Awards for Information Relating To Detecting Underpayments of Tax or Violations of the Internal Revenue Laws; Correction, 8062-8063 [2013-02416]
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8062
Federal Register / Vol. 78, No. 24 / Tuesday, February 5, 2013 / Proposed Rules
considered gain or loss from the sale or
exchange of property that has the same
character as the property to which the
option relates would have in the hands
of the taxpayer. Although a partnership
interest is generally considered a capital
asset, section 751(a) may apply to
recharacterize a portion of a partner’s
gain on the sale or exchange of a
partnership interest as ordinary. A
number of commenters on the
noncompensatory partnership option
proposed regulations questioned
whether section 751 applies to the
lapse, repurchase, sale, exchange, or
other termination of a noncompensatory
option.
The Treasury Department and the IRS
continue to study this issue and request
comments on (1) if section 751(a)
applies to the lapse, repurchase, sale, or
exchange of a noncompensatory option,
(a) how the option holder’s share of
income or loss from section 751
property would be determined under
§ 1.751–1(a)(2), and (b) how a partner in
the issuing partnership that transfers its
partnership interest while the option is
outstanding would determine its share
of income or loss from section 751
property under § 1.751–1(a)(2) (that is,
should it be reduced by the amount of
income or loss from section 751
property attributable to the option
holder); and (2) if section 751(a) does
not apply to the lapse, repurchase, sale,
or exchange of a noncompensatory
option, what measures, if any, should be
taken to ensure that ordinary income is
not permanently eliminated.
mstockstill on DSK4VPTVN1PROD with PROPOSALS
Effective/Applicability Date
To coordinate the proposed
regulations with the final
noncompensatory partnership option
regulations, the proposed regulations
are proposed to have the same effective
date as the final noncompensatory
partnership option regulations.
Therefore, the proposed regulations are
proposed to apply to options issued on
or after February 5, 2013.
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 also has
been determined that section 553(b) of
the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to this
regulation, and because the regulation
does not impose a collection of
information requirement on small
entities, the Regulatory Flexibility Act
(5 U.S.C. chapter 6) does not apply.
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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 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
Treasury Department and the IRS
request comments on all aspects of the
proposed rules. All comments are
available 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
proposed regulations are Benjamin
Weaver of the Office of Associate Chief
Counsel (Passthroughs and Special
Industries) and Shawn Tetelman of the
Office of Associate Chief Counsel
(Financial Institutions and Products).
However, other personnel from the IRS
and Treasury Department participated
in their development.
the substantial reduction of the present
value of the aggregate Federal tax
liabilities of the partners and the
noncompensatory option holder (under
paragraph (a)(1)(ii) of this section):
(A) Issuance, transfer, or modification
of an interest in, or liquidation of, the
issuing partnership;
(B) Issuance, transfer, or modification
of an interest in any look-through entity
(as defined in paragraph (b)(1) of this
section) that directly, or indirectly
through one or more look-through
entities, owns the noncompensatory
option;
(C) Issuance, transfer, or modification
of an interest in any look-through entity
that directly, or indirectly through one
or more look-through entities, owns an
interest in the issuing partnership.
*
*
*
*
*
■ Par. 3. Section 1.1234–3 is amended
by adding a sentence at the end of
paragraph (b)(2) to read as follows:
§ 1.1234–3 Special rules for the treatment
of grantors of certain options granted after
September 1, 1976.
*
*
*
*
*
(b) * * *
(2) * * * For purposes of the
preceding sentence, for options granted
on or after February 5, 2013, the term
securities includes partnership interests.
*
*
*
*
*
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
[FR Doc. 2013–02260 Filed 2–4–13; 8:45 am]
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
proposed to be amended as follows:
DEPARTMENT OF THE TREASURY
PART 1—INCOME TAXES
[REG–141066–09]
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
RIN 1545–BL08
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.761–3 is amended by
adding paragraph (c)(1)(iv) to read as
follows:
■
§ 1.761–3
partners.
