Foreign Tax Credit: Notification of Foreign Tax Redeterminations, 62805-62807 [E7-21727]
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Federal Register / Vol. 72, No. 215 / Wednesday, November 7, 2007 / Proposed Rules
For the reasons discussed above, I
certify that the proposed regulation:
1. Is not a ‘‘significant regulatory
action’’ under Executive Order 12866;
2. Is not a ‘‘significant rule’’ under the
DOT Regulatory Policies and Procedures
(44 FR 11034, February 26, 1979); and
3. Will not have a significant
economic impact, positive or negative,
on a substantial number of small entities
under the criteria of the Regulatory
Flexibility Act.
We prepared a regulatory evaluation
of the estimated costs to comply with
this proposed AD and placed it in the
AD docket. See the ADDRESSES section
for a location to examine the regulatory
evaluation.
List of Subjects in 14 CFR Part 39
Air transportation, Aircraft, Aviation
safety, Safety.
The Proposed Amendment
Accordingly, under the authority
delegated to me by the Administrator,
the FAA proposes to amend 14 CFR part
39 as follows:
PART 39—AIRWORTHINESS
DIRECTIVES
1. The authority citation for part 39
continues to read as follows:
Authority: 49 U.S.C. 106(g), 40113, 44701.
§ 39.13
[Amended]
2. The Federal Aviation
Administration (FAA) amends § 39.13
by adding the following new
airworthiness directive (AD):
Boeing: Docket No. FAA–2007–0163;
Directorate Identifier 2007–NM–046–AD.
Comments Due Date
(a) The FAA must receive comments on
this AD action by December 24, 2007.
Affected ADs
(b) None.
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Applicability
(c) This AD applies to the Boeing airplanes
identified in paragraphs (c)(1) and (c)(2) of
this AD, certificated in any category.
(1) Model 737–300, –400, and –500 series
airplanes, as identified in Boeing Service
Bulletin 737–24–1145, dated March 4, 2004.
(2) Model 737–600, –700, –700C, –800, and
–900 series airplanes, as identified in Boeing
Service Bulletin 737–24–1147, Revision 1,
dated March 1, 2007.
Unsafe Condition
(d) This AD results from an in-flight
entertainment (IFE) systems review. We are
issuing this AD to ensure that the flightcrew
is able to turn off electrical power to IFE
systems and other non-essential electrical
systems through a switch in the flight
compartment. The flightcrew’s inability to
turn off power to IFE systems and other non-
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essential electrical systems during a nonnormal or emergency situation could result
in the inability to control smoke or fumes in
the airplane flight deck or cabin.
Compliance
(e) You are responsible for having the
actions required by this AD performed within
the compliance times specified, unless the
actions have already been done.
Install Circuit Breaker, Relays, and Wiring
on Model 737–300, –400, and –500 Series
Airplanes
(f) For Model 737–300, –400, and –500
series airplanes: Within 60 months after the
effective date of this AD, install a new circuit
breaker, relays, and wiring to allow the
flightcrew to turn off electrical power to the
IFE systems through the IFE/galley switch
and do all other specified actions as
applicable, by accomplishing all the
applicable actions specified in the
Accomplishment Instructions of Boeing
Service Bulletin 737–24–1145, dated March
4, 2004.
Concurrently Modify P5–13 Module
Assembly on Model 737–300 Series
Airplanes
(g) For Model 737–300 series airplanes
identified as Group 6 airplanes in Boeing
Service Bulletin 737–24–1145, dated March
4, 2004, and equipped with P5–13 module
assembly part number (P/N) 69–37321–81:
Prior to or concurrently with accomplishing
the actions required by paragraph (f) of this
AD, replace the lightplate assembly of the
P5–13 module assembly with a new
lightplate assembly and reidentify and test
the modified P5–13 module assembly, in
accordance with Boeing Component Service
Bulletin 69–37321–31–03, dated August 21,
2003.
