2(b)(8) to include the SE on
the per se corporation list. The Notice
further stated that the temporary and
proposed regulations will modify
§ 301.7701–2(b)(8) to include as per se
corporations the Estonian Aktsiaselts,
Latvian Akciju Sabiedriba, Lithuanian
Akcine Bendroves, Slovenian Delniska
Druzba, and Liechtenstein
Aktiengesellschaft. These entities are
the public limited liability companies in
their respective countries. The
temporary regulations in this document
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14APR1
19698
Federal Register / Vol. 70, No. 71 / Thursday, April 14, 2005 / Rules and Regulations
make these modifications to § 301.7701–
2(b)(8). In addition, in accordance with
Notice 2004–68, these regulations will
be effective for the Estonian, Latvian,
Liechtenstein, Lithuanian, and
Slovenian entities formed on or after
October 7, 2004, and for the European
Economic Area entity formed on or after
October 8, 2004. See also section
7805(b)(1)(C).
The status of an SE may be relevant
to the application of various Federal
income tax provisions, such as the
subpart F same-country exception under
section 954(c)(3). Treasury and the IRS
are considering these issues and invite
comments on any additional areas in
which guidance on the Federal tax
treatment of an SE may be warranted.
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.
As a result of the issuance of Notice
2004–68, good cause is found for
dispensing with prior notice and
comment pursuant to 5 U.S.C. 553(b).
For the applicability of the Regulatory
Flexibility Act (5 U.S.C. chapter 6), refer
to the Special Analyses section of the
preamble to the notice of proposed
rulemaking published in the proposed
rules section in this issue of the Federal
Register. Pursuant to section 7805(f) of
the Code, these temporary regulations
will be submitted to the Chief Counsel
for Advocacy of the Small Business
Administration for comment on their
impact.
Drafting Information
The principal author of these
regulations is Ronald M. Gootzeit 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.
Amendments to the Regulations
Accordingly, 26 CFR part 301 is
amended as follows:
I
PART 301—PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation for
part 301 continues to read, in part, as
follows:
I
Authority: 26 U.S.C. 7805 * * *
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14:15 Apr 13, 2005
Jkt 205001
I Par. 2. In § 301.7701–2, paragraph
(b)(8)(vi) is added to read as follows:
§ 301.7701–2
definitions.
Business entities;
*
*
*
*
*
(b) * * *
(8) * * *
(vi) Certain European entities.
[Reserved]. For further guidance, see
§ 301.7701–2T.
*
*
*
*
*
I Par. 3. Section 301.7701–2T is
amended by adding paragraphs (b)(8)(vi)
and (e) to read as follows:
§ 301.7701–2T Business entities;
definitions (temporary).
(a) through (b)(8)(v) [Reserved]. For
further guidance, see § 301.7701–2(a)
through (b)(8)(v).
(b)(8)(vi) Certain European entities.
The following business entities formed
in the following jurisdictions:
Estonia, Aktsiaselts;
European Economic Area/European
Union, Societas Europaea;
Latvia, Akciju Sabiedriba;
Liechtenstein, Aktiengesellschaft;
Lithuania, Akcine Bendroves;
Slovenia, Delniska Druzba.
(c) and (d) [Reserved]. For further
guidance, see § 301.7701–2(c) and (d).
(e) Effective dates.
(1) and (2) [Reserved]. For further
guidance, see § 301.7701–2(e)(1) and (2).
(3) The reference to the Estonian,
Latvian, Liechtenstein, Lithuanian, and
Slovenian entities in paragraph (b)(8)(vi)
of this section applies to such entities
formed on or after October 7, 2004, and
to any such entity formed before such
date from the date any person or
persons, who were not owners of the
entity as of October 7, 2004, own in the
aggregate a 50 percent or greater interest
in the entity. The reference to the
European Economic Area/European
Union entity in paragraph (b)(8)(vi) of
this section applies to such entities
formed on or after October 8, 2004.
*
*
*
*
*
Mark E. Matthews,
Deputy Commissioner for Services and
Enforcement.
Approved: March 28, 2005.
Eric Solomon,
Acting Deputy Assistant Secretary of the
Treasury.
[FR Doc. 05–6716 Filed 4–13–05; 8:45 am]
BILLING CODE 4830–01–P
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DEPARTMENT OF THE INTERIOR
Office of Surface Mining Reclamation
and Enforcement
30 CFR Part 946
[VA–121–FOR]
Virginia Regulatory Program
Office of Surface Mining
Reclamation and Enforcement (OSM),
Interior.
