Implementation of Form 990, 52218-52220 [E8-20556]
Download as PDF
<![CDATA[
52218
Proposed Rules
Federal Register
Vol. 73, No. 175
Tuesday, September 9, 2008
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–142333–07]
RIN 1545–BH28
Implementation of Form 990
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
by cross-reference to temporary
regulations.
AGENCY:
In the Rules and Regulations
section of this issue of the Federal
Register, the IRS and the Treasury
Department are issuing temporary
regulations necessary to implement the
redesigned Form 990, ‘‘Return of
Organization Exempt From Income
Tax.’’ The temporary regulations make
revisions to the regulations under
section 6033 and section 6043 to allow
for new threshold amounts for reporting
compensation, to require that
compensation be reported on a calendar
year basis, and to modify the scope of
organizations subject to information
reporting requirements upon a
substantial contraction. The temporary
regulations also eliminate the advance
ruling process for new organizations,
change the public support computation
period for organizations described in
sections 170(b)(1)(A)(vi) and 509(a)(1)
and in section 509(a)(2) to five years,
consistent with the revised Form 990,
and clarify that support must be
reported using the organization’s overall
method of accounting. All tax exempt
organizations required under section
6033 of the Internal Revenue Code
(Code) to file annual information returns
are affected by the temporary
regulations. The text of the 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 November 10, 2008.
yshivers on PROD1PC62 with PROPOSALS
SUMMARY:
VerDate Aug<31>2005
15:24 Sep 08, 2008
Jkt 214001
Send submissions to:
CC:PA:LPD:PR (REG–142333–07), 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–142333–
07), Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue,
NW., Washington, DC, or sent
electronically, via the Federal
eRulemaking Portal at https://
www.regulations.gov (IRS REG–142333–
07).
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Terri Harris, at (202) 622–6070;
concerning submissions of comments or
requests for a hearing, Oluwafunmilayo
Taylor, at (202) 622–3401 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
ADDRESSES:
Paperwork Reduction Act
The collection of information
contained in this notice of proposed
rulemaking has been reviewed and
approved by the Office of Management
and Budget in accordance with the
Paperwork Reduction Act of 1995 (44
U.S.C. 3507(d)) under control number
1545–2117. Comments on the collection
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
November 10, 2008. 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;
How the quality, utility and clarity of
the information to be collected may be
enhanced;
How the burden of complying with
the proposed collection of information
may be minimized, including through
the application of automated collection
PO 00000
Frm 00001
Fmt 4702
Sfmt 4702
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 collection of information in this
proposed regulation is in § 1.6033–2T.
The information collected under
§ 1.6033–2T relates to compensation
reporting by tax exempt organizations.
The information that is required to be
collected for purposes of § 1.6033–2T is
required to be submitted on Form 990,
‘‘Return of Organization Exempt From
Income Tax.’’ The estimated number of
recordkeepers that will submit Form
990 is approximately 105,000.
Estimated total annual reporting
burden: One hour.
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
Provision
Temporary regulations in the Rules
and Regulations section of this issue of
the Federal Register amend the Income
Tax Regulations (26 CFR part 1) relating
to sections 170(b), 507, 509(a), 6033,
and 6043. The amendments to
§§ 1.170A–9, 1.507–2 and 1.509(a)–3
eliminate the advance ruling process,
clarify that support must be reported
using the organization’s overall method
of accounting, eliminate the exception
for material changes in sources of
support, and change the public support
computation period for organizations
described in sections 170(b)(1)(A)(vi)
and 509(a)(1) and in section 509(a)(2) to
five years, consistent with the revised
Schedule A to the redesigned Form 990,
‘‘Return of Organization Exempt From
Income Tax.’’ The amendments to
§§ 1.6033–2(a)(2)(ii)(g) and (h) allow for
new threshold amounts for reporting
compensation and require that
organizations use a calendar year basis
or a basis that is prescribed by
publication, form or instruction when
E:\FR\FM\09SEP1.SGM
09SEP1
Federal Register / Vol. 73, No. 175 / Tuesday, September 9, 2008 / Proposed Rules
reporting listed officer, director, trustee,
key employee and independent
contractor compensation. The
amendments to §§ 1.6043–3(b)(8) and
(d) expand the scope of organizations
subject to information reporting
requirements upon a substantial
contraction. 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.
yshivers on PROD1PC62 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.
