Guidance on Passive Foreign Investment Company (PFIC) Purging Elections, 72952-72953 [05-23628]
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72952
Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Proposed Rules
Control 1487L [Amended]
That airspace extending upward from
5,500 feet MSL within the area bounded by
a line beginning at lat. 58°19′58″ N., long.
148°55′07″ W.; to lat. 59°08′34″ N., long.
147°16′06″ W.; thence counterclockwise via
the arc of a 149.5-mile radius centered on the
Anchorage VOR/DME to the intersection of
the 149.5-mile radius arc and a point 12
miles from and parallel to the U.S. coastline;
thence southeast 12 miles from and parallel
to the U.S. coastline to a point 12 miles
offshore on the Vancouver FIR boundary; to
lat. 54°32′57″ N., long. 133°11′29″ W.; to lat.
54°00′00″ N., long. 136°00′00″ W.; to lat.
52°43′00″ N., long. 135°00′00″ W.; to lat.
56°45′42″ N., long. 151°45′00″ W.; to the
point of beginning; and that airspace
extending upward from 1,200 feet MSL
within the area bounded by a line beginning
at lat. 59°33′25″ N., long. 141°03′22″ W.;
thence southeast 12 miles from and parallel
to the U.S. coastline to lat. 58°56′18″ N., long.
138°45′19″ W.; to lat. 58°40′00″ N., long.
139°30′00″ W.; to lat. 59°00′00″ N., long.
141°10′00″ W.; to the point of beginning. The
portion within Canada is excluded.
*
*
*
*
*
Issued in Washington, DC, on December 1,
2005.
Edith V. Parish,
Manager, Airspace and Rules.
[FR Doc. 05–23757 Filed 12–7–05; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
U.S. persons that hold stock in a PFIC.
The text of those temporary regulations
also serves as the text of these proposed
regulations. This document also
provides notice of a public hearing on
these proposed regulations.
DATES: Written or electronic comments
must be received by March 8, 2006.
Outlines of topics to be discussed at the
public hearing scheduled for March 22,
2006, at 10 a.m. must be received by
March 1, 2006.
ADDRESSES: Send submissions to
CC:PA:LPD:PR (REG–133446–03), room
5203, Internal Revenue Building, POB
7604, Ben Franklin Station, Washington,
DC 20044. Submissions may be hand
delivered between the hours of 8 a.m.
and 4 p.m. to CC:PA:LPD:PR (REG–
133446–03), Courier’s Desk, Internal
Revenue Building, 1111 Constitution
Avenue, NW., Washington, DC,
electronically via the IRS Internet site at
https://www.irs.gov/regs or via the
Federal Rulemaking Portal at https://
www.regulations.gov (IRS REG–133446–
03). The public hearing will be held in
the Auditorium, Internal Revenue
Building, 1111 Constitution Avenue,
NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT:
Concerning the regulations, Ethan
Atticks at (202) 622–3840, concerning
submissions and the hearing, LaNita
Van Dyke (202) 622–7180 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
26 CFR Part 1
Paperwork Reduction Act
[REG–133446–03]
The collections of information
contained in this notice of proposed
rulemaking have been submitted to the
Office of Management and Budget for
review in accordance with the
Paperwork Reduction Act of 1995 (44
U.S.C. 3507(d)). Comments on the
collections of information should be
sent to the Office of Management and
Budget, Attn: Desk Officer for the
Department of the Treasury, Office of
Information and Regulatory Affairs,
Washington, DC 20503, with copies to
the Internal Revenue Service, Attn: IRS
Reports Clearance Officer,
SE:W:CAR:MP:FP:S Washington, DC
20224. Comments on the collections of
information should be received by
February 6, 2006. Comments are
specifically requested concerning:
Whether the proposed collections of
information are necessary for the proper
performance of the functions of the IRS,
including whether the information will
have practical utility;
The accuracy of the estimated burden
associated with the proposed collection
of information (see below);
RIN 1545–BC37
Guidance on Passive Foreign
Investment Company (PFIC) Purging
Elections
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
by cross-reference to temporary
regulations, notice of proposed
rulemaking, and notice of public
hearing.
