Guidance Necessary To Facilitate Business Electronic Filing and Burden Reduction, 30640-30642 [06-4872]
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30640
Federal Register / Vol. 71, No. 103 / Tuesday, May 30, 2006 / Proposed Rules
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–134317–05]
RIN 1545–BF16
Guidance Necessary To Facilitate
Business Electronic Filing and Burden
Reduction
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
by cross-reference to temporary
regulations.
AGENCY:
wwhite on PROD1PC61 with PROPOSALS
SUMMARY: In the Rules and Regulations
section of this issue of the Federal
Register, the IRS is issuing temporary
regulations that simplify, clarify, or
eliminate reporting burdens. Those
regulations also eliminate regulatory
impediments to the electronic filing of
certain statements that taxpayers are
required to include on or with their
Federal income tax returns. The text of
those regulations also serves as the text
of these proposed regulations.
DATES: Written or electronic comments,
and a request for a public hearing, must
be received by August 28, 2006.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–134317–05), Room
5203, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions
may be hand-delivered Monday through
Friday between the hours of 8 a.m. and
4 p.m. to CC:PA:LPD:PR (REG–134317–
05), Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue,
NW., Washington, DC, or sent
electronically, via the IRS Internet site
at https://www.irs.gov/regs or via the
Federal eRulemaking Portal at https://
www.regulations.gov (indicate IRS and
REG–134317–05).
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Grid Glyer, (202) 622–7930, concerning
submissions of comments, Kelly Banks
(202) 622–7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information
contained in this notice of proposed
rulemaking has 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
collection of information should be sent
to the Office of Management and
Budget, Attn: Desk Officer for the
Department of the Treasury, Office of
VerDate Aug<31>2005
15:53 May 26, 2006
Jkt 208001
Information and Regulatory Affairs,
Washington, DC 20503, with copies to
the Internal Revenue Service, Attn: IRS
Reports Clearance Officer,
SE:W:CAR:MP:T:T:SP, Washington, DC
20224. Comments on the collection of
information should be received by
August 28, 2006. Comments are
specifically requested concerning:
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Internal Revenue Service, 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 service to provide
information.
The collection of information in these
proposed regulations is in each of the
corresponding temporary regulations.
The proposed regulations simplify,
clarify, or eliminate reporting burdens.
These regulations also eliminate
regulatory impediments to the
electronic filing of certain statements
that taxpayers are required to include on
or with their Federal income tax returns.
The collection of information is
mandatory. The likely respondents are
large corporations, many of which will
be members of a consolidated group
and/or component members of a
controlled group.
Estimated total annual reporting
burden: 262,500 hours.
Estimated average annual burden
hours per respondent: 0.75 hours.
Estimated number of respondents:
350,000.
Estimated frequency of responses:
Annually.
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.
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Background and Explanation of
Provisions
Temporary Regulations in the Rules
and Regulations section of this issue of
the Federal Register amend 26 CFR part
1 to add §§ 1.302–2T, 1.302–4T, 1.331–
1T, 1.332–6T, 1.338–10T, 1.351–3T,
1.355–5T, 1.368–3T, 1.381(b)–1T,
1.382–8T, 1.382–11T, 1.1081–11T,
1.1221–2T, 1.1502–13T, 1.1502–31T,
1.1502–32T, 1.1502–33T, 1.1502–35T,
1.1502–76T, 1.1502–95T, 1.1563–1T,
1.1563–3T, and amend part 602 to add
§ 1.6012–2T. The text of those
temporary regulations also serves as the
text of these proposed regulations. The
preamble to the temporary regulations
explains the amendments.
Special Analysis
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
has also been determined that section
553(b) of the Administrative Procedure
Act (5 U.S.C. chapter 5) does not apply
to the following proposed regulations:
§§ 1.302–2, 1.302–4, 1.331–1, 1.332–6,
1.351–3, 1.355–5, 1.368–3, 1.381(b)–1,
1.1081–11, 1.1563–1, 1.1563–3, and
1.6012–2. With respect to the
collections of information in such
regulations, and with respect to the
following proposed regulations,
§§ 1.338–10, 1.382–8, 1.382–11, 1.1221–
2, 1.1502–13, 1.1502–31, 1.1502–32,
1.1502–33, 1.1502–35, 1.1502–76 and
1.1502–95, it is hereby certified that
these provisions will not have a
significant economic impact on a
substantial number of small entities.
