Estate, Gift, and Generation-Skipping Transfer Taxes; Restrictions on Liquidation of an Interest, 48779-48780 [2017-22776]
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48779
Proposed Rules
Federal Register
Vol. 82, No. 202
Friday, October 20, 2017
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.
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–129067–15]
RIN 1545–BM99
Definition of Political Subdivision
Internal Revenue Service (IRS),
Treasury.
ACTION: Withdrawal of notice of
proposed rulemaking.
AGENCY:
This document withdraws a
notice of proposed rulemaking regarding
the definition of a political subdivision
for purposes of tax-exempt bonds.
DATES: As of October 20, 2017, the
notice of proposed rulemaking (REG–
129067–15) that was published in the
Federal Register on February 23, 2016,
(81 FR 8870) is withdrawn.
FOR FURTHER INFORMATION CONTACT:
Spence Hanemann at (202) 317–6980
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
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Background
On February 23, 2016, the Department
of the Treasury (the Treasury
Department) and the IRS published in
the Federal Register a notice of
proposed rulemaking (81 FR 8870) that
defines political subdivision for
purposes of tax-exempt bonds under
section 103 of the Internal Revenue
Code (the Proposed Regulations). The
Treasury Department and the IRS
received public comments and, on June
6, 2016, held a public hearing on the
Proposed Regulations. In response to the
Proposed Regulations, commenters
stated that long-settled law establishes
the meaning of political subdivision and
that no further guidance is necessary.
Commenters also stated that the
Proposed Regulations would call into
doubt the status of numerous existing
issuers and users of tax-exempt bonds
and that reorganizing these entities to
qualify as political subdivisions under
VerDate Sep<11>2014
15:00 Oct 19, 2017
Jkt 244001
the Proposed Regulations would be
burdensome.
Executive Order 13789, issued on
April 21, 2017, instructs the Secretary of
the Treasury (the Secretary) to review
all significant tax regulations issued on
or after January 1, 2016, and to take
concrete action to alleviate the burdens
of regulations that (i) impose an undue
financial burden on U.S. taxpayers; (ii)
add undue complexity to the Federal tax
laws; or (iii) exceed the statutory
authority of the IRS. E.O. 13789 further
instructs the Secretary to submit to the
President within 60 days an interim
report that identifies regulations that
meet these criteria. Notice 2017–38
(2017–30 I.R.B. 147 (July 24, 2017))
included the Proposed Regulations in a
list of eight regulations identified by the
Secretary in the interim report as
meeting at least one of the first two
criteria specified in E.O. 13789.
E.O. 13789 further instructs the
Secretary to submit to the President by
September 18, 2017, a final report that
recommends specific actions to mitigate
the burden imposed by regulations
identified in the interim report. On
October 16, 2017, the Secretary
published this final report in the
Federal Register (82 FR 48013),
recommending a complete withdrawal
of the Proposed Regulations to mitigate
their potential burden. To implement
the Secretary’s recommendation, the
Treasury Department and the IRS are
withdrawing the Proposed Regulations.
Drafting Information
The principal authors of this
withdrawal notice are Spence
Hanemann and Timothy Jones, Office of
the Associate Chief Counsel (Financial
Institutions and Products), IRS.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Withdrawal of Notice of Proposed
Rulemaking
Accordingly, under the authority of
26 U.S.C. 7805, the notice of proposed
rulemaking (REG–129067–15) that was
published in the Federal Register on
PO 00000
Frm 00001
Fmt 4702
Sfmt 4702
February 23, 2016, (81 FR 8870) is
withdrawn.
Kirsten Wielobob,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2017–22777 Filed 10–19–17; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 25
[REG–163113–02]
RIN 1545–BB71
Estate, Gift, and Generation-Skipping
Transfer Taxes; Restrictions on
Liquidation of an Interest
Internal Revenue Service (IRS),
Treasury.
ACTION: Withdrawal of notice of
proposed rulemaking.
AGENCY:
This document withdraws
proposed regulations concerning the
estate, gift and generation-skipping
transfer (GST) tax treatment of lapses of
liquidation rights in family-controlled
entities, as well as the valuation of
interests in family-controlled
corporations and partnerships for estate,
gift, and GST tax purposes. Specifically,
the proposed regulations would have
treated certain lapses of liquidation
rights as transfers occurring at death.
The proposed regulations also
addressed the treatment of restrictions
on liquidation and withdrawal in
determining the value of transferred
interests in family-controlled entities.
This withdrawal affects certain
transferors of interests in corporations
and partnerships.
DATES: The notice of proposed
rulemaking published August 4, 2016
(81 FR 51413) is withdrawn as of
October 20, 2017.
FOR FURTHER INFORMATION CONTACT: John
D. MacEachen, (202) 317–6859 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
Section 2704 of the Internal Revenue
Code provides special rules for purposes
of subtitle B (relating to estate, gift, and
GST taxes). Under section 2704(a), a
lapse of certain voting or liquidation
E:\FR\FM\20OCP1.SGM
20OCP1
nlaroche on DSK9F9SC42PROD with PROPOSALS
48780
Federal Register / Vol. 82, No. 202 / Friday, October 20, 2017 / Proposed Rules
rights is treated as a transfer of an
amount equal to the excess of the fair
market value of all interests held by the
transferor, determined as if the voting or
liquidation rights were nonlapsing, over
the fair market value of such interests
after the lapse. In addition, under
section 2704(b) certain restrictions on
liquidation are disregarded in
determining the fair market value of the
transferred interest. Section 2704(b)(4)
authorizes the Secretary to provide by
regulation that other restrictions may be
disregarded if the restriction has the
effect of reducing the value of an
interest transferred to a member of the
transferor’s family for estate, gift, or GST
tax purposes but