It is hereby certified that the collection
of information in this regulation will not
have a significant economic impact on
a substantial number of small entities.
This certification is based on the fact
that burden on tax-exempt entities will
be reduced by (1) eliminating the
separate advance ruling process and the
additional process for subsequently
seeking a definitive ruling, (2) clarifying
rules regarding the method of
accounting and period for reporting
certain items, and (3) providing
discretion for the IRS to narrow or
clarify circumstances under which
reporting is required. Accordingly, 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, 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 Public
Hearing
Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
written comments (a signed original and
eight (8) copies) or electronic comments
that are submitted timely to the IRS.
Comments are requested on all aspects
of the proposed regulations. The IRS
and the Treasury Department request
comments on the clarity of the proposed
rules and how they can be made easier
to understand. All comments will be
available for public inspection and
copying.
A public hearing will be scheduled if
requested in writing by any person that
timely submits written comments. If a
public hearing is scheduled, notice of
the date, time, and place for the public
VerDate Aug<31>2005
15:24 Sep 08, 2008
Jkt 214001
hearing will be published in the Federal
Register.
Drafting Information
The principal author of this regulation
is Terri Harris of the Office of Division
Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities).
However, other personnel from the IRS
and the Treasury Department
participated in their development.
List of Subjects for 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 1.170A–9 is amended
by revising paragraphs (f) and (k) to read
as follows:
§ 1.170A–9 Definition of section
170(b)(1)(A) organization.
*
*
*
*
*
(f) [The text of this proposed
amendment to § 1.170A–9(f) is the same
as the text of § 1.170A–9T(f) published
elsewhere in this issue of the Federal
Register.]
*
*
*
*
*
(k) [The text of this proposed
amendment to § 1.170A–9(k) is the same
as the text of § 1.170A–9T(k)(1) and
(k)(2) published elsewhere in this issue
of the Federal Register.]
Par. 3. Section 1.507–2 is revised to
read as follows:
§ 1.507–2 Special rules; transfer to, or
operation as, public charity.
[The text of this proposed amendment
to § 1.507–2 is the same as the text of
§ 1.507–2T(a) through (f)(2) published
elsewhere in this issue of the Federal
Register.]
Par. 4. Section 1.509(a)–3 is amended
by revising paragraphs (a)(2), (a)(3)(i),
(c), (d), (e), (k), and (n) and adding
paragraph (o) to read as follows:
§ 1.509(a)–3 Broadly, publicly supported
organizations.
(a) * * *
(2) [The text of this proposed
amendment to § 1.509(a)–3(a)(2) is the
same as the text of § 1.509(a)–3T(a)(2)
published elsewhere in this issue of the
Federal Register.]
(3) * * *
PO 00000
Frm 00002
Fmt 4702
Sfmt 4702
52219
(i) [The text of this proposed
amendment to § 1.509(a)–3(a)(3)(i) is the
same as the text of § 1.509(a)–3T(a)(3)(i)
published elsewhere in this issue of the
Federal Register.]
*
*
*
*
*
(c) [The text of this proposed
amendment to § 1.509(a)–3(c) is the
same as the text of § 1.509(a)–3T(c)
published elsewhere in this issue of the
Federal Register.]
(d) [The text of this proposed
amendment to § 1.509(a)–3(d) is the
same as the text of § 1.509(a)–3T(d)
published elsewhere in this issue of the
Federal Register.]
(e) [The text of this proposed
amendment to § 1.509(a)–3(e) is the
same as the text of § 1.509(a)–3T(e)
published elsewhere in this issue of the
Federal Register.]
