Amendments to the Regulations Regarding Questions and Answers Relating to Church Tax Inquiries and Examinations, 39003-39007 [E9-18659]
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Federal Register / Vol. 74, No. 149 / Wednesday, August 5, 2009 / Proposed Rules
regulations for which frequent and
routine amendments are necessary to
keep them operationally current.
Therefore, this proposed regulation: (1)
Is not a ‘‘significant regulatory action’’
under Executive Order 12866; (2) is not
a ‘‘significant rule’’ under DOT
Regulatory Policies and Procedures (44
FR 11034; February 26, 1979); and (3)
does not warrant preparation of a
regulatory evaluation as the anticipated
impact is so minimal. Since this is a
routine matter that will only affect air
traffic procedures and air navigation, it
is certified that this proposed rule,
when promulgated, would not have a
significant economic impact on a
substantial number of small entities
under the criteria of the Regulatory
Flexibility Act.
The FAAs authority to issue rules
regarding aviation safety is found in
Title 49 of the U.S. Code. Subtitle 1,
Section 106, describes the authority for
the FAA Administrator. Subtitle VII,
Aviation Programs, describes in more
detail the scope of the agency’s
authority. This rulemaking is
promulgated under the authority
described in Subtitle VII, Part A,
Subpart I, Section 40103. Under that
section, the FAA is charged with
prescribing regulations to assign the use
of the airspace necessary to ensure the
safety of aircraft and the efficient use of
airspace. This regulation is within the
scope of that authority as it establishes
additional controlled airspace at Pueblo
Memorial Airport, CO.
Paragraph 6005. Class E airspace areas
extending upward from 700 feet or more
above the surface of the earth.
List of Subjects in 14 CFR Part 71
DEPARTMENT OF THE TREASURY
Airspace, Incorporation by reference,
Navigation (air).
Internal Revenue Service
The Proposed Amendment
26 CFR Part 301
Accordingly, pursuant to the
authority delegated to me, the Federal
Aviation Administration proposes to
amend 14 CFR part 71 as follows:
[REG–112756–09]
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1. The authority citation for 14 CFR
part 71 continues to read as follows:
Authority: 49 U.S.C. 106(g), 40103, 40113,
40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–
1963 Comp., p. 389.
[Amended]
2. The incorporation by reference in
14 CFR 71.1 of the FAA Order 7400.9S,
Airspace Designations and Reporting
Points, signed October 3, 2008, and
effective October 31, 2008 is amended
as follows:
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*
*
*
*
ANM CO E5 Pueblo, CO [Modified]
Pueblo Memorial Airport, CO
(Lat. 38°17′21″ N., long. 104°29′48″ W.)
That airspace extending upward from 700
feet above the surface within 21.8-mile radius
of the Pueblo Memorial Airport, and within
the 28.8-mile radius of Pueblo Memorial
Airport clockwise between the 070° and 133°
bearing from the airport; that airspace
extending upward from 1,200 feet above the
surface bounded on the north by lat.
38°30′00″ N., on the east by V–169, on the
south by V–210, on the west by a line from
lat. 37°38′00″ N., long. 105°00′02″ W.; to lat.
38°09′25″ N., long. 105°08′06″ W.; to lat.
38°05′51″ N., long. 105°30′49″ W.; to lat.
38°10′00″ N., long. 105°33′02″ W.; to lat.
38°30′00″ N., long. 105°33′02″ W.; that
airspace extending upward from 13,700 feet
MSL bounded by a line beginning at lat.
38°09′25″ N., long. 105°08′06″ W.; to lat.
37°38′00″ N., long. 105°00′02″ W.; to lat.
37°34′00″ N., long. 105°12′02″ W.; to lat.
38°05′51″ N., long. 105°30′49″ W.; thence to
point of beginning, excluding that airspace
within Federal airways and the Colorado
Springs, CO, Class E airspace area.
*
*
*
*
*
Issued in Seattle, Washington, on July 27,
2009.
H. Steve Karnes,
Acting Manager, Operations Support Group,
Western Service Center.
[FR Doc. E9–18736 Filed 8–4–09; 8:45 am]
BILLING CODE 4910–13–P
RIN 1545–BI60
PART 71—DESIGNATION OF CLASS A,
B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND
REPORTING POINTS
§ 71.1
*
Amendments to the Regulations
Regarding Questions and Answers
Relating to Church Tax Inquiries and
Examinations
AGENCY: Internal Revenue Service
(‘‘IRS’’), Treasury.
ACTION: Notice of proposed rulemaking.
SUMMARY: This document contains
proposed regulations amending the
questions and answers relating to
church tax inquiries and examinations.
These proposed regulations replace
references to positions that were
abolished by the Internal Revenue
Service Restructuring and Reform Act of
1998 with references that are consistent
both with the statute and the IRS’s
current organizational structure.
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DATES: Written or electronic comments
and requests for a public hearing must
be received by November 3, 2009.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–112756–09), Room
5205, 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–112756–
09), 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–
112756–09).
FOR FURTHER INFORMATION CONTACT:
Concerning these proposed regulations,
Benjamin Akins at (202) 622–1124 or
Monice Rosenbaum at (202) 622–6070;
concerning submission of comments
and requests for a public hearing,
Richard Hurst,
Richard.A.Hurst@irscounsel.treas.gov,
(202) 622–7180 (not a toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Background
Restrictions on Church Tax Inquiries
and Examinations
This document contains amendments
to the regulations on Procedure and
Administration (26 CFR part 301) under
section 7611 of the Internal Revenue
Code. Section 7611 was enacted by
section 1033 of the Deficit Reduction
Act of 1984 (Pub. L. 98–369, 98 Stat.
1034–1039) (‘‘DRA 1984’’).
Prior to the enactment of section
7611, section 7605(c) imposed special
requirements that the IRS had to meet
before it could examine church books of
account, but there were no special
requirements imposed before the IRS
could commence an investigation or
inquiry into a church’s tax liabilities. As
explained in the Conference Report
accompanying DRA 1984, H.R. Rep. No.
98–861, 98th Cong., 2d Sess. 1101
(1984), 1984–3 CB Vol. 2 355, Congress
sought to address certain problems that
arise when the IRS examines the records
of a church. Thus, Congress expanded
the requirements relating to IRS
interactions with churches. Although
prior law imposed limitations on the
examination of church records, those
limitations were somewhat vague and
relied on internal IRS procedures to
protect the rights of a church in the
examination process. Additionally,
there was some uncertainty regarding
the scope of the investigations to which
prior law applied and the nature of the
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records protected by the law. The
enactment of section 7611 attempted to
resolve these competing considerations
by providing detailed rules for the IRS
to follow in making tax inquiries to
churches, both as to tax-exempt status
and as to the existence of unrelated
business income.
