Payout Requirements for Type III Supporting Organizations That Are Not Functionally Integrated, 76426-76427 [2012-31046]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 77, Number 249 (Friday, December 28, 2012)]
[Proposed Rules]
[Pages 76426-76427]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-31046]


========================================================================
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.

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Federal Register / Vol. 77, No. 249 / Friday, December 28, 2012 / 
Proposed Rules

[[Page 76426]]



DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG 155929-06]
RIN 1545-BL44


Payout Requirements for Type III Supporting Organizations That 
Are Not Functionally Integrated

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Partial withdrawal of notice of proposed rulemaking and notice 
of proposed rulemaking by cross-reference to temporary regulation.

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SUMMARY: This document withdraws portions of the notice of proposed 
rulemaking published on September 24, 2009, relating to the payout 
requirements for Type III supporting organizations that are not 
functionally integrated. The withdrawal affects Type III supporting 
organizations that are not functionally integrated. In the Rules and 
Regulations section of this issue of the Federal Register, the IRS is 
issuing temporary regulations regarding the requirements to qualify as 
a Type III supporting organization that is operated in connection with 
one or more supported organizations. Those regulations reflect changes 
to the law made by the Pension Protection Act of 2006 and will affect 
Type III supporting organizations and their supported organizations. 
The text of those temporary regulations published in this issue of the 
Federal Register also serves as the text of these proposed regulations.

DATES: Written or electronic comments and requests for a public hearing 
must be received by March 28, 2013.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-155929-06), 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-
155929-06), 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-155929-06).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Preston J. Quesenberry at (202) 622-6070; concerning submissions of 
comments and requests for a public hearing, Oluwafunmilayo Taylor at 
(202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    Final and temporary regulations in the Rules and Regulations 
section of this issue of the Federal Register contain amendments to the 
Income Tax Regulations (26 CFR part 1) regarding organizations 
described in section 509(a)(3) of the Internal Revenue Code (Code), 
which are known as supporting organizations. The final and temporary 
regulations provide requirements to qualify as a supporting 
organization that is operated in connection with one or more supported 
organizations (called ``Type III Supporting Organizations''). Those 
regulations reflect changes to the law made by the Pension Protection 
Act of 2006, Public Law 109-280 (120 Stat. 780 (2006)), and will affect 
Type III supporting organizations and their supported organizations. 
The text of those temporary regulations also serves as the text of 
these proposed regulations. The preamble to the final and 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 entitles, the 
Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. 
Pursuant to section 7805(f) of the 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 electronic comments 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 that are submitted 
by the public will be available for public inspection and copying at 
www.regulations.gov or upon request. A public hearing may 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 authors of these regulations are Preston J. 
Quesenberry, and Stephanie N. Robbins, Office of Associate Chief 
Counsel (Tax-Exempt and Government Entities). However, other personnel 
from the Treasury Department and the IRS participated in their 
development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Partial Withdrawal of Notice of Proposed Rulemaking

    Accordingly, under the authority of 26 U.S.C. 7805, Sec. Sec.  
1.509(a)-4(i)(5)(ii)(B) and 1.509(a)-4(i)(8) of the notice of proposed 
rulemaking (REG-155929-06) that was published in the Federal Register 
on September 24, 2009 (78 FR 48672), are withdrawn.

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 * * *


[[Page 76427]]


    Par. 2. Section 1.509(a)-4 is amended by revising paragraphs 
(i)(5)(ii)(B), (i)(5)(ii)(C), and (i)(8) to read as follows:


Sec.  1.509(a)-4  Supporting organizations.

* * * * *
    (i) * * *
    (5) * * *
    (ii) * * *
    (B) [The text of proposed amendments to Sec.  1.509(a)-
4(i)(5)(ii)(B) is the same as the text of Sec.  1.509(a)-
4T(i)(5)(ii)(B) published elsewhere in this issue of the Federal 
Register].
    (C) [The text of proposed amendments to Sec.  1.509(a)-
4(i)(5)(ii)(C) is the same as the text of Sec.  1.509(a)-
4T(i)(5)(ii)(C) published elsewhere in this issue of the Federal 
Register].
* * * * *
    (8) [The text of proposed amendments to Sec.  1.509(a)-4(i)(8) is 
the same as the text of Sec.  1.509(a)-4T(i)(8) published elsewhere in 
this issue of the Federal Register].

Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2012-31046 Filed 12-21-12; 4:15 pm]
BILLING CODE 4830-01-P