Guidance Under Section 1502; Amendment of Tacking Rule Requirements of Life-Nonlife Consolidated Regulations; and Guidance Necessary To Facilitate Business Electronic Filing and Burden Reduction; Correction, 34009-34011 [06-5349]
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Federal Register / Vol. 71, No. 113 / Tuesday, June 13, 2006 / Rules and Regulations
to respond to nor be subject to a penalty
for failure to comply with a collection
of information, subject to the
requirements of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.) (PRA), unless that collection of
information displays a currently valid
Office of Management and Budget
(OMB) Control Number. This rule does
not involve any collections of
information that are subject to the
Paperwork Reduction Act.
3. This rule does not contain policies
with Federalism implications as this
term is defined in Executive Order
13132.
4. Pursuant to 5 U.S.C. 553, the
provisions of the Administrative
Procedure Act requiring a notice of
proposed rulemaking and the
opportunity for public comment are
waived, because this regulation involves
a rule of agency procedure. No other law
requires that a notice of proposed
rulemaking and an opportunity for
public comment be given for this rule.
Because a notice of proposed
rulemaking and an opportunity for
public comment are not required to be
given for this rule under the
Administrative Procedure Act or by any
other law, the analytical requirements of
the Regulatory Flexibility Act (5 U.S.C.
601 et seq.) are not applicable.
List of Subjects in 15 CFR Part 756
Administrative practice and
procedure, Exports, Penalties.
I Accordingly, part 756 of the Export
Administration Regulations (15 CFR
parts 730–799) are amended as follows:
1. The authority citation for 15 CFR
part 756 continues to read:
I
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025,
3 CFR, 2001 Comp., p. 783; Notice of August
2, 2005, 70 FR 45273 (August 5, 2005).
2. Section 756.2 is amended by
revising the second sentence of
paragraph (a), by adding a sentence
immediately following the second
sentence of paragraph (a) and by
revising paragraph (b)(4)(v) to read as
follows:
I
mstockstill on PROD1PC61 with RULES
§ 756.2 Appeal from an administrative
action.
(a) Review and appeal officials. * * *
In addition, the Under Secretary may
designate any employee of the
Department of Commerce to be an
appeals coordinator to assist in the
review and processing of an appeal
under this part. If such employee is not
an employee of BIS, such designation
may be made only with the concurrence
14:46 Jun 12, 2006
Dated: June 6, 2006.
Matthew S. Borman,
Deputy Assistant Secretary for Export
Administration.
[FR Doc. E6–9220 Filed 6–12–06; 8:45 am]
BILLING CODE 3510–33–P
Jkt 208001
Background
The temporary regulations (TD 9258)
and final and temporary regulations (TD
9264) that are the subject of these
corrections are under sections 332, 351,
355, 368, 1081, 1502, and 1563 of the
Internal Revenue Code.
Need for Correction
As published, TD 9258 and TD 9264
contain errors that may prove to be
misleading and are in need of
clarification. TD 9264 added § 1.1502–
76T in error, as § 1.1502–76T was
previously codified by TD 9258. This
correcting amendment amends
§ 1.1502–76T as codified by TD 9258,
and removes § 1.1502–76T as codified
by TD 9264.
List of Subjects
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602
RIN 1545–BE86; RIN 1545–BF26
Correction of Publication
Guidance Under Section 1502;
Amendment of Tacking Rule
Requirements of Life-Nonlife
Consolidated Regulations; and
Guidance Necessary To Facilitate
Business Electronic Filing and Burden
Reduction; Correction
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendment.
This document contains
corrections to temporary regulations (TD
9258) that were published in the
Federal Register on Tuesday, April 25,
2006 (71 FR 23856) relating to guidance
regarding amendments to tacking rule
requirements of Life-Nonlife
consolidated regulations under section
1502; and final and temporary
regulations (TD 9264), that were
published in the Federal Register on
Tuesday, May 30, 2006 (71 FR 30591)
relating to guidance necessary to
facilitate business electronic filing and
burden reduction.
DATES: The amendment to § 1.1502–76T
that published April 25, 2006, is
effective April 25, 2006. The
amendments to §§ 1.1563–1 and 602.101
and the removal of § 1.1502–76T that
published May 30, 2006, is effective
May 30, 2006.
FOR FURTHER INFORMATION CONTACT: Grid
Glyer, (202) 622–7930 (not a toll-free
number).