This certification is based on the fact
that these regulations primarily affect
large corporations (which are members
of either controlled or consolidated
groups) and in the case of all
corporations will substantially reduce or
eliminate the existing reporting burden.
Therefore, a regulatory flexibility
analysis is not required. Pursuant to
section 7805(f) of the Internal Revenue
Code, these proposed regulations have
been 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 (a signed original and
eight (8) copies) or electronic comments
that are submitted timely to the IRS. All
comments will be available for public
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Federal Register / Vol. 71, No. 103 / Tuesday, May 30, 2006 / Proposed Rules
inspection and copying. A public
hearing may 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 author of these
regulations is Grid Glyer of the Office of
Associate Chief Counsel (Corporate).
Other personnel from the Treasury
Department and the IRS participated in
their development.
List of Subjects in 26 CFR Part 1
§ 1.332–6 Records to be kept and
information to be filed with return.
[The text of the proposed § 1.332–6 is
the same as the text for § 1.332–6T
published elsewhere in this issue of the
Federal Register].
Par. 6. Section 1.338–10 is amended
by revising paragraph (a)(4)(iii) and
adding paragraph (c) to read as follows:
§ 1.338–10
Filing of returns.
[The text of the proposed amendment
to § 1.338–10 is the same as the text for
§ 1.338–10T published elsewhere in this
issue of the Federal Register].
Par. 7. Section 1.351–3 is added to
read as follows:
§ 1.351–3 Records to be kept and
information to be filed.
Income taxes, Reporting and
recordkeeping requirements.
[The text of the proposed § 1.351–3 is
the same as the text for § 1.351–3T
published elsewhere in this issue of the
Federal Register].
Par. 8. Section 1.355–5 is added to
read as follows:
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
proposed to be amended as follows:
PART 1—INCOME TAXES
§ 1.355–5 Records to be kept and
information to be filed.
Paragraph 1. The authority citation
for part 1 continues to read, in part, as
follows:
[The text of the proposed § 1.355–5 is
the same as the text for § 1.355–5T
published elsewhere in this issue of the
Federal Register].
Par. 9. Section 1.368–3 is added to
read as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.302–2 is amended
by:
1. Redesignating paragraph (b) as
paragraph (b)(1).
2. Revising newly designated
paragraph (b)(1).
3. Adding paragraphs (b)(2) and (d).
The additions and revisions read as
follows:
§ 1.368–3 Records to be kept and
information to be filed with returns.
§ 1.302–2 Redemptions not taxable as
dividends.
[The text of the proposed amendment
to § 1.302–2 is the same as the text for
§ 1.302–2T published elsewhere in this
issue of the Federal Register].
Par. 3. Section 1.302–4 is amended by
revising paragraph (a) and adding
paragraph (h) to read as follows:
[The text of the proposed § 1.368–3 is
the same as the text for § 1.368–3T
published elsewhere in this issue of the
Federal Register].
Par. 10. Section 1.381(b)–1 is
amended by revising paragraph (b)(3)
and adding paragraph (e) to read as
follows:
§ 1.381(b)–1 Operating rules applicable to
carryovers in certain corporate
acquisitions.
[The text of the proposed amendment
to § 1.302–4 is the same as the text for
§ 1.302–4T published elsewhere in this
issue of the Federal Register].
Par. 4. Section 1.331–1 is amended by
revising paragraph (d) and adding
paragraph (f) to read as follows:
[The text of the proposed amendment
to § 1.381(b)–1 is the same as the text for
§ 1.381(b)–1T published elsewhere in
this issue of the Federal Register].
Par. 11. Section 1.382–8 is amended
by:
1. Revising paragraphs (c)(2) and (h).
2. Redesignating paragraph (e)(4) as
paragraph (e)(5).
3. Adding new paragraphs (e)(4) and
(j)(4).
The additions and revisions read as
follows:
§ 1.331–1
§ 1.382–8
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§ 1.302–4
interest.
Termination of shareholder’s
Corporate liquidations.
[The text of the proposed amendment
to § 1.331–1 is the same as the text for
§ 1.331–1T published elsewhere in this
issue of the Federal Register].
Par. 5. Section 1.332–6 added to read
as follows:
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15:53 May 26, 2006
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Controlled groups.