Section 7611(a)(2) permits the IRS to
begin an inquiry into whether a church
qualifies for exemption from income tax
as an organization described in section
501(c)(3) or whether a church has a
liability for unrelated business income
tax only if an appropriate high-level
Treasury official first reasonably
believes on the basis of facts and
circumstances, recorded in writing, that
the church may not be exempt under
section 501(a), or that the church may
be carrying on an unrelated trade or
business, or may be otherwise engaged
in activities subject to tax. Section
7611(h)(7) provides that the term
‘‘appropriate high-level Treasury
official’’ means the Secretary of the
Treasury or any delegate of the
Secretary whose rank is no lower than
that of a principal Internal Revenue
officer for an internal revenue region.
The legislative history of section 7611
interprets the term ‘‘appropriate highlevel Treasury official’’ to mean an IRS
Regional Commissioner (or higher
official). H.R. Rep. No. 98–861, 98th
Cong. 2d Sess. 1101 (1984), 1984–3 CB
Vol. 2 355. Final regulations under
section 7611, which were published on
February 21, 1986, 50 FR 6219, also
interpret the term to mean an IRS
Regional Commissioner. See Treas. Reg.
§ 301.7611 Q1–A1.
Section 7611(b)(2)(A) provides that at
least 15 days before the beginning of a
church tax examination, the IRS must
provide notice of the examination to
both the church and the appropriate
regional counsel. Section 7611(b)(3)(C)
provides that any regional counsel who
receives notice under section
7611(b)(2)(A) may submit to a regional
commissioner an advisory objection to
the examination within 15 days after the
notice of examination is provided.
Section 7611(c)(1)(A) provides that
the IRS must make a final determination
as to any church tax inquiry or
examination within two years of the
date the notice of examination is
provided to the church under section
7611(b). In instances where no
examination follows a church tax
inquiry, section 7611(c)(1)(B) requires
the IRS to make a final determination as
to the inquiry no later than 90 days after
the date the notice of inquiry is
provided to the church under section
7611(a). Section 7611(c)(2) suspends the
periods described in section 7611(c)(1)
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(that is, 2 year period and 90 day
period) while certain judicial
proceedings are pending or being
appealed, including proceedings
brought by the IRS against a church
seeking to compel compliance with a
reasonable request to examine church
records or religious activities.
Section 7611(d)(1) prohibits the IRS
from making certain final
determinations (that is, revocation of
tax-exempt status, notice of deficiency,
or assessment) regarding a church until
after the appropriate regional counsel
determines in writing that there has
been substantial compliance with the
requirements of section 7611. Section
7611(d)(1) further requires the
appropriate regional counsel’s written
approval of such final determination
before the IRS can make the
determination.
Section 7611(e)(1) provides that if the
IRS has not substantially complied with
the requirements of section 7611, any
proceeding to compel compliance with
a summons shall be stayed until the
court finds that the IRS has taken all
practicable steps to correct the
noncompliance. Section 7611(e)(2)
states that the remedy provided in
subsection (e)(1) shall be the exclusive
remedy for a church in regard to any
noncompliance by the IRS with the
requirements of section 7611.
Under section 7611(f), the IRS may
not commence an inquiry or
examination of a church if, within the
previous five years, the IRS completed
an inquiry or examination regarding the
church that did not result in a
revocation, notice of deficiency,
assessment, or a request for a significant
change in the church’s operating
practices. An exception exists where the
Secretary or his delegate approves the
second inquiry or examination in
writing. There is also an exception
where the issues involved in the
subsequent inquiry or examination are
not the same or similar to issues
involved in the preceding inquiry or
examination. Prior to the Internal
Revenue Service Restructuring and
Reform Act of 1998, Public Law 105–
206 (‘‘RRA 1998’’), discussed below,
section 7611(f) required the Assistant
Commissioner (Employee Plans and
Exempt Organizations), instead of the
Secretary or his delegate, to approve
subsequent inquiries and examinations
for the exception to apply.
Reorganization of the IRS
Section 1001 of RRA 1998 requires
the Commissioner of Internal Revenue
to develop and implement a plan to
reorganize the IRS. The congressional
mandate provides that the plan shall
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‘‘eliminate or substantially modify the
existing organization of the IRS which is
based on a national, regional, and
district structure; [and] establish
organizational units serving particular
groups of taxpayers with similar needs
* * *.’’ Under the reorganized IRS, four
nationwide operating divisions were
established to serve different types of
taxpayers. One of these operating
divisions serves tax exempt and
government entities, including
churches.
Section 1102(e)(3) of RRA 1998
amended section 7611(f)(1), relating to
second inquiries and examinations
within five years of a previous inquiry
or examination, by replacing Assistant
Commissioner (Employee Plans and
Exempt Organizations) with Secretary.
Under section 7701(a)(11)(B), Secretary
is defined to refer to the Secretary of the
Treasury or his delegate. RRA 1998 did
not amend other portions of section
7611, such as references to ‘‘appropriate
high-level Treasury official’’ and
‘‘appropriate regional counsel.’’
In mandating the restructuring of the
IRS under RRA 1998, Congress realized
that certain positions within the IRS
would be eliminated as a result of
transitioning from a geographic
structure to a structure based on
nationwide jurisdiction of similar types
of taxpayers. Accordingly, Congress
included a savings provision in RRA
1998. Section 1001(b) provides, ‘‘All
orders, determinations, rules,
regulations * * * and other
administrative actions * * * which are
in effect at the time this section takes
effect * * * shall continue in effect
according to their terms until modified,
terminated, superseded, set aside or
revoked in accordance with law by
* * * the Secretary of the Treasury [or]
the Commissioner of Internal Revenue
* * *.’’ This provision keeps in effect
regulations that make reference to
officers whose positions no longer exist.
The legislative history of RRA 1998 at
H.R. Conf. Rep. No. 105–599, 105th
Cong., 2d Sess. 195 (1998) explains that
‘‘[t]he legality of IRS actions will not be
affected pending further appropriate
statutory changes relating to such a
reorganization (e.g., eliminating
statutory references to obsolete
positions).’’ Accordingly, the Treasury
Regulations under section 7611 have
remained in effect notwithstanding their
references to the positions of Regional
Commissioner, Regional Counsel, and
Assistant Commissioner (Employee
Plans and Exempt Organizations),
positions that were eliminated by the
reorganization. Delegation Order 193
(Rev. 6) (11/08/2000) provides in part
that actions previously delegated to
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Regional Commissioners by Treasury
Regulations (par. 7) are now delegated
to ‘‘Assistant Deputy Commissioners,
Division Commissioners; Chiefs; and
Directors, Submission Processing Field,
Compliance Services Field, and
Accounts Management Field.’’ In the
Internal Revenue Manual (‘‘IRM’’), the
IRS designated the Director, Exempt
Organizations Examinations as the
appropriate high-level Treasury official
for purposes of section 7611. See IRM
§ 4.76.7.
Recent litigation has challenged the
IRS’s interpretation of the term
‘‘appropriate high-level Treasury
official’’ following the reorganization.
See United States v. Living Word
Christian Center, Civil No. 08–mc–37,
D.C. Minn. (Jan. 30, 2009) (‘‘LWCC’’). In
particular, concern has been expressed
about the need for an update to the
regulations in light of the statutorily
mandated reorganization and the
elimination of internal revenue regions.
