Exclusions from Gross Income of Foreign Corporations, 34650-34652 [E7-12037]
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34650
Federal Register / Vol. 72, No. 121 / Monday, June 25, 2007 / Proposed Rules
agent). You are required to assure the product
is airworthy before it is returned to service.
(3) Reporting Requirements: For any
reporting requirement in this AD, under the
provisions of the Paperwork Reduction Act,
the Office of Management and Budget (OMB)
has approved the information collection
requirements and has assigned OMB Control
Number 2120–0056.
Related Information
(h) Refer to MCAI Brazilian Airworthiness
Directives 2007–02–01 and 2007–02–02, both
effective February 27, 2007; and EMBRAER
Service Bulletins 170–29–0013 and 190–29–
0008, both dated December 13, 2006; for
related information.
Issued in Renton, Washington, on June 18,
2007.
Ali Bahrami,
Manager, Transport Airplane Directorate,
Aircraft Certification Service.
[FR Doc. E7–12224 Filed 6–22–07; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
[REG–138707–06]
26 CFR Part 1
RIN 1545–BF90
Exclusions from Gross Income of
Foreign Corporations
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
by cross-reference to temporary
regulations and notice of public hearing.
rmajette on PROD1PC64 with PROPOSALS
AGENCY:
SUMMARY: In the Rules and Regulations
section of this issue of the Federal
Register, the IRS is issuing temporary
regulations that modify final regulations
issued under section 883(a) and (c) of
the Internal Revenue Code (Code),
relating to income derived by foreign
corporations from the international
operation of ships or aircraft. Those
regulations revise § 1.883–3 of the final
regulations, relating to the treatment of
controlled foreign corporations,
following the repeal of section 954(a)(4)
and (f) (foreign base company shipping
provisions) by section 415 of the
American Jobs Creation Act of 2004. In
addition, those regulations provide
guidance for foreign corporations
organized in countries that provide an
exemption from taxation solely through
an income tax convention, and amend
certain provisions in the current section
883 regulations. The text of those
regulations serves as the text of these
proposed regulations. This document
also provides notice of a public hearing
on these proposed regulations.
VerDate Aug<31>2005
15:11 Jun 22, 2007
Jkt 211001
Written or electronic comments
and requests for a public hearing must
be received by September 24, 2007.
Outlines of topics to be discussed at the
public hearing scheduled for
Wednesday, October 24, 2007, at 10 a.m.
must be received by Monday, September
24, 2007.
ADDRESSES: Send submissions to
CC:PA:LPD:PR (REG–138707–06), 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–138707–
06), Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue,
NW., Washington, DC, or sent
electronically via the Federal
eRulemaking Portal at
www.regulations.gov (IRS REG–138707–
06).
FOR FURTHER INFORMATION CONTACT:
Concerning the regulations, Patricia A.
Bray, at (202) 622–3880; concerning
submissions of comments and/or
requests for a hearing, Kelly Banks, at
(202) 622–0392 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
DATES:
Paperwork Reduction Act
The collections of information
contained in this notice of proposed
rulemaking have been submitted to the
Office of Management and Budget for
review in accordance with the
Paperwork Reduction Act of 1995 (44
U.S.C. 3507(d)), and pending receipt
and evaluation of public comments,
approved by the Office of Management
and Budget under control number 1545–
1667.
Comments on the collections of
information should be sent to the Office
of Management and Budget, Attn: Desk
Officer for the Department of the
Treasury, Office of Information and
Regulatory Affairs, Washington, DC
20503, with copies to the Internal
Revenue Service, Attn: IRS Reports
Clearance Officer, SE:W:CAR:MP:T:T:SP
Washington, DC 20224. Comments on
the collection of information should be
received by August 24, 2007.
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;
PO 00000
Frm 00007
Fmt 4702
Sfmt 4702
How the burden of complying with
the proposed collections of information
may be minimized, including through
the application of automated collection
techniques or other forms of information
technology; and
Estimates of start-up costs and costs of
operation, maintenance, and purchase
of service to provide information.
The collections of information in this
proposed regulation are in §§ 1.883–2(f),
1.883–3(c) and (d), and 1.883–4(e). This
information is required to enable a
foreign corporation to determine if it is
eligible to exclude its income from the
international operation of ships or
aircraft from gross income on its U.S.