[The text of the proposed amendment
to § 1.382–8 is the same as the text for
§ 1.382–8T published elsewhere in this
issue of the Federal Register].
Par. 12. Section 1.382–11 is added to
read as follows:
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§ 1.382–11
30641
Reporting requirements.
[The text of the proposed § 1.382–11
is the same as the text for § 1.382–11T
published elsewhere in this issue of the
Federal Register].
Par. 13. Section 1.1081–11 is added to
read as follows:
§ 1.1081–11 Records to be kept and
information to be filed with returns.
[The text of the proposed § 1.1081–11
is the same as the text for § 1.1081–11T
published elsewhere in this issue of the
Federal Register].
Par. 14. Section 1.1221–2 is amended
by revising paragraph (e)(2)(iv) and
adding paragraphs (i) through (j) to read
as follows:
§ 1.1221–2
Hedging transactions.
[The text of the proposed amendment
to § 1.1221–2 is the same as the text for
§ 1.1221–2T published elsewhere in this
issue of the Federal Register].
Par. 15. Section 1.1502–13 is
amended by revising paragraphs
(f)(5)(ii)(E) and (f)(6)(i)(C)(2) and adding
paragraph (m) to read as follows:
§ 1.1502–13
Intercompany transactions.
[The text of the proposed amendment
to § 1.1502–13 is the same as the text for
§ 1.1502–13T published elsewhere in
this issue of the Federal Register].
Par. 16. Section 1.1502–31 is
amended by revising paragraph (e)(2)
and adding paragraphs (i) through (j) to
read as follows:
§ 1.1502–31 Stock basis after a group
structure change.
[The text of the proposed amendment
to § 1.1502–31 is the same as the text for
§ 1.1502–31T published elsewhere in
this issue of the Federal Register].
Par. 17. Section 1.1502–32 is
amended by revising paragraph
(b)(4)(iv) and adding paragraphs (i)
through (j) as follows:
§ 1.1502–32
Investment adjustments.
[The text of the proposed amendment
to § 1.1502–32 is the same as the text for
§ 1.1502–32T published elsewhere in
this issue of the Federal Register].
Par. 18. Section 1.1502–33 is
amended by revising paragraph
(d)(5)(i)(D) and adding paragraph (k) to
read as follows:
§ 1.1502–33
Earnings and profits.
[The text of the proposed amendment
to § 1.1502–33 is the same as the text for
§ 1.1502–33T published elsewhere in
this issue of the Federal Register].
Par. 19. Section 1.1502–35 is
amended by revising paragraph (c)(4)(i)
and adding paragraph (k) to read as
follows:
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Federal Register / Vol. 71, No. 103 / Tuesday, May 30, 2006 / Proposed Rules
§ 1.1502–35 Transfers of subsidiary stock
and deconsolidations of subsidiaries.
[The text of the proposed amendment
to § 1.1502–35 is the same as the text of
§ 1.1502–35T published elsewhere in
this issue of the Federal Register].
Par. 20. Section 1.1502–76 is
amended by revising paragraph
(b)(2)(ii)(D) and adding paragraph (d) to
read as follows:
§ 1.1502–76
group.
Taxable year of members of
§ 1.1502–95 Rules on ceasing to be a
member of a consolidated group (or loss
subgroup).
[The text of the proposed amendment
to § 1.1502–95 is the same as the text for
§ 1.1502–95T published elsewhere in
this issue of the Federal Register].
Par. 22. Section 1.1563–1 is amended
by revising paragraph (c)(2) and adding
paragraph (e) to read as follows:
§ 1.1563–1 Definition of controlled group
of corporations and component members.
[The text of the proposed amendment
to § 1.1563–1 is the same as the text for
§ 1.1563–1T published elsewhere in this
issue of the Federal Register].
Par. 23. Section 1.1563–3 is amended
by revising paragraph (d)(2)(iv) and
adding paragraph (e) to read as follows:
§ 1.1563–3 Rules for determining stock
ownership.
[The text of the proposed amendment
to § 1.1563–3 is the same as the text for
§ 1.1563–3T published elsewhere in this
issue of the Federal Register].
Par. 24. Section 1.6012–2 is amended
by revising paragraph (c) and adding
paragraph (k) to read as follows:
§ 1.6012–2 Corporations required to make
returns of income.