In LWCC, the District Court for the
District of Minnesota ruled that the
Director, Exempt Organizations
Examinations is not an appropriate
high-level Treasury official to make the
‘‘reasonable belief’’ determination
required before the IRS may commence
a church tax inquiry under section 7611.
LWCC at 2. The district court concluded
that the Director, Exempt Organizations
Examinations is not an appropriate
high-level Treasury official within the
meaning of section 7611(h) because that
official does not have a comparable
breadth of responsibility to a regional
commissioner nor as high a position
within the IRS. Although the IRS
disagrees with the district court’s
reasoning and conclusion in LWCC, the
IRS acknowledges that it would be
beneficial to revise the regulations in
light of the changes in IRS organization
made in the wake of RRA 1998 to clarify
who is an appropriate high-level
Treasury official for purposes of section
7611. Further, the IRS recognizes the
significance of the special procedural
requirements for church tax inquiries
and examinations. These proposed
regulations assign responsibility for
making the determinations required
under section 7611(a) to the Director,
Exempt Organizations.
Explanation of Provisions
These proposed regulations eliminate
references to the positions of Regional
Commissioner and Regional Counsel
under the existing regulations and give
responsibilities formerly assigned to
these now defunct positions to the
Director, Exempt Organizations and the
Division Counsel/Associate Chief
Counsel, Tax Exempt and Government
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Entities, respectively. In addition, these
proposed regulations eliminate
references to the position of Assistant
Commissioner (Employee Plans and
Exempt Organizations) under the
existing regulations and give
responsibilities formerly assigned to
that position to the Commissioner, Tax
Exempt and Government Entities or the
Deputy Commissioner, Tax Exempt and
Government Entities.
Reasonable Belief and Inquiry Notice
Requirement
With respect to the initiation of the
church tax inquiry process, Treas. Reg.
§ 301.7611–1 Q1–A1 provides that a
‘‘Regional Commissioner (or higher
Treasury official)’’ is the appropriate
high-level Treasury official for purposes
of this reasonable belief requirement.
Similarly, Treas. Reg. § 301.7611–1 Q7–
A7 states, ‘‘Repeated (two or more)
failures by a church or its agents to
reply to routine requests * * * will be
considered by the appropriate Internal
Revenue Service Regional
Commissioner to be a reasonable basis
for commencement of a church tax
inquiry under the church tax inquiry
and examination procedures of section
7611.’’ In addition, Treas. Reg.
§ 301.7611 Q9–A9 requires a Regional
Commissioner to provide written notice
to the church of the beginning of an
inquiry.
These proposed regulations eliminate
references to the Regional
Commissioner and instead provide that
the Director, Exempt Organizations is
the ‘‘appropriate high-level Treasury
official’’ for purposes of the reasonable
belief and inquiry notice requirements
of Treas. Reg. § 301.7611–1 Q1–A1, Q7–
A7, and Q9–A9. The Director, Exempt
Organizations is a senior executive who
reports to the Commissioner/Deputy
Commissioner, Tax Exempt and
Government Entities Division, and who
is responsible for planning, managing,
directing and executing nationwide
activities for Exempt Organizations. See
IRM § 1.1.23.5 for a comprehensive
description of these activities.
Examination Notice Requirement
Under section 7611(b)(2) and Treas.
Reg. § 301.7611–1 Q10–A10, a church
tax examination cannot be commenced
without first providing written notice of
such examination to the church and to
the ‘‘appropriate Regional Counsel’’ at
least 15 days before the IRS begins the
church tax examination. The regulation
allows the Regional Counsel to file an
advisory objection to the examination
within this same 15-day period.
These proposed regulations amend
Treas. Reg. § 301.7611–1 Q10–A10 by
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39005
substituting Division Counsel/Associate
Chief Counsel, Tax Exempt and
Government Entities, for each
occurrence of Regional Counsel. These
proposed regulations further specify
that before the notice of examination is
provided to the church, a copy of the
notice must be provided to the Division
Counsel/Associate Chief Counsel, Tax
Exempt and Government Entities.
Revocation of Exemption or of Church
Status
Section 7611(d)(1) and Treas. Reg.
§ 301.7611–1 Q11–A11 require the
Regional Counsel to approve, in writing,
certain final determinations that are
within the scope of section 7611 and
adversely affect the tax-exempt status or
increase any tax liability of a church.
Further, prior to such adverse action,
section 7611(d) requires Regional
Counsel to determine, in writing, that
there has been substantial compliance
with the requirements of section 7611,
when applicable.
These proposed regulations amend
Treas. Reg. § 301.7611–1 Q11–A11 by
providing that the Division Counsel/
Associate Chief Counsel, Tax Exempt
and Government Entities, is the official
responsible for complying with the
written determination and approval
requirements of section 7611(d)(1).
Limitations on Period of Assessment
Section 7611(d)(2) and Treas. Reg.
§ 301.7611–1 Q15–A15 provide special
limitation periods for church tax
liabilities. These special rules are not to
be construed to increase an otherwise
applicable limitation period. Treas. Reg.
§ 301.7611–1 Q15–A15 states that, for
purposes of section 7611(d)(2)(A), that
is, the statute of limitations applicable
to liabilities arising from church tax
examinations, a church is determined
not to be a church exempt from tax
when the appropriate Regional
Commissioner approves, in writing, the
completed findings of the examining
agent that the organization is not a
church exempt from tax for one or more
of the three most recently completed
taxable years ending before the
examination notice date. The regulation
also states that the Regional
Commissioner cannot delegate this
approval to a subordinate official.
Further, the completed findings of the
examining agent, which are approved by
the appropriate Regional Commissioner,
are not considered a final revenue
agent’s report (defined in section
7611(g)).
These proposed regulations substitute
the Director, Exempt Organizations for
the appropriate Regional Commissioner
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for purposes of Treas. Reg. § 301.7611–
1 Q15–A15.
Administration for comment on its
impact on small business.
Multiple Examinations
Comments and Requests for a 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. 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 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.
Consistent with the language of
section 7611(f)(1) prior to enactment of
RRA 1998, Treas. Reg. § 301–7611–1
Q16–A16 provides that the Assistant
Commissioner (Employee Plans and
Exempt Organizations) is responsible for
providing the written approval
necessary to begin a second inquiry or
examination of a church. These
proposed regulations provide that the
Commissioner, Tax Exempt and
Government Entities or the Deputy
Commissioner, Tax Exempt and
Government Entities is responsible for
approving second inquiries and
examinations under section 7611(f).
Remedies for Violation of Section 7611
Drafting Information
The principal authors of these
proposed regulations are Benjamin
Akins and Monice Rosenbaum 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.
Special Analyses
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Section 7611(e) and Treas. Reg.