Federal income tax return. This
information will also enable the IRS to
monitor compliance with the provisions
of the proposed regulations with respect
to the stock ownership requirements of
§ 1.883–1(c)(2), and to make a
preliminary determination of whether
the foreign corporation is eligible to
claim such an exemption and is
accurately reporting income.
The collections of information are
mandatory. The likely respondents are
foreign corporations engaged in the
international operation of ships or
aircraft that wish to claim an exemption
from U.S. tax under section 883, and
certain of their shareholders owning
(directly or indirectly) a majority of the
value of the shares of such corporations.
Estimated total annual reporting/
recordkeeping burden on foreign
corporations: 1200 hours.
The estimated annual burden per
respondent varies from 0 minutes to 3
hours, depending on the circumstances
of the foreign corporation, with an
estimated average of one hour.
Estimated number of respondents:
1,200.
Estimated annual frequency of
responses: Once.
Estimated total annual reporting
burden on shareholders: 925 hours.
The estimated annual burden per
respondent varies from 1 minute to one
hour, depending on the circumstances
of the shareholder or intermediary, with
an estimated average of 30 minutes.
Estimated number of respondents:
1850.
Estimated annual frequency of
shareholder or intermediary responses:
Once every three years if no information
changes and once a year if a change in
ownership information occurs.
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.
E:\FR\FM\25JNP1.SGM
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Federal Register / Vol. 72, No. 121 / Monday, June 25, 2007 / Proposed Rules
Books and 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. Those regulations amend the income
inclusion test in § 1.883–3 of the final
regulations issued in TD 9087 (68 FR
51394). Those regulations also address a
number of comments that have been
received concerning other portions of
the final section 883 regulations. The
text of those regulations serves as the
text of these regulations. The preamble
to the temporary regulations explains
the temporary regulations and these
proposed regulations.
rmajette on PROD1PC64 with PROPOSALS
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a
significant regulatory action as defined
in Executive Order 12866. It also has
been determined that section 553(b) of
the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these
regulations. Therefore, a regulatory
assessment is not required. It is hereby
certified that the collection of
information in these regulations will not
have a significant economic impact on
a significant number of U.S. small
entities. This certification is based on
the fact that these regulations apply
solely to foreign corporations, and
impose only a limited collection of
information burden on shareholders of
such corporations, which in some cases
may include U.S. small entities.
Therefore, a Regulatory Flexibility
Analysis under the Regulatory
Flexibility Act (5 U.S.C. chapter 6) is
not required. Pursuant to section 7805(f)
of the Code, this regulation has been
submitted to the Chief Counsel for
Advocacy of the Small Business
Administration for comment on its
impact on small business.
Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
written (a signed original and eight (8)
copies) or electronic comments that are
submitted timely to the IRS. The IRS
and Treasury Department specifically
request comments on the clarity of the
proposed regulations and how they can
be made easier to understand. All
VerDate Aug<31>2005
15:11 Jun 22, 2007
Jkt 211001
comments will be available for public
inspection and copying.
A public hearing has been scheduled
for October 24, 2007, beginning at 10
a.m. in the IRS Auditorium of the
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 written or electronic
comments by September 24, 2007 and
an outline of the topics to be discussed
and the time devoted to each topic (a
signed original and eight (8) copies) by
September 24, 2007. A period of 10
minutes will be allocated 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
proposed regulations is Patricia A. Bray
of the Office of Associate Chief Counsel
(International). However, other
personnel from the IRS and Treasury
Department participated in their
development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
proposed to be amended as follows:
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
Authority: 26 U.S.C. 7805. * * *
Par. 2. Section 1.883–0 is amended by
revising the entries for §§ 1.883–1(g)(3)
and (h)(3), 1.883–2(e)(2), 1.883–3, and
1.883–5(d) and (e) to read as follows:
§ 1.883–0
Outline of major topics.
*
*
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*
Frm 00008
*
Fmt 4702
*
Sfmt 4702
§ 1.883–1 Exclusion of income from the
international operation of ships or aircraft.
*
*
*
*
*
(g) * * *
(3) [The text of the proposed entry for
§ 1.883–1(g)(3) is the same as the text of
the entry for § 1.883–1T(g)(3) published
elsewhere in this issue of the Federal
Register].