ACTION: Final rule; approval of
amendment.
AGENCY:
SUMMARY: We are approving a proposed
amendment to the Virginia regulatory
program under the Surface Mining
Control and Reclamation Act of 1977
(SMCRA or the Act). The program
amendment revises Virginia’s Coal
Surface Mining Reclamation
Regulations concerning performance
bonds furnished pursuant to the Coal
Surface Mining Reclamation (Pool
Bond) Fund. The amendment is
intended to conform the performance
bond release procedures that are applied
to Virginia’s ‘‘alternative bonding
system’’ with bond release procedures
used for other performance bonds. The
amendment is also intended to clarify
language regarding minimum bond
amounts for phased bond release.
DATES: Effective April 14, 2005.
FOR FURTHER INFORMATION CONTACT: Mr.
Robert A. Penn, Director, Big Stone Gap
Field Office; Telephone: (540) 523–
4303. Internet: rpenn@osmre.gov.
SUPPLEMENTARY INFORMATION:
I. Background on the Virginia Program
II. Submission of the Amendment
III. OSM’s Findings
IV. Summary and Disposition of Comments
V. OSM’s Decision
VI. Procedural Determinations
I. Background on the Virginia Program
Section 503(a) of the Act permits a
State to assume primacy for the
regulation of surface coal mining and
reclamation operations on non-Federal
and non-Indian lands within its borders
by demonstrating that its program
includes, among other things, ‘‘* * * a
State law which provides for the
regulation of surface coal mining and
reclamation operations in accordance
with the requirements of the Act * * *;
and rules and regulations consistent
with regulations issued by the Secretary
pursuant to the Act.’’ See 30 U.S.C.
1253(a)(1) and (7). On the basis of these
criteria, the Secretary of the Interior
conditionally approved the Virginia
program on December 15, 1981. You can
find background information on the
Virginia program, including the
E:\FR\FM\14APR1.SGM
14APR1
Agencies
[Federal Register Volume 70, Number 71 (Thursday, April 14, 2005)]
[Rules and Regulations]
[Pages 19697-19698]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-6716]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[TD 9197]
RIN 1545-BD78
Classification of Certain Foreign Entities
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final and temporary regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains temporary and final regulations
relating to certain business entities included on the list of foreign
business entities that are always classified as corporations for
Federal tax purposes. The text of the temporary regulations also serves
as the text of the proposed regulations set forth in the notice of
proposed rulemaking on this subject in the Proposed Rules section in
this issue of the Federal Register.
DATES: Effective Date: These regulations are effective on October 7,
2004.
Applicability Date: For the dates of applicability of these
regulations, see Sec. 301.7701-2T(e).
FOR FURTHER INFORMATION CONTACT: Ronald M. Gootzeit, (202) 622-3860
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The IRS and Treasury Department issued final regulations concerning
the classification of entities under section 7701 of the Internal
Revenue Code (Code) on December 18, 1996 (final regulations). See
generally TD 8697 (1997-1 C.B. 215) and Sec. Sec. 301.7701-1 through
301.7701-3. Under the final regulations, a business entity that is not
specifically classified as a corporation is an eligible entity that can
elect its classification for Federal tax purposes under certain
circumstances. However, Sec. 301.7701-2(b)(8) provides a list of
certain foreign business entities that are always classified as
corporations for Federal tax purposes (the per se corporation list).
These foreign business entities are generally referred to as per se
corporations.
On October 8, 2001, the Council of the European Union adopted
Council Regulation 2157/2001 2001 O.J. (L 294) (the EU Regulation) to
provide for a new business entity, the European public limited
liability company (Societas Europaea or SE). The EU Regulation entered
into force on October 8, 2004, and has effect in all the Member States
of the European Economic Area (which includes all Member States of the
European Union plus Norway, Iceland, and Liechtenstein). An SE must
have a registered office in one of the Member States.
The SE is a public limited liability company. The EU Regulation
provides general rules that govern the formation and operation of an SE
and supplements those rules for specified issues and issues it does not
address by reference to the laws with respect to public limited
liability companies for the country in which the SE has its registered
office. Most of the countries in which an SE can have its registered
office have a business entity that constitutes a public limited
liability company and that currently is on the per se corporation list.