§ 301.7611–1 Q17–A17 provide that, if
there has not been substantial
compliance with certain requirements
in section 7611, including the notice
requirements of section 7611(a) and (b),
the exclusive remedy for such
noncompliance is a stay in an
enforcement proceeding to compel
compliance with a summons with
respect to the inquiry or examination.
The stay continues until the court finds
that all practicable steps to correct the
noncompliance have been taken. Treas.
Reg. § 301.7611–1 Q17–A17 further
states that failure of the Regional
Commissioner to approve an inquiry
may not be raised as a defense or as an
affirmative ground for relief in a
summons proceeding or any other
judicial proceeding other than as
specifically set forth in the regulation.
These proposed regulations amend
Treas. Reg. § 301.7611–1 Q17–A17 to
replace each reference to Regional
Commissioner with Director, Exempt
Organizations.
Paragraph 1. The authority citation
for part 301 continues to read in part as
follows:
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 proposed regulations and
because the regulation does not impose
a collection of information on small
entities, the Regulatory Flexibility Act
(5 U.S.C. 601) does not apply.
Pursuant to section 7805(f) of the
Code, these proposed regulations have
been submitted to the Chief Counsel for
Advocacy of the Small Business
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List of Subjects 26 CFR Part 301
Administrative practice and
procedure, Bankruptcy, Courts, Crime,
Employment taxes, Estate taxes, Excise
taxes, Gift taxes, Income taxes,
Investigations, Law enforcement,
Penalties, Pensions, Statistics, Taxes,
Disclosure of information, Filing
requirements.
Amendments to the Regulations
Accordingly, 26 CFR part 301 is
proposed to be amended as follows:
PART 301—PROCEDURE AND
ADMINISTRATION
Authority: 26 U.S.C. 7805 * * *
Par. 2. In § 301.7611–1, each entry in
the table, undesignated paragraphs in
the ‘‘Old Paragraph’’ column are
designated as new paragraphs in the
‘‘New Paragraph’’ column to read as
follows:
Old paragraph
§ 301.7611–1 A–5
first undesignated
paragraph.
§ 301.7611–1 A–5
second undesignated paragraph.
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New paragraph
§ 301.7611–1 A–5
paragraph (a).
§ 301.7611–1 A–5
paragraph (b).
Sfmt 4702
Old paragraph
§ 301.7611–1 A–6
first undesignated
paragraph.
§ 301.7611–1 A–9
first undesignated
paragraph.
§ 301.7611–1 A–9
second undesignated paragraph.
§ 301.7611–1 A–10
first undesignated
paragraph.
§ 301.7611–1 A–10
second undesignated paragraph.
§ 301.7611–1 A–10
third undesignated
paragraph.
§ 301.7611–1 A–10
fourth undesignated
paragraph.
§ 301.7611–1 A–10
fifth undesignated
paragraph.
§ 301.7611–1 A–11
first undesignated
paragraph.
§ 301.7611–1 A–11
second undesignated paragraph.
§ 301.7611–1 A–11
third undesignated
paragraph.
§ 301.7611–1 A–13
first undesignated
paragraph.
§ 301.7611–1 A–13a
first undesignated
paragraph.
§ 301.7611–1 A–14
first undesignated
paragraph.
§ 301.7611–1 A–14
second undesignated paragraph.
§ 301.7611–1 A–15
first undesignated
paragraph.
§ 301.7611–1 A–15
second undesignated paragraph.
§ 301.7611–1 A–15
third undesignated
paragraph.
§ 301.7611–1 A–15
fourth undesignated
paragraph.
§ 301.7611–1 A–15
fifth undesignated
paragraph.
§ 301.7611–1 A–15
sixth undesignated
paragraph.
§ 301.7611–1 A–15
seventh undesignated paragraph.
§ 301.7611–1 A–16
first undesignated
paragraph.
§ 301.7611–1 A–17
first undesignated
paragraph.
E:\FR\FM\05AUP1.SGM
05AUP1
New paragraph
§ 301.7611–1 A–6
paragraph (a).
§ 301.7611–1 A–9
paragraph (a).
§ 301.7611–1 A–9
paragraph (b).
§ 301.7611–1 A–10
paragraph (a).
§ 301.7611–1 A–10
paragraph (b).
§ 301.7611–1 A–10
paragraph (c).
§ 301.7611–1 A–10
paragraph (d).
§ 301.7611–1 A–10
paragraph (e).
§ 301.7611–1 A–11
paragraph (a).
§ 301.7611–1 A–11
paragraph (b).
§ 301.7611–1 A–11
paragraph (c).
§ 301.7611–1 A–13
paragraph (a).
§ 301.7611–1 A–13a
paragraph (a).
§ 301.7611–1 A–14
paragraph (a).
§ 301.7611–1 A–14
paragraph (b).
§ 301.7611–1 A–15
paragraph (a).
§ 301.7611–1 A–15
paragraph (b).
§ 301.7611–1 A–15
paragraph (c).
§ 301.7611–1 A–15
paragraph (d).
§ 301.7611–1 A–15
paragraph (e).
§ 301.7611–1 A–15
paragraph (f).
§ 301.7611–1 A–15
paragraph (g).
§ 301.7611–1 A–16
paragraph (a).
§ 301.7611–1 A–17
paragraph (a).
Federal Register / Vol. 74, No. 149 / Wednesday, August 5, 2009 / Proposed Rules
§ 301.7611–1
[Amended]
‘‘Remove’’ column and add in its place
the language in the ‘‘Add’’ column as set
forth below:
Par. 3. For each section listed in the
table, remove the language in the
Section
Remove
§ 301.7611–1 A–1 first sentence ........................
appropriate Regional Commissioner (or higher
Treasury official).
appropriate Internal Revenue Service Regional Commissioner.
appropriate Regional Commissioner ...............
appropriate Regional Counsel .........................
§ 301.7611–1 A–7 first sentence ........................
§ 301.7611–1 A–9 first sentence ........................
§ 301.7611–1 A–10 first sentence ......................
Add
Regional Commissioner ...................................
Director, Exempt Organizations.
Assistant Commissioner (Employee Plans and
Exempt Organizations).
Commissioner, Tax Exempt and Government
Entities or the Deputy Commissioner, Tax
Exempt and Government Entities.
approval of the Commissioner, Tax Exempt
and Government Entities or the Deputy
Commissioner, Tax Exempt and Government Entities.
Commissioner, Tax Exempt and Government
Entities or the Deputy Commissioner, Tax
Exempt and Government Entities.
Director, Exempt Organizations.
Director, Exempt Organizations.
belief of the Director, Exempt Organizations.
§ 301.7611–1 A–10 paragraph (b) second sentence.
§ 301.7611–1 A–11 paragraph (c) first, second
and third sentences.
§ 301.7611–1 A–15 paragraph (c) first and third
sentences.
§ 301.7611–1 A–15 paragraph (c) second sentence.
§ 301.7611–1 A–16 first sentence ......................
Regional Counsel .............................................
§ 301.7611–1 A–16 second sentence ................
Assistant Commissioner’s approval .................
§ 301.7611–1 A–16 paragraph (a) second sentence.