*
*
*
*
*
(h) * * *
(3) * * *
(i) through (iv) [The text of the
proposed entries for § 1.883–1(h)(3)(i)
through (iv) is the same as the text of the
entries for § 1.883–1T(h)(3)(i) through
(iv) published elsewhere in this issue of
the Federal Register].
*
*
*
*
*
§ 1.883–2 Treatment of publicly traded
corporations.
*
*
*
*
*
(e) * * *
(2) [The text of the proposed entry for
§ 1.883–2(e)(2) is the same as the text of
the entry for § 1.883–2T(e)(2) published
elsewhere in this issue of the Federal
Register].
*
*
*
*
*
§ 1.883–3 Treatment of controlled foreign
corporations.
*
*
*
*
*
[The text of the proposed entry for
§ 1.883–3 is the same as the entry for
§ 1.883–3T published elsewhere in this
issue of the Federal Register].
§ 1.883–5
Effective/applicability dates.
*
*
*
*
*
(d) and (e) [The text of the proposed
entries for § 1.883–5(d) and (e) is the
same as the text of the entries for
§ 1.883–5T(d) and (e) published
elsewhere in this issue of the Federal
Register].
Par. 3. Section 1.883–1 is amended by
revising paragraphs (c)(3)(i)(D),
(c)(3)(i)(G), (c)(3)(i)(H), (c)(3)(i)(I),
(c)(3)(ii), (g)(1)(ix), (g)(1)(x), (g)(1)(xi),
(g)(3), (h)(1)(ii), and (h)(3) to read as
follows:
§ 1.883–1 Exclusion of income from the
international operation of ships or aircraft.
*
PART 1—INCOME TAXES
34651
*
*
*
*
(c) * * *
(3) * * *
(i) * * *
(D) [The text of the proposed
amendment to § 1.883–1(c)(3)(i)(D) is
the same as the text of § 1.883–
1T(c)(3)(i)(D) published elsewhere in
this issue of the Federal Register].
*
*
*
*
*
(G) through (I) [The text of the
proposed amendments to § 1.883–
1(c)(3)(i)(G) through (I) is the same as
E:\FR\FM\25JNP1.SGM
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34652
Federal Register / Vol. 72, No. 121 / Monday, June 25, 2007 / Proposed Rules
the text of § 1.883–1T(c)(3)(i)(G) through
(I) published elsewhere in this issue of
the Federal Register].
(ii) [The text of the proposed
amendment to § 1.883–1(c)(3)(ii) is the
same as the text of § 1.883–1T(c)(3)(ii)
published elsewhere in this issue of the
Federal Register].
*
*
*
*
*
(g) * * *
(1) * * *
(ix) through (xi) [The text of the
proposed amendments to § 1.883–
1(g)(1)(ix) through (xi) is the same as the
text of § 1.883–1T(g)(1)(ix) through (xi)
published elsewhere in this issue of the
Federal Register].
*
*
*
*
*
(3) [The text of the proposed
amendment to § 1.883–1(g)(3) is the
same as the text of § 1.883–1T(g)(3)
published elsewhere in this issue of the
Federal Register].
*
*
*
*
*
(h) * * *
(1) * * *
(ii) [The text of the proposed
amendment to § 1.883–1(h)(1)(ii) is the
same as the text of § 1.883–1T(h)(1)(ii)
published elsewhere in this issue of the
Federal Register].
(2) * * *
(3) [The text of the proposed
amendment to § 1.883–1(h)(3) is the
same as the text of § 1.883–1T(h)(3)
published elsewhere in this issue of the
Federal Register].
*
*
*
*
*
Par. 4. Section 1.883–2 is amended by
revising paragraphs (e)(2), (f)(3), and
(f)(4)(ii) to read as follows:
§ 1.883–2 Treatment of publicly-traded
corporations.
rmajette on PROD1PC64 with PROPOSALS
*
*
*
*
*
(e) * * *
(2) [The text of the proposed
amendment to § 1.883–2(e)(2) is the
same as the text of § 1.883–2T(e)(2)
published elsewhere in this issue of the
Federal Register].
(f) * * *
(3) [The text of the proposed
amendment to § 1.883–2(f)(3) is the
same as the text of § 1.883–2T(f)(3)
published elsewhere in this issue of the
Federal Register].