Install Circuit Breaker, Relays, and Wiring
on Model 737–600, –700, –700C, –800, and
–900 Series Airplanes
(h) For Model 737–600, –700, –700C, –800,
and –900 series airplanes: Within 60 months
after the effective date of this AD, install a
new circuit breaker, relays, and wiring, as
applicable, to allow the flightcrew to turn off
electrical power to the IFE systems and other
non-essential electrical systems through a
utility switch in the flight compartment, by
accomplishing all of the applicable actions
specified in Parts 1, 2, or 3 of the Work
Instructions of Boeing Service Bulletin 737–
24–1147, Revision 1, dated March 1, 2007.
Concurrently Modify P5–13 Module
Assembly on Model 737–600, –700, –700C,
–800, and –900 Series Airplanes
(i) For Model 737–600, –700, –700C, –800,
and –900 series airplanes identified as
Groups 1 through 139 inclusive in Boeing
Service Bulletin 737–24–1147, Revision 1,
dated March 1, 2007, and equipped with P5–
13 module assembly P/N 285A1840–3 or –4:
Prior to or concurrently with accomplishing
the actions required by paragraph (h) of this
AD, modify the P5–13 module assembly, in
accordance with Boeing Component Service
Bulletin 285A1840–24–02, dated August 28,
2003.
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62805
Wiring Installation for the Video Display
Unit (VDU)
(j) For Model 737–800 series airplanes
identified in paragraph 1.A.1. of Boeing
Service Bulletin 737–23–1189, dated June 27,
2002: Prior to or concurrently with
accomplishing the actions required by
paragraph (h) of this AD, install wiring for
the No. 4 VDU cluster, an INOP marker, and
stow clip at the P6–1 circuit breaker panel;
reroute certain wiring for the No. 4 VDU
cluster between stations 685 and 767; and do
a continuity test of the newly installed and
rerouted wiring; in accordance with Boeing
Service Bulletin 737–23–1189, dated June 27,
2002.
Alternative Methods of Compliance
(AMOCs)
(k)(1) The Manager, Seattle Aircraft
Certification Office, FAA, has the authority to
approve AMOCs for this AD, if requested in
accordance with the procedures found in 14
CFR 39.19.
(2) To request a different method of
compliance or a different compliance time
for this AD, follow the procedures in 14 CFR
39.19. Before using any approved AMOC on
any airplane to which the AMOC applies,
notify your appropriate principal inspector
(PI) in the FAA Flight Standards District
Office (FSDO), or lacking a PI, your local
FSDO.
Issued in Renton, Washington, on October
15, 2007.
Ali Bahrami,
Manager, Transport Airplane Directorate,
Aircraft Certification Service.
[FR Doc. E7–21843 Filed 11–6–07; 8:45 am]
BILLING CODE 4910–13–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[REG–209020–86]
RIN 1545–AC09
Foreign Tax Credit: Notification of
Foreign Tax Redeterminations
Internal Revenue Service (IRS),
Treasury.
ACTION: Partial withdrawal of notice of
proposed rulemaking and notice of
proposed rulemaking by cross-reference
to temporary regulations.
AGENCY:
SUMMARY: This document withdraws
portions of the notice of proposed
rulemaking published on June 23, 1988,
relating to sections 905(c) and 6689 (the
1988 proposed regulations). In addition,
in the Rules and Regulations section of
this issue of the Federal Register, the
IRS and the Treasury Department are
issuing temporary regulations relating to
a taxpayer’s obligation under section
905(c) of the Internal Revenue Code to
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Federal Register / Vol. 72, No. 215 / Wednesday, November 7, 2007 / Proposed Rules
pwalker on PROD1PC71 with PROPOSALS
notify the IRS of a foreign tax
redetermination. The IRS and the
Treasury Department are also issuing
temporary regulations on Procedure and
Administration under section 6689
relating to the civil penalty for failure to
notify the IRS of a foreign tax
redetermination as required under
section 905(c). These temporary
regulations affect taxpayers that have
paid foreign taxes which have been
redetermined and provide guidance
needed to comply with statutory
changes made to the applicable law by
the Taxpayer Relief Act of 1997 and the
American Jobs Creation Act of 2004.
The text of those temporary regulations
also serves as the text of these proposed
regulations.
