Guidance Under Section 7874 Regarding Expatriated Entities and Their Foreign Parents, 32495-32496 [E6-8698]

Download as PDF Federal Register / Vol. 71, No. 108 / Tuesday, June 6, 2006 / Proposed Rules Security-Survivors Insurance; 96.006, Supplemental Security Income). List of Subjects in 20 CFR Parts 401 and 402 DEPARTMENT OF THE TREASURY Dated: February 27, 2006. Jo Anne B. Barnhart, Commissioner of Social Security. Internal Revenue Service For the reasons set out in the preamble, we propose to amend subpart C of part 401 and part 402 of chapter III of title 20 of the Code of Federal Regulations as set forth below: PART 401—PRIVACY AND DISCLOSURE OF OFFICIAL RECORDS AND INFORMATION 1. The authority citation for part 401 continues to read as follows: Authority: Secs. 205, 702(a)(5), 1106, and 1141 of the Social Security Act (42 U.S.C. 405, 902(a)(5), 1306, and 1320b–11); 5 U.S.C. 552 and 552a; 8 U.S.C. 1360; 26 U.S.C. 6103; 30 U.S.C. 923. Appendix A to Part 401—[Amended] 2. Appendix A, paragraph (b)(3)(c)(4) is amended by removing the first sentence. PART 402—AVAILABILITY OF INFORMATION AND RECORDS TO THE PUBLIC 1. The authority citation for part 402 continues to read as follows: Authority: Secs. 205, 702(a)(5), and 1106 of the Social Security Act; (42 U.S.C. 405, 902(a)(5), and 1306); 5 U.S.C. 552 and 552a; 8 U.S.C. 1360; 18 U.S.C. 1905; 26 U.S.C. 6103; 30 U.S.C. 923b; 31 U.S.C. 9701; E.O. 12600, 52 FR 23781, 3 CFR, 1987 Comp., p. 235. 2. Section 402.45 is amended by adding paragraph (e) to read as follows: Availability of records. rwilkins on PROD1PC63 with PROPOSAL * * * * * (e) Federal employees. The agency will generally not disclose information when the data sought is a list of telephone numbers and/or duty stations of one or more Federal employees which, as determined by the official responsible for custody of the information: (1) Is selected in such a way that would reveal more about the employee on whom information is sought than the aforementioned items, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy; or VerDate Aug<31>2005 16:48 Jun 05, 2006 Jkt 208001 [FR Doc. E6–8697 Filed 6–5–06; 8:45 am] BILLING CODE 4191–02–P Administrative practice and procedure, Freedom of information, Privacy. § 402.45 (2) Would otherwise be protected from mandatory disclosure under an exemption of the FOIA. 26 CFR Part 1 [REG–112994–06] RIN 1545–BF47 Guidance Under Section 7874 Regarding Expatriated Entities and Their Foreign Parents Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed rulemaking by cross-reference to temporary regulation 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 relating to the determination of whether a foreign entity shall be treated as a surrogate foreign corporation under section 7874(a)(2)(B) of the Code. The text of those regulations also serves as the text of these proposed regulations. This document also provides notice of a public hearing on these proposed regulations. Written or electronic comments must be received by September 5, 2006. Outlines of topics to be discussed at the public hearing scheduled for October 24, 2006, at 10 a.m., must be received by October 3, 2006. ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG–112994–06), room 5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be handdelivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG–112994–06), 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 (IRS–REG– 112994–06). The public hearing will be held in the auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW., Washington, DC. FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Milton Cahn at (202) 622–3860; concerning submission and delivery of DATES: PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 32495 comments and the public hearing, Treena Garrett, (202) 622–7180 (not tollfree numbers). SUPPLEMENTARY INFORMATION: Background and Explanation of Provisions Temporary regulations in the Rules and Regulations section of this issue of the Federal Register amend the Income Tax Regulations (26 CFR part 1) relating to section 7874. The temporary regulations set forth rules relating to the determination of whether a foreign entity shall be treated as a surrogate foreign corporation under section 7874(a)(2)(B) of the Code. The text of those regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the amendments. 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. Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it is hereby certified that this regulation will not have a significant economic impact on a substantial number of small entities. Accordingly, a regulatory flexibility analysis is not required. The nature of the businesses that are most likely to consider corporate expatriation transactions, as well as the complexity and the costs of structuring and implementing those transactions, makes it unlikely that a substantial number of small entities will engage in such transactions. In addition, any economic impact to entities affected by section 7874, large or small, is derived from the operation of the statute or its intended application, not the proposed regulations in this notice of proposed rulemaking. 