SUPPLEMENTARY INFORMATION:
PO 00000
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Fmt 4700
Sfmt 4700
26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
26 CFR Part 602
Reporting and recordkeeping
requirements.
[TD 9258 and TD 9264]
SUMMARY:
PART 756—[AMENDED]
VerDate Aug<31>2005
of the head of the operating unit in
which that employee is employed.
* * *
(b) * * *
(4) * * *
(v) Report. Any person designated by
the Under Secretary to conduct an
informal hearing shall submit a written
report containing a summary of the
hearing and recommend action to the
Under Secretary.
*
*
*
*
*
34009
Accordingly, 26 CFR parts 1 and 602
are corrected by making the following
correcting amendments:
I
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
I
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.1502–76T published
on April 25, 2006, as TD 9258 is
amended by revising paragraphs (b)
through (c)(3) and adding paragraph (d)
to read as follows:
I
§ 1.1502–76T Taxable year of members of
group (temporary).
*
*
*
*
*
(b) through (b)(2)(ii)(C) [Reserved].
For further guidance, see § 1.1502–76(b)
through (b)(2)(ii)(C).
(D) Election—(1) Statement. The
election to ratably allocate items under
paragraph (b)(2)(ii) of § 1.1502–76 must
be made in a separate statement
entitled, ‘‘THIS IS AN ELECTION
UNDER § 1.1502–76(b)(2)(ii) TO
RATABLY ALLOCATE THE YEAR’S
ITEMS OF [INSERT NAME AND
EMPLOYER IDENTIFICATION
NUMBER OF THE MEMBER].’’ The
election must be filed by including a
statement on or with the returns
including the items for the years ending
and beginning with S’s change in status.
If two or more members of the same
consolidated group, as a consequence of
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34010
Federal Register / Vol. 71, No. 113 / Tuesday, June 13, 2006 / Rules and Regulations
the same plan or arrangement, cease to
be members of that group and remain
affiliated as members of another
consolidated group, an election under
this paragraph (b)(2)(ii)(D)(1) may be
made only if it is made by each such
member. Each statement must also
indicate that an agreement, as described
in paragraph (b)(2)(ii)(D)(2) of this
section, has been entered into. Each
party signing the agreement must retain
either the original or a copy of the
agreement as part of its records. See
§ 1.6001–1(e).
(2) Agreement. For each election
under § 1.1502–76(b)(2)(ii), the member
and the common parent of each affected
group must sign and date an agreement.
The agreement must—
(i) Identify the extraordinary items,
their amounts, and the separate or
consolidated returns in which they are
included;
(ii) Identify the aggregate amount to be
ratably allocated, and the portion of the
amount included in the separate and
consolidated returns; and
(iii) Include the name and employer
identification number of the common
parent (if any) of each group that must
take the items into account.
(b)(2)(iii) through (c) [Reserved]. For
further guidance, see § 1.1502–
76(b)(2)(iii) through (c).
(d) Effective date—(1) Applicability
date—(i) Paragraph (a) of this section
applies to any original consolidated
Federal income tax return due (without
extensions) on or after April 25, 2006.
(ii) Paragraph (b)(2)(ii)(D) of this
section applies to any original
consolidated Federal income tax return
due (without extensions) after May 30,
2006. However, a consolidated group
may apply this section to any original
consolidated Federal income tax return
(including any amended return filed on
or before the due date (including
extensions) of such original return)
timely filed on or after May 30, 2006.
(2) Expiration date—(i) The
applicability of paragraph (a) of this
section will expire on April 25, 2009.
(ii) The applicability of paragraph
(b)(2)(ii)(D) of this section will expire on
May 26, 2009.
§ 1.1502–76T
[Removed]
Par. 3. Section 1.1502–76T published
on May 30, 2006, as TD 9264 is
removed.
I Par. 4. Section 1.1563–1 is amended
by adding paragraph (c)(2)(iv) and
revising paragraph (e) to read as follows:
I
§ 1.1563–1 Definition of controlled group
of corporations and component members.
*
*
*
*
*
(c) * * *
(2) * * *
(iv) The provisions of this paragraph
(c)(2) may be illustrated by the
following examples (in which it is
assumed that all the individuals are
unrelated):
Example 1. On each day of 1970 all the
outstanding stock of corporations M, N, and
P is held in the following manner:
Corporations
Individuals
M
(percent)
A ...................................................................................................................................................
B ...................................................................................................................................................
C ..................................................................................................................................................