(4) * * *
(ii) [The text of the proposed
amendment to § 1.883–2(f)(4)(ii) is the
same as the text of § 1.883–2T(f)(4)(ii)
published elsewhere in this issue of the
Federal Register].
*
*
*
*
*
Par. 5. Section 1.883–3 is revised to
read as follows:
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15:11 Jun 22, 2007
Jkt 211001
§ 1.883–3 Treatment of controlled foreign
corporations.
[The text of this proposed section is
the same as the text of § 1.883–3T
published elsewhere in this issue of the
Federal Register].
Par. 6. Section 1.883–4 is amended by
revising paragraphs (d)(4)(i)(C),
(d)(4)(i)(D), (e)(2), and (e)(3) to read as
follows:
§ 1.883–4 Qualified shareholder stock
ownership test.
*
*
*
*
*
(d) * * *
(4) * * *
(i) * * *
(C) and (D) [The text of the proposed
amendments to § 1.883–4(d)(4)(i)(C) and
(D) is the same as the text of § 1.883–
4T(d)(4)(i)(C) and (D) published
elsewhere in this issue of the Federal
Register].
*
*
*
*
*
(e) * * *
(2) and (3) [The text of the proposed
amendments to § 1.883–4(e)(2) and (3) is
the same as the text of § 1.883–4T(e)(2)
and (3) published elsewhere in this
issue of the Federal Register].
Par. 7. Section 1.883–5 is amended by
revising paragraphs (d) and (e) to read
as follows:
§ 1.883–5
Effective/applicability dates.
*
*
*
*
*
(d) [The text of the proposed
amendment to § 1.883–5(d) is the same
as the text of § 1.883–5T(d) published
elsewhere in this issue of the Federal
Register].
(e) [The text of the proposed
amendment to § 1.883–5(e) is the same
as the text of § 1.883–5T(e) published
elsewhere in this issue of the Federal
Register].
Kevin M. Brown,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. E7–12037 Filed 6–22–07; 8:45 am]
BILLING CODE 4830–01–P
ARCHITECTURAL AND
TRANSPORTATION BARRIERS
COMPLIANCE BOARD
36 CFR Parts 1190 and 1191
[Docket No. 2007–04]
Accessibility Guidelines for
Emergency Transportable Housing
Architectural and
Transportation Barriers Compliance
Board.
ACTION: Notice of intent to establish
advisory committee.
AGENCY:
PO 00000
Frm 00009
Fmt 4702
Sfmt 4702
SUMMARY: The Architectural and
Transportation Barriers Compliance
Board (Access Board) proposes to
establish a Federal advisory committee
to develop a proposed rule on
accessibility guidelines for emergency
transportable housing covered by the
Americans with Disabilities Act and the
Architectural Barriers Act. The Access
Board invites comments on the proposal
to establish the advisory committee and
the proposed committee membership.
DATES: Comments and applications
should be received by July 25, 2007.
ADDRESSES: You may submit comments
and applications, identified by Docket
No. 2007–04, by any of the following
methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• E-mail: mazz@access-board.gov.
Include Docket No. 2007–04 in the
subject line of the message.
• Fax: (202) 272–0081.
• Mail or Hand Delivery: Office of
Technical and Information Services,
Architectural and Transportation
Barriers Compliance Board, 1331 F
Street, NW., Suite 1000, Washington,
DC 20004–1111.
All submissions received must
include the agency name and docket
number for this rulemaking. Comments
will also be available for inspection at
the above address from 9 a.m. to 5 p.m.
on regular business days.
FOR FURTHER INFORMATION CONTACT:
Marsha Mazz, Office of Technical and
Information Services, Architectural and
Transportation Barriers Compliance
Board, 1331 F Street, NW., Suite 1000,
Washington, DC 20004–1111.
Telephone number (202) 272–0020
(Voice); (202) 272–0082 (TTY). These
are not toll-free numbers. E-mail
address: mazz@access-board.gov.