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Coast Guard
33 CFR Part 165
[CGD05–06–056]
RIN 1625–AA00
Safety Zone; Fireworks Display,
Chesapeake Bay, Tred Avon River,
Oxford, MD
Coast Guard, DHS.
Notice of proposed rulemaking.
AGENCY:
[The text of the proposed amendment
to § 1.1502–76 is the same as the text for
§ 1.1502–76T published elsewhere in
this issue of the Federal Register].
Par. 21. Section 1.1502–95 is
amended by revising paragraphs (e)(8)
and (f) and adding paragraph (g) to read
as follows:
[The text of the proposed section
§ 1.6012–2 is the same as the text for
§ 1.6012–2T published elsewhere in this
issue of the Federal Register].
Mark E. Matthews,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 06–4872 Filed 5–26–06; 8:45 am]
BILLING CODE 4830–01–P
VerDate Aug<31>2005
DEPARTMENT OF HOMELAND
SECURITY
16:35 May 26, 2006
Jkt 208001
ACTION:
SUMMARY: The Coast Guard proposes to
establish a temporary safety zone upon
certain waters of the Tred Avon River
during a fireworks display. This action
is necessary to provide for the safety of
life on navigable waters during a
fireworks display launched from a
barge, located between Bellevue,
Maryland and Oxford, Maryland. This
action will restrict vessel traffic in a
portion of the Tred Avon River.
DATES: Comments and related material
must reach the Coast Guard on or before
June 29, 2006.
ADDRESSES: You may mail comments
and related material to Commander,
U.S. Coast Guard Sector Baltimore, 2401
Hawkins Point Road, Building 70,
Waterways Management Division,
Baltimore, Maryland 21226–1791. Coast
Guard Sector Baltimore, Waterways
Management Division, maintains the
public docket for this rulemaking.
Comments and material received from
the public, as well as documents
indicated in this preamble as being
available in the docket, will become part
of this docket and will be available for
inspection or copying at Commander,
U.S. Coast Guard Sector Baltimore, 2401
Hawkins Point Road, Building 70,
Waterways Management Division,
Baltimore, Maryland 21226–1791,
between 8 a.m. and 3 p.m., Monday
through Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: Mr.
Ronald L. Houck, at Coast Guard Sector
Baltimore, Waterways Management
Division, at telephone number (410)
576–2674 or (410) 576–2693.
SUPPLEMENTARY INFORMATION:
Request for Comments
We encourage you to participate in
this rulemaking by submitting
comments and related material. If you
do so, please include your name and
address, identify the docket number for
this rulemaking (CGD05–06–056),
indicate the specific section of this
document to which each comment
applies, and give the reason for each
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comment. Please submit all comments
and related material in an unbound
format, no larger than 81⁄2 by 11 inches,
suitable for copying. If you would like
to know they reached us, please enclose
a stamped, self-addressed postcard or
envelope. We will consider all
comments and material received during
the comment period. We may change
this proposed rule in view of them.
Public Meeting
We do not now plan to hold a public
meeting. But you may submit a request
for a meeting by writing to Coast Guard
Sector Baltimore, Waterways
Management Division, at the address
under ADDRESSES explaining why one
would be beneficial. If we determine
that one would aid this rulemaking, we
will hold one at a time and place
announced by a later notice in the
Federal Register.
Background and Purpose
Each year, thousands of spectators
attend an outdoor Independence Day
fireworks display discharged from
vessels or floating platforms on or near
the navigable waters of the United
States. Accidental discharge of
fireworks and falling hot embers are a
safety concern during such events. The
Coast Guard has the authority to impose
appropriate controls on marine events
that may pose a threat to persons,
vessels and facilities under its
jurisdiction. The Coast Guard proposes
to establish a safety zone that will be
enforced during a fireworks display
held over the Tred Avon River, a
tributary of the Chesapeake Bay. The
proposed rule is needed to control
movement through a portion of the
waterway that is heavily populated by
vessels seeking to view the fireworks
display and participate in the
Independence Day celebration.
Discussion of Proposed Rule
On July 2, 2006, the Tred Avon Yacht
Club will sponsor a fireworks display
launched from a barge located on the
Tred Avon River, near Oxford,
Maryland. The planned event includes
a thirty-five minute aerial fireworks
display beginning at dusk. A rain date
is being proposed for July 3, 2006. A
large fleet of spectator vessels is
anticipated for this event. Due to the
need for vessel control during the
fireworks display, vessel traffic will be
restricted to provide for the safety of
spectators and transiting vessels.
