Treatment of Overall Foreign and Domestic Losses, 72646-72648 [E7-24896]
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72646
Federal Register / Vol. 72, No. 245 / Friday, December 21, 2007 / Proposed Rules
will be allotted to each person for
making comments.
An agenda showing the scheduling of
the speakers will be prepared after the
deadline for receiving outlines has
passed. Copies of the agenda will be
available free of charge at the hearing.
Drafting Information
The principal author of these
regulations is Jeffrey L. Parry of the
Office of Chief Counsel (International).
However, other personnel from the
Treasury Department and the IRS
participated in their development.
*
*
*
*
(h) * * *
(3) [The text of the proposed
amendment to § 1.904–5(h)(3) is the
same as the text of § 1.904–5T(h)(3)
published elsewhere in this issue of the
Federal Register.]
*
*
*
*
*
(o) * * *
(3) [The text of proposed § 1.904–
5(o)(3) is the same as the text of § 1.904–
5T(o)(3) published elsewhere in this
issue of the Federal Register.]
Par. 5. Section 1.904–7(g) is added to
read as follows:
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 1.904–2(i) is added to
read as follows:
§ 1.904–2 Carryback and carryover of
unused foreign tax.
*
*
*
*
*
(i) [The text of proposed § 1.904–2(i)
is the same as the text of § 1.904–
2T(i)(1) through (3) published elsewhere
in this issue of the Federal Register.]
Par. 3. In § 1.904–4, paragraphs (a),
(b), (h)(3), and (l) are revised and
paragraph (n) is added to read as
follows:
pwalker on PROD1PC71 with PROPOSALS
§ 1.904–4 Separate application of section
904 with respect to certain categories of
income.
(a) [The text of the proposed
amendment to § 1.904–4(a) is the same
as the text of § 1.904–4T(a) published
elsewhere in this issue of the Federal
Register.]
(b) [The text of the proposed
amendment to § 1.904–4(b) is the same
as the text of § 1.904–4T(b) published
elsewhere in this issue of the Federal
Register.]
*
*
*
*
*
(h) * * *
(3) [The text of the proposed
amendment to § 1.904–4(h)(3) is the
same as the text of § 1.904–4T(h)(3)
published elsewhere in this issue of the
Federal Register.]
*
*
*
*
*
(l) [The text of the proposed
amendment to § 1.904–4(l) is the same
17:13 Dec 20, 2007
Jkt 214001
§ 1.904–5 Look-through rules as applied to
controlled foreign corporations and other
entities.
*
List of Subjects in 26 CFR Part 1
VerDate Aug<31>2005
as the text of § 1.904–4T(l) published
elsewhere in this issue of the Federal
Register.]
*
*
*
*
*
(n) [The text of proposed § 1.904–4(n)
is the same as the text of § 1.904–4T(n)
published elsewhere in this issue of the
Federal Register.]
Par. 4. In § 1.904–5, paragraph (h)(3)
is revised and paragraph (o)(3) is added
to read as follows:
§ 1.904–7
Transition rules.
*
*
*
*
*
(g) [The text of proposed § 1.904–7(g)
is the same as the text of § 1.904–
7T(g)(1) through (6) published
elsewhere in this issue of the Federal
Register.]
Par. 6. § 1.904(f)–12(h) is added to
read as follows:
§ 1.904(f)–12
Transition rules.
*
*
*
*
*
(h) [The text of proposed § 1.904–
12(h) is the same as the text of § 1.904–
12T(h)(1) through (h)(6) published
elsewhere in this issue of the Federal
Register.]
Linda E. Stiff,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. E7–24783 Filed 12–20–07; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–141399–07]
RIN 1545–BH13
Treatment of Overall Foreign and
Domestic Losses
Internal Revenue Service (IRS),
Treasury.
AGENCY:
PO 00000
Frm 00015
Fmt 4702
Sfmt 4702
Notice of proposed rulemaking
by cross-reference to temporary
regulations and notice of public hearing.
ACTION:
SUMMARY: In the Rules and Regulations
section in this issue of the Federal
Register, the IRS is issuing temporary
regulations that provide guidance
relating to the recapture of overall
foreign and domestic losses. Changes to
the applicable law were made by the
American Jobs Creation Act of 2004, as
corrected by the Gulf Opportunity Zone
Act of 2005. The temporary regulations
provide guidance needed to comply
with these changes, as well as updated
guidance with respect to overall foreign
losses and separate limitation losses,
and affect individuals and corporations
claiming foreign tax credits. The text of
those temporary regulations published
in this issue of the Federal Register also
serves as the text of these proposed
regulations. This document also
provides a notice of public hearing on
these proposed regulations.