SUPPLEMENTARY INFORMATION: The
Architectural and Transportation
Barriers Compliance Board (Access
Board or Board) 1 is responsible for
developing accessibility guidelines
under the Americans with Disabilities
Act (ADA) and the Architectural
1 The Access Board is an independent Federal
agency established by section 502 of the
Rehabilitation Act (29 U.S.C. 792) whose primary
mission is to promote accessibility for individuals
with disabilities. The Access Board consists of 25
members. Thirteen are appointed by the President
from among the public, a majority of who are
required to be individuals with disabilities. The
other twelve are heads of the following Federal
agencies or their designees whose positions are
Executive Level IV or above: The Departments of
Health and Human Services, Education,
Transportation, Housing and Urban Development,
Labor, Interior, Defense, Justice, Veterans Affairs,
and Commerce; General Services Administration;
and United States Postal Services.
E:\FR\FM\25JNP1.SGM
25JNP1
]]>Agencies
[Federal Register Volume 72, Number 121 (Monday, June 25, 2007)]
[Proposed Rules]
[Pages 34650-34652]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-12037]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
[REG-138707-06]
26 CFR Part 1
RIN 1545-BF90
Exclusions from Gross Income of Foreign Corporations
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations and notice of public hearing.
-----------------------------------------------------------------------
SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS is issuing temporary regulations that modify
final regulations issued under section 883(a) and (c) of the Internal
Revenue Code (Code), relating to income derived by foreign corporations
from the international operation of ships or aircraft. Those
regulations revise Sec. 1.883-3 of the final regulations, relating to
the treatment of controlled foreign corporations, following the repeal
of section 954(a)(4) and (f) (foreign base company shipping provisions)
by section 415 of the American Jobs Creation Act of 2004. In addition,
those regulations provide guidance for foreign corporations organized
in countries that provide an exemption from taxation solely through an
income tax convention, and amend certain provisions in the current
section 883 regulations. The text of those regulations 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 and requests for a public hearing
must be received by September 24, 2007. Outlines of topics to be
discussed at the public hearing scheduled for Wednesday, October 24,
2007, at 10 a.m. must be received by Monday, September 24, 2007.
ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-138707-06), 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-
138707-06), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC, or sent electronically via the Federal
eRulemaking Portal at www.regulations.gov (IRS REG-138707-06).
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Patricia
A. Bray, at (202) 622-3880; concerning submissions of comments and/or
requests for a hearing, Kelly Banks, at (202) 622-0392 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information contained in this notice of proposed
rulemaking have been submitted to the Office of Management and Budget
for review in accordance with the Paperwork Reduction Act of 1995 (44
U.S.C. 3507(d)), and pending receipt and evaluation of public comments,
approved by the Office of Management and Budget under control number
1545-1667.
Comments on the collections of information should be sent to the
Office of Management and Budget, Attn: Desk Officer for the Department
of the Treasury, Office of Information and Regulatory Affairs,
Washington, DC 20503, with copies to the Internal Revenue Service,
Attn: IRS Reports Clearance Officer, SE:W:CAR:MP:T:T:SP Washington, DC
20224. Comments on the collection of information should be received by
August 24, 2007.
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 collections of
information may be minimized, including through the application of
automated collection techniques or other forms of information
technology; and
Estimates of start-up costs and costs of operation, maintenance,
and purchase of service to provide information.
The collections of information in this proposed regulation are in
Sec. Sec. 1.883-2(f), 1.883-3(c) and (d), and 1.883-4(e). This
information is required to enable a foreign corporation to determine if
it is eligible to exclude its income from the international operation
of ships or aircraft from gross income on its U.S. Federal income tax
return. This information will also enable the IRS to monitor compliance
with the provisions of the proposed regulations with respect to the
stock ownership requirements of Sec. 1.883-1(c)(2), and to make a
preliminary determination of whether the foreign corporation is
eligible to claim such an exemption and is accurately reporting income.
The collections of information are mandatory. The likely
respondents are foreign corporations engaged in the international
operation of ships or aircraft that wish to claim an exemption from
U.S. tax under section 883, and certain of their shareholders owning
(directly or indirectly) a majority of the value of the shares of such
corporations.
Estimated total annual reporting/recordkeeping burden on foreign
corporations: 1200 hours.
The estimated annual burden per respondent varies from 0 minutes to
3 hours, depending on the circumstances of the foreign corporation,
with an estimated average of one hour.
Estimated number of respondents: 1,200.
Estimated annual frequency of responses: Once.
Estimated total annual reporting burden on shareholders: 925 hours.
The estimated annual burden per respondent varies from 1 minute to
one hour, depending on the circumstances of the shareholder or
intermediary, with an estimated average of 30 minutes.