Since the more-than-50-percent stock
ownership requirement of section
1563(a)(2)(B) is met with respect to
corporations M and N and with respect to
corporations N and P, but not with respect
to corporations M, N, and P, corporation N
would, without the application of this
paragraph (c)(2), be a component member on
December 31, 1970, of overlapping groups
consisting of M and N and of N and P. If N
does not file an election in accordance with
§ 1.1563–1T (c)(2)(i), the Internal Revenue
N
(percent)
55
40
5
P
(percent)
40
20
40
5
40
55
Service will determine the group in which N
is to be included.
Example 2. On each day of 1970, all the
outstanding stock of corporations S, T, W, X,
and Z is held in the following manner:
Corporations
Individuals
S
(percent)
mstockstill on PROD1PC61 with RULES
D ...........................................................................................
E ...........................................................................................
F ...........................................................................................
G ..........................................................................................
H ...........................................................................................
I ............................................................................................
On December 31, 1970, the more-than-50percent stock ownership requirement of
section 1563(a)(2)(B) may be met with regard
to any combination of the corporations but
all five corporations cannot be included as
component members of a single controlled
group because the inclusion of all the
corporations in a single group would be
dependent upon taking into account the
stock ownership of more than five persons.
Therefore, if the corporations do not file a
statement in accordance with § 1.1563–1T
(c)(2)(ii), the Internal Revenue Service will
determine the group in which each
corporation is to be included. The
VerDate Aug<31>2005
14:46 Jun 12, 2006
Jkt 208001
T
(percent)
52
40
2
2
2
2
W
(percent)
52
2
40
2
2
2
corporations or the Internal Revenue Service,
as the case may be, may designate that three
corporations be included in one group and
two corporations in another, or that any four
corporations be included in one group and
that the remaining corporation not be
included in any group.
*
*
*
*
(e) [Reserved]. For further guidance,
see § 1.1563–1T(e)(1).
52
2
2
40
2
2
Frm 00022
Fmt 4700
Sfmt 4700
Z
(percent)
52
2
2
2
40
2
52
2
2
2
2
40
PART 602—OMB CONTROL NUMBERS
UNDER THE PAPERWORK
REDUCTION ACT
Par. 5. The authority citation for part
602 continues to read in part as follows:
I
Authority: 26 U.S.C. 7805.
*
PO 00000
X
(percent)
§ 602.101
[Amended]
Par. 6. Section 602.101, paragraph (b)
is amended by removing the entries for
I
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13JNR1
Federal Register / Vol. 71, No. 113 / Tuesday, June 13, 2006 / Rules and Regulations
1.332–6, 1.351–3, 1.355–5, 1.368–3, and
1.1081–11.
Cynthia E. Grigsby,
Senior Federal Register Liaison Officer,
Publications and Regulations Branch,
Associate Chief Counsel, (Procedure and
Administration).
[FR Doc. 06–5349 Filed 6–8–06; 3:47 pm]
BILLING CODE 4830–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R03–OAR–2006–0473; FRL–8182–5]
Approval and Promulgation of Air
Quality Implementation Plans;
Pennsylvania; VOC and NOX RACT
Determinations for Eight Individual
Sources
mstockstill on PROD1PC61 with RULES
AGENCY: Environmental Protection
Agency (EPA).
ACTION: Direct final rule.
SUMMARY: EPA is taking direct final
action to approve revisions to the
Commonwealth of Pennsylvania’s State
Implementation Plan (SIP). The
revisions were submitted by the
Pennsylvania Department of
Environmental Protection (PADEP) to
establish and require reasonably
available control technology (RACT) for
eight major sources of volatile organic
compounds (VOC) and nitrogen oxides
(NOX). These sources are located in
Pennsylvania. EPA is approving these
revisions to establish RACT
requirements in the SIP in accordance
with the Clean Air Act (CAA).
DATES: This rule is effective on July 28,
2006 without further notice, unless EPA
receives adverse written comment by
July 13, 2006. If EPA receives such
comments, it will publish a timely
withdrawal of the direct final rule in the
Federal Register and inform the public
that the rule will not take effect.
ADDRESSES: Submit your comments,
identified by Docket ID Number EPA–
R03–OAR–2006–0473 by one of the
following methods:
A. https://www.regulations.gov. Follow
the on-line instructions for submitting
comments.
B. E-mail: morris.makeba@epa.gov.
C. Mail: EPA–R03–OAR–2006–0473,
Makeba Morris, Chief, Air Quality
Planning Branch, Mailcode 3AP21, U.S.