Assistant Commissioner (Employee Plans and
Exempt Organizations).
§ 301.7611–1 A–17 first sentence ......................
§ 301.7611–1 A–17 paragraph(a) third sentence
§ 301.7611–1 A–17 paragraph (a) fourth sentence.
Regional Commissioner ...................................
Regional Commissioner ...................................
appropriate Regional Commissioner’s belief ...
BILLING CODE 4830–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R09–OAR–2008–0379; FRL–8940–3]
srobinson on DSKHWCL6B1PROD with PROPOSALS
Approval and Promulgation of
Maintenance Plan for Carbon
Monoxide; State of Arizona; Tucson
Air Planning Area
AGENCY: Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
SUMMARY: Pursuant to the Clean Air Act,
EPA is proposing to approve two State
implementation plan revisions
submitted by the State of Arizona. The
State submitted the 2008 Revision to the
Carbon Monoxide Limited Maintenance
Plan for the Tucson Air Planning Area
on July 10, 2008. EPA is proposing to
18:25 Aug 04, 2009
Jkt 217001
Director, Exempt Organizations.
appropriate Regional Commissioner ...............
At the time the notice of examination (second
notice) is provided to the church, a copy of
the same notice will be provided to the appropriate Regional Counsel.
Linda E. Stiff,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. E9–18659 Filed 7–31–09; 4:15 pm]
Director, Exempt Organizations.
Director, Exempt Organizations.
Division Counsel/Associate Chief Counsel,
Tax Exempt and Government Entities.
Before the notice of examination (second notice) is provided to the church, a copy of
the same notice will be provided to the Division Counsel/Associate Chief Counsel, Tax
Exempt and Government Entities.
Division Counsel/Associate Chief Counsel,
Tax Exempt and Government Entities.
Division Counsel/Associate Chief Counsel,
Tax Exempt and Government Entities.
Director, Exempt Organizations.
§ 301.7611–1 A–10 paragraph (b) first sentence
VerDate Nov<24>2008
39007
Regional Counsel .............................................
approve the 2008 Limited Maintenance
Plan because it provides for the
maintenance of the carbon monoxide
national ambient air quality standard
within the Tucson Air Planning Area
through the second 10-year portion of
the maintenance period. EPA is also
proposing to approve a statutory
provision that was submitted by the
State on June 22, 2009 as a revision to
the State implementation plan and that
extends the life of the State’s vehicle
emissions inspection program through
the end of 2016. EPA is taking this
action pursuant to those provisions of
the Clean Air Act that obligate the
Agency to take action on submittals of
revisions to State implementation plans.
The effect of this action would be to
make certain commitments related to
maintenance of the carbon monoxide
standard in the Tucson Air Planning
Area Federally enforceable as part of the
Arizona State implementation plan.
DATES: Written comments must be
received at the address below on or
before September 4, 2009.
ADDRESSES: Submit comments,
identified by docket number EPA–R09–
PO 00000
Frm 00021
Fmt 4702
Sfmt 4702
OAR–2008–0379, by one of the
following methods:
1. Federal eRulemaking Portal:
https://www.regulations.gov. Follow the
on-line instructions.
2. E-mail: robin.marty@epa.gov.
3. Mail or deliver: Marty Robin (AIR–
2), U.S. Environmental Protection
Agency Region IX, 75 Hawthorne Street,
San Francisco, CA 94105–3901.
Instructions: All comments will be
included in the public docket without
change and may be made available
online at https://www.regulations.gov,
including any personal information
provided, unless the comment includes
Confidential Business Information (CBI)
or other information whose disclosure is
restricted by statute. Information that
you consider CBI or otherwise protected
should be clearly identified as such and
should not be submitted through
https://www.regulations.gov or e-mail.
The https://www.regulations.gov portal 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 e-mail directly to EPA
without going through https://
E:\FR\FM\05AUP1.SGM
05AUP1
]]>Agencies
[Federal Register Volume 74, Number 149 (Wednesday, August 5, 2009)]
[Proposed Rules]
[Pages 39003-39007]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-18659]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[REG-112756-09]
RIN 1545-BI60
Amendments to the Regulations Regarding Questions and Answers
Relating to Church Tax Inquiries and Examinations
AGENCY: Internal Revenue Service (``IRS''), Treasury.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This document contains proposed regulations amending the
questions and answers relating to church tax inquiries and
examinations. These proposed regulations replace references to
positions that were abolished by the Internal Revenue Service
Restructuring and Reform Act of 1998 with references that are
consistent both with the statute and the IRS's current organizational
structure.
DATES: Written or electronic comments and requests for a public hearing
must be received by November 3, 2009.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-112756-09), Room
5205, 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-
112756-09), 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-112756-09).
FOR FURTHER INFORMATION CONTACT: Concerning these proposed regulations,
Benjamin Akins at (202) 622-1124 or Monice Rosenbaum at (202) 622-6070;
concerning submission of comments and requests for a public hearing,
Richard Hurst, Richard.A.Hurst@irscounsel.treas.gov, (202) 622-7180
(not a toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
Restrictions on Church Tax Inquiries and Examinations
This document contains amendments to the regulations on Procedure
and Administration (26 CFR part 301) under section 7611 of the Internal
Revenue Code. Section 7611 was enacted by section 1033 of the Deficit
Reduction Act of 1984 (Pub. L. 98-369, 98 Stat. 1034-1039) (``DRA
1984'').
Prior to the enactment of section 7611, section 7605(c) imposed
special requirements that the IRS had to meet before it could examine
church books of account, but there were no special requirements imposed
before the IRS could commence an investigation or inquiry into a
church's tax liabilities. As explained in the Conference Report
accompanying DRA 1984, H.R. Rep. No. 98-861, 98th Cong., 2d Sess. 1101
(1984), 1984-3 CB Vol. 2 355, Congress sought to address certain
problems that arise when the IRS examines the records of a church.
Thus, Congress expanded the requirements relating to IRS interactions
with churches. Although prior law imposed limitations on the
examination of church records, those limitations were somewhat vague
and relied on internal IRS procedures to protect the rights of a church
in the examination process. Additionally, there was some uncertainty
regarding the scope of the investigations to which prior law applied
and the nature of the
[[Page 39004]]
records protected by the law. The enactment of section 7611 attempted
to resolve these competing considerations by providing detailed rules
for the IRS to follow in making tax inquiries to churches, both as to
tax-exempt status and as to the existence of unrelated business income.