Certain option holders treated as
*
*
*
*
*
(c) * * *
(1) * * *
(iv) An event described in paragraphs
(c)(1)(iv)(A), (B), or (C) of this section,
provided the event is pursuant to a plan
in existence at the time of the issuance
or modification of the noncompensatory
option that has as a principal purpose
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BILLING CODE 4830–01–P
Internal Revenue Service
26 CFR Part 301
Awards for Information Relating To
Detecting Underpayments of Tax or
Violations of the Internal Revenue
Laws; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to notice of proposed
rulemaking.
AGENCY:
This document contains
corrections to a notice of proposed
rulemaking (REG–141066–09) that was
published in the Federal Register on
Tuesday, December 18, 2012 (77 FR
74798). The proposed regulations
provide comprehensive guidance for the
award program authorized under the
SUMMARY:
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05FEP1
Federal Register / Vol. 78, No. 24 / Tuesday, February 5, 2013 / Proposed Rules
Internal Revenue Code section 7623, as
amended. The regulations provide
guidance on submitting information
regarding underpayments of tax or
violations of the internal revenue laws
and filing claims for award, as well as
on the administrative proceedings
applicable to claims for award under
section 7623.
FOR FURTHER INFORMATION CONTACT:
Meghan M. Howard at (202) 622–7950
(not a toll free number).
SUPPLEMENTARY INFORMATION:
Background
The notice of proposed rulemaking
(REG–141066–09) that is the subject of
these corrections is under Section 7623
of the Internal Revenue Code.
Need for Correction
As published, the notice of proposed
rulemaking (REG–141066–09) contains
errors that may prove to be misleading
and are in need of clarification.
Correction of Publication
Accordingly, the notice of proposed
rulemaking (REG–141066–09), that was
the subject of FR Doc. 2012–30512, is
corrected as follows:
1. On page 74798, in the preamble,
column 3, under the caption FOR
FURTHER INFORMATION, line 1 from the
top of the column, the language
‘‘Oluwafunmilavaio Taylor, at (202)
622–’’ is corrected to read
‘‘Oluwafunmilayo Taylor, at
(202) 622–’’.
§ 301.7623–1
[Corrected]
2. On page 74804, column 3,
§ 301.7623–1(a), line 3, the language ‘‘by
law, the IRS’s Whistleblower Office’’ is
corrected to read ‘‘by law, the
Whistleblower Office’’.
■
§ 301.7623–2
§ 301.7623–4
[Corrected]
3. On page 74806, column 1,
§ 301.7623–2(a)(2), line 5, the language
‘‘a portion of an IRS civil or criminal’’
is corrected to read ‘‘a portion of an
Internal Revenue Service (IRS) civil or
criminal’’.
■ 4. On page 74806, column 1,
§ 301.7623–2(b)(1), line 4, the language
‘‘Internal Revenue (IRS) proceeds
based’’ is corrected to read ‘‘IRS
proceeds based’’.
mstockstill on DSK4VPTVN1PROD with PROPOSALS
■
§ 301.7623–3
6. On page 74808, column 3,
§ 301.7623–3(c)(1), line 10, the language
‘‘file.’’ is corrected to read ‘‘file. The
whistleblower administrative
proceeding described in paragraphs
(c)(1) through (6) of this section begins
on the date the Whistleblower Office
sends the preliminary award
recommendation letter. The preliminary
award recommendation is not a
determination letter within the meaning
of paragraph (c)(6) of this section and
cannot be appealed to Tax Court under
section 7623(b)(4) and paragraph (d) of
this section. The preliminary award
recommendation will notify the
individual that the IRS cannot
determine or pay any award until there
is a final determination of tax, as
defined in § 301.7623–4(d)(2).’’