DATES: Written or electronic comments
must be received by March 20, 2008.
Outlines of topics to be discussed at the
public hearing scheduled for April 10,
2008, at 10 a.m. must be received by
March 20, 2008.
ADDRESSES: Send submissions to
CC:PA:LPD:PR (REG–141399–07), 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–141399–07),
Courier’s desk, Internal Revenue
Service, 1111 Constitution Avenue,
NW., Washington, DC 20044, or sent
electronically, via the Federal
eRulemaking Portal at
www.regulations.gov (IRS REG–
141399–07). The public hearing will be
held in the IRS Auditorium, Internal
Revenue Building, 1111 Constitution
Avenue, NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT:
Concerning the regulations, Jeffrey L.
Parry, (202) 622–3850 (not a toll free
number); concerning submissions of
comments, the hearing, and/or to be
placed on the building access list to
attend the hearing, Richard Hurst,
Richard.A.Hurst@irscounsel.treas.gov.
SUPPLEMENTARY INFORMATION:
Background and Explanation of
Provisions
Temporary regulations in the Rules
and Regulations section of this issue of
the Federal Register amend the Income
Tax Regulations (26 CFR Part 1)
providing rules relating to the recapture
of overall domestic losses under section
E:\FR\FM\21DEP1.SGM
21DEP1
Federal Register / Vol. 72, No. 245 / Friday, December 21, 2007 / Proposed Rules
904(g) as well as the recapture overall
foreign losses and separate limitation
losses under section 904(f). The text of
those regulations also serves as the text
of these proposed regulations. The
preamble to the temporary regulations
explains the temporary regulations and
these proposed regulations. The
regulations affect individuals and
corporations claiming foreign tax
credits.
pwalker on PROD1PC71 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. Therefore, a
regulatory assessment is not required. It
has also 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 the
regulations do not impose a collection
of information on small entities, the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to
section 7805(f), these regulations have
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
electronic or written comments (a
signed original and eight (8) copies) that
are submitted timely to the IRS. The
Treasury Department and the IRS
specifically request comments on the
clarity of the proposed regulations and
how they may be made easier to
understand. Moreover, the Treasury
Department and the IRS are considering
providing additional guidance on
overall domestic losses and separate
limitation losses, as well as further
revisions to the overall foreign loss
provisions of the 1987 regulations.
Comments are welcome on this ongoing
project, particularly with regard to the
need to provide for guidance on the
application of the overall domestic loss
provisions to income earned through
foreign or domestic trusts, as well as
guidance regarding the recapture of
overall foreign losses and separate
limitation losses on the disposition of
property under section 904(f)(3) and
(f)(5)(F). In addition, the Treasury
Department and the IRS are continuing
to study whether additional rules to
better coordinate the overall foreign loss
and overall domestic loss regimes
would be appropriate, including
whether a netting rule should apply to
offsetting overall foreign loss accounts
and overall domestic loss accounts. The
VerDate Aug<31>2005
17:13 Dec 20, 2007
Jkt 214001
Treasury Department and the IRS
welcome additional comments in this
regard. All comments will be available
for public inspection and copying.
A public hearing has been scheduled
for April 10, 2008, in the Auditorium,
Internal Revenue Building, 1111
Constitution Avenue, NW., Washington,
DC. Due to building security
procedures, visitors must enter at the
Constitution Avenue entrance. In
addition, all visitors must present photo
identification to enter the building.
Because of access restrictions, visitors
will not be admitted beyond the
immediate entrance more than 30
minutes before the hearing starts. For
information about having your name
placed on the building access list to
attend the hearing, see the FOR FURTHER
INFORMATION CONTACT section of this
preamble.
The rules of 26 CFR 601.601(a)(3)
apply to the hearing. Persons who wish
to present oral comments at the hearing
must submit electronic or written
comments by March 20, 2008 and an
outline of the topics to be discussed and
the time to be devoted to each topic
(signed original and eight (8) copies) by
March 20, 2008. A period of 10 minutes
will be allotted to each person for
making comments.