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 comments (a signed original and eight (8) copies) or electronic comments that are submitted timely to the IRS. The IRS and Treasury Department specifically request comments on the clarity of the proposed regulations and how they can be made easier to understand. All comments will be available for public inspection and copying. E:\FR\FM\06JNP1.SGM 06JNP1 32496 Federal Register / Vol. 71, No. 108 / Tuesday, June 6, 2006 / Proposed Rules A public hearing has been scheduled for October 24, 2006, 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 immediate entrance area 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 section of this preamble. The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who wish to present oral comments at the hearing must submit electronic or 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 October 3, 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 receiving outlines has passed. Copies of the agenda will be available free of charge at the hearing. Drafting Information The principal author of these regulations is Jefferson VanderWolk of the Office of the 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 Paragraph 1. The authority citation for part 1 is amended by adding an entry in numerical order to read, in part, as follows: rwilkins on PROD1PC63 with PROPOSAL Authority: 26 U.S.C. 7805 * * * Section 1.7874–2 also issued under 26 U.S.C. 7874(c)(6) and (g). * * * Par. 2. Section 1.7874–2 is added to read as follows: Surrogate foreign corporation. VerDate Aug<31>2005 17:59 Jun 05, 2006 Jkt 208001 DEPARTMENT OF TRANSPORTATION Federal Transit Administration 49 CFR Part 604 [Docket No. FTA–2005–22657] RIN 2132–AA85 Charter Service Federal Transit Administration (FTA), DOT. ACTION: Notice of additional committee members notice of and meeting dates and times. AGENCY: SUMMARY: This notice lists the additional committee members as nominated by the Charter Bus Negotiated Rulemaking Advisory Committee (CBNRAC) and approved by the Deputy Administrator of the Federal Transit Administration (FTA). This notice also includes new meeting dates and times. DATES: Effective Date: June 6, 2006. See SUPPLEMENTARY INFORMATION section for dates of future meetings. FOR FURTHER INFORMATION CONTACT: Elizabeth Martineau, Attorney-Advisor, Office of the Chief Counsel, Federal Transit Administration, 202–366–1936 (elizabeth.martineau@dot.gov). Her mailing address at the Federal Transit Administration is 400 Seventh Street, SW., Room 9316, Washington, DC 20590. April 10, 2006, FTA published a final notice establishing the Charter Bus Negotiated Rulemaking Advisory Committee (CBNRAC) (71 FR 18056). The CBNRAC held its first meeting in Washington, DC on May 8 and 9. During those meetings, the members of the CBNRAC nominated four additional members for inclusion on the CBNRAC. Those individuals are: (1) Michael Waters, Vice President and General Manager, Coach USA; (2) Dale Moser, Chief Operating Officer, Coach America; (3) Richard Ruddell, President and Executive Director, Fort Worth Transportation Authority; PO 00000 Frm 00018 Fmt 4702 (4) Sandy Dragoo, Executive Director, Capital Area Transportation Authority. The Deputy Administrator considered these names, and, on May 26, 2006, approved the inclusion of these individuals on the CBNRAC. Schedule of Meetings BILLING CODE 4830–01–P New Members PART 1—INCOME TAXES [The text of proposed § 1.7874–2 is the same as the text of § 1.7874–2T Mark E. Matthews, Deputy Commissioner for Services and Enforcement. [FR Doc. E6–8698 Filed 6–5–06; 8:45 am] SUPPLEMENTARY INFORMATION: Accordingly, 26 CFR part 1 is proposed to be amended as follows: § 1.7874–2 published elsewhere in this issue of the Federal Register]. Sfmt 4702 As mentioned above, the first meetings of the CBNRAC occurred on May 8 and 9 in Washington, DC. During those meetings, the Committee agreed on the following schedule for future meetings: June 19 from 9 a.m. to 4:30 p.m. June 20 from 8:30 a.m. to 4 p.m. July 17 from 9 a.m. to 4:30 p.m. July 18 from 8:30 a.m. to 4 p.m. September 12 from 9 a.m. to 4:30 p.m. September 13 from 8:30 a.m. to 4 p.m. October 25 from 9 a.m. to 4:30 p.m. October 26 from 8:30 a.m. to 4 p.m. December 6 from 9 a.m. to 4:30 p.m. December 7 from 8:30 a.m. to 4 p.m. All of the above meetings will be held in room 2301 at 400 Seventh Street, SW., Washington, DC. Any changes in dates, times, or location, will be announced in a Federal Register notice in advance of the next meeting. Issued this 31st day of May, 2006, in Washington, DC. Sandra K. Bushue, Deputy Administrator. [FR Doc. 06–5133 Filed 6–5–06; 8:45 am] BILLING CODE 4910–57–M DEPARTMENT OF THE INTERIOR Fish and Wildlife Service 50 CFR Part 17 RIN 1018–AU33 Endangered and Threatened Wildlife and Plants; Proposed Designation of Critical Habitat for the Spikedace and Loach Minnow Fish and Wildlife Service, Interior. ACTION: Revised proposed rule; reopening of public comment period, notice of availability of draft economic analysis and draft environmental assessment, notice of public hearings, and updated legal descriptions for critical habitat units. AGENCY: SUMMARY: We, the U.S. Fish and Wildlife Service (Service), announce the availability of the draft economic analysis and draft environmental assessment for the proposal to designate critical habitat for the spikedace (Meda fulgida) and loach minnow (Tiaroga cobitis) under the Endangered Species E:\FR\FM\06JNP1.SGM 06JNP1