DATES: Written or electronic comments
and requests for a public hearing must
be received by February 5, 2008.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–209020–86), room
5203, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions
may be hand-delivered between the
hours of 8 a.m. and 4 p.m. to
CC:PA:LPD:PR (REG–209020–90),
Courier’s Desk, Internal Revenue
Service, 1111 Constitution Ave., NW.,
Washington, DC or sent electronically
via the Federal eRulemaking Portal at
www.regulations.gov (IRS REG–209020–
86).
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Teresa Burridge Hughes, (202) 622–3850
(not a toll-free number); concerning the
submission of comments, Kelly Banks,
(202) 622–7180 (not a toll-free number).
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)). Comments on the
collection of information should be sent
to the Office of Management and
Budget, Attn: Desk Officer for the
Department of 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
January 7, 2008. Comments are
specifically requested concerning:
Whether the proposed collections of
information is necessary for the proper
performance of the functions of the IRS,
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15:58 Nov 06, 2007
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including whether the information will
have practical utility;
The accuracy of the estimated burden
associated with the proposed collections
of information;
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 capital or start-up costs
and costs of operation, maintenance,
and purchase of service to provide
information.
The collections of information in this
notice of proposed rulemaking are in
§ 1.905–4. This information is required
to enable the IRS to verify the amounts
of the foreign tax redeterminations and
to determine the amount of the penalty
under section 6689, if a taxpayer fails to
notify the IRS of a foreign tax
redetermination. This information will
be used by the IRS for examination
purposes. The collections of information
are mandatory. The likely respondents
are individuals and business or other
for-profit institutions.
Estimated total annual reporting:
54,000 hours.
The estimated annual burden per
respondent varies from 3 hours to 8
hours, depending on individual
circumstances, with an estimated
average of 4.2 hours.
Estimated number of respondents:
13,000.
Estimated frequency of responses:
Annually.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid control
number assigned by the Office of
Management and Budget.
Books or records relating to a
collection of information must be
retained as long as their contents may
become material in the administration
of any internal revenue law. Generally,
tax returns and tax return information
are confidential, as required by 26
U.S.C. 6103.
Background and Explanation of
Provisions
On June 23, 1988, the IRS published
in the Federal Register a notice of
proposed rulemaking (53 FR 23659)
(INTL–061–86) (the 1988 proposed
regulations) that would have provided
rules with respect to the time and
manner of reporting a foreign tax
redetermination and to the penalty
under section 6689. Written comments
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were received; however, no hearing was
requested or held. Subsequently, section
1102(a)(1) and 1102(a)(2) of the
Taxpayer Relief Act of 1997, Public Law
105–34 (111 Stat. 788, 963–966 (1997)),
amended section 905(c), effective for
taxes paid or accrued in taxable years
beginning after December 31, 1997.
Subsequently, section 408(a) of the
American Jobs Creation Act of 2004,
Public Law 108–357 (118 Stat. 1418,
1499 (2004)), modified section 986(a),
effective for taxable years beginning
after December 31, 2004. In light of the
comments received on the 1988
proposed regulations and the statutory
changes to sections 905(c) and 986(a),
sections of the 1988 proposed
regulations are revised and other
sections are withdrawn. 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. 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 the following regulations, §§ 1.905–3,
1.905–4, 1.905–5, and 301.6689–1. With
respect to § 1.905–4, it is hereby
certified that this regulation will not
have a significant economic impact on
a substantial number of small entities.
This certification is based on the fact
that the collection of information
requirement under § 1.905–4 that is
imposed on small entities flows directly
from section 905(c), which states that,
‘‘[T]he taxpayer shall notify the
Secretary,’’ of a foreign tax
redetermination that may result in a
redetermination of the taxpayer’s United
States tax liability. In order for the
taxpayer to satisfy this notification
requirement, information with respect
to all foreign tax redeterminations must
be collected. Therefore, a regulatory
flexibility analysis is not required.
Pursuant to section 7805(f) of the
Internal Revenue Code, this regulation
has been submitted to the Chief Counsel
for Advocacy of the Small Business
Administration for comment on their
impact on small businesses.
