Disregarded Entities and the Indoor Tanning Services Excise Tax, 37838-37839 [2012-15421]
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37838
Federal Register / Vol. 77, No. 122 / Monday, June 25, 2012 / Proposed Rules
significant regulatory action as defined
in Executive Order 12866. Therefore, a
regulatory assessment is not required. It
has also been determined that section
553(b) of the Administrative Procedure
Act (5 U.S.C. chapter 5) does not apply
to these regulations, and because the
regulations do not impose a collection
of information on small entities, the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to
section 7805(f) 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 Public
Hearing
Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
electronic or written comments (a
signed original and eight (8) copies) that
are submitted timely to the IRS. The
Treasury Department and the IRS
request comments on all aspects of the
proposed rules. 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 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 Jeffrey L. Parry of the
Office of Chief Counsel (International).
However, other personnel from the IRS
and the Treasury Department
participated in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
proposed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
erowe on DSK2VPTVN1PROD with PROPOSALS-1
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.904–4 is amended by
adding paragraph (c)(2)(iii) and by
adding a sentence at the end of
paragraph (n) to read as follows:
§ 1.904–4 Separate application of section
904 with respect to certain categories of
income.
*
*
*
VerDate Mar<15>2010
*
*
14:54 Jun 22, 2012
Jkt 226001
(c) * * *
(2) * * *
(iii) Coordination with section 904(b),
(f) and (g). The determination of
whether foreign-source passive income
is high-taxed is made before taking into
account any adjustments under section
904(b) or any allocation or recapture of
a separate limitation loss, overall foreign
loss or overall domestic loss under
section 904(f) and (g).
*
*
*
*
*
(n) * * * Paragraph (c)(2)(iii) of this
section applies to taxable years ending
on or after the date of publication of a
Treasury decision adopting these rules
as final regulations in the Federal
Register.
Par. 3. Section 1.904(g)–3 is amended
by revising paragraph (f), adding
paragraph (i) and adding a sentence at
the end of paragraph (k) to read as
follows:
§ 1.904(g)–3 Ordering rules for the
allocation of net operating losses, net
capital losses, U.S. source losses, and
separate limitation losses, and for the
recapture of separate limitation losses,
overall foreign losses, and overall domestic
losses.
*
*
*
*
*
(f) Step Five: Recapture of overall
foreign loss accounts. If the taxpayer’s
separate limitation income for the
taxable year (reduced by any losses
carried over under paragraph (b) of this
section) exceeds the sum of the
taxpayer’s U.S. source loss and separate
limitation losses for the year, so that the
taxpayer has separate limitation income
remaining after the application of
paragraphs (d)(1) and (e) of this section,
then the taxpayer shall recapture prior
year overall foreign losses, if any, in
accordance with § 1.904(f)–2, and
reduce overall foreign loss accounts in
accordance with § 1.904(f)–2. Such
recapture shall include amounts
determined under § 1.904(f)–2(c) and
(d)(3) but not § 1.904(f)–2(d)(4).
*
*
*
*
*
(i) Step Eight: Dispositions under
section 904(f)(3) in which gain would
not otherwise be recognized. The
taxpayer shall determine the amount of
gain that would otherwise not be
recognized but that must be recognized
in accordance with § 1.904(f)–2(d)(4)
(not exceeding the taxpayer’s applicable
overall foreign loss account) and then
apply § 1.904(f)–2(a) and (b) to recapture
overall foreign loss accounts in an
amount equal to the gain recognized. To
the extent this recognition of gain in a
taxable year increases the amount of a
net operating loss carryover to that
taxable year, paragraphs (b) through (e)
of this section shall be applied to
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Fmt 4702
Sfmt 4702
determine the allocation of the
additional net operating loss, but only
after the applicable overall foreign loss
account has been recaptured as
provided in this paragraph (i).
(k) * * * Paragraphs (f) and (i) of this
section apply to taxable years ending on
or after the date of publication of a
Treasury decision adopting these rules
as final regulations in the Federal
Register.
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2012–15443 Filed 6–22–12; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[REG–125570–11]
RIN 1545–BK38
Disregarded Entities and the Indoor
Tanning Services Excise Tax
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 is issuing temporary
regulations relating to disregarded
entities (including qualified subchapter
S subsidiaries) and the indoor tanning
services excise tax. These regulations
affect disregarded entities responsible
for collecting the indoor tanning
services excise tax and owners of those
disregarded entities. The text of the
temporary regulations also serves as the
text of the proposed regulations.