■ 7. On page 74808, column 3,
§ 301.7623–3(c)(2)(iv), lines 1 through
18, the language ‘‘A confidentiality
agreement. The whistleblower
administrative proceeding described in
paragraphs (c)(1) through (6) of this
section begins on the date the
Whistleblower Office sends the
preliminary award recommendation
letter. The preliminary award
recommendation is not a determination
letter within the meaning of paragraph
(c)(6) of this section and cannot be
appealed to Tax Court under section
7623(b)(4) and paragraph (d) of this
section. The preliminary award
recommendation will notify the
individual that the IRS cannot
determine or pay any award until there
is a final determination of tax, as
defined in § 301.7623–4(d)(2). ’’ is
corrected to read ‘‘A confidentiality
agreement.’’.
■
[Corrected]
8. On page 74810, column 2,
instructional paragraph 5, is corrected to
read ‘‘Par. 6. Section 301.7623–4 is
added to read as follows:’’.
■
LaNita VanDyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, (Procedure and Administration).
[FR Doc. 2013–02416 Filed 2–4–13; 8:45 am]
BILLING CODE 4830–01–P
[Corrected]
5. On page 74808, column 2,
§ 301.7623–3(a) second column, line 17,
the language ‘‘Internal Revenue Service
(IRS) may,’’, is corrected to read
‘‘Internal Revenue Service (IRS) may
rely on the claimant’s description of the
amount owed by the taxpayers(s). The
IRS may,’’,
■
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8063
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–2012–1001]
RIN 1625–AA00
Safety Zones; Annual Firework
Displays Within the Captain of the
Port, Puget Sound Area of
Responsibility, WA
Coast Guard, DHS.
Notice of proposed rulemaking.
AGENCY:
ACTION:
The Coast Guard proposes to
add three new fireworks events and to
correct the location of five existing
events to ensure public safety during
annual firework displays at various
locations in the Captain of the Port
(COTP), Puget Sound Area of
Responsibility (AOR). When these safety
zones are activated and subject to
enforcement, this rule would limit the
movement of vessels within the
established firework display areas.
These additions and corrections are
necessary to prevent injury and to
protect life and property of the maritime
public from hazards associated with
firework displays.
DATES: Comments and related material
must be received by the Coast Guard on
or before April 8, 2013.
ADDRESSES: You may submit comments
identified by docket number USCG–
2012–1001 using any one of the
following methods:
(1) Federal eRulemaking Portal:
https://www.regulations.gov.
(2) Fax: 202–493–2251.
(3) Mail or Delivery: Docket
Management Facility (M–30), U.S.
Department of Transportation, West
Building Ground Floor, Room W12–140,
1200 New Jersey Avenue SE.,
Washington, DC 20590–0001. Deliveries
accepted between 9 a.m. and 5 p.m.,
Monday through Friday, except federal
holidays. The telephone number is 202–
366–9329.
See the ‘‘Public Participation and
Request for Comments’’ portion of the
SUPPLEMENTARY INFORMATION section
below for further instructions on
submitting comments. To avoid
duplication, please use only one of
these three methods.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this proposed
rule, call or email ENS Nathaniel P.
Clinger, Coast Guard Sector Puget
Sound, Waterways Management
Division, U.S. Coast Guard; telephone
(206) 217–6045, email
SUMMARY:
E:\FR\FM\05FEP1.SGM
05FEP1
]]>Agencies
[Federal Register Volume 78, Number 24 (Tuesday, February 5, 2013)]
[Proposed Rules]
[Pages 8062-8063]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-02416]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[REG-141066-09]
RIN 1545-BL08
Awards for Information Relating To Detecting Underpayments of Tax
or Violations of the Internal Revenue Laws; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correction to notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to a notice of proposed
rulemaking (REG-141066-09) that was published in the Federal Register
on Tuesday, December 18, 2012 (77 FR 74798). The proposed regulations
provide comprehensive guidance for the award program authorized under
the
[[Page 8063]]
Internal Revenue Code section 7623, as amended. The regulations provide
guidance on submitting information regarding underpayments of tax or
violations of the internal revenue laws and filing claims for award, as
well as on the administrative proceedings applicable to claims for
award under section 7623.