Section 7611(a)(2) permits the IRS to begin an inquiry into whether
a church qualifies for exemption from income tax as an organization
described in section 501(c)(3) or whether a church has a liability for
unrelated business income tax only if an appropriate high-level
Treasury official first reasonably believes on the basis of facts and
circumstances, recorded in writing, that the church may not be exempt
under section 501(a), or that the church may be carrying on an
unrelated trade or business, or may be otherwise engaged in activities
subject to tax. Section 7611(h)(7) provides that the term ``appropriate
high-level Treasury official'' means the Secretary of the Treasury or
any delegate of the Secretary whose rank is no lower than that of a
principal Internal Revenue officer for an internal revenue region. The
legislative history of section 7611 interprets the term ``appropriate
high-level Treasury official'' to mean an IRS Regional Commissioner (or
higher official). H.R. Rep. No. 98-861, 98th Cong. 2d Sess. 1101
(1984), 1984-3 CB Vol. 2 355. Final regulations under section 7611,
which were published on February 21, 1986, 50 FR 6219, also interpret
the term to mean an IRS Regional Commissioner. See Treas. Reg. Sec.
301.7611 Q1-A1.
Section 7611(b)(2)(A) provides that at least 15 days before the
beginning of a church tax examination, the IRS must provide notice of
the examination to both the church and the appropriate regional
counsel. Section 7611(b)(3)(C) provides that any regional counsel who
receives notice under section 7611(b)(2)(A) may submit to a regional
commissioner an advisory objection to the examination within 15 days
after the notice of examination is provided.
Section 7611(c)(1)(A) provides that the IRS must make a final
determination as to any church tax inquiry or examination within two
years of the date the notice of examination is provided to the church
under section 7611(b). In instances where no examination follows a
church tax inquiry, section 7611(c)(1)(B) requires the IRS to make a
final determination as to the inquiry no later than 90 days after the
date the notice of inquiry is provided to the church under section
7611(a). Section 7611(c)(2) suspends the periods described in section
7611(c)(1) (that is, 2 year period and 90 day period) while certain
judicial proceedings are pending or being appealed, including
proceedings brought by the IRS against a church seeking to compel
compliance with a reasonable request to examine church records or
religious activities.
Section 7611(d)(1) prohibits the IRS from making certain final
determinations (that is, revocation of tax-exempt status, notice of
deficiency, or assessment) regarding a church until after the
appropriate regional counsel determines in writing that there has been
substantial compliance with the requirements of section 7611. Section
7611(d)(1) further requires the appropriate regional counsel's written
approval of such final determination before the IRS can make the
determination.
Section 7611(e)(1) provides that if the IRS has not substantially
complied with the requirements of section 7611, any proceeding to
compel compliance with a summons shall be stayed until the court finds
that the IRS has taken all practicable steps to correct the
noncompliance. Section 7611(e)(2) states that the remedy provided in
subsection (e)(1) shall be the exclusive remedy for a church in regard
to any noncompliance by the IRS with the requirements of section 7611.
Under section 7611(f), the IRS may not commence an inquiry or
examination of a church if, within the previous five years, the IRS
completed an inquiry or examination regarding the church that did not
result in a revocation, notice of deficiency, assessment, or a request
for a significant change in the church's operating practices. An
exception exists where the Secretary or his delegate approves the
second inquiry or examination in writing. There is also an exception
where the issues involved in the subsequent inquiry or examination are
not the same or similar to issues involved in the preceding inquiry or
examination. Prior to the Internal Revenue Service Restructuring and
Reform Act of 1998, Public Law 105-206 (``RRA 1998''), discussed below,
section 7611(f) required the Assistant Commissioner (Employee Plans and
Exempt Organizations), instead of the Secretary or his delegate, to
approve subsequent inquiries and examinations for the exception to
apply.
Reorganization of the IRS
Section 1001 of RRA 1998 requires the Commissioner of Internal
Revenue to develop and implement a plan to reorganize the IRS. The
congressional mandate provides that the plan shall ``eliminate or
substantially modify the existing organization of the IRS which is
based on a national, regional, and district structure; [and] establish
organizational units serving particular groups of taxpayers with
similar needs * * *.'' Under the reorganized IRS, four nationwide
operating divisions were established to serve different types of
taxpayers. One of these operating divisions serves tax exempt and
government entities, including churches.
Section 1102(e)(3) of RRA 1998 amended section 7611(f)(1), relating
to second inquiries and examinations within five years of a previous
inquiry or examination, by replacing Assistant Commissioner (Employee
Plans and Exempt Organizations) with Secretary. Under section
7701(a)(11)(B), Secretary is defined to refer to the Secretary of the
Treasury or his delegate. RRA 1998 did not amend other portions of
section 7611, such as references to ``appropriate high-level Treasury
official'' and ``appropriate regional counsel.''
In mandating the restructuring of the IRS under RRA 1998, Congress
realized that certain positions within the IRS would be eliminated as a
result of transitioning from a geographic structure to a structure
based on nationwide jurisdiction of similar types of taxpayers.
Accordingly, Congress included a savings provision in RRA 1998. Section
1001(b) provides, ``All orders, determinations, rules, regulations * *
* and other administrative actions * * * which are in effect at the
time this section takes effect * * * shall continue in effect according
to their terms until modified, terminated, superseded, set aside or
revoked in accordance with law by * * * the Secretary of the Treasury
[or] the Commissioner of Internal Revenue * * *.'' This provision keeps
in effect regulations that make reference to officers whose positions
no longer exist. The legislative history of RRA 1998 at H.R. Conf. Rep.
No. 105-599, 105th Cong., 2d Sess. 195 (1998) explains that ``[t]he
legality of IRS actions will not be affected pending further
appropriate statutory changes relating to such a reorganization (e.g.,
eliminating statutory references to obsolete positions).'' Accordingly,
the Treasury Regulations under section 7611 have remained in effect
notwithstanding their references to the positions of Regional
Commissioner, Regional Counsel, and Assistant Commissioner (Employee
Plans and Exempt Organizations), positions that were eliminated by the
reorganization. Delegation Order 193 (Rev. 6) (11/08/2000) provides in
part that actions previously delegated to
[[Page 39005]]
Regional Commissioners by Treasury Regulations (par. 7) are now
delegated to ``Assistant Deputy Commissioners, Division Commissioners;
Chiefs; and Directors, Submission Processing Field, Compliance Services
Field, and Accounts Management Field.'' In the Internal Revenue Manual
(``IRM''), the IRS designated the Director, Exempt Organizations
Examinations as the appropriate high-level Treasury official for
purposes of section 7611. See IRM Sec. 4.76.7.
Recent litigation has challenged the IRS's interpretation of the
term ``appropriate high-level Treasury official'' following the
reorganization. See United States v. Living Word Christian Center,
Civil No. 08-mc-37, D.C. Minn. (Jan. 30, 2009) (``LWCC''). In
particular, concern has been expressed about the need for an update to
the regulations in light of the statutorily mandated reorganization and
the elimination of internal revenue regions.
In LWCC, the District Court for the District of Minnesota ruled
that the Director, Exempt Organizations Examinations is not an
appropriate high-level Treasury official to make the ``reasonable
belief'' determination required before the IRS may commence a church
tax inquiry under section 7611. LWCC at 2. The district court concluded
that the Director, Exempt Organizations Examinations is not an
appropriate high-level Treasury official within the meaning of section
7611(h) because that official does not have a comparable breadth of
responsibility to a regional commissioner nor as high a position within
the IRS. Although the IRS disagrees with the district court's reasoning
and conclusion in LWCC, the IRS acknowledges that it would be
beneficial to revise the regulations in light of the changes in IRS
organization made in the wake of RRA 1998 to clarify who is an
appropriate high-level Treasury official for purposes of section 7611.