The purpose of this rule is to promote
maritime safety, and to protect the
environment and mariners transiting the
area from the potential hazards due to
falling embers or other debris associated
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]]>Agencies
[Federal Register Volume 71, Number 103 (Tuesday, May 30, 2006)]
[Proposed Rules]
[Pages 30640-30642]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-4872]
[[Page 30640]]
=======================================================================
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-134317-05]
RIN 1545-BF16
Guidance Necessary To Facilitate Business Electronic Filing and
Burden Reduction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations.
-----------------------------------------------------------------------
SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS is issuing temporary regulations that
simplify, clarify, or eliminate reporting burdens. Those regulations
also eliminate regulatory impediments to the electronic filing of
certain statements that taxpayers are required to include on or with
their Federal income tax returns. The text of those regulations also
serves as the text of these proposed regulations.
DATES: Written or electronic comments, and a request for a public
hearing, must be received by August 28, 2006.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-134317-05), Room
5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
134317-05), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC, or sent electronically, via the IRS
Internet site at https://www.irs.gov/regs or via the Federal eRulemaking
Portal at https://www.regulations.gov (indicate IRS and REG-134317-05).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Grid Glyer, (202) 622-7930, concerning submissions of comments, Kelly
Banks (202) 622-7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information contained in this notice of proposed
rulemaking has 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 collection 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:T:T:SP,
Washington, DC 20224. Comments on the collection of information should
be received by August 28, 2006. Comments are specifically requested
concerning:
Whether the proposed collection of information is necessary for the
proper performance of the functions of the Internal Revenue Service,
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 service to provide information.
The collection of information in these proposed regulations is in
each of the corresponding temporary regulations.
The proposed regulations simplify, clarify, or eliminate reporting
burdens. These regulations also eliminate regulatory impediments to the
electronic filing of certain statements that taxpayers are required to
include on or with their Federal income tax returns.
The collection of information is mandatory. The likely respondents
are large corporations, many of which will be members of a consolidated
group and/or component members of a controlled group.
Estimated total annual reporting burden: 262,500 hours.
Estimated average annual burden hours per respondent: 0.75 hours.
Estimated number of respondents: 350,000.
Estimated frequency of responses: Annually.
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 and Explanation of Provisions
Temporary Regulations in the Rules and Regulations section of this
issue of the Federal Register amend 26 CFR part 1 to add Sec. Sec.
1.302-2T, 1.302-4T, 1.331-1T, 1.332-6T, 1.338-10T, 1.351-3T, 1.355-5T,
1.368-3T, 1.381(b)-1T, 1.382-8T, 1.382-11T, 1.1081-11T, 1.1221-2T,
1.1502-13T, 1.1502-31T, 1.1502-32T, 1.1502-33T, 1.1502-35T, 1.1502-76T,
1.1502-95T, 1.1563-1T, 1.1563-3T, and amend part 602 to add Sec.
1.6012-2T. The text of those temporary regulations also serves as the
text of these proposed regulations. The preamble to the temporary
regulations explains the amendments.
Special Analysis
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 has also
been determined that section 553(b) of the Administrative Procedure Act
(5 U.S.C. chapter 5) does not apply to the following proposed
regulations: Sec. Sec. 1.302-2, 1.302-4, 1.331-1, 1.332-6, 1.351-3,
1.355-5, 1.368-3, 1.381(b)-1, 1.1081-11, 1.1563-1, 1.1563-3, and
1.6012-2. With respect to the collections of information in such
regulations, and with respect to the following proposed regulations,
Sec. Sec. 1.338-10, 1.382-8, 1.382-11, 1.1221-2, 1.1502-13, 1.1502-31,
1.1502-32, 1.1502-33, 1.1502-35, 1.1502-76 and 1.1502-95, it is hereby
certified that these provisions will not have a significant economic
impact on a substantial number of small entities. This certification is
based on the fact that these regulations primarily affect large
corporations (which are members of either controlled or consolidated
groups) and in the case of all corporations will substantially reduce
or eliminate the existing reporting burden. Therefore, a regulatory
flexibility analysis is not required. Pursuant to section 7805(f) of
the Internal Revenue Code, these proposed regulations have been
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 (a signed original
and eight (8) copies) or electronic comments that are submitted timely
to the IRS. All comments will be available for public
[[Page 30641]]
inspection and copying. A public hearing may 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 author of these regulations is Grid Glyer of the
Office of Associate Chief Counsel (Corporate). Other personnel from the
Treasury Department and the IRS 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. Section 1.302-2 is amended by:
