Section 6707A and the Failure To Include on Any Return or Statement Any Information Required To Be Disclosed Under Section 6011 With Respect to a Reportable Transaction, 52805-52806 [E8-21158]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 73, Number 177 (Thursday, September 11, 2008)]
[Proposed Rules]
[Pages 52805-52806]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-21158]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG-160868-04]
RIN 1545-BF61


Section 6707A and the Failure To Include on Any Return or 
Statement Any Information Required To Be Disclosed Under Section 6011 
With Respect to a Reportable Transaction

AGENCY: Internal Revenue Service (IRS), Treasury.

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

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations under 
section 6707A of the Internal Revenue Code (Code), which provide the 
rules relating to the assessment of penalties under section 6707A for 
the failure to include on any return or statement any information 
required to be disclosed under section 6011 with respect to a 
reportable transaction. 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 December 10, 2008.

ADDRESSES: Send submission to: CC:PA:LPD:PR (REG-160868-04), 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-
160868-04), 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-160868-04).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Matthew Cooper (202) 622-4940; concerning submissions of comments and 
requests for a public hearing, Richard Hurst (202) 622-2949 (TDD 
telephone) (not toll-free numbers) and his e-mail address is 
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 Procedure and Administration 
Regulations (26 CFR part 301) relating to section 6707A. Section 811 of 
the American Jobs Creation Act of 2004, Public Law 108-357 (118 Stat. 
1418) added section 6707A to the Code to provide a monetary penalty for 
the failure to include on any return or statement any information 
required to be disclosed under section 6011 with respect to a 
reportable transaction. The temporary regulations set forth the rules 
relating to the assessment of the penalty as well as the factors that 
the Commissioner (or the Commissioner's delegate) will consider in 
deciding whether the penalty should be rescinded based on promoting 
compliance with the Code and effective tax administration. The text of 
those temporary regulations also serves as the text of these proposed 
regulations. The preamble to the temporary regulations explains the 
amendments.

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

[[Page 52806]]

to these regulations, and because they 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) of the Code, 
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 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. 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 made available for public inspection 
and copying. A public hearing may be scheduled if requested by any 
person who timely submits 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 these regulations is Matthew Cooper, Office 
of the Associate Chief Counsel (Procedure and Administration).

List of Subjects in 26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 301 is proposed to be amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    Paragraph 1. The authority citation for part 301 continues to read 
in part as follows:

    Authority: 26 U.S.C. 7805 * * *

    Par. 2. Section 301.6707A-1 is added to read as follows:


Sec.  301.6707A-1  Failure to include on any return or statement any 
information required to be disclosed under section 6011 with respect to 
a reportable transaction.

    [The text of proposed Sec.  301.6707A-1 is the same as the text of 
Sec.  301.6707A-1T published elsewhere in this issue of the Federal 
Register].

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-21158 Filed 9-10-08; 8:45 am]
BILLING CODE 4830-01-P