Clarification to Section 6411 Regulations, 48952-48953 [E7-16876]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 72, Number 165 (Monday, August 27, 2007)]
[Proposed Rules]
[Pages 48952-48953]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-16876]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-118886-06]
RIN 1545-BF65


Clarification to Section 6411 Regulations

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations relating to 
the computation and allowance of the tentative carryback adjustment 
under section 6411 of the Internal Revenue Code. Those temporary 
regulations clarify that for purposes of allowing the tentative 
adjustment, the IRS may credit or reduce the tentative adjustment by an 
assessed tax liability, whether or not that tax liability was assessed 
before the date the application for tentative carryback is filed, and 
other unassessed liabilities in certain other circumstances. Those 
regulations also remove all references to IRS district director or 
service center director, as these positions no longer exist within the 
IRS. The offices of the district director and service center director 
were eliminated by the IRS reorganization implemented pursuant to the 
IRS Reform and Restructuring Act of 1998. The text of the temporary 
regulations serves as the text of these proposed regulations.

DATES: Written and electronic comments and requests for a public 
hearing must be received by November 26, 2007.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-118886-06), 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-
118886-06), 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-118886-06).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Cynthia A. McGreevy, (202) 622-4910; concerning submissions of 
comments,

[[Page 48953]]

Richard Hurst, (202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

    These proposed regulations clarify the Income Tax Regulations (26 
CFR part 1) under section 6411 relating to the computation and 
allowance of the tentative carryback adjustment. The tentative 
allowance is computed pursuant to Sec.  1.6411-2 but applied pursuant 
to Sec.  1.6411-3. These regulations clarify that for purposes of 
computing the allowance, the Commissioner will not consider amounts to 
which the taxpayer and the Commissioner are in disagreement. For 
purposes of applying the allowance, however, the Commissioner may 
credit or reduce the tentative adjustment by any assessed tax 
liabilities, unassessed liabilities determined in a statutory notice of 
deficiency, unassessed liabilities identified in a proof of claim filed 
in a bankruptcy proceeding, and other unassessed liabilities in rare 
and unusual circumstances. Regarding unassessed liabilities determined 
in a statutory notice of deficiency, see Rev. Rul. 2007-51. Regarding 
unassessed liabilities identified in a proof of claim filed in a 
bankruptcy proceeding, see Rev. Rul. 2007-52. See Sec.  601.601(d)(2). 
The IRS plans to adopt procedures requiring IRS National Office review 
prior to a credit or reduction of the tentative adjustment by an 
unassessed liability that constitutes a rare and unusual circumstance.
    In the Rules and Regulations section of this issue of the Federal 
Register, the IRS is issuing temporary regulations relating to the 
computation and allowance of the tentative carryback adjustment under 
section 6411 of the Internal Revenue Code. The text of those temporary 
regulations also serves as the text of these proposed regulations. The 
preamble to the temporary regulations explains the temporary 
regulations and these proposed regulations.

Proposed Effective Date

    These proposed amendments to Sec. Sec.  1.6411-2 and 1.6411-3 apply 
with respect to applications for tentative refund filed on or after the 
date these rules are published as final regulations in the Federal 
Register. No implication is intended concerning whether or not a rule 
to be adopted in these regulations is applicable law for applications 
filed prior to that date.

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. 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, and because 
these regulations do not impose a collection of information on small 
entities, the provisions of the Regulatory Flexibility Act (5 U.S.C. 
chapter 6) do not apply. Pursuant to section 7805(f) of the Internal 
Revenue Code, these 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 electronic and written comments (a 
signed original and eight (8) copies) 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 may be scheduled if requested in writing by a 
person who timely submits comments. If a public hearing is scheduled, 
notice of the date, time, and place for the hearing will be published 
in the Federal Register.

Drafting Information

    The principal author of these regulations is Cynthia A. McGreevy of 
the Office of the Associate Chief Counsel (Procedure and 
Administration).

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 1.6411-2 is revised to read as follows:


Sec.  1.6411-2  Computation of tentative carryback adjustment.

    (a) [The text of proposed Sec.  1.6411-2(a) is the same as the text 
of Sec.  1.6411-2T(a) published elsewhere in this issue of the Federal 
Register].
    (b) [The text of proposed Sec.  1.6411-2(b) is the same as the text 
of Sec.  1.6411-2T(b) published elsewhere in this issue of the Federal 
Register].
    Par. 3. Section 1.6411-3 is revised to read as follows:


Sec.  1.6411-3  Allowance of adjustments.

    (a) [The text of proposed Sec.  1.6411-3(a) is the same as the text 
of Sec.  1.6411-3T(a) published elsewhere in this issue of the Federal 
Register].
    (b) [The text of proposed Sec.  1.6411-3(b) is the same as the text 
of Sec.  1.6411-3T(b) published elsewhere in this issue of the Federal 
Register].
    (c) [The text of proposed Sec.  1.6411-3(c) is the same as the text 
of Sec.  1.6411-3T(c) published elsewhere in this issue of the Federal 
Register].
    (d) [The text of proposed Sec.  1.6411-3(d) is the same as the text 
of Sec.  1.6411-3T(d) published elsewhere in this issue of the Federal 
Register].

Kevin M. Brown,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E7-16876 Filed 8-24-07; 8:45 am]
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