Estimated number of respondents: 1850.
Estimated annual frequency of shareholder or intermediary
responses: Once every three years if no information changes and once a
year if a change in ownership information occurs.
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.
[[Page 34651]]
Books and 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. Those regulations
amend the income inclusion test in Sec. 1.883-3 of the final
regulations issued in TD 9087 (68 FR 51394). Those regulations also
address a number of comments that have been received concerning other
portions of the final section 883 regulations. The text of those
regulations serves as the text of these regulations. The preamble to
the temporary regulations explains the temporary regulations and these
proposed regulations.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
12866. It also has been determined that section 553(b) of the
Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to
these regulations. Therefore, a regulatory assessment is not required.
It is hereby certified that the collection of information in these
regulations will not have a significant economic impact on a
significant number of U.S. small entities. This certification is based
on the fact that these regulations apply solely to foreign
corporations, and impose only a limited collection of information
burden on shareholders of such corporations, which in some cases may
include U.S. small entities. Therefore, a Regulatory Flexibility
Analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is
not required. Pursuant to section 7805(f) of the Code, this regulation
has been submitted to the Chief Counsel for Advocacy of the Small
Business Administration for comment on its impact on small business.
Comments and Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written (a signed original and eight
(8) copies) or electronic comments that are submitted timely to the
IRS. The IRS and Treasury Department 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.
A public hearing has been scheduled for October 24, 2007, beginning
at 10 a.m. in the IRS Auditorium of the 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 written or
electronic comments by September 24, 2007 and an outline of the topics
to be discussed and the time devoted to each topic (a signed original
and eight (8) copies) by September 24, 2007. A period of 10 minutes
will be allocated 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 proposed regulations is Patricia A.
Bray of the Office of Associate Chief Counsel (International). However,
other personnel from the IRS and Treasury Department participated in
their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 1 is proposed to be amended as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805. * * *
Par. 2. Section 1.883-0 is amended by revising the entries for
Sec. Sec. 1.883-1(g)(3) and (h)(3), 1.883-2(e)(2), 1.883-3, and 1.883-
5(d) and (e) to read as follows:
Sec. 1.883-0 Outline of major topics.
* * * * *
Sec. 1.883-1 Exclusion of income from the international operation of
ships or aircraft.
* * * * *
(g) * * *
(3) [The text of the proposed entry for Sec. 1.883-1(g)(3) is the
same as the text of the entry for Sec. 1.883-1T(g)(3) published
elsewhere in this issue of the Federal Register].
* * * * *
(h) * * *
(3) * * *
(i) through (iv) [The text of the proposed entries for Sec. 1.883-
1(h)(3)(i) through (iv) is the same as the text of the entries for
Sec. 1.883-1T(h)(3)(i) through (iv) published elsewhere in this issue
of the Federal Register].
* * * * *
Sec. 1.883-2 Treatment of publicly traded corporations.
* * * * *
(e) * * *
(2) [The text of the proposed entry for Sec. 1.883-2(e)(2) is the
same as the text of the entry for Sec. 1.883-2T(e)(2) published
elsewhere in this issue of the Federal Register].
* * * * *
Sec. 1.883-3 Treatment of controlled foreign corporations.
* * * * *
[The text of the proposed entry for Sec. 1.883-3 is the same as
the entry for Sec. 1.883-3T published elsewhere in this issue of the
Federal Register].
Sec. 1.883-5 Effective/applicability dates.
* * * * *
(d) and (e) [The text of the proposed entries for Sec. 1.883-5(d)
and (e) is the same as the text of the entries for Sec. 1.883-5T(d)
and (e) published elsewhere in this issue of the Federal Register].
Par. 3. Section 1.883-1 is amended by revising paragraphs
(c)(3)(i)(D), (c)(3)(i)(G), (c)(3)(i)(H), (c)(3)(i)(I), (c)(3)(ii),
(g)(1)(ix), (g)(1)(x), (g)(1)(xi), (g)(3), (h)(1)(ii), and (h)(3) to
read as follows:
Sec. 1.883-1 Exclusion of income from the international operation of
ships or aircraft.