Comments and Requests for a 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. All
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Federal Register / Vol. 72, No. 215 / Wednesday, November 7, 2007 / Proposed Rules
comments will be available for public
inspection and copying. A public
hearing may be scheduled if requested
in writing by any person that timely
submits written or electronic comments.
If a public hearing is scheduled, notice
of the date, time, and place for the
public hearing will be published in the
Federal Register.
§ 1.905–5 Foreign tax redeterminations
and currency translation rules for foreign
tax redeterminations occurring in taxable
years beginning prior to January 1, 1987
(temporary).
Drafting Information
The principal author of this document
is Teresa Burridge Hughes, Office of
Associate Chief Counsel (International).
However, other personnel from the IRS
and the Treasury Department
participated in its development.
PART 301—PROCEDURE AND
ADMINISTRATION
List of Subjects
[The text of this section is the same
as the text of § 1.905–5T(a) through (f)
published elsewhere in this issue of the
Federal Register.]
Par. 4. The citation authority for part
301 continues to read as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 5. Section 301.6689–1 is added to
read as follows:
§ 301.6689–1 Failure to file notice of
redetermination of foreign tax.
26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes,
Excise taxes, Gift taxes, Income taxes,
Penalties, Reporting and recordkeeping
requirements.
Partial Withdrawal of a Notice of
Proposed Rulemaking
Under the authority of 26 U.S.C. 7805,
§ 1.905–3(d)(2)(iii) and (iv) and § 1.905–
3(d)(4) of the notice of proposed
rulemaking (INTL–061–86, REG–
209020–86) published in the Federal
Register on June 23, 1988 (53 FR 23659)
are withdrawn.
(a) [The text of the proposed
amendments to § 301.6689–1(a) is the
same as the text of § 301.6689–1T(a)
published elsewhere in this issue of the
Federal Register.]
(b) through (d) [Reserved]. For further
guidance, see § 301.6689–1T(b) through
(d).
(e) [The text of the proposed
amendments to § 301.6689–1(e)(1) is the
same as the text of § 301.6689–1T(e)(1)
published elsewhere in this issue of the
Federal Register.]
Kevin M. Brown,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. E7–21727 Filed 11–6–07; 8:45 am]
Proposed Amendments to the
Regulations
Accordingly, 26 CFR parts 1 and 301
are proposed to be amended as follows:
BILLING CODE 4830–01–P
PART 1—INCOME TAXES
40 CFR Part 52
Paragraph 1. The authority citation
for part 1 continues to read as follows:
[EPA–R03–OAR–2007–1009; FRL–8492–7]
Approval and Promulgation of Air
Quality Implementation Plans; State of
Delaware Transportation Conformity
Regulations
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.905–3 is added to
read as follows:
§ 1.905–3 Adjustments to United States tax
liability and to the pools of post-1986
undistributed earnings and post-1986
foreign income taxes as a result of a foreign
tax redetermination.
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[The text of this section is the same
as the text of § 1.905–3T(a) through (e)
published elsewhere in this issue of the
Federal Register.]
Par. 3. Section 1.905–4 is added to
read as follows:
§ 1.905–4 Notification of foreign tax
redetermination.
[The text of this section is the same
as the text of § 1.905–4T(a) through (f)(2)
published elsewhere in this issue of the
Federal Register.]
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ENVIRONMENTAL PROTECTION
AGENCY
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
SUMMARY: EPA is proposing to approve
a State Implementation Plan (SIP)
revision submitted by the State of
Delaware. This revision establishes the
State’s transportation conformity
requirements. After they have been
approved, the State regulations will
govern transportation conformity
determinations in the State of Delaware.
This action is being taken under the
Clean Air Act.
DATES: Written comments must be
received on or before December 7, 2007.
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62807
Submit your comments,
identified by Docket ID Number EPA–
R03–OAR–2007–1009 by one of the
following methods:
A. https://www.regulations.gov. Follow
the on-line instructions for submitting
comments.
. E-mail: febbo.carol@epa.gov.