FOR FURTHER INFORMATION CONTACT: Meghan M. Howard at (202) 622-7950
(not a toll free number).
SUPPLEMENTARY INFORMATION:
Background
The notice of proposed rulemaking (REG-141066-09) that is the
subject of these corrections is under Section 7623 of the Internal
Revenue Code.
Need for Correction
As published, the notice of proposed rulemaking (REG-141066-09)
contains errors that may prove to be misleading and are in need of
clarification.
Correction of Publication
Accordingly, the notice of proposed rulemaking (REG-141066-09),
that was the subject of FR Doc. 2012-30512, is corrected as follows:
1. On page 74798, in the preamble, column 3, under the caption FOR
FURTHER INFORMATION, line 1 from the top of the column, the language
``Oluwafunmilavaio Taylor, at (202) 622-'' is corrected to read
``Oluwafunmilayo Taylor, at (202) 622-''.
Sec. 301.7623-1 [Corrected]
0
2. On page 74804, column 3, Sec. 301.7623-1(a), line 3, the language
``by law, the IRS's Whistleblower Office'' is corrected to read ``by
law, the Whistleblower Office''.
Sec. 301.7623-2 [Corrected]
0
3. On page 74806, column 1, Sec. 301.7623-2(a)(2), line 5, the
language ``a portion of an IRS civil or criminal'' is corrected to read
``a portion of an Internal Revenue Service (IRS) civil or criminal''.
0
4. On page 74806, column 1, Sec. 301.7623-2(b)(1), line 4, the
language ``Internal Revenue (IRS) proceeds based'' is corrected to read
``IRS proceeds based''.
Sec. 301.7623-3 [Corrected]
0
5. On page 74808, column 2, Sec. 301.7623-3(a) second column, line 17,
the language ``Internal Revenue Service (IRS) may,'', is corrected to
read ``Internal Revenue Service (IRS) may rely on the claimant's
description of the amount owed by the taxpayers(s). The IRS may,'',
0
6. On page 74808, column 3, Sec. 301.7623-3(c)(1), line 10, the
language ``file.'' is corrected to read ``file. The whistleblower
administrative proceeding described in paragraphs (c)(1) through (6) of
this section begins on the date the Whistleblower Office sends the
preliminary award recommendation letter. The preliminary award
recommendation is not a determination letter within the meaning of
paragraph (c)(6) of this section and cannot be appealed to Tax Court
under section 7623(b)(4) and paragraph (d) of this section. The
preliminary award recommendation will notify the individual that the
IRS cannot determine or pay any award until there is a final
determination of tax, as defined in Sec. 301.7623-4(d)(2).''
0
7. On page 74808, column 3, Sec. 301.7623-3(c)(2)(iv), lines 1 through
18, the language ``A confidentiality agreement. The whistleblower
administrative proceeding described in paragraphs (c)(1) through (6) of
this section begins on the date the Whistleblower Office sends the
preliminary award recommendation letter. The preliminary award
recommendation is not a determination letter within the meaning of
paragraph (c)(6) of this section and cannot be appealed to Tax Court
under section 7623(b)(4) and paragraph (d) of this section. The
preliminary award recommendation will notify the individual that the
IRS cannot determine or pay any award until there is a final
determination of tax, as defined in Sec. 301.7623-4(d)(2). '' is
corrected to read ``A confidentiality agreement.''.
Sec. 301.7623-4 [Corrected]
0
8. On page 74810, column 2, instructional paragraph 5, is corrected to
read ``Par. 6. Section 301.7623-4 is added to read as follows:''.
LaNita VanDyke,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2013-02416 Filed 2-4-13; 8:45 am]
BILLING CODE 4830-01-P