*
*
*
*
*
(k) [The text of this proposed
amendment to § 1.509(a)–3(k) is the
same as the text of § 1.509(a)–3T(k)
published elsewhere in this issue of the
Federal Register.]
*
*
*
*
*
(n) [The text of this proposed
amendment to § 1.509(a)–3(n) is the
same as the text of § 1.509(a)–3T(n)
published elsewhere in this issue of the
Federal Register.]
(o) [The text of this proposed
§ 1.509(a)–3(o) is the same as the text of
§ 1.509(a)–3T(o)(1) and (o)(2) published
elsewhere in this issue of the Federal
Register.]
Par. 5. Section 1.6033–2 is amended
by revising paragraphs (a)(2)(ii)(g),
(a)(2)(ii)(h) and (k) to read as follows:
§ 1.6033–2 Returns by exempt
organizations (taxable years beginning after
December 31, 1969) and returns by certain
nonexempt organizations (taxable years
beginning after December 31, 1980).
(a) * * *
(2) * * *
(ii) * * *
(g) [The text of this proposed
amendment to § 1.6033–2(a)(2)(ii)(g) is
the same as the text of § 1.6033–
2T(a)(2)(ii)(g) published elsewhere in
this issue of the Federal Register.]
(h) [The text of this proposed
amendment to § 1.6033–2(a)(2)(ii)(h) is
the same as the text of § 1.6033–
2T(a)(2)(ii)(h) published elsewhere in
this issue of the Federal Register.]
*
*
*
*
*
(k) [The text of this proposed
amendment to § 1.6033–2(k) is the same
as the text of § 1.6033–2T(k)(1) and
(k)(2) published elsewhere in this issue
of the Federal Register.]
Par. 6. Section 1.6043–3 is amended
by revising paragraphs (b)(8) and (d) and
adding paragraph (e) to read as follows:
E:\FR\FM\09SEP1.SGM
09SEP1
52220
Federal Register / Vol. 73, No. 175 / Tuesday, September 9, 2008 / Proposed Rules
§ 1.6043–3 Returns regarding liquidation,
dissolution, termination, or substantial
contraction of organizations exempt from
taxation under section 501(a).
*
*
*
*
*
(b) * * *
(8) [The text of this proposed
amendment to § 1.6043–3(b)(8) is the
same as the text of § 1.6043–3T(b)(8)
published elsewhere in this issue of the
Federal Register.]
*
*
*
*
*
(d) [The text of this proposed
amendment to § 1.6043–3(d) is the same
as the text of § 1.6043–3T(d) published
elsewhere in this issue of the Federal
Register.]
(e) [The text of this proposed
amendment to § 1.6043–3(e) is the same
as the text of § 1.6043–3T(e)(1) and
(e)(2) published elsewhere in this issue
of the Federal Register.]
SUPPLEMENTARY INFORMATION:
Linda E. Stiff,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. E8–20556 Filed 9–8–08; 8:45 am]
Paperwork Reduction Act
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–128841–07]
RIN 1545–BG91
Public Approval Guidance for TaxExempt Bonds
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
and notice of public hearing.
yshivers on PROD1PC62 with PROPOSALS
AGENCY:
SUMMARY: This document contains
proposed regulations on the public
approval requirements under section
147(f) of the Internal Revenue Code
(Code) applicable to tax-exempt private
activity bonds issued by State and local
governments. The proposed regulations
affect State and local governmental
issuers of tax-exempt private activity
bonds. This document also provides
notice of a public hearing on these
proposed regulations.
DATES: Written or electronic comments
must be received by December 8, 2008.
Outlines of topic to be discussed at the
public hearing scheduled for January 26,
2009, at 10 a.m., must be received by
December 29, 2008.
ADDRESSES: Send submissions to
CC:PA:LPD:PR (REG–128841–07), room
5203, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station,
VerDate Aug<31>2005
15:24 Sep 08, 2008
Jkt 214001
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–128841–
07), 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–128841–
07). The public hearing will be held in
the auditorium beginning at 10 a.m. at
the Internal Revenue Building, 1111
Constitution Avenue, NW., Washington,
DC.
