Section 1221(a)(4) Capital Asset Exclusion for Accounts and Notes Receivable, 21861 [E8-8817]

Download as PDF Federal Register / Vol. 73, No. 79 / Wednesday, April 23, 2008 / Proposed Rules INFORMATION CONTACT section of this document. LaNita Vandyke, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration). [FR Doc. E8–8815 Filed 4–22–08; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY List of Subjects in 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirement. Internal Revenue Service 26 CFR Part 1 Withdrawal of Notice of Proposed Rulemaking Accordingly, under the authority of 26 U.S.C. 7805, the notice of proposed rulemaking (REG–109367–06) published in the Federal Register on August 7, 2006 (71 FR 44600) is withdrawn. [REG–109367–06] RIN 1545–BF52 Section 1221(a)(4) Capital Asset Exclusion for Accounts and Notes Receivable Internal Revenue Service (IRS), Treasury. ACTION: Withdrawal of notice of proposed rulemaking. AGENCY: mstockstill on PROD1PC66 with PROPOSALS SUMMARY: This document withdraws a notice of proposed rulemaking relating to the circumstances in which accounts or notes receivable are ‘‘acquired * * * for services rendered’’ within the meaning of section 1221(a)(4). FOR FURTHER INFORMATION CONTACT: K. Scott Brown, (202) 622–7454 (not a tollfree call). SUPPLEMENTARY INFORMATION: Background On August 7, 2006, the Treasury Department and the IRS published in the Federal Register (71 FR 44600) proposed regulations § 1.1221–1(e) under section 1221(a)(4) of the Internal Revenue Code. These regulations sought to clarify the circumstances in which accounts or notes receivable are ‘‘acquired * * * for services rendered’’ within the meaning of section 1221(a)(4). Written comments were received from interested parties, and public hearings to discuss these regulations were held on November 7, 2006, and August 22, 2007. Most of the comments focused on the decisions in Burbank Liquidating Corp. v. Commissioner, 39 T.C. 999 (1963), acq. sub nom. United Assocs., Inc., 1965–1 C.B. 3, aff’d in part and rev’d in part on other grounds, 335 F.2d 125 (9th Cir. 1964) and Federal National Mortgage Association v. Commissioner, 100 T.C. 541 (1993). The Treasury Department and the IRS considered the comments and have decided to withdraw the proposed regulations. The IRS will not challenge return reporting positions of taxpayers under VerDate Aug<31>2005 16:23 Apr 22, 2008 section 1221(a)(4) that apply existing law, including Burbank Liquidating; Federal National Mortgage Association; and Bieldfeldt v. Commissioner, 231 F.3d 1035 (7th Cir. 2000), cert. denied, 534 U.S. 813 (2001). See also Rev. Rul. 80–56 (1980–1 C.B. 154) and Rev. Rul. 80–57 (1980–1 C.B. 157). The IRS and the Treasury Department will continue to study this area and may issue guidance in the future. Jkt 214001 Linda E. Stiff, Deputy Commissioner for Services and Enforcement. [FR Doc. E8–8817 Filed 4–22–08; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY Office of International Investment 31 CFR Part 800 RIN 1505–AB88 Regulations Pertaining to Mergers, Acquisitions, and Takeovers by Foreign Persons Department of the Treasury. Proposed Rule; Notice of Inquiry and Public Meeting. AGENCY: ACTION: SUMMARY: This proposed regulation amends regulations in part 800 of 31 CFR that implement section 721 of the Defense Production Act of 1950, as amended. The proposed regulations would implement amendments made by the Foreign Investment and National Security Act of 2007 to section 721 of the Defense Production Act of 1950 (‘‘section 721’’). While the proposed regulations retain many features of the existing regulations, a number of changes have been made to increase clarity, reflect developments in business practices over the past several years, and make additional improvements based on experiences with the existing regulations. DATES: Comment Date: Written comments must be received by June 9, 2008. Public Meeting Date: The public meeting will be held from 10 a.m. until 12 p.m. on May 2, 2008. PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 21861 Comments: Written comments on the proposed regulations may be submitted electronically via the federal government E-Rulemaking Portal: www.regulations.gov. Written comments may be submitted by mail to: Nova Daly, Deputy Assistant Secretary, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220. All comments and attachments submitted are part of the public record and subject to disclosure. Do not include any material in your comments that you consider to be confidential or inappropriate for public disclosure. You may view copies of this proposed rule and any comments we receive about this proposal at www.regulations.gov. You may personally inspect and photocopy comments at the Department of the Treasury Library, Room 1428, Main Treasury Building, 1500 Pennsylvania Avenue, NW., Washington, DC. You can make an appointment to inspect comments by calling (202) 622–0990. A link to written comments will be established on the following Web site: https://www.treas.gov/offices/ international-affairs/cfius/index.shtml. Public Meeting Address: The public meeting will be held in the Cash Room of the Treasury Building, at 1500 Pennsylvania Avenue, NW., Washington, DC 20220. FOR FURTHER INFORMATION CONTACT: For questions about this Proposed Rule or the Notice of Inquiry and Public Meeting, contact: Nova Daly, Deputy Assistant Secretary, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220; telephone: (202) 622–2752; or e-mail: Nova.Daly@do.treas.gov., or Welby Leaman, Senior Advisor; telephone: (202) 622–0099; or e-mail: Welby.Leaman@do.treas.gov. ADDRESSES: SUPPLEMENTARY INFORMATION: I. Background With Regard to the Notice of Inquiry and Public Meeting The President has directed the Secretary of the Treasury to issue regulations implementing section 721 of the Defense Production Act of 1950, as amended. On October 24, 2007, the Department of the Treasury convened a public meeting at the Department of the Treasury to solicit a wide array of views on several broad topics, including from businesses and professionals active in international mergers and acquisitions, in order to inform regulatory development. The purpose of this second notice of inquiry and public meeting is to continue to seek public input on these important matters, E:\FR\FM\23APP1.SGM 23APP1