Agencies

[Federal Register Volume 71, Number 108 (Tuesday, June 6, 2006)]
[Proposed Rules]
[Pages 32495-32496]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-8698]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-112994-06]
RIN 1545-BF47


Guidance Under Section 7874 Regarding Expatriated Entities and 
Their Foreign Parents

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulation 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 relating to 
the determination of whether a foreign entity shall be treated as a 
surrogate foreign corporation under section 7874(a)(2)(B) of the Code. 
The text of those 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 September 5, 
2006. Outlines of topics to be discussed at the public hearing 
scheduled for October 24, 2006, at 10 a.m., must be received by October 
3, 2006.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-112994-06), room 
5203, Internal Revenue Service, PO 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-
112994-06), 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 (IRS-REG-112994-06). 
The public hearing will be held in the auditorium, Internal Revenue 
Building, 1111 Constitution Avenue, NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Milton Cahn at (202) 622-3860; concerning submission and delivery of 
comments and the public hearing, Treena Garrett, (202) 622-7180 (not 
toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Income Tax Regulations (26 CFR 
part 1) relating to section 7874. The temporary regulations set forth 
rules relating to the determination of whether a foreign entity shall 
be treated as a surrogate foreign corporation under section 
7874(a)(2)(B) of the Code. The text of those regulations also serves as 
the text of these proposed regulations. The preamble to the temporary 
regulations explains the amendments.

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. Pursuant to 
the Regulatory Flexibility Act (5 U.S.C. chapter 6), it is hereby 
certified that this regulation will not have a significant economic 
impact on a substantial number of small entities. Accordingly, a 
regulatory flexibility analysis is not required. The nature of the 
businesses that are most likely to consider corporate expatriation 
transactions, as well as the complexity and the costs of structuring 
and implementing those transactions, makes it unlikely that a 
substantial number of small entities will engage in such transactions. 
In addition, any economic impact to entities affected by section 7874, 
large or small, is derived from the operation of the statute or its 
intended application, not the proposed regulations in this notice of 
proposed rulemaking. 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 comments (a signed original 
and eight (8) copies) or electronic comments that are submitted timely 
to the IRS. The IRS and Treasury Department specifically request 
comments on the clarity of the proposed regulations and how they can be 
made easier to understand. All comments will be available for public 
inspection and copying.

[[Page 32496]]

    A public hearing has been scheduled for October 24, 2006, 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 immediate entrance area 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 section of this preamble.
    The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who 
wish to present oral comments at the hearing must submit electronic or 
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 October 3, 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 receiving outlines 
has passed. Copies of the agenda will be available free of charge at 
the hearing.

Drafting Information

    The principal author of these regulations is Jefferson VanderWolk 
of the Office of the 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 is amended by adding 
an entry in numerical order to read, in part, as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 1.7874-2 also issued under 26 U.S.C. 7874(c)(6) and (g). 
* * *

    Par. 2. Section 1.7874-2 is added to read as follows:


Sec.  1.7874-2  Surrogate foreign corporation.

    [The text of proposed Sec.  1.7874-2 is the same as the text of 
Sec.  1.7874-2T published elsewhere in this issue of the Federal 
Register].

Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E6-8698 Filed 6-5-06; 8:45 am]
BILLING CODE 4830-01-P

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