Environmental Protection Agency,
Region III, 1650 Arch Street,
Philadelphia, Pennsylvania 19103.
D. Hand Delivery: At the previouslylisted EPA Region III address. Such
deliveries are only accepted during the
VerDate Aug<31>2005
14:46 Jun 12, 2006
Jkt 208001
Docket’s normal hours of operation, and
special arrangements should be made
for deliveries of boxed information.
Instructions: Direct your comments to
Docket ID No. EPA–R03–OAR–2006–
0473. EPA’s policy is that all comments
received will be included in the public
docket without change, and may be
made available online at https://
www.regulations.gov, including any
personal information provided, unless
the comment includes information
claimed to be Confidential Business
Information (CBI) or other information
whose disclosure is restricted by statute.
Do not submit information that you
consider to be CBI or otherwise
protected through https://
www.regulations.gov or e-mail. The
https://www.regulations.gov Web site is
an ‘‘anonymous access’’ system, which
means EPA will not know your identity
or contact information unless you
provide it in the body of your comment.
If you send an e-mail comment directly
to EPA without going through https://
www.regulations.gov, your e-mail
address will be automatically captured
and included as part of the comment
that is placed in the public docket and
made available on the Internet. If you
submit an electronic comment, EPA
recommends that you include your
name and other contact information in
the body of your comment and with any
disk or CD–ROM you submit. If EPA
cannot read your comment due to
technical difficulties and cannot contact
you for clarification, EPA may not be
able to consider your comment.
Electronic files should avoid the use of
special characters, any form of
encryption, and be free of any defects or
viruses.
Docket: All documents in the
electronic docket are listed in the https://
www.regulations.gov index. Although
listed in the index, some information is
not publicly available, i.e., CBI or other
information whose disclosure is
restricted by statute. Certain other
material, such as copyrighted material,
is not placed on the Internet and will be
publicly available only in hard copy
form. Publicly available docket
materials are available either
electronically in https://
www.regulations.gov or in hard copy
during normal business hours at the Air
Protection Division, U.S. Environmental
Protection Agency, Region III, 1650
Arch Street, Philadelphia, Pennsylvania
19103. Copies of the State submittal are
available at the Pennsylvania
Department of Environmental
Protection, Bureau of Air Quality, P.O.
Box 8468, 400 Market Street, Harrisburg,
Pennsylvania 17105.
PO 00000
Frm 00023
Fmt 4700
Sfmt 4700
34011
FOR FURTHER INFORMATION CONTACT: Rose
Quinto, (215) 814–2182, or by e-mail at
quinto.rose@epa.gov.
SUPPLEMENTARY INFORMATION:
I. Background
Pursuant to sections 182(b)(2) and
182(f) of the CAA, the Commonwealth
of Pennsylvania (the Commonwealth or
Pennsylvania) is required to establish
and implement RACT for all major VOC
and NOX sources. The major source size
is determined by its location, the
classification of that area and whether it
is located in the ozone transport region
(OTR). Under section 184 of the CAA,
RACT as specified in sections 182(b)(2)
and 182(f) applies throughout the OTR.
The entire Commonwealth is located
within the OTR. Therefore, RACT is
applicable statewide in Pennsylvania.
State implementation plan revisions
imposing RACT for three classes of VOC
sources are required under section
182(b)(2). The categories are:
(1) All sources covered by a Control
Technique Guideline (CTG) document
issued between November 15, 1990 and
the date of attainment;
(2) All sources covered by a CTG
issued prior to November 15, 1990; and
(3) All major non-CTG sources.
The Pennsylvania SIP already has
approved RACT regulations and
requirements for all sources and source
categories covered by the CTGs. The
Pennsylvania SIP also has approved
regulations to require major sources of
NOX and additional major sources of
VOC emissions (not covered by a CTG)
to implement RACT. These regulations
are commonly termed the ‘‘generic
RACT regulations’’. A generic RACT
regulation is one that does not, itself,
specifically define RACT for a source or
source categories but instead establishes
procedures for imposing case-by-case
RACT determinations. The
Commonwealth’s SIP-approved generic
RACT regulations consist of the
procedures PADEP uses to establish and
impose RACT for subject sources of
VOC and NOX. Pursuant to the SIPapproved generic RACT rules, PADEP
imposes RACT on each subject source in
an enforceable document, usually a Plan
Approval (PA) or Operating Permit (OP).