AGENCY:
SUMMARY: In the Rules and Regulations
section of this issue of the Federal
Register, the IRS is issuing temporary
regulations that provide certain
elections for taxpayers, who in limited
circumstances, continue to be subject to
the excess distribution regime of section
1291 even though the foreign
corporation in which they own stock is
no longer treated as a PFIC under
section 1297(e). The regulations are
necessary to provide guidance about
purging the PFIC taint for such foreign
corporations. The regulations will affect
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16:15 Dec 07, 2005
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How the quality, utility, and clarity of
the information to be collected may be
enhanced;
How the burden of complying with
the proposed collection of information
may be minimized, including through
the application of automated collection
techniques or other forms of information
technology; and
Estimates of capital or start-up costs
and costs of operation, maintenance,
and purchase of services to provide
information.
The collection of information in these
proposed regulations is in § 1.1297–
3(c)(5)(ii). This information is required
to enable the IRS to verify that a
taxpayer is reporting the correct amount
of income, gain or loss from that
taxpayer’s interest in the foreign
corporation. The collections of
information are mandatory. The
respondents are shareholders of PFICs.
Estimated total annual reporting
burden: 250 hours.
The estimated annual burden per
respondent is 1 hour.
Estimated number of respondents:
250.
The estimated annual frequency of
responses: One time.
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
Temporary regulations in the Rules
and Regulations section of this issue of
the Federal Register provide certain
elections for taxpayers that continue to
be subject to the excess distribution
regime of section 1291 even though the
foreign corporation in which they own
stock is no longer treated as a PFIC
under section 1297(e) or section
1298(b)(1). The text of the temporary
regulations also serves as the text of
these proposed regulations. The
preamble to the temporary regulations
explains 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
E:\FR\FM\08DEP1.SGM
08DEP1
Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Proposed Rules
has also 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 on small business.
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 is scheduled for
March 22, 2006, beginning at 10 a.m. in
the Auditorium, 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
entrance more than 30 minutes before
the hearing starts. For information about
having your name placed on the
building access list to attend the
hearing, see the FOR FURTHER
INFORMATION CONTACT portion of this
preamble.
The rules of 26 CFR 601.601(a)(3)
apply to this hearing. Persons who wish
to present oral comments must submit
written comments and an outline of the
topics to be discussed and the time to
be devoted to each topic (a signed
original and eight (8) copies) by March
1, 2006. A period of 10 minutes will be
allotted to each person for making
comments. An agenda showing the
scheduling of the speakers will be
prepared after the deadline for
reviewing outlines has passed. Copies of
the agenda will be available free of
charge at the hearing.
Drafting Information
The principal author of this regulation
is Ethan Atticks, Office of Associate
Chief Counsel (International). However,
other personnel from the IRS and
Treasury Department participated in
their development.
VerDate Aug<31>2005
16:15 Dec 07, 2005
Jkt 208001
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
72953
of § 1.1298–3T(f) published elsewhere
in this issue of the Federal Register].
Mark E. Matthews,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 05–23628 Filed 12–7–05; 8:45 am]
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
proposed to be amended as follows:
BILLING CODE 4830–01–P
PART 1—INCOME TAXES
DEPARTMENT OF THE TREASURY
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
Internal Revenue Service
Authority: 26 U.S.C. 7805 * * *
Par. 2. In § 1.1291–9, paragraph
(j)(2)(v) is revised to read as follows:
§ 1.1291–9
Deemed dividend election.
*
*
*
*
*
(j) * * *
(2) * * *
(v) [The text of the proposed
amendment to § 1.1291–9(j)(2)(v) is the
same as the text for § 1.1291–9T(j)(2)(v)
published elsewhere in this issue of the
Federal Register.]
*
*
*
*
*
Par. 3. Section 1.1297–0 is revised to
read as follows:
§ 1.1297–0
Table of contents.
[The text of proposed § 1.1297–0 is
the same as the text of § 1.1297–0T
published elsewhere in this issue of the
Federal Register.]
Par. 4. Section 1.1297–3 is added to
read as follows:
§ 1.1297–3 Deemed sale or deemed
dividend election by a U.S. person that is
a shareholder of a section 1297(e) PFIC.
[The text of proposed § 1.1297–3 is
the same as the text of § 1.1297–3T
published elsewhere in this issue of the
Federal Register.]
Par. 5. Section 1.1298–0 is revised to
read as follows:
§ 1.1298–0
Table of contents.
[The text of proposed § 1.1298–0 is
the same as the text of § 1.1298–0T
published elsewhere in this issue of the
Federal Register].