An agenda showing the scheduling of
the speakers will be prepared after the
deadline for receiving outlines has
passed. Copies of the agenda will be
available free of charge at the hearing.
Drafting Information
The principal author of these
regulations is Jeffrey L. Parry of the
Office of Chief Counsel (International).
However, other personnel from the
Treasury Department and the IRS
participated in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
proposed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by adding an entry
in numerical order to read in part as
follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.904(g)–3 also issued under
26 U.S.C. 904(g)(4) * * *
Par. 2. Section 1.904–0 is amended by
revising the entries for § 1.904(f)–1(a),
(d)(2), (d)(3), and (d)(4), and for
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72647
§ 1.904(f)–2(c) and (c)(1), and adding
entries for §§ 1.904(f)–7 and 1.904(f)–8
to read as follows:
§ 1.904–0 Outline of regulation provisions
for section 904.
*
*
*
*
*
§ 1.904(f)–1 Overall foreign loss and the
overall foreign loss account.
*
*
*
*
*
(a)(1) and (a)(2) [The text of these entries
is the same as the text of the entries for
§ 1.904(f)–1T(a)(1) and (a)(2) in § 1.904(f)–0T
published elsewhere in this issue of the
Federal Register.]
*
*
*
*
*
(d)(2), (d)(3), and (d)(4) [The text of these
entries is the same as the text of the entries
for § 1.904(f)–1T(d)(2), (d)(3), and (d)(4) in
§ 1.904(f)–0T published elsewhere in this
issue of the Federal Register.]
*
*
*
§ 1.904(f)–2
losses.
*
*
*
*
*
Recapture of overall foreign
*
*
(c) and (c)(1) [The text of these entries is
the same as the text of the entries for
§ 1.904(f)–2T(c) and (c)(1) in § 1.904(f)–0T
published elsewhere in this issue of the
Federal Register.]
*
*
*
*
*
§ 1.904(f)–7 Separate limitation loss and
the separate limitation loss account.
[The text of the entries for this section is
the same as the text of the entries for
§ 1.904(f)–7T(a) through (f) in § 1.904(f)–0T
published elsewhere in this issue of the
Federal Register.]
§ 1.904(f)–8 Recapture of separate
limitation loss accounts.
[The text of the entries for this section is
the same as the text of the entries for
§ 1.904(f)–8T(a) through (c) in § 1.904(f)–0T
published elsewhere in this issue of the
Federal Register.]
Par. 3. In § 1.904(f)–1, paragraph (a)(2)
is added, and paragraph (d)(4) is
revised, to read as follows:
§ 1.904(f)–1 Overall foreign loss and the
overall foreign loss account.
(a)(1) * * *
(2) [The text of the proposed
amendments to § 1.904(f)–1(a)(2) is the
same as the text of § 1.904(f)–1T(a)(2)
published elsewhere in this issue of the
Federal Register.]
*
*
*
*
*
(d) * * *
(4) [The text of the proposed
amendments to § 1.904(f)–1(d)(4) is the
same as the text of § 1.904(f)–1T(d)(4)
published elsewhere in this issue of the
Federal Register.]
*
*
*
*
*
Par. 4. Section 1.904(f)–2(c)(1) and
(c)(5) Example 4. are revised to read as
follows:
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21DEP1
72648
Federal Register / Vol. 72, No. 245 / Friday, December 21, 2007 / Proposed Rules
§ 1.904(f)–2
losses.
Recapture of overall foreign
through (f) published elsewhere in this
issue of the Federal Register.]
*
*
*
*
*
(c) * * * (1) [The text of the proposed
amendments to § 1.904(f)–2(c)(1) is the
same as the text of § 1.904(f)–2T(c)(1)
published elsewhere in this issue of the
Federal Register.]
*
*
*
*
*
(5) * * *
Example 4. [The text of the proposed
amendments to § 1.904(f)–2(c)(5) Example 4.
is the same as the text of § 1.904(f)–2T(c)(5)
Example 4. published elsewhere in this issue
of the Federal Register.]
*
*
*
*
*
Par. 5. Sections 1.904(f)–7 and
1.904(f)–8 are added to read as follows:
§ 1.904(f)–7 Separate limitation loss and
the separate limitation loss account.
[The text of proposed § 1.904(f)–7 is
the same as the text of § 1.904(f)–7T(a)
through (f) published elsewhere in this
issue of the Federal Register.]