Further, the IRS recognizes the significance of the special procedural
requirements for church tax inquiries and examinations. These proposed
regulations assign responsibility for making the determinations
required under section 7611(a) to the Director, Exempt Organizations.
Explanation of Provisions
These proposed regulations eliminate references to the positions of
Regional Commissioner and Regional Counsel under the existing
regulations and give responsibilities formerly assigned to these now
defunct positions to the Director, Exempt Organizations and the
Division Counsel/Associate Chief Counsel, Tax Exempt and Government
Entities, respectively. In addition, these proposed regulations
eliminate references to the position of Assistant Commissioner
(Employee Plans and Exempt Organizations) under the existing
regulations and give responsibilities formerly assigned to that
position to the Commissioner, Tax Exempt and Government Entities or the
Deputy Commissioner, Tax Exempt and Government Entities.
Reasonable Belief and Inquiry Notice Requirement
With respect to the initiation of the church tax inquiry process,
Treas. Reg. Sec. 301.7611-1 Q1-A1 provides that a ``Regional
Commissioner (or higher Treasury official)'' is the appropriate high-
level Treasury official for purposes of this reasonable belief
requirement. Similarly, Treas. Reg. Sec. 301.7611-1 Q7-A7 states,
``Repeated (two or more) failures by a church or its agents to reply to
routine requests * * * will be considered by the appropriate Internal
Revenue Service Regional Commissioner to be a reasonable basis for
commencement of a church tax inquiry under the church tax inquiry and
examination procedures of section 7611.'' In addition, Treas. Reg.
Sec. 301.7611 Q9-A9 requires a Regional Commissioner to provide
written notice to the church of the beginning of an inquiry.
These proposed regulations eliminate references to the Regional
Commissioner and instead provide that the Director, Exempt
Organizations is the ``appropriate high-level Treasury official'' for
purposes of the reasonable belief and inquiry notice requirements of
Treas. Reg. Sec. 301.7611-1 Q1-A1, Q7-A7, and Q9-A9. The Director,
Exempt Organizations is a senior executive who reports to the
Commissioner/Deputy Commissioner, Tax Exempt and Government Entities
Division, and who is responsible for planning, managing, directing and
executing nationwide activities for Exempt Organizations. See IRM Sec.
1.1.23.5 for a comprehensive description of these activities.
Examination Notice Requirement
Under section 7611(b)(2) and Treas. Reg. Sec. 301.7611-1 Q10-A10,
a church tax examination cannot be commenced without first providing
written notice of such examination to the church and to the
``appropriate Regional Counsel'' at least 15 days before the IRS begins
the church tax examination. The regulation allows the Regional Counsel
to file an advisory objection to the examination within this same 15-
day period.
These proposed regulations amend Treas. Reg. Sec. 301.7611-1 Q10-
A10 by substituting Division Counsel/Associate Chief Counsel, Tax
Exempt and Government Entities, for each occurrence of Regional
Counsel. These proposed regulations further specify that before the
notice of examination is provided to the church, a copy of the notice
must be provided to the Division Counsel/Associate Chief Counsel, Tax
Exempt and Government Entities.
Revocation of Exemption or of Church Status
Section 7611(d)(1) and Treas. Reg. Sec. 301.7611-1 Q11-A11 require
the Regional Counsel to approve, in writing, certain final
determinations that are within the scope of section 7611 and adversely
affect the tax-exempt status or increase any tax liability of a church.
Further, prior to such adverse action, section 7611(d) requires
Regional Counsel to determine, in writing, that there has been
substantial compliance with the requirements of section 7611, when
applicable.
These proposed regulations amend Treas. Reg. Sec. 301.7611-1 Q11-
A11 by providing that the Division Counsel/Associate Chief Counsel, Tax
Exempt and Government Entities, is the official responsible for
complying with the written determination and approval requirements of
section 7611(d)(1).
Limitations on Period of Assessment
Section 7611(d)(2) and Treas. Reg. Sec. 301.7611-1 Q15-A15 provide
special limitation periods for church tax liabilities. These special
rules are not to be construed to increase an otherwise applicable
limitation period. Treas. Reg. Sec. 301.7611-1 Q15-A15 states that,
for purposes of section 7611(d)(2)(A), that is, the statute of
limitations applicable to liabilities arising from church tax
examinations, a church is determined not to be a church exempt from tax
when the appropriate Regional Commissioner approves, in writing, the
completed findings of the examining agent that the organization is not
a church exempt from tax for one or more of the three most recently
completed taxable years ending before the examination notice date. The
regulation also states that the Regional Commissioner cannot delegate
this approval to a subordinate official. Further, the completed
findings of the examining agent, which are approved by the appropriate
Regional Commissioner, are not considered a final revenue agent's
report (defined in section 7611(g)).
These proposed regulations substitute the Director, Exempt
Organizations for the appropriate Regional Commissioner
[[Page 39006]]
for purposes of Treas. Reg. Sec. 301.7611-1 Q15-A15.
Multiple Examinations
Consistent with the language of section 7611(f)(1) prior to
enactment of RRA 1998, Treas. Reg. Sec. 301-7611-1 Q16-A16 provides
that the Assistant Commissioner (Employee Plans and Exempt
Organizations) is responsible for providing the written approval
necessary to begin a second inquiry or examination of a church. These
proposed regulations provide that the Commissioner, Tax Exempt and
Government Entities or the Deputy Commissioner, Tax Exempt and
Government Entities is responsible for approving second inquiries and
examinations under section 7611(f).
Remedies for Violation of Section 7611
Section 7611(e) and Treas. Reg. Sec. 301.7611-1 Q17-A17 provide
that, if there has not been substantial compliance with certain
requirements in section 7611, including the notice requirements of
section 7611(a) and (b), the exclusive remedy for such noncompliance is
a stay in an enforcement proceeding to compel compliance with a summons
with respect to the inquiry or examination. The stay continues until
the court finds that all practicable steps to correct the noncompliance
have been taken. Treas. Reg. Sec. 301.7611-1 Q17-A17 further states
that failure of the Regional Commissioner to approve an inquiry may not
be raised as a defense or as an affirmative ground for relief in a
summons proceeding or any other judicial proceeding other than as
specifically set forth in the regulation.
These proposed regulations amend Treas. Reg. Sec. 301.7611-1 Q17-
A17 to replace each reference to Regional Commissioner with Director,
Exempt Organizations.
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 proposed regulations and
because the regulation does not impose a collection of information on
small entities, the Regulatory Flexibility Act (5 U.S.C. 601) does not
apply.