However, an SE can have its registered office in the following
countries that have a business entity that is a public limited
liability company but that is not yet on the per se corporation list:
Estonia, Latvia, Lithuania, Slovenia, and Liechtenstein.
Explanation of Provisions
In Notice 2004-68 (2004-43 IRB 706), the IRS and Treasury stated
that the SE is properly classified as a per se corporation because it
will function as a public limited liability company. The Notice also
stated that the IRS and Treasury will issue temporary and proposed
regulations that will modify Sec. 301.7701-2(b)(8) to include the SE
on the per se corporation list. The Notice further stated that the
temporary and proposed regulations will modify Sec. 301.7701-2(b)(8)
to include as per se corporations the Estonian Aktsiaselts, Latvian
Akciju Sabiedriba, Lithuanian Akcine Bendroves, Slovenian Delniska
Druzba, and Liechtenstein Aktiengesellschaft. These entities are the
public limited liability companies in their respective countries. The
temporary regulations in this document
[[Page 19698]]
make these modifications to Sec. 301.7701-2(b)(8). In addition, in
accordance with Notice 2004-68, these regulations will be effective for
the Estonian, Latvian, Liechtenstein, Lithuanian, and Slovenian
entities formed on or after October 7, 2004, and for the European
Economic Area entity formed on or after October 8, 2004. See also
section 7805(b)(1)(C).
The status of an SE may be relevant to the application of various
Federal income tax provisions, such as the subpart F same-country
exception under section 954(c)(3). Treasury and the IRS are considering
these issues and invite comments on any additional areas in which
guidance on the Federal tax treatment of an SE may be warranted.
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. As a result of the
issuance of Notice 2004-68, good cause is found for dispensing with
prior notice and comment pursuant to 5 U.S.C. 553(b). For the
applicability of the Regulatory Flexibility Act (5 U.S.C. chapter 6),
refer to the Special Analyses section of the preamble to the notice of
proposed rulemaking published in the proposed rules section in this
issue of the Federal Register. Pursuant to section 7805(f) of the Code,
these temporary regulations will be submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on their
impact.
Drafting Information
The principal author of these regulations is Ronald M. Gootzeit 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.
Amendments to the Regulations
0
Accordingly, 26 CFR part 301 is amended as follows:
PART 301--PROCEDURE AND ADMINISTRATION
0
Paragraph 1. The authority citation for part 301 continues to read, in
part, as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. In Sec. 301.7701-2, paragraph (b)(8)(vi) is added to read as
follows:
Sec. 301.7701-2 Business entities; definitions.
* * * * *
(b) * * *
(8) * * *
(vi) Certain European entities. [Reserved]. For further guidance,
see Sec. 301.7701-2T.
* * * * *
0
Par. 3. Section 301.7701-2T is amended by adding paragraphs (b)(8)(vi)
and (e) to read as follows:
Sec. 301.7701-2T Business entities; definitions (temporary).
(a) through (b)(8)(v) [Reserved]. For further guidance, see Sec.
301.7701-2(a) through (b)(8)(v).
(b)(8)(vi) Certain European entities. The following business
entities formed in the following jurisdictions:
Estonia, Aktsiaselts;
European Economic Area/European Union, Societas Europaea;
Latvia, Akciju Sabiedriba;
Liechtenstein, Aktiengesellschaft;
Lithuania, Akcine Bendroves;
Slovenia, Delniska Druzba.
(c) and (d) [Reserved]. For further guidance, see Sec. 301.7701-
2(c) and (d).
(e) Effective dates.
(1) and (2) [Reserved]. For further guidance, see Sec. 301.7701-
2(e)(1) and (2).
(3) The reference to the Estonian, Latvian, Liechtenstein,
Lithuanian, and Slovenian entities in paragraph (b)(8)(vi) of this
section applies to such entities formed on or after October 7, 2004,
and to any such entity formed before such date from the date any person
or persons, who were not owners of the entity as of October 7, 2004,
own in the aggregate a 50 percent or greater interest in the entity.
The reference to the European Economic Area/European Union entity in
paragraph (b)(8)(vi) of this section applies to such entities formed on
or after October 8, 2004.
* * * * *
Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
Approved: March 28, 2005.
Eric Solomon,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 05-6716 Filed 4-13-05; 8:45 am]
BILLING CODE 4830-01-P