§ 1.904(f)–8 Recapture of separate
limitation loss accounts.
[The text of proposed § 1.904(f)–8 is
the same as the text of § 1.904(f)–8T(a)
through (c) published elsewhere in this
issue of the Federal Register.]
Par. 6. Section 1.904(g)–0 is added to
read as follows:
§ 1.904(g)–0
provisions.
*
*
Recapture of overall domestic
[The text of proposed § 1.904(g)–2 is
the same text of § 1.904(g)–2T(a)
through (d) published elsewhere in this
issue of the Federal Register.]
§ 1.904(g)–3 Ordering rules for the
allocation of net operating losses, net
capital losses, U.S. source losses, and
separate limitation losses, and for recapture
of separate limitation losses, overall foreign
losses, and overall domestic losses.
[The text of proposed § 1.904(g)–3 is
the same text of § 1.904(g)–3T(a)
through (i) published elsewhere in this
issue of the Federal Register.]
Par. 8. Section 1.1502–9 is revised to
read as follows:
§ 1.1502–9 Consolidated overall foreign
losses and separate limitation losses.
[The text of proposed § 1.1502–9 is
the same as the text of § 1.1502–9T(a)
through (e) published elsewhere in this
issue of the Federal Register.]
Linda E. Stiff,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. E7–24896 Filed 12–20–07; 8:45 am]
BILLING CODE 4830–01–P
Outline of regulation
DEPARTMENT OF THE INTERIOR
*
*
*
§ 1.904(g)–1 Overall domestic loss and the
overall domestic loss account.
[The text of the entries for this section is
the same as the text for § 1.904(g)–1T(a)
through (f) in § 1.904(g)–0T published
elsewhere in this issue of the Federal
Register.]
§ 1.904(g)–2 Recapture of overall domestic
losses.
[The text of the entries for this section is
the same as the text for § 1.904(g)–2T(a)
through (d) in § 1.904(g)–0T published
elsewhere in this issue of the Federal
Register.]
§ 1.904(g)–3 Ordering rules for the
allocation of net operating losses, net capital
losses, U.S. source losses, and separate
limitation losses, and for recapture of
separate limitation losses, overall foreign
losses, and overall domestic losses.
[The text of the entries for this section is
the same as the text for § 1.904(g)–3T(a)
through (i) in § 1.904(g)–0T published
elsewhere in this issue of the Federal
Register.]
pwalker on PROD1PC71 with PROPOSALS
§ 1.904(g)–2
losses.
Par. 7. Sections 1.904(g)–1, 1.904(g)–
2, and 1.904(g)–3 are added to read as
follows:
§ 1.904(g)–1 Overall domestic loss and the
overall domestic loss account.
[The text of proposed § 1.904(g)–1 is
the same text of § 1.904(g)–1T(a)
VerDate Aug<31>2005
17:13 Dec 20, 2007
Jkt 214001
Minerals Management Service
30 CFR Parts 203, 250, 251, 256, 280,
281, and 290
[Docket ID: MMS–2007–OMM–0065]
RIN 1010–AD43
Electronic Payment of Fees for Outer
Continental Shelf Activities
Minerals Management Service
(MMS), Interior.
ACTION: Proposed rule.
AGENCY:
SUMMARY: The MMS proposes that all
lessees, operators, permittees, and
rights-of-way holders pay all fees for
processing plans, applications, and
permits electronically. The MMS
believes this proposed rule would aid
industry in payment processing, and
reduce payment processing errors. This
proposed rule would improve MMS
processing efficiency and facilitate the
correction of industry payment errors.
The MMS would not accept checks,
money orders, or cashier’s checks for
payment of fees after the effective date
of the final rule.
DATES: Submit comments by February
19, 2008. The MMS may not fully
PO 00000
Frm 00017
Fmt 4702
Sfmt 4702
consider comments received after this
date.
ADDRESSES: You may submit comments
on the rulemaking by any of the
following methods. Please use the
Regulation Identifier Number (RIN)
1010–AD43 as an identifier in your
message. See also Public Availability of
Comments under Procedural Matters.
• Federal eRulemaking Portal: https://
www.regulations.gov. Select ‘‘Minerals
Management Service’’ from the agency
drop-down menu, then click ‘‘submit.’’