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
David White, (202) 622–3980;
concerning submissions of comments
and the hearing, contact Fumni Taylor
at (202) 622–7180 (not toll-free
numbers).
The collection of information
contained in the proposed regulations
has been submitted to the Office of
Management and Budget 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 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
November 10, 2008. Comments are
specifically requested concerning:
Whether the proposed collection 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 collection
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 collection 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 services to provide
information.
The collection of information in this
proposed regulation is in § 1.147(f)–1(b).
This information is required to meet the
PO 00000
Frm 00003
Fmt 4702
Sfmt 4702
public approval requirement under
section 147(f). The likely respondents
are issuers of qualified private activity
bonds.
Estimated total annual reporting
burden: 2,600 hours.
Estimated average annual burden per
respondent: 1.3 hours.
Estimated number of respondents:
2,000.
Estimated frequency of responses: Not
applicable (this is a third-party
disclosure requirement).
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
This document contains proposed
amendments to the Income Tax
Regulations (26 CFR part 1) to add new
§ 1.147(f)–1 (the ‘‘Proposed
Regulations’’) relating to the public
approval requirement for tax-exempt
private activity bonds under section
147(f) of the Internal Revenue Code.
Explanation of Provisions
I. Introduction
In general, interest on State and local
bonds is excludable from gross income
under section 103 of the Internal
Revenue Code of 1986 (the ‘‘Code’’).
Interest on a private activity bond is
excludable from gross income under
section 103 only if the bond meets the
requirements for a ‘‘qualified bond’’
under section 141(e) and other
applicable requirements under section
103. Section 141(e) requires that a bond
meet the public approval requirement of
section 147(f), among other
requirements, to be a qualified bond.
II. Statutory Predecessor and Existing
Regulations
The predecessor to section 147(f) was
section 103(k) of the Internal Revenue
Code of 1954 (‘‘1954 Code’’), which was
added by the Tax Equity and Fiscal
Responsibility Act of 1982, Public Law
97–248, 96 Stat. 324 (1982). Section
103(k) of the 1954 Code imposed a
public approval requirement on
industrial development bonds.
Temporary Income Tax Regulations
§ 5f.103–2 were published under section
E:\FR\FM\09SEP1.SGM
09SEP1
]]>Agencies
[Federal Register Volume 73, Number 175 (Tuesday, September 9, 2008)]
[Proposed Rules]
[Pages 52218-52220]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-20556]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 73, No. 175 / Tuesday, September 9, 2008 /
Proposed Rules
[[Page 52218]]
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-142333-07]
RIN 1545-BH28
Implementation of Form 990
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations.
-----------------------------------------------------------------------
SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS and the Treasury Department are issuing
temporary regulations necessary to implement the redesigned Form 990,
``Return of Organization Exempt From Income Tax.'' The temporary
regulations make revisions to the regulations under section 6033 and
section 6043 to allow for new threshold amounts for reporting
compensation, to require that compensation be reported on a calendar
year basis, and to modify the scope of organizations subject to
information reporting requirements upon a substantial contraction. The
temporary regulations also eliminate the advance ruling process for new
organizations, change the public support computation period for
organizations described in sections 170(b)(1)(A)(vi) and 509(a)(1) and
in section 509(a)(2) to five years, consistent with the revised Form
990, and clarify that support must be reported using the organization's
overall method of accounting. All tax exempt organizations required
under section 6033 of the Internal Revenue Code (Code) to file annual
information returns are affected by the temporary regulations. The text
of the 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 November 10, 2008.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-142333-07), 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-
142333-07), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC, or sent electronically, via the Federal
eRulemaking Portal at https://www.regulations.gov (IRS REG-142333-07).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Terri Harris, at (202) 622-6070; concerning submissions of comments or
requests for a hearing, Oluwafunmilayo Taylor, at (202) 622-3401 (not
toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information contained in this notice of proposed
rulemaking has been reviewed and approved by the Office of Management
and Budget in accordance with the Paperwork Reduction Act of 1995 (44
U.S.C. 3507(d)) under control number 1545-2117. Comments on the
collection 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 November 10,
2008. 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;
How the quality, utility and clarity of the information to be
collected may be enhanced;
How the burden of complying with the proposed collection 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 collection of information in this proposed regulation is in
Sec. 1.6033-2T. The information collected under Sec. 1.6033-2T
relates to compensation reporting by tax exempt organizations. The
information that is required to be collected for purposes of Sec.