1. Redesignating paragraph (b) as paragraph (b)(1).
2. Revising newly designated paragraph (b)(1).
3. Adding paragraphs (b)(2) and (d).
The additions and revisions read as follows:
Sec. 1.302-2 Redemptions not taxable as dividends.
[The text of the proposed amendment to Sec. 1.302-2 is the same as
the text for Sec. 1.302-2T published elsewhere in this issue of the
Federal Register].
Par. 3. Section 1.302-4 is amended by revising paragraph (a) and
adding paragraph (h) to read as follows:
Sec. 1.302-4 Termination of shareholder's interest.
[The text of the proposed amendment to Sec. 1.302-4 is the same as
the text for Sec. 1.302-4T published elsewhere in this issue of the
Federal Register].
Par. 4. Section 1.331-1 is amended by revising paragraph (d) and
adding paragraph (f) to read as follows:
Sec. 1.331-1 Corporate liquidations.
[The text of the proposed amendment to Sec. 1.331-1 is the same as
the text for Sec. 1.331-1T published elsewhere in this issue of the
Federal Register].
Par. 5. Section 1.332-6 added to read as follows:
Sec. 1.332-6 Records to be kept and information to be filed with
return.
[The text of the proposed Sec. 1.332-6 is the same as the text for
Sec. 1.332-6T published elsewhere in this issue of the Federal
Register].
Par. 6. Section 1.338-10 is amended by revising paragraph
(a)(4)(iii) and adding paragraph (c) to read as follows:
Sec. 1.338-10 Filing of returns.
[The text of the proposed amendment to Sec. 1.338-10 is the same
as the text for Sec. 1.338-10T published elsewhere in this issue of
the Federal Register].
Par. 7. Section 1.351-3 is added to read as follows:
Sec. 1.351-3 Records to be kept and information to be filed.
[The text of the proposed Sec. 1.351-3 is the same as the text for
Sec. 1.351-3T published elsewhere in this issue of the Federal
Register].
Par. 8. Section 1.355-5 is added to read as follows:
Sec. 1.355-5 Records to be kept and information to be filed.
[The text of the proposed Sec. 1.355-5 is the same as the text for
Sec. 1.355-5T published elsewhere in this issue of the Federal
Register].
Par. 9. Section 1.368-3 is added to read as follows:
Sec. 1.368-3 Records to be kept and information to be filed with
returns.
[The text of the proposed Sec. 1.368-3 is the same as the text for
Sec. 1.368-3T published elsewhere in this issue of the Federal
Register].
Par. 10. Section 1.381(b)-1 is amended by revising paragraph (b)(3)
and adding paragraph (e) to read as follows:
Sec. 1.381(b)-1 Operating rules applicable to carryovers in certain
corporate acquisitions.
[The text of the proposed amendment to Sec. 1.381(b)-1 is the same
as the text for Sec. 1.381(b)-1T published elsewhere in this issue of
the Federal Register].
Par. 11. Section 1.382-8 is amended by:
1. Revising paragraphs (c)(2) and (h).
2. Redesignating paragraph (e)(4) as paragraph (e)(5).
3. Adding new paragraphs (e)(4) and (j)(4).
The additions and revisions read as follows:
Sec. 1.382-8 Controlled groups.
[The text of the proposed amendment to Sec. 1.382-8 is the same as
the text for Sec. 1.382-8T published elsewhere in this issue of the
Federal Register].
Par. 12. Section 1.382-11 is added to read as follows:
Sec. 1.382-11 Reporting requirements.
[The text of the proposed Sec. 1.382-11 is the same as the text
for Sec. 1.382-11T published elsewhere in this issue of the Federal
Register].
Par. 13. Section 1.1081-11 is added to read as follows:
Sec. 1.1081-11 Records to be kept and information to be filed with
returns.