In the Docket ID column, select MMS–
2007–OMM–0065 to submit public
comments and to view supporting and
related materials available for this
rulemaking. Information on using
Regulations.gov, including instructions
for accessing documents, submitting
comments, and viewing the docket after
the close of the comment period, is
available through the site’s ‘‘User Tips’’
link. All comments submitted will be
posted to the docket.
• Mail or hand-carry comments to the
Department of the Interior; Minerals
Management Service; Attention:
Regulations and Standards Branch
(RSB); 381 Elden Street, MS–4024,
Herndon, Virginia 20170–4817. Please
reference ‘‘Electronic Payment of Fees
for Outer Continental Shelf Activities,
1010–AD43’’ in your comments and
include your name and return address.
FOR FURTHER INFORMATION CONTACT: Kirk
Malstrom, Petroleum Engineer, Offshore
Minerals Management, Office of
Offshore Regulatory Programs at (703)
787–1751.
SUPPLEMENTARY INFORMATION:
Background
This proposed rule would require a
lessee, operator, pipeline right-of-way
(ROW) holder, or permittee to submit
payments for cost recovery service fees
electronically. The idea for paying
electronically is not a new concept and
industry has been informed of MMS’s
intentions to collect fees electronically
in the Notice to Lessees (NTL) No.
2006–N05 Payment Method for New
and Existing Cost Recovery Fees. As
stated in NTL No. 2006–N05, MMS
prefers and strongly urges applicants to
pay their fees using credit card or
Automated Clearing House (ACH)
payments through the Pay.Gov Web site.
Launched in October 2000, Pay.Gov is a
secure government-wide collection
portal, developed to meet the U.S.
Treasury’s commitment to process
collections electronically using internet
technologies. Pay.Gov has been
developed to help Federal agencies meet
the directives outlined in the
Government Paperwork Elimination
E:\FR\FM\21DEP1.SGM
21DEP1
]]>Agencies
[Federal Register Volume 72, Number 245 (Friday, December 21, 2007)]
[Proposed Rules]
[Pages 72646-72648]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-24896]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-141399-07]
RIN 1545-BH13
Treatment of Overall Foreign and Domestic Losses
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 in this issue of the
Federal Register, the IRS is issuing temporary regulations that provide
guidance relating to the recapture of overall foreign and domestic
losses. Changes to the applicable law were made by the American Jobs
Creation Act of 2004, as corrected by the Gulf Opportunity Zone Act of
2005. The temporary regulations provide guidance needed to comply with
these changes, as well as updated guidance with respect to overall
foreign losses and separate limitation losses, and affect individuals
and corporations claiming foreign tax credits. The text of those
temporary regulations published in this issue of the Federal Register
also serves as the text of these proposed regulations. This document
also provides a notice of public hearing on these proposed regulations.
DATES: Written or electronic comments must be received by March 20,
2008. Outlines of topics to be discussed at the public hearing
scheduled for April 10, 2008, at 10 a.m. must be received by March 20,
2008.
ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-141399-07), 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-
141399-07), Courier's desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC 20044, or sent electronically, via the
Federal eRulemaking Portal at www.regulations.gov (IRS REG-141399-07).
The public hearing will be held in the IRS Auditorium, Internal Revenue
Building, 1111 Constitution Avenue, NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Jeffrey L.
Parry, (202) 622-3850 (not a toll free number); concerning submissions
of comments, the hearing, and/or to be placed on the building access
list to attend the hearing, Richard Hurst,
Richard.A.Hurst@irscounsel.treas.gov.
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
Temporary regulations in the Rules and Regulations section of this
issue of the Federal Register amend the Income Tax Regulations (26 CFR
Part 1) providing rules relating to the recapture of overall domestic
losses under section
[[Page 72647]]
904(g) as well as the recapture overall foreign losses and separate
limitation losses under section 904(f). The text of those regulations
also serves as the text of these proposed regulations. The preamble to
the temporary regulations explains the temporary regulations and these
proposed regulations. The regulations affect individuals and
corporations claiming foreign tax credits.