C. Mail: EPA–R03–OAR–2007–1009,
Carol Febbo, Chief, Energy, Radiation
and Indoor Environment Branch,
Mailcode 3AP23, 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
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–2007–
1009. EPA’s policy is that all comments
received will be included in the public
docket without change, and may be
made available online at
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 www.regulations.gov
or e-mail. The 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 www.regulations.gov, your email 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
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,
ADDRESSES:
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]]>Agencies
[Federal Register Volume 72, Number 215 (Wednesday, November 7, 2007)]
[Proposed Rules]
[Pages 62805-62807]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-21727]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[REG-209020-86]
RIN 1545-AC09
Foreign Tax Credit: Notification of Foreign Tax Redeterminations
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Partial withdrawal of notice of proposed rulemaking and notice
of proposed rulemaking by cross-reference to temporary regulations.
-----------------------------------------------------------------------
SUMMARY: This document withdraws portions of the notice of proposed
rulemaking published on June 23, 1988, relating to sections 905(c) and
6689 (the 1988 proposed regulations). In addition, in the Rules and
Regulations section of this issue of the Federal Register, the IRS and
the Treasury Department are issuing temporary regulations relating to a
taxpayer's obligation under section 905(c) of the Internal Revenue Code
to
[[Page 62806]]
notify the IRS of a foreign tax redetermination. The IRS and the
Treasury Department are also issuing temporary regulations on Procedure
and Administration under section 6689 relating to the civil penalty for
failure to notify the IRS of a foreign tax redetermination as required
under section 905(c). These temporary regulations affect taxpayers that
have paid foreign taxes which have been redetermined and provide
guidance needed to comply with statutory changes made to the applicable
law by the Taxpayer Relief Act of 1997 and the American Jobs Creation
Act of 2004. The text of those temporary regulations also serves as the
text of these proposed regulations.
DATES: Written or electronic comments and requests for a public hearing
must be received by February 5, 2008.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-209020-86), room
5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered between the
hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-209020-90), Courier's
Desk, Internal Revenue Service, 1111 Constitution Ave., NW.,
Washington, DC or sent electronically via the Federal eRulemaking
Portal at www.regulations.gov (IRS REG-209020-86).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Teresa Burridge Hughes, (202) 622-3850 (not a toll-free number);
concerning the submission of comments, Kelly Banks, (202) 622-7180 (not
a toll-free number).
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)). Comments on the collection of information should be
sent to the Office of Management and Budget, Attn: Desk Officer for the
Department of 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
January 7, 2008. Comments are specifically requested concerning:
Whether the proposed collections of information is necessary for
the proper performance of the functions of the IRS, including whether
the information will have practical utility;
The accuracy of the estimated burden associated with the proposed
collections of information;
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 capital or start-up costs and costs of operation,
maintenance, and purchase of service to provide information.
The collections of information in this notice of proposed
rulemaking are in Sec. 1.905-4. This information is required to enable
the IRS to verify the amounts of the foreign tax redeterminations and
to determine the amount of the penalty under section 6689, if a
taxpayer fails to notify the IRS of a foreign tax redetermination. This
information will be used by the IRS for examination purposes. The
collections of information are mandatory. The likely respondents are
individuals and business or other for-profit institutions.
Estimated total annual reporting: 54,000 hours.
The estimated annual burden per respondent varies from 3 hours to 8
hours, depending on individual circumstances, with an estimated average
of 4.2 hours.
Estimated number of respondents: 13,000.
Estimated frequency of responses: Annually.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a valid
control number assigned by the Office of Management and Budget.
Books or records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and
tax return information are confidential, as required by 26 U.S.C. 6103.