DATES: Comments and requests for a
public hearing must be received by
September 24, 2012.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–125570–11), Room
5205, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions
may be hand-delivered to:
CC:PA:LPD:PR Monday through Friday
between the hours of 8 a.m. and 4 p.m.
to: CC:PA:LPD:PR (REG–125570–11),
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–
125570–11).
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
SUMMARY:
E:\FR\FM\25JNP1.SGM
25JNP1
Federal Register / Vol. 77, No. 122 / Monday, June 25, 2012 / Proposed Rules
37839
of the Associate Chief Counsel
(Passthroughs and Special Industries).
However, other personnel from the IRS
and the Treasury Department
participated in their development.
List of Subjects
[FR Doc. 2012–15421 Filed 6–22–12; 8:45 am]
Background
This document contains proposed
amendments to the Income Tax
Regulations (26 CFR part 1) under
section 1361 of the Internal Revenue
Code (Code) and the Procedure and
Administration Regulations (26 CFR
part 301) under section 7701 of the
Code. The text of temporary regulations
published in this issue of the Federal
Register also serves as the text of these
proposed regulations. The preamble to
the temporary regulations explains the
temporary regulations and these
proposed regulations.
26 CFR Part 1
BILLING CODE 4830–01–P
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a
significant regulatory action as defined
in Executive Order 12866, as
supplemented by Executive Order
13563. Therefore, a regulatory
assessment is not required. It has also
been determined that section 553(b) of
the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these
regulations, and because these
regulations do not impose a collection
of information on small entities, the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. Pursuant to
section 7805(f) of the Internal Revenue
Code, this regulation has been
submitted to the Chief Counsel for
Advocacy of the Small Business
Administration for comment on its
impact on small business.
erowe on DSK2VPTVN1PROD with PROPOSALS-1
Michael H. Beker, (202) 622–3130;
concerning submissions of comments
and requests for a public hearing,
Oluwafunmilayo Taylor, (202) 622–7180
(not toll-free numbers).
SUPPLEMENTARY INFORMATION:
PART 1—INCOME TAX
Comments and Requests for a Public
Hearing
Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
comments that are submitted timely to
the IRS as prescribed in this preamble
under the ADDRESSES heading. The IRS
and the Treasury Department request
comments on all aspects of the proposed
rules. All comments will be available at
www.regulations.gov or upon request. 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 these
regulations is Michael H. Beker, Office
VerDate Mar<15>2010
14:54 Jun 22, 2012
Jkt 226001
Income taxes, Reporting and
recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes,
Excise taxes, Gift taxes, Income taxes,
Penalties, Reporting and recordkeeping
requirements.
Proposed Amendments to the
Regulations
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.1361–4 is amended
by adding paragraph (a)(8)(iii) to read as
follows:
Effect of QSub election.
(a) * * *
(8) * * *
(iii) [The text of proposed § 1.1361–
4(a)(8)(iii) is the same as the text of
§ 1.1361–4T(a)(8)(iii)(A) and (B)
published elsewhere in this issue of the
Federal Register].
*
*
*
*
*
PART 301—PROCEDURE AND
ADMINISTRATION
Par. 3. The authority citation for part
301 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 4. Section 301.7701–2 is
amended by adding new paragraphs
(c)(2)(vi) and (e)(9) to read as follows:
Business entities;
*
*
*
*
*
(c) * * *
(2) * * *
(vi) [The text of proposed § 301.7701–
2(c)(2)(vi) is the same as the text of
§ 301.7701–2T(c)(2)(vi) published
elsewhere in this issue of the Federal
Register].
*
*
*
*
*
(e) * * *
(9) [The text of proposed § 301.7701–
2(e)(9) is the same as the text of
§ 301.7701–2T(e)(9)(i) published
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DEPARTMENT OF VETERANS
AFFAIRS
38 CFR Part 9
RIN 2900–AO24
Veterans’ Group Life Insurance (VGLI)
No-Health Period Extension
ACTION:
Department of Veterans Affairs.
Proposed rule.
The Department of Veterans
Affairs (VA) proposes to amend its
regulations governing eligibility for
Veterans’ Group Life Insurance (VGLI)
to extend to 240 days the current 120day ‘‘no-health’’ period during which
veterans can apply for VGLI without
proving that they are in good health for
insurance purposes. The purpose of this
proposed rule is to increase the
opportunities for disabled veterans to
enroll in VGLI, some of who would not
qualify for VGLI coverage under existing
provisions.
DATES: Comments must be received by
VA on or before July 25, 2012.
ADDRESSES: Written comments may be
submitted through https://
www.Regulations.gov; by mail or hand
delivery to Director, Regulations
Management (02REG), Department of
Veterans Affairs, 810 Vermont Ave.