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 has also
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
the regulations do not impose a collection of information on small
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not
apply. Pursuant to section 7805(f), these regulations have 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 electronic or written comments (a
signed original and eight (8) copies) that are submitted timely to the
IRS. The Treasury Department and the IRS specifically request comments
on the clarity of the proposed regulations and how they may be made
easier to understand. Moreover, the Treasury Department and the IRS are
considering providing additional guidance on overall domestic losses
and separate limitation losses, as well as further revisions to the
overall foreign loss provisions of the 1987 regulations. Comments are
welcome on this ongoing project, particularly with regard to the need
to provide for guidance on the application of the overall domestic loss
provisions to income earned through foreign or domestic trusts, as well
as guidance regarding the recapture of overall foreign losses and
separate limitation losses on the disposition of property under section
904(f)(3) and (f)(5)(F). In addition, the Treasury Department and the
IRS are continuing to study whether additional rules to better
coordinate the overall foreign loss and overall domestic loss regimes
would be appropriate, including whether a netting rule should apply to
offsetting overall foreign loss accounts and overall domestic loss
accounts. The Treasury Department and the IRS welcome additional
comments in this regard. All comments will be available for public
inspection and copying.
A public hearing has been scheduled for April 10, 2008, in the
Auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW.,
Washington, DC. Due to building security procedures, visitors must
enter at the Constitution Avenue entrance. In addition, all visitors
must present photo identification to enter the building. Because of
access restrictions, visitors will not be admitted beyond the immediate
entrance more than 30 minutes before the hearing starts. For
information about having your name placed on the building access list
to attend the hearing, see the FOR FURTHER INFORMATION CONTACT section
of this preamble.
The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who
wish to present oral comments at the hearing must submit electronic or
written comments by March 20, 2008 and an outline of the topics to be
discussed and the time to be devoted to each topic (signed original and
eight (8) copies) by March 20, 2008. A period of 10 minutes will be
allotted to each person for making comments.
An agenda showing the scheduling of the speakers will be prepared
after the deadline for receiving outlines has passed. Copies of the
agenda will be available free of charge at the hearing.
Drafting Information
The principal author of these regulations is Jeffrey L. Parry of
the Office of Chief Counsel (International). However, other personnel
from the Treasury Department and the IRS participated in their
development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 1 is proposed to be amended as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 is amended by adding
an entry in numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.904(g)-3 also issued under 26 U.S.C. 904(g)(4) * * *
Par. 2. Section 1.904-0 is amended by revising the entries for
Sec. 1.904(f)-1(a), (d)(2), (d)(3), and (d)(4), and for Sec.
1.904(f)-2(c) and (c)(1), and adding entries for Sec. Sec. 1.904(f)-7
and 1.904(f)-8 to read as follows:
Sec. 1.904-0 Outline of regulation provisions for section 904.
* * * * *
Sec. 1.904(f)-1 Overall foreign loss and the overall foreign loss
account.
* * * * *
(a)(1) and (a)(2) [The text of these entries is the same as the
text of the entries for Sec. 1.904(f)-1T(a)(1) and (a)(2) in Sec.
1.904(f)-0T published elsewhere in this issue of the Federal
Register.]
* * * * *
(d)(2), (d)(3), and (d)(4) [The text of these entries is the
same as the text of the entries for Sec. 1.904(f)-1T(d)(2), (d)(3),
and (d)(4) in Sec. 1.904(f)-0T published elsewhere in this issue of
the Federal Register.]
* * * * *
Sec. 1.904(f)-2 Recapture of overall foreign losses.
* * * * *
(c) and (c)(1) [The text of these entries is the same as the
text of the entries for Sec. 1.904(f)-2T(c) and (c)(1) in Sec.
1.904(f)-0T published elsewhere in this issue of the Federal
Register.]
* * * * *
Sec. 1.904(f)-7 Separate limitation loss and the separate
limitation loss account.
[The text of the entries for this section is the same as the
text of the entries for Sec. 1.904(f)-7T(a) through (f) in Sec.
1.904(f)-0T published elsewhere in this issue of the Federal
Register.]
Sec. 1.904(f)-8 Recapture of separate limitation loss accounts.
[The text of the entries for this section is the same as the
text of the entries for Sec. 1.904(f)-8T(a) through (c) in Sec.
1.904(f)-0T published elsewhere in this issue of the Federal
Register.]
Par. 3. In Sec. 1.904(f)-1, paragraph (a)(2) is added, and
paragraph (d)(4) is revised, to read as follows:
Sec. 1.904(f)-1 Overall foreign loss and the overall foreign loss
account.