The Commonwealth then submits these
PAs and OPs to EPA for approval as
source-specific SIP revisions. EPA
reviews these SIP revisions to ensure
that the PADEP has determined and
imposed RACT in accordance with the
provisions of the SIP-approved generic
RACT rules.
It must be noted that the
Commonwealth has adopted and is
implementing additional ‘‘post RACT
requirements’’ to reduce seasonal NOX
E:\FR\FM\13JNR1.SGM
13JNR1
]]>Agencies
[Federal Register Volume 71, Number 113 (Tuesday, June 13, 2006)]
[Rules and Regulations]
[Pages 34009-34011]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-5349]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602
[TD 9258 and TD 9264]
RIN 1545-BE86; RIN 1545-BF26
Guidance Under Section 1502; Amendment of Tacking Rule
Requirements of Life-Nonlife Consolidated Regulations; and Guidance
Necessary To Facilitate Business Electronic Filing and Burden
Reduction; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendment.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to temporary regulations
(TD 9258) that were published in the Federal Register on Tuesday, April
25, 2006 (71 FR 23856) relating to guidance regarding amendments to
tacking rule requirements of Life-Nonlife consolidated regulations
under section 1502; and final and temporary regulations (TD 9264), that
were published in the Federal Register on Tuesday, May 30, 2006 (71 FR
30591) relating to guidance necessary to facilitate business electronic
filing and burden reduction.
DATES: The amendment to Sec. 1.1502-76T that published April 25, 2006,
is effective April 25, 2006. The amendments to Sec. Sec. 1.1563-1 and
602.101 and the removal of Sec. 1.1502-76T that published May 30,
2006, is effective May 30, 2006.
FOR FURTHER INFORMATION CONTACT: Grid Glyer, (202) 622-7930 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The temporary regulations (TD 9258) and final and temporary
regulations (TD 9264) that are the subject of these corrections are
under sections 332, 351, 355, 368, 1081, 1502, and 1563 of the Internal
Revenue Code.
Need for Correction
As published, TD 9258 and TD 9264 contain errors that may prove to
be misleading and are in need of clarification. TD 9264 added Sec.
1.1502-76T in error, as Sec. 1.1502-76T was previously codified by TD
9258. This correcting amendment amends Sec. 1.1502-76T as codified by
TD 9258, and removes Sec. 1.1502-76T as codified by TD 9264.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 602
Reporting and recordkeeping requirements.
Correction of Publication
0
Accordingly, 26 CFR parts 1 and 602 are corrected by making the
following correcting amendments:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.1502-76T published on April 25, 2006, as TD 9258 is
amended by revising paragraphs (b) through (c)(3) and adding paragraph
(d) to read as follows:
Sec. 1.1502-76T Taxable year of members of group (temporary).
* * * * *
(b) through (b)(2)(ii)(C) [Reserved]. For further guidance, see
Sec. 1.1502-76(b) through (b)(2)(ii)(C).
(D) Election--(1) Statement. The election to ratably allocate items
under paragraph (b)(2)(ii) of Sec. 1.1502-76 must be made in a
separate statement entitled, ``THIS IS AN ELECTION UNDER Sec. 1.1502-
76(b)(2)(ii) TO RATABLY ALLOCATE THE YEAR'S ITEMS OF [INSERT NAME AND
EMPLOYER IDENTIFICATION NUMBER OF THE MEMBER].'' The election must be
filed by including a statement on or with the returns including the
items for the years ending and beginning with S's change in status. If
two or more members of the same consolidated group, as a consequence of
[[Page 34010]]
the same plan or arrangement, cease to be members of that group and
remain affiliated as members of another consolidated group, an election
under this paragraph (b)(2)(ii)(D)(1) may be made only if it is made by
each such member. Each statement must also indicate that an agreement,
as described in paragraph (b)(2)(ii)(D)(2) of this section, has been
entered into. Each party signing the agreement must retain either the
original or a copy of the agreement as part of its records. See Sec.
1.6001-1(e).
(2) Agreement. For each election under Sec. 1.1502-76(b)(2)(ii),
the member and the common parent of each affected group must sign and
date an agreement. The agreement must--
(i) Identify the extraordinary items, their amounts, and the
separate or consolidated returns in which they are included;
(ii) Identify the aggregate amount to be ratably allocated, and the
portion of the amount included in the separate and consolidated
returns; and
(iii) Include the name and employer identification number of the
common parent (if any) of each group that must take the items into
account.