NW., Room 1068, Washington, DC
20420; or by fax to (202) 273–9026.
Comments should indicate that they are
submitted in response to ‘‘RIN 2900–
AO24—Veterans’ Group Life Insurance
(VGLI) No-Health Period Extension.’’
Copies of comments received will be
available for public inspection in the
Office of Regulation Policy and
Management, Room 1063B, between the
hours of 8 a.m. and 4:30 p.m., Monday
through Friday (except holidays). Please
call (202) 461–4902 for an appointment.
(This is not a toll-free number.) In
addition, during the comment period,
comments may be viewed online
through the Federal Docket Management
System (FDMS) at https://
www.Regulations.gov.
SUMMARY:
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
§ 301.7701–2
definitions.
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
AGENCY:
Accordingly, 26 CFR parts 1 and 301
are proposed to be amended as follows:
§ 1.1361–4
elsewhere in this issue of the Federal
Register].
FOR FURTHER INFORMATION CONTACT:
Monica Keitt, Attorney/Advisor,
Department of Veterans Affairs Regional
Office and Insurance Center (310/290B),
5000 Wissahickon Avenue, P.O. Box
E:\FR\FM\25JNP1.SGM
25JNP1
]]>Agencies
[Federal Register Volume 77, Number 122 (Monday, June 25, 2012)]
[Proposed Rules]
[Pages 37838-37839]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-15421]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[REG-125570-11]
RIN 1545-BK38
Disregarded Entities and the Indoor Tanning Services Excise Tax
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 is issuing temporary regulations relating to
disregarded entities (including qualified subchapter S subsidiaries)
and the indoor tanning services excise tax. These regulations affect
disregarded entities responsible for collecting the indoor tanning
services excise tax and owners of those disregarded entities. The text
of the temporary regulations also serves as the text of the proposed
regulations.
DATES: Comments and requests for a public hearing must be received by
September 24, 2012.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-125570-11), Room
5205, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered to:
CC:PA:LPD:PR Monday through Friday between the hours of 8 a.m. and 4
p.m. to: CC:PA:LPD:PR (REG-125570-11), 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-125570-11).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
[[Page 37839]]
Michael H. Beker, (202) 622-3130; concerning submissions of comments
and requests for a public hearing, Oluwafunmilayo Taylor, (202) 622-
7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
This document contains proposed amendments to the Income Tax
Regulations (26 CFR part 1) under section 1361 of the Internal Revenue
Code (Code) and the Procedure and Administration Regulations (26 CFR
part 301) under section 7701 of the Code. The text of temporary
regulations published in this issue of the Federal Register 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, as supplemented by Executive Order 13563. Therefore, a
regulatory assessment is not required. It has also been determined that
section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5)
does not apply to these regulations, and because these regulations do
not impose a collection of information on small entities, the
Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply.
Pursuant to section 7805(f) of the Internal Revenue Code, this
regulation has 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 comments that are submitted timely
to the IRS as prescribed in this preamble under the ADDRESSES heading.
The IRS and the Treasury Department request comments on all aspects of
the proposed rules. All comments will be available at
www.regulations.gov or upon request. 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 these regulations is Michael H. Beker,
Office of the Associate Chief Counsel (Passthroughs and Special
Industries). However, other personnel from the IRS and the Treasury
Department participated in their development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
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 parts 1 and 301 are proposed to be amended as
follows:
PART 1--INCOME TAX
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.1361-4 is amended by adding paragraph (a)(8)(iii)
to read as follows:
Sec. 1.1361-4 Effect of QSub election.
(a) * * *
(8) * * *
(iii) [The text of proposed Sec. 1.1361-4(a)(8)(iii) is the same
as the text of Sec. 1.1361-4T(a)(8)(iii)(A) and (B) published
elsewhere in this issue of the Federal Register].
* * * * *
PART 301--PROCEDURE AND ADMINISTRATION
Par. 3. The authority citation for part 301 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 4. Section 301.7701-2 is amended by adding new paragraphs
(c)(2)(vi) and (e)(9) to read as follows:
Sec. 301.7701-2 Business entities; definitions.
* * * * *
(c) * * *
(2) * * *
(vi) [The text of proposed Sec. 301.7701-2(c)(2)(vi) is the same
as the text of Sec. 301.7701-2T(c)(2)(vi) published elsewhere in this
issue of the Federal Register].
* * * * *
(e) * * *
(9) [The text of proposed Sec. 301.7701-2(e)(9) is the same as the
text of Sec. 301.7701-2T(e)(9)(i) published elsewhere in this issue of
the Federal Register].
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2012-15421 Filed 6-22-12; 8:45 am]
BILLING CODE 4830-01-P