Par. 6. In § 1.1298–3, paragraph (e)
and paragraph (f) are revised to read as
follows:
§ 1.1298–3 Deemed sale or deemed
dividend election by a U.S. person that is
a shareholder of a former PFIC.
*
*
*
*
*
(e) [The text of the proposed revision
to § 1.1298–3(e) is the same as the text
of § 1.1298–3T(e) published elsewhere
in this issue of the Federal Register].
(f) [The text of the proposed revision
to § 1.1298–3(f) is the same as the text
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26 CFR Part 54
[REG–138647–04]
RIN 1545–BE30
Employer Comparable Contributions to
Health Savings Accounts Under
Section 4980G; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to notice of proposed
rulemaking.
AGENCY:
SUMMARY: This document contains
corrections to a notice of proposed
rulemaking that was published in the
Federal Register on Friday, August 26,
2005 (70 FR 50233) providing guidance
on employer comparable contributions
to Health Savings Accounts (HSAs)
under section 4980G.
FOR FURTHER INFORMATION CONTACT:
Barbara E. Pie at (202) 622–6080 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The notice of proposed rulemaking
(REG–138647–04) that is the subject of
this correction is under section 4980 of
the Internal Revenue Code.
Need for Correction
As published, REG–138647–04
contains errors that may prove to be
misleading and are in need of
clarification.
Correction of Publication
Accordingly, the publication of the
notice of proposed rulemaking (REG–
138647–04), which was the subject of
FR Doc. 05–16941, is corrected as
follows:
1. On page 50235, column 1, in the
preamble under the paragraph heading
‘‘Calculating Comparable
Contributions’’, first paragraph, line 21,
the language, ‘‘under employer’s HDHP.
The proposed’’ is corrected to read
‘‘under the employer’s HDHP. The
proposed’’.
§ 54.4980G–4
[Corrected]
2. On page 50241, column 2,
§ 54.4980G–4, A–1(b), Example 8, line
E:\FR\FM\08DEP1.SGM
08DEP1
]]>Agencies
[Federal Register Volume 70, Number 235 (Thursday, December 8, 2005)]
[Proposed Rules]
[Pages 72952-72953]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-23628]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-133446-03]
RIN 1545-BC37
Guidance on Passive Foreign Investment Company (PFIC) Purging
Elections
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations, notice of proposed rulemaking, and notice of public
hearing.
-----------------------------------------------------------------------
SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS is issuing temporary regulations that provide
certain elections for taxpayers, who in limited circumstances, continue
to be subject to the excess distribution regime of section 1291 even
though the foreign corporation in which they own stock is no longer
treated as a PFIC under section 1297(e). The regulations are necessary
to provide guidance about purging the PFIC taint for such foreign
corporations. The regulations will affect U.S. persons that hold stock
in a PFIC. The text of those temporary regulations also serves as the
text of these proposed regulations. This document also provides notice
of a public hearing on these proposed regulations.
DATES: Written or electronic comments must be received by March 8,
2006. Outlines of topics to be discussed at the public hearing
scheduled for March 22, 2006, at 10 a.m. must be received by March 1,
2006.
ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-133446-03), room 5203,
Internal Revenue Building, POB 7604, Ben Franklin Station, Washington,
DC 20044. Submissions may be hand delivered between the hours of 8 a.m.
and 4 p.m. to CC:PA:LPD:PR (REG-133446-03), Courier's Desk, Internal
Revenue Building, 1111 Constitution Avenue, NW., Washington, DC,
electronically via the IRS Internet site at https://www.irs.gov/regs or
via the Federal Rulemaking Portal at https://www.regulations.gov (IRS
REG-133446-03). The public hearing will be held in the Auditorium,
Internal Revenue Building, 1111 Constitution Avenue, NW., Washington,
DC.