* * * * *
(c) * * *
(3) * * *
(i) * * *
(D) [The text of the proposed amendment to Sec. 1.883-
1(c)(3)(i)(D) is the same as the text of Sec. 1.883-1T(c)(3)(i)(D)
published elsewhere in this issue of the Federal Register].
* * * * *
(G) through (I) [The text of the proposed amendments to Sec.
1.883-1(c)(3)(i)(G) through (I) is the same as
[[Page 34652]]
the text of Sec. 1.883-1T(c)(3)(i)(G) through (I) published elsewhere
in this issue of the Federal Register].
(ii) [The text of the proposed amendment to Sec. 1.883-1(c)(3)(ii)
is the same as the text of Sec. 1.883-1T(c)(3)(ii) published elsewhere
in this issue of the Federal Register].
* * * * *
(g) * * *
(1) * * *
(ix) through (xi) [The text of the proposed amendments to Sec.
1.883-1(g)(1)(ix) through (xi) is the same as the text of Sec. 1.883-
1T(g)(1)(ix) through (xi) published elsewhere in this issue of the
Federal Register].
* * * * *
(3) [The text of the proposed amendment to Sec. 1.883-1(g)(3) is
the same as the text of Sec. 1.883-1T(g)(3) published elsewhere in
this issue of the Federal Register].
* * * * *
(h) * * *
(1) * * *
(ii) [The text of the proposed amendment to Sec. 1.883-1(h)(1)(ii)
is the same as the text of Sec. 1.883-1T(h)(1)(ii) published elsewhere
in this issue of the Federal Register].
(2) * * *
(3) [The text of the proposed amendment to Sec. 1.883-1(h)(3) is
the same as the text of Sec. 1.883-1T(h)(3) published elsewhere in
this issue of the Federal Register].
* * * * *
Par. 4. Section 1.883-2 is amended by revising paragraphs (e)(2),
(f)(3), and (f)(4)(ii) to read as follows:
Sec. 1.883-2 Treatment of publicly-traded corporations.
* * * * *
(e) * * *
(2) [The text of the proposed amendment to Sec. 1.883-2(e)(2) is
the same as the text of Sec. 1.883-2T(e)(2) published elsewhere in
this issue of the Federal Register].
(f) * * *
(3) [The text of the proposed amendment to Sec. 1.883-2(f)(3) is
the same as the text of Sec. 1.883-2T(f)(3) published elsewhere in
this issue of the Federal Register].
(4) * * *
(ii) [The text of the proposed amendment to Sec. 1.883-2(f)(4)(ii)
is the same as the text of Sec. 1.883-2T(f)(4)(ii) published elsewhere
in this issue of the Federal Register].
* * * * *
Par. 5. Section 1.883-3 is revised to read as follows:
Sec. 1.883-3 Treatment of controlled foreign corporations.
[The text of this proposed section is the same as the text of Sec.
1.883-3T published elsewhere in this issue of the Federal Register].
Par. 6. Section 1.883-4 is amended by revising paragraphs
(d)(4)(i)(C), (d)(4)(i)(D), (e)(2), and (e)(3) to read as follows:
Sec. 1.883-4 Qualified shareholder stock ownership test.
* * * * *
(d) * * *
(4) * * *
(i) * * *
(C) and (D) [The text of the proposed amendments to Sec. 1.883-
4(d)(4)(i)(C) and (D) is the same as the text of Sec. 1.883-
4T(d)(4)(i)(C) and (D) published elsewhere in this issue of the Federal
Register].
* * * * *
(e) * * *
(2) and (3) [The text of the proposed amendments to Sec. 1.883-
4(e)(2) and (3) is the same as the text of Sec. 1.883-4T(e)(2) and (3)
published elsewhere in this issue of the Federal Register].
Par. 7. Section 1.883-5 is amended by revising paragraphs (d) and
(e) to read as follows:
Sec. 1.883-5 Effective/applicability dates.
* * * * *
(d) [The text of the proposed amendment to Sec. 1.883-5(d) is the
same as the text of Sec. 1.883-5T(d) published elsewhere in this issue
of the Federal Register].
(e) [The text of the proposed amendment to Sec. 1.883-5(e) is the
same as the text of Sec. 1.883-5T(e) published elsewhere in this issue
of the Federal Register].
Kevin M. Brown,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E7-12037 Filed 6-22-07; 8:45 am]
BILLING CODE 4830-01-P