Agencies

[Federal Register Volume 73, Number 79 (Wednesday, April 23, 2008)]
[Proposed Rules]
[Page 21861]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-8817]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-109367-06]
RIN 1545-BF52


Section 1221(a)(4) Capital Asset Exclusion for Accounts and Notes 
Receivable

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Withdrawal of notice of proposed rulemaking.

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SUMMARY: This document withdraws a notice of proposed rulemaking 
relating to the circumstances in which accounts or notes receivable are 
``acquired * * * for services rendered'' within the meaning of section 
1221(a)(4).

FOR FURTHER INFORMATION CONTACT: K. Scott Brown, (202) 622-7454 (not a 
toll-free call).

SUPPLEMENTARY INFORMATION:

Background

    On August 7, 2006, the Treasury Department and the IRS published in 
the Federal Register (71 FR 44600) proposed regulations Sec.  1.1221-
1(e) under section 1221(a)(4) of the Internal Revenue Code. These 
regulations sought to clarify the circumstances in which accounts or 
notes receivable are ``acquired * * * for services rendered'' within 
the meaning of section 1221(a)(4).
    Written comments were received from interested parties, and public 
hearings to discuss these regulations were held on November 7, 2006, 
and August 22, 2007. Most of the comments focused on the decisions in 
Burbank Liquidating Corp. v. Commissioner, 39 T.C. 999 (1963), acq. sub 
nom. United Assocs., Inc., 1965-1 C.B. 3, aff'd in part and rev'd in 
part on other grounds, 335 F.2d 125 (9th Cir. 1964) and Federal 
National Mortgage Association v. Commissioner, 100 T.C. 541 (1993). The 
Treasury Department and the IRS considered the comments and have 
decided to withdraw the proposed regulations.
    The IRS will not challenge return reporting positions of taxpayers 
under section 1221(a)(4) that apply existing law, including Burbank 
Liquidating; Federal National Mortgage Association; and Bieldfeldt v. 
Commissioner, 231 F.3d 1035 (7th Cir. 2000), cert. denied, 534 U.S. 813 
(2001). See also Rev. Rul. 80-56 (1980-1 C.B. 154) and Rev. Rul. 80-57 
(1980-1 C.B. 157). The IRS and the Treasury Department will continue to 
study this area and may issue guidance in the future.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirement.

Withdrawal of Notice of Proposed Rulemaking

    Accordingly, under the authority of 26 U.S.C. 7805, the notice of 
proposed rulemaking (REG-109367-06) published in the Federal Register 
on August 7, 2006 (71 FR 44600) is withdrawn.

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-8817 Filed 4-22-08; 8:45 am]
BILLING CODE 4830-01-P

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