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Ethan
Atticks at (202) 622-3840, concerning submissions and the hearing,
LaNita Van Dyke (202) 622-7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information contained in this notice of proposed
rulemaking have been submitted to the Office of Management and Budget
for review in accordance with the Paperwork Reduction Act of 1995 (44
U.S.C. 3507(d)). Comments on the collections of information should be
sent to the Office of Management and Budget, Attn: Desk Officer for the
Department of the Treasury, Office of Information and Regulatory
Affairs, Washington, DC 20503, with copies to the Internal Revenue
Service, Attn: IRS Reports Clearance Officer, SE:W:CAR:MP:FP:S
Washington, DC 20224. Comments on the collections of information should
be received by February 6, 2006. Comments are specifically requested
concerning:
Whether the proposed collections of information are necessary for
the proper performance of the functions of the IRS, including whether
the information will have practical utility;
The accuracy of the estimated burden associated with the proposed
collection of information (see below);
How the quality, utility, and clarity of the information to be
collected may be enhanced;
How the burden of complying with the proposed collection of
information may be minimized, including through the application of
automated collection techniques or other forms of information
technology; and
Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
The collection of information in these proposed regulations is in
Sec. 1.1297-3(c)(5)(ii). This information is required to enable the
IRS to verify that a taxpayer is reporting the correct amount of
income, gain or loss from that taxpayer's interest in the foreign
corporation. The collections of information are mandatory. The
respondents are shareholders of PFICs.
Estimated total annual reporting burden: 250 hours.
The estimated annual burden per respondent is 1 hour.
Estimated number of respondents: 250.
The estimated annual frequency of responses: One time.
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
Temporary regulations in the Rules and Regulations section of this
issue of the Federal Register provide certain elections for taxpayers
that continue to be subject to the excess distribution regime of
section 1291 even though the foreign corporation in which they own
stock is no longer treated as a PFIC under section 1297(e) or section
1298(b)(1). The text of the temporary regulations also serves as the
text of these proposed regulations. The preamble to the temporary
regulations explains 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
[[Page 72953]]
has also 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 on small
business.
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 is scheduled for March 22, 2006, beginning at 10
a.m. in the Auditorium, 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 entrance more than 30 minutes before the hearing starts. For
information about having your name placed on the building access list
to attend the hearing, see the FOR FURTHER INFORMATION CONTACT portion
of this preamble.
The rules of 26 CFR 601.601(a)(3) apply to this hearing. Persons
who wish to present oral comments must submit written comments and an
outline of the topics to be discussed and the time to be devoted to
each topic (a signed original and eight (8) copies) by March 1, 2006. A
period of 10 minutes will be allotted to each person for making
comments. An agenda showing the scheduling of the speakers will be
prepared after the deadline for reviewing outlines has passed. Copies
of the agenda will be available free of charge at the hearing.
Drafting Information
The principal author of this regulation is Ethan Atticks, 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 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. In Sec. 1.1291-9, paragraph (j)(2)(v) is revised to read
as follows:
Sec. 1.1291-9 Deemed dividend election.
* * * * *
(j) * * *
(2) * * *
(v) [The text of the proposed amendment to Sec. 1.1291-9(j)(2)(v)
is the same as the text for Sec. 1.1291-9T(j)(2)(v) published
elsewhere in this issue of the Federal Register.]
* * * * *
Par. 3. Section 1.1297-0 is revised to read as follows:
Sec. 1.1297-0 Table of contents.
[The text of proposed Sec. 1.1297-0 is the same as the text of
Sec. 1.1297-0T published elsewhere in this issue of the Federal
Register.]
Par. 4. Section 1.1297-3 is added to read as follows:
Sec. 1.1297-3 Deemed sale or deemed dividend election by a U.S.
person that is a shareholder of a section 1297(e) PFIC.
[The text of proposed Sec. 1.1297-3 is the same as the text of
Sec. 1.1297-3T published elsewhere in this issue of the Federal
Register.]
Par. 5. Section 1.1298-0 is revised to read as follows:
Sec. 1.1298-0 Table of contents.
[The text of proposed Sec. 1.1298-0 is the same as the text of
Sec. 1.1298-0T published elsewhere in this issue of the Federal
Register].
Par. 6. In Sec. 1.1298-3, paragraph (e) and paragraph (f) are
revised to read as follows:
Sec. 1.1298-3 Deemed sale or deemed dividend election by a U.S.
person that is a shareholder of a former PFIC.
* * * * *
(e) [The text of the proposed revision to Sec. 1.1298-3(e) is the
same as the text of Sec. 1.1298-3T(e) published elsewhere in this
issue of the Federal Register].
(f) [The text of the proposed revision to Sec. 1.1298-3(f) is the
same as the text of Sec. 1.1298-3T(f) published elsewhere in this
issue of the Federal Register].
Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 05-23628 Filed 12-7-05; 8:45 am]
BILLING CODE 4830-01-P