[The text of the proposed Sec. 1.1081-11 is the same as the text
for Sec. 1.1081-11T published elsewhere in this issue of the Federal
Register].
Par. 14. Section 1.1221-2 is amended by revising paragraph
(e)(2)(iv) and adding paragraphs (i) through (j) to read as follows:
Sec. 1.1221-2 Hedging transactions.
[The text of the proposed amendment to Sec. 1.1221-2 is the same
as the text for Sec. 1.1221-2T published elsewhere in this issue of
the Federal Register].
Par. 15. Section 1.1502-13 is amended by revising paragraphs
(f)(5)(ii)(E) and (f)(6)(i)(C)(2) and adding paragraph (m) to read as
follows:
Sec. 1.1502-13 Intercompany transactions.
[The text of the proposed amendment to Sec. 1.1502-13 is the same
as the text for Sec. 1.1502-13T published elsewhere in this issue of
the Federal Register].
Par. 16. Section 1.1502-31 is amended by revising paragraph (e)(2)
and adding paragraphs (i) through (j) to read as follows:
Sec. 1.1502-31 Stock basis after a group structure change.
[The text of the proposed amendment to Sec. 1.1502-31 is the same
as the text for Sec. 1.1502-31T published elsewhere in this issue of
the Federal Register].
Par. 17. Section 1.1502-32 is amended by revising paragraph
(b)(4)(iv) and adding paragraphs (i) through (j) as follows:
Sec. 1.1502-32 Investment adjustments.
[The text of the proposed amendment to Sec. 1.1502-32 is the same
as the text for Sec. 1.1502-32T published elsewhere in this issue of
the Federal Register].
Par. 18. Section 1.1502-33 is amended by revising paragraph
(d)(5)(i)(D) and adding paragraph (k) to read as follows:
Sec. 1.1502-33 Earnings and profits.
[The text of the proposed amendment to Sec. 1.1502-33 is the same
as the text for Sec. 1.1502-33T published elsewhere in this issue of
the Federal Register].
Par. 19. Section 1.1502-35 is amended by revising paragraph
(c)(4)(i) and adding paragraph (k) to read as follows:
[[Page 30642]]
Sec. 1.1502-35 Transfers of subsidiary stock and deconsolidations of
subsidiaries.
[The text of the proposed amendment to Sec. 1.1502-35 is the same
as the text of Sec. 1.1502-35T published elsewhere in this issue of
the Federal Register].
Par. 20. Section 1.1502-76 is amended by revising paragraph
(b)(2)(ii)(D) and adding paragraph (d) to read as follows:
Sec. 1.1502-76 Taxable year of members of group.
[The text of the proposed amendment to Sec. 1.1502-76 is the same
as the text for Sec. 1.1502-76T published elsewhere in this issue of
the Federal Register].
Par. 21. Section 1.1502-95 is amended by revising paragraphs (e)(8)
and (f) and adding paragraph (g) to read as follows:
Sec. 1.1502-95 Rules on ceasing to be a member of a consolidated
group (or loss subgroup).
[The text of the proposed amendment to Sec. 1.1502-95 is the same
as the text for Sec. 1.1502-95T published elsewhere in this issue of
the Federal Register].
Par. 22. Section 1.1563-1 is amended by revising paragraph (c)(2)
and adding paragraph (e) to read as follows:
Sec. 1.1563-1 Definition of controlled group of corporations and
component members.
[The text of the proposed amendment to Sec. 1.1563-1 is the same
as the text for Sec. 1.1563-1T published elsewhere in this issue of
the Federal Register].
Par. 23. Section 1.1563-3 is amended by revising paragraph
(d)(2)(iv) and adding paragraph (e) to read as follows:
Sec. 1.1563-3 Rules for determining stock ownership.
[The text of the proposed amendment to Sec. 1.1563-3 is the same
as the text for Sec. 1.1563-3T published elsewhere in this issue of
the Federal Register].
Par. 24. Section 1.6012-2 is amended by revising paragraph (c) and
adding paragraph (k) to read as follows:
Sec. 1.6012-2 Corporations required to make returns of income.
[The text of the proposed section Sec. 1.6012-2 is the same as the
text for Sec. 1.6012-2T published elsewhere in this issue of the
Federal Register].
Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 06-4872 Filed 5-26-06; 8:45 am]
BILLING CODE 4830-01-P