1.6033-2T is required to be submitted on Form 990, ``Return of
Organization Exempt From Income Tax.'' The estimated number of
recordkeepers that will submit Form 990 is approximately 105,000.
Estimated total annual reporting burden: One hour.
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 Provision
Temporary regulations in the Rules and Regulations section of this
issue of the Federal Register amend the Income Tax Regulations (26 CFR
part 1) relating to sections 170(b), 507, 509(a), 6033, and 6043. The
amendments to Sec. Sec. 1.170A-9, 1.507-2 and 1.509(a)-3 eliminate the
advance ruling process, clarify that support must be reported using the
organization's overall method of accounting, eliminate the exception
for material changes in sources of support, and change the public
support computation period for organizations described in sections
170(b)(1)(A)(vi) and 509(a)(1) and in section 509(a)(2) to five years,
consistent with the revised Schedule A to the redesigned Form 990,
``Return of Organization Exempt From Income Tax.'' The amendments to
Sec. Sec. 1.6033-2(a)(2)(ii)(g) and (h) allow for new threshold
amounts for reporting compensation and require that organizations use a
calendar year basis or a basis that is prescribed by publication, form
or instruction when
[[Page 52219]]
reporting listed officer, director, trustee, key employee and
independent contractor compensation. The amendments to Sec. Sec.
1.6043-3(b)(8) and (d) expand the scope of organizations subject to
information reporting requirements upon a substantial contraction. 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.
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. It is hereby certified that the
collection of information in this regulation will not have a
significant economic impact on a substantial number of small entities.
This certification is based on the fact that burden on tax-exempt
entities will be reduced by (1) eliminating the separate advance ruling
process and the additional process for subsequently seeking a
definitive ruling, (2) clarifying rules regarding the method of
accounting and period for reporting certain items, and (3) providing
discretion for the IRS to narrow or clarify circumstances under which
reporting is required. Accordingly, 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, 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 Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written comments (a signed original
and eight (8) copies) or electronic comments that are submitted timely
to the IRS. Comments are requested on all aspects of the proposed
regulations. The IRS and the Treasury Department request comments on
the clarity of the proposed rules and how they can be made easier to
understand. All comments will be available for public inspection and
copying.
A public hearing will be scheduled if requested in writing by any
person that timely submits written 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 regulation is Terri Harris of the
Office of Division Counsel/Associate Chief Counsel (Tax Exempt and
Government Entities). However, other personnel from the IRS and the
Treasury Department participated in their development.
List of Subjects for 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 1.170A-9 is amended by revising paragraphs (f) and
(k) to read as follows:
Sec. 1.170A-9 Definition of section 170(b)(1)(A) organization.
* * * * *
(f) [The text of this proposed amendment to Sec. 1.170A-9(f) is
the same as the text of Sec. 1.170A-9T(f) published elsewhere in this
issue of the Federal Register.]
* * * * *
(k) [The text of this proposed amendment to Sec. 1.170A-9(k) is
the same as the text of Sec. 1.170A-9T(k)(1) and (k)(2) published
elsewhere in this issue of the Federal Register.]
Par. 3. Section 1.507-2 is revised to read as follows:
Sec. 1.507-2 Special rules; transfer to, or operation as, public
charity.
[The text of this proposed amendment to Sec. 1.507-2 is the same
as the text of Sec. 1.507-2T(a) through (f)(2) published elsewhere in
this issue of the Federal Register.]