(b)(2)(iii) through (c) [Reserved]. For further guidance, see Sec.
1.1502-76(b)(2)(iii) through (c).
(d) Effective date--(1) Applicability date--(i) Paragraph (a) of
this section applies to any original consolidated Federal income tax
return due (without extensions) on or after April 25, 2006.
(ii) Paragraph (b)(2)(ii)(D) of this section applies to any
original consolidated Federal income tax return due (without
extensions) after May 30, 2006. However, a consolidated group may apply
this section to any original consolidated Federal income tax return
(including any amended return filed on or before the due date
(including extensions) of such original return) timely filed on or
after May 30, 2006.
(2) Expiration date--(i) The applicability of paragraph (a) of this
section will expire on April 25, 2009.
(ii) The applicability of paragraph (b)(2)(ii)(D) of this section
will expire on May 26, 2009.
Sec. 1.1502-76T [Removed]
0
Par. 3. Section 1.1502-76T published on May 30, 2006, as TD 9264 is
removed.
0
Par. 4. Section 1.1563-1 is amended by adding paragraph (c)(2)(iv) and
revising paragraph (e) to read as follows:
Sec. 1.1563-1 Definition of controlled group of corporations and
component members.
* * * * *
(c) * * *
(2) * * *
(iv) The provisions of this paragraph (c)(2) may be illustrated by
the following examples (in which it is assumed that all the individuals
are unrelated):
Example 1. On each day of 1970 all the outstanding stock of
corporations M, N, and P is held in the following manner:
----------------------------------------------------------------------------------------------------------------
Corporations
Individuals -----------------------------------------------
M (percent) N (percent) P (percent)
----------------------------------------------------------------------------------------------------------------
A............................................................... 55 40 5
B............................................................... 40 20 40
C............................................................... 5 40 55
----------------------------------------------------------------------------------------------------------------
Since the more-than-50-percent stock ownership requirement of
section 1563(a)(2)(B) is met with respect to corporations M and N
and with respect to corporations N and P, but not with respect to
corporations M, N, and P, corporation N would, without the
application of this paragraph (c)(2), be a component member on
December 31, 1970, of overlapping groups consisting of M and N and
of N and P. If N does not file an election in accordance with Sec.
1.1563-1T (c)(2)(i), the Internal Revenue Service will determine the
group in which N is to be included.
Example 2. On each day of 1970, all the outstanding stock of
corporations S, T, W, X, and Z is held in the following manner:
----------------------------------------------------------------------------------------------------------------
Corporations
Individuals -------------------------------------------------------------------------------
S (percent) T (percent) W (percent) X (percent) Z (percent)
----------------------------------------------------------------------------------------------------------------
D............................... 52 52 52 52 52
E............................... 40 2 2 2 2
F............................... 2 40 2 2 2
G............................... 2 2 40 2 2
H............................... 2 2 2 40 2
I............................... 2 2 2 2 40
----------------------------------------------------------------------------------------------------------------
On December 31, 1970, the more-than-50-percent stock ownership
requirement of section 1563(a)(2)(B) may be met with regard to any
combination of the corporations but all five corporations cannot be
included as component members of a single controlled group because
the inclusion of all the corporations in a single group would be
dependent upon taking into account the stock ownership of more than
five persons. Therefore, if the corporations do not file a statement
in accordance with Sec. 1.1563-1T (c)(2)(ii), the Internal Revenue
Service will determine the group in which each corporation is to be
included. The corporations or the Internal Revenue Service, as the
case may be, may designate that three corporations be included in
one group and two corporations in another, or that any four
corporations be included in one group and that the remaining
corporation not be included in any group.
* * * * *
(e) [Reserved]. For further guidance, see Sec. 1.1563-1T(e)(1).
PART 602--OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT
0
Par. 5. The authority citation for part 602 continues to read in part
as follows:
Authority: 26 U.S.C. 7805.
Sec. 602.101 [Amended]
0
Par. 6. Section 602.101, paragraph (b) is amended by removing the
entries for
[[Page 34011]]
1.332-6, 1.351-3, 1.355-5, 1.368-3, and 1.1081-11.
Cynthia E. Grigsby,
Senior Federal Register Liaison Officer, Publications and Regulations
Branch, Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 06-5349 Filed 6-8-06; 3:47 pm]
BILLING CODE 4830-01-P