(a)(1) * * *
(2) [The text of the proposed amendments to Sec. 1.904(f)-1(a)(2)
is the same as the text of Sec. 1.904(f)-1T(a)(2) published elsewhere
in this issue of the Federal Register.]
* * * * *
(d) * * *
(4) [The text of the proposed amendments to Sec. 1.904(f)-1(d)(4)
is the same as the text of Sec. 1.904(f)-1T(d)(4) published elsewhere
in this issue of the Federal Register.]
* * * * *
Par. 4. Section 1.904(f)-2(c)(1) and (c)(5) Example 4. are revised
to read as follows:
[[Page 72648]]
Sec. 1.904(f)-2 Recapture of overall foreign losses.
* * * * *
(c) * * * (1) [The text of the proposed amendments to Sec.
1.904(f)-2(c)(1) is the same as the text of Sec. 1.904(f)-2T(c)(1)
published elsewhere in this issue of the Federal Register.]
* * * * *
(5) * * *
Example 4. [The text of the proposed amendments to Sec.
1.904(f)-2(c)(5) Example 4. is the same as the text of Sec.
1.904(f)-2T(c)(5) Example 4. published elsewhere in this issue of
the Federal Register.]
* * * * *
Par. 5. Sections 1.904(f)-7 and 1.904(f)-8 are added to read as
follows:
Sec. 1.904(f)-7 Separate limitation loss and the separate limitation
loss account.
[The text of proposed Sec. 1.904(f)-7 is the same as the text of
Sec. 1.904(f)-7T(a) through (f) published elsewhere in this issue of
the Federal Register.]
Sec. 1.904(f)-8 Recapture of separate limitation loss accounts.
[The text of proposed Sec. 1.904(f)-8 is the same as the text of
Sec. 1.904(f)-8T(a) through (c) published elsewhere in this issue of
the Federal Register.]
Par. 6. Section 1.904(g)-0 is added to read as follows:
Sec. 1.904(g)-0 Outline of regulation provisions.
* * * * *
Sec. 1.904(g)-1 Overall domestic loss and the overall domestic loss
account.
[The text of the entries for this section is the same as the
text for Sec. 1.904(g)-1T(a) through (f) in Sec. 1.904(g)-0T
published elsewhere in this issue of the Federal Register.]
Sec. 1.904(g)-2 Recapture of overall domestic losses.
[The text of the entries for this section is the same as the
text for Sec. 1.904(g)-2T(a) through (d) in Sec. 1.904(g)-0T
published elsewhere in this issue of the Federal Register.]
Sec. 1.904(g)-3 Ordering rules for the allocation of net operating
losses, net capital losses, U.S. source losses, and separate
limitation losses, and for recapture of separate limitation losses,
overall foreign losses, and overall domestic losses.
[The text of the entries for this section is the same as the
text for Sec. 1.904(g)-3T(a) through (i) in Sec. 1.904(g)-0T
published elsewhere in this issue of the Federal Register.]
Par. 7. Sections 1.904(g)-1, 1.904(g)-2, and 1.904(g)-3 are added
to read as follows:
Sec. 1.904(g)-1 Overall domestic loss and the overall domestic loss
account.
[The text of proposed Sec. 1.904(g)-1 is the same text of Sec.
1.904(g)-1T(a) through (f) published elsewhere in this issue of the
Federal Register.]
Sec. 1.904(g)-2 Recapture of overall domestic losses.
[The text of proposed Sec. 1.904(g)-2 is the same text of Sec.
1.904(g)-2T(a) through (d) published elsewhere in this issue of the
Federal Register.]
Sec. 1.904(g)-3 Ordering rules for the allocation of net operating
losses, net capital losses, U.S. source losses, and separate limitation
losses, and for recapture of separate limitation losses, overall
foreign losses, and overall domestic losses.
[The text of proposed Sec. 1.904(g)-3 is the same text of Sec.
1.904(g)-3T(a) through (i) published elsewhere in this issue of the
Federal Register.]
Par. 8. Section 1.1502-9 is revised to read as follows:
Sec. 1.1502-9 Consolidated overall foreign losses and separate
limitation losses.
[The text of proposed Sec. 1.1502-9 is the same as the text of
Sec. 1.1502-9T(a) through (e) published elsewhere in this issue of the
Federal Register.]
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E7-24896 Filed 12-20-07; 8:45 am]
BILLING CODE 4830-01-P