Par. 4. Section 1.509(a)-3 is amended by revising paragraphs
(a)(2), (a)(3)(i), (c), (d), (e), (k), and (n) and adding paragraph (o)
to read as follows:
Sec. 1.509(a)-3 Broadly, publicly supported organizations.
(a) * * *
(2) [The text of this proposed amendment to Sec. 1.509(a)-3(a)(2)
is the same as the text of Sec. 1.509(a)-3T(a)(2) published elsewhere
in this issue of the Federal Register.]
(3) * * *
(i) [The text of this proposed amendment to Sec. 1.509(a)-
3(a)(3)(i) is the same as the text of Sec. 1.509(a)-3T(a)(3)(i)
published elsewhere in this issue of the Federal Register.]
* * * * *
(c) [The text of this proposed amendment to Sec. 1.509(a)-3(c) is
the same as the text of Sec. 1.509(a)-3T(c) published elsewhere in
this issue of the Federal Register.]
(d) [The text of this proposed amendment to Sec. 1.509(a)-3(d) is
the same as the text of Sec. 1.509(a)-3T(d) published elsewhere in
this issue of the Federal Register.]
(e) [The text of this proposed amendment to Sec. 1.509(a)-3(e) is
the same as the text of Sec. 1.509(a)-3T(e) published elsewhere in
this issue of the Federal Register.]
* * * * *
(k) [The text of this proposed amendment to Sec. 1.509(a)-3(k) is
the same as the text of Sec. 1.509(a)-3T(k) published elsewhere in
this issue of the Federal Register.]
* * * * *
(n) [The text of this proposed amendment to Sec. 1.509(a)-3(n) is
the same as the text of Sec. 1.509(a)-3T(n) published elsewhere in
this issue of the Federal Register.]
(o) [The text of this proposed Sec. 1.509(a)-3(o) is the same as
the text of Sec. 1.509(a)-3T(o)(1) and (o)(2) published elsewhere in
this issue of the Federal Register.]
Par. 5. Section 1.6033-2 is amended by revising paragraphs
(a)(2)(ii)(g), (a)(2)(ii)(h) and (k) to read as follows:
Sec. 1.6033-2 Returns by exempt organizations (taxable years
beginning after December 31, 1969) and returns by certain nonexempt
organizations (taxable years beginning after December 31, 1980).
(a) * * *
(2) * * *
(ii) * * *
(g) [The text of this proposed amendment to Sec. 1.6033-
2(a)(2)(ii)(g) is the same as the text of Sec. 1.6033-2T(a)(2)(ii)(g)
published elsewhere in this issue of the Federal Register.]
(h) [The text of this proposed amendment to Sec. 1.6033-
2(a)(2)(ii)(h) is the same as the text of Sec. 1.6033-2T(a)(2)(ii)(h)
published elsewhere in this issue of the Federal Register.]
* * * * *
(k) [The text of this proposed amendment to Sec. 1.6033-2(k) is
the same as the text of Sec. 1.6033-2T(k)(1) and (k)(2) published
elsewhere in this issue of the Federal Register.]
Par. 6. Section 1.6043-3 is amended by revising paragraphs (b)(8)
and (d) and adding paragraph (e) to read as follows:
[[Page 52220]]
Sec. 1.6043-3 Returns regarding liquidation, dissolution,
termination, or substantial contraction of organizations exempt from
taxation under section 501(a).
* * * * *
(b) * * *
(8) [The text of this proposed amendment to Sec. 1.6043-3(b)(8) is
the same as the text of Sec. 1.6043-3T(b)(8) published elsewhere in
this issue of the Federal Register.]
* * * * *
(d) [The text of this proposed amendment to Sec. 1.6043-3(d) is
the same as the text of Sec. 1.6043-3T(d) published elsewhere in this
issue of the Federal Register.]
(e) [The text of this proposed amendment to Sec. 1.6043-3(e) is
the same as the text of Sec. 1.6043-3T(e)(1) and (e)(2) published
elsewhere in this issue of the Federal Register.]
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-20556 Filed 9-8-08; 8:45 am]
BILLING CODE 4830-01-P