Background and Explanation of Provisions
On June 23, 1988, the IRS published in the Federal Register a
notice of proposed rulemaking (53 FR 23659) (INTL-061-86) (the 1988
proposed regulations) that would have provided rules with respect to
the time and manner of reporting a foreign tax redetermination and to
the penalty under section 6689. Written comments were received;
however, no hearing was requested or held. Subsequently, section
1102(a)(1) and 1102(a)(2) of the Taxpayer Relief Act of 1997, Public
Law 105-34 (111 Stat. 788, 963-966 (1997)), amended section 905(c),
effective for taxes paid or accrued in taxable years beginning after
December 31, 1997. Subsequently, section 408(a) of the American Jobs
Creation Act of 2004, Public Law 108-357 (118 Stat. 1418, 1499 (2004)),
modified section 986(a), effective for taxable years beginning after
December 31, 2004. In light of the comments received on the 1988
proposed regulations and the statutory changes to sections 905(c) and
986(a), sections of the 1988 proposed regulations are revised and other
sections are withdrawn. 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. 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 the following regulations,
Sec. Sec. 1.905-3, 1.905-4, 1.905-5, and 301.6689-1. With respect to
Sec. 1.905-4, it is hereby certified that this regulation will not
have a significant economic impact on a substantial number of small
entities. This certification is based on the fact that the collection
of information requirement under Sec. 1.905-4 that is imposed on small
entities flows directly from section 905(c), which states that, ``[T]he
taxpayer shall notify the Secretary,'' of a foreign tax redetermination
that may result in a redetermination of the taxpayer's United States
tax liability. In order for the taxpayer to satisfy this notification
requirement, information with respect to all foreign tax
redeterminations must be collected. Therefore, a regulatory flexibility
analysis is not required. Pursuant to section 7805(f) of the Internal
Revenue Code, this regulation has been submitted to the Chief Counsel
for Advocacy of the Small Business Administration for comment on their
impact on small businesses.
Comments and Requests for a 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. All
[[Page 62807]]
comments will be available for public inspection and copying. A public
hearing may be scheduled if requested in writing by any person that
timely submits written or electronic comments. If a public hearing is
scheduled, notice of the date, time, and place for the public hearing
will be published in the Federal Register.
Drafting Information
The principal author of this document is Teresa Burridge Hughes,
Office of Associate Chief Counsel (International). However, other
personnel from the IRS and the Treasury Department participated in its
development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
Partial Withdrawal of a Notice of Proposed Rulemaking
Under the authority of 26 U.S.C. 7805, Sec. 1.905-3(d)(2)(iii) and
(iv) and Sec. 1.905-3(d)(4) of the notice of proposed rulemaking
(INTL-061-86, REG-209020-86) published in the Federal Register on June
23, 1988 (53 FR 23659) are withdrawn.
Proposed Amendments to the Regulations
Accordingly, 26 CFR parts 1 and 301 are proposed to be amended as
follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 continues to read as
follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.905-3 is added to read as follows:
Sec. 1.905-3 Adjustments to United States tax liability and to the
pools of post-1986 undistributed earnings and post-1986 foreign income
taxes as a result of a foreign tax redetermination.
[The text of this section is the same as the text of Sec. 1.905-
3T(a) through (e) published elsewhere in this issue of the Federal
Register.]
Par. 3. Section 1.905-4 is added to read as follows:
Sec. 1.905-4 Notification of foreign tax redetermination.
[The text of this section is the same as the text of Sec. 1.905-
4T(a) through (f)(2) published elsewhere in this issue of the Federal
Register.]
Sec. 1.905-5 Foreign tax redeterminations and currency translation
rules for foreign tax redeterminations occurring in taxable years
beginning prior to January 1, 1987 (temporary).
[The text of this section is the same as the text of Sec. 1.905-
5T(a) through (f) published elsewhere in this issue of the Federal
Register.]
PART 301--PROCEDURE AND ADMINISTRATION
Par. 4. The citation authority for part 301 continues to read as
follows:
Authority: 26 U.S.C. 7805 * * *
Par. 5. Section 301.6689-1 is added to read as follows:
Sec. 301.6689-1 Failure to file notice of redetermination of foreign
tax.
(a) [The text of the proposed amendments to Sec. 301.6689-1(a) is
the same as the text of Sec. 301.6689-1T(a) published elsewhere in
this issue of the Federal Register.]
(b) through (d) [Reserved]. For further guidance, see Sec.
301.6689-1T(b) through (d).
(e) [The text of the proposed amendments to Sec. 301.6689-1(e)(1)
is the same as the text of Sec. 301.6689-1T(e)(1) published elsewhere
in this issue of the Federal Register.]
Kevin M. Brown,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E7-21727 Filed 11-6-07; 8:45 am]
BILLING CODE 4830-01-P