Pursuant to section 7805(f) of the Code, these proposed 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 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. 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 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 authors of these proposed regulations are Benjamin
Akins and Monice Rosenbaum 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 26 CFR Part 301
Administrative practice and procedure, Bankruptcy, Courts, Crime,
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income taxes,
Investigations, Law enforcement, Penalties, Pensions, Statistics,
Taxes, Disclosure of information, Filing requirements.
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. In Sec. 301.7611-1, each entry in the table, undesignated
paragraphs in the ``Old Paragraph'' column are designated as new
paragraphs in the ``New Paragraph'' column to read as follows:
------------------------------------------------------------------------
Old paragraph New paragraph
------------------------------------------------------------------------
Sec. 301.7611-1 A-5 first undesignated Sec. 301.7611-1 A-5
paragraph. paragraph (a).
Sec. 301.7611-1 A-5 second undesignated Sec. 301.7611-1 A-5
paragraph. paragraph (b).
Sec. 301.7611-1 A-6 first undesignated Sec. 301.7611-1 A-6
paragraph. paragraph (a).
Sec. 301.7611-1 A-9 first undesignated Sec. 301.7611-1 A-9
paragraph. paragraph (a).
Sec. 301.7611-1 A-9 second undesignated Sec. 301.7611-1 A-9
paragraph. paragraph (b).
Sec. 301.7611-1 A-10 first undesignated Sec. 301.7611-1 A-10
paragraph. paragraph (a).
Sec. 301.7611-1 A-10 second undesignated Sec. 301.7611-1 A-10
paragraph. paragraph (b).
Sec. 301.7611-1 A-10 third undesignated Sec. 301.7611-1 A-10
paragraph. paragraph (c).
Sec. 301.7611-1 A-10 fourth undesignated Sec. 301.7611-1 A-10
paragraph. paragraph (d).
Sec. 301.7611-1 A-10 fifth undesignated Sec. 301.7611-1 A-10
paragraph. paragraph (e).
Sec. 301.7611-1 A-11 first undesignated Sec. 301.7611-1 A-11
paragraph. paragraph (a).
Sec. 301.7611-1 A-11 second undesignated Sec. 301.7611-1 A-11
paragraph. paragraph (b).
Sec. 301.7611-1 A-11 third undesignated Sec. 301.7611-1 A-11
paragraph. paragraph (c).
Sec. 301.7611-1 A-13 first undesignated Sec. 301.7611-1 A-13
paragraph. paragraph (a).
Sec. 301.7611-1 A-13a first undesignated Sec. 301.7611-1 A-13a
paragraph. paragraph (a).
Sec. 301.7611-1 A-14 first undesignated Sec. 301.7611-1 A-14
paragraph. paragraph (a).
Sec. 301.7611-1 A-14 second undesignated Sec. 301.7611-1 A-14
paragraph. paragraph (b).
Sec. 301.7611-1 A-15 first undesignated Sec. 301.7611-1 A-15
paragraph. paragraph (a).
Sec. 301.7611-1 A-15 second undesignated Sec. 301.7611-1 A-15
paragraph. paragraph (b).
Sec. 301.7611-1 A-15 third undesignated Sec. 301.7611-1 A-15
paragraph. paragraph (c).
Sec. 301.7611-1 A-15 fourth undesignated Sec. 301.7611-1 A-15
paragraph. paragraph (d).
Sec. 301.7611-1 A-15 fifth undesignated Sec. 301.7611-1 A-15
paragraph. paragraph (e).
Sec. 301.7611-1 A-15 sixth undesignated Sec. 301.7611-1 A-15
paragraph. paragraph (f).
Sec. 301.7611-1 A-15 seventh Sec. 301.7611-1 A-15
undesignated paragraph. paragraph (g).
Sec. 301.7611-1 A-16 first undesignated Sec. 301.7611-1 A-16
paragraph. paragraph (a).
Sec. 301.7611-1 A-17 first undesignated Sec. 301.7611-1 A-17
paragraph. paragraph (a).
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[[Page 39007]]
Sec. 301.7611-1 [Amended]
Par. 3. For each section listed in the table, remove the language
in the ``Remove'' column and add in its place the language in the
``Add'' column as set forth below:
------------------------------------------------------------------------
Section Remove Add
------------------------------------------------------------------------
Sec. 301.7611-1 A-1 first appropriate Regional Director, Exempt
sentence. Commissioner (or Organizations.
higher Treasury
official).
Sec. 301.7611-1 A-7 first appropriate Internal Director, Exempt
sentence. Revenue Service Organizations.
Regional
Commissioner.
Sec. 301.7611-1 A-9 first appropriate Regional Director, Exempt
sentence. Commissioner. Organizations.
Sec. 301.7611-1 A-10 first appropriate Regional Division Counsel/
sentence. Counsel. Associate Chief
Counsel, Tax Exempt
and Government
Entities.
Sec. 301.7611-1 A-10 At the time the Before the notice of
paragraph (b) first notice of examination (second
sentence. examination (second notice) is provided
notice) is provided to the church, a
to the church, a copy of the same
copy of the same notice will be
notice will be provided to the
provided to the Division Counsel/
appropriate Associate Chief
Regional Counsel. Counsel, Tax Exempt
and Government
Entities.
Sec. 301.7611-1 A-10 Regional Counsel.... Division Counsel/
paragraph (b) second Associate Chief
sentence. Counsel, Tax Exempt
and Government
Entities.
Sec. 301.7611-1 A-11 Regional Counsel.... Division Counsel/
paragraph (c) first, second Associate Chief
and third sentences. Counsel, Tax Exempt
and Government
Entities.
Sec. 301.7611-1 A-15 appropriate Regional Director, Exempt
paragraph (c) first and Commissioner. Organizations.
third sentences.
Sec. 301.7611-1 A-15 Regional Director, Exempt
paragraph (c) second Commissioner. Organizations.
sentence.
Sec. 301.7611-1 A-16 first Assistant Commissioner, Tax
sentence. Commissioner Exempt and
(Employee Plans and Government Entities
Exempt or the Deputy
Organizations). Commissioner, Tax
Exempt and
Government
Entities.
Sec. 301.7611-1 A-16 Assistant approval of the
second sentence. Commissioner's Commissioner, Tax
approval. Exempt and
Government Entities
or the Deputy
Commissioner, Tax
Exempt and
Government
Entities.
Sec. 301.7611-1 A-16 Assistant Commissioner, Tax
paragraph (a) second Commissioner Exempt and
sentence. (Employee Plans and Government Entities
Exempt or the Deputy
Organizations). Commissioner, Tax
Exempt and
Government
Entities.
Sec. 301.7611-1 A-17 first Regional Director, Exempt
sentence. Commissioner. Organizations.
Sec. 301.7611-1 A-17 Regional Director, Exempt
paragraph(a) third sentence. Commissioner. Organizations.
Sec. 301.7611-1 A-17 appropriate Regional belief of the
paragraph (a) fourth Commissioner's Director, Exempt
sentence. belief. Organizations.
------------------------------------------------------------------------
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E9-18659 Filed 7-31-09; 4:15 pm]
BILLING CODE 4830-01-P
