Application of Section 338 to Insurance Companies; Correction, 26722 [E6-6894]
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Federal Register / Vol. 71, No. 88 / Monday, May 8, 2006 / Proposed Rules
manufacturer incentive payments and to
clarify the proper treatment of such
incentive payments under the
intercompany transaction regulations.
On April 25, 2005, the IRS and
Treasury Department published Rev.
Rul. 2005–28 (2005–19 IRB 997), which
suspends, in part, Rev. Rul. 76–96
(1976–1 CB 23). Rev. Rul. 2005–28
states that the IRS will not apply, and
taxpayers may not rely upon, the
conclusion reached in Rev. Rul. 76–96
that certain rebates made by a
manufacturer to retail customers are
ordinary and necessary business
expenses deductible under section 162,
pending the IRS’s reconsideration of the
issue and publication of subsequent
guidance.
The example in paragraph (c) of the
proposed regulations relies, in part,
upon the premise that the manufacturer
incentive payment is an ordinary and
necessary business expense deductible
under section 162. To the extent that
this premise is correct, paragraph (d) of
the proposed regulations illustrates the
proper application of the intercompany
transaction regulations. However,
because Rev. Rul. 2005–28 suspends
Rev. Rul. 76–96, in pertinent part, these
paragraphs of the proposed regulations
are withdrawn pending further guidance
on the section 162 issue considered in
Rev. Rul. 76–96.
The example in paragraph (e) of the
proposed regulations illustrates the
application of the original issue
discount rules to the facts described in
paragraph (e) and, based on these facts,
concludes that the transaction is not an
intercompany transaction. This
conclusion is not dependent upon the
issue being reconsidered in Rev. Rul.
76–96. Nevertheless, because the
example in paragraph (e), standing
alone, does not provide guidance with
respect to the application of the
intercompany transaction regulations to
an intercompany transaction, paragraph
(e) of the proposed regulations is also
withdrawn.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
wwhite on PROD1PC61 with PROPOSALS
Accordingly, under the authority of
26 U.S.C. 7805, the notice of proposed
rulemaking (REG–131264–04) that was
published in the Federal Register on
15:54 May 05, 2006
Jkt 208001
Mark E. Matthews,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. E6–6888 Filed 5–5–06; 8:45 am]
BILLING CODE 4830–01–P
Correction of Publication
Accordingly, the publication of the
notice of proposed rulemaking (REG–
146384–05), which was the subject of
FR Doc. 06–3321, is corrected as
follows:
PART 1—INCOME TAXES
Internal Revenue Service
Paragraph 1. The authority citation
for part 1 continues to read, in part, as
follows:
26 CFR Part 1
§ 1.846–2
DEPARTMENT OF THE TREASURY
Authority: 26 U.S.C. 7805 * * *
[REG–146384–05]
RIN 1545–BF02
Application of Section 338 to
Insurance Companies; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to notice of proposed
rulemaking.
AGENCY:
SUMMARY: This document corrects a
notice of proposed rulemaking that was
published in the Federal Register on
Monday, April 10, 2006 (71 FR 18053).
The document contains temporary
regulations providing guidance under
section 197 that apply to the treatment
of certain insurance contracts assumed
in an assumption reinsurance
transaction and section 338 that apply
to a deemed sale or acquisition of an
insurance company’s assets pursuant to
an election under section 338 of the
Internal Revenue Code, to a sale or
acquisition of an insurance trade or
business subject to section 1060, and to
the acquisition of insurance contracts
through assumption reinsurance.
DATES: This correction is effective April
10, 2006.
FOR FURTHER INFORMATION CONTACT:
Mark J. Weiss, (202) 622–7790 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The notice of proposed rulemaking
(REG–146384–05), that is the subject of
this correction, is under sections 197,
338, and 846 of the Internal Revenue
Code.
Need for Correction
Withdrawal of Notice of Proposed
Rulemaking
VerDate Aug<31>2005
August 13, 2004 (69 FR 50112) is
withdrawn.
As published, the notice of proposed
rulemaking (REG–146384–05) contains
errors that may prove to be misleading
and are in need of clarification.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
PO 00000
Frm 00017
Fmt 4702
Sfmt 4702
[Corrected]
On page 18054, column 3, paragraph
instruction Par. 5., the language ‘‘Par. 5.
Section 1.846–2 as amended by adding
new paragraph (d) to read is follows:’’
is corrected to read ‘‘Par. 5. Section
1.846–2 is amended by adding new
paragraph (d) to read as follows:’’.
Guy R. Traynor,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, (Procedure and Administration).
[FR Doc. E6–6894 Filed 5–5–06; 8:45 am]
BILLING CODE 4830–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R03–OAR–2006–0314; FRL–8165–3]
Approval and Promulgation of Air
Quality Implementation Plans;
Maryland; Amendments to Stage II
Vapor Recovery at Gasoline
Dispensing Facilities
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
SUMMARY: EPA proposes to approve the
State Implementation Plan (SIP)
revision submitted by the State of
Maryland for the purpose of amending
the regulations pertaining to Stage II
Vapor Recovery at Gasoline Dispensing
Facilities. In the Final Rules section of
this Federal Register, EPA is approving
the State’s SIP submittal as a direct final
rule without prior proposal because the
Agency views this as a noncontroversial
submittal and anticipates no adverse
comments. A detailed rationale for the
approval is set forth in the direct final
rule. If no adverse comments are
received in response to this action, no
further activity is contemplated. If EPA
receives adverse comments, the direct
final rule will be withdrawn and all
public comments received will be
addressed in a subsequent final rule
based on this proposed rule. EPA will
E:\FR\FM\08MYP1.SGM
08MYP1
]]>Agencies
[Federal Register Volume 71, Number 88 (Monday, May 8, 2006)]
[Proposed Rules]
[Page 26722]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-6894]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-146384-05]
RIN 1545-BF02
Application of Section 338 to Insurance Companies; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correction to notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This document corrects a notice of proposed rulemaking that
was published in the Federal Register on Monday, April 10, 2006 (71 FR
18053).
The document contains temporary regulations providing guidance
under section 197 that apply to the treatment of certain insurance
contracts assumed in an assumption reinsurance transaction and section
338 that apply to a deemed sale or acquisition of an insurance
company's assets pursuant to an election under section 338 of the
Internal Revenue Code, to a sale or acquisition of an insurance trade
or business subject to section 1060, and to the acquisition of
insurance contracts through assumption reinsurance.
DATES: This correction is effective April 10, 2006.
FOR FURTHER INFORMATION CONTACT: Mark J. Weiss, (202) 622-7790 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The notice of proposed rulemaking (REG-146384-05), that is the
subject of this correction, is under sections 197, 338, and 846 of the
Internal Revenue Code.
Need for Correction
As published, the notice of proposed rulemaking (REG-146384-05)
contains errors that may prove to be misleading and are in need of
clarification.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Correction of Publication
Accordingly, the publication of the notice of proposed rulemaking
(REG-146384-05), which was the subject of FR Doc. 06-3321, is corrected
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 * * *
Sec. 1.846-2 [Corrected]
On page 18054, column 3, paragraph instruction Par. 5., the
language ``Par. 5. Section 1.846-2 as amended by adding new paragraph
(d) to read is follows:'' is corrected to read ``Par. 5. Section 1.846-
2 is amended by adding new paragraph (d) to read as follows:''.
Guy R. Traynor,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. E6-6894 Filed 5-5-06; 8:45 am]
BILLING CODE 4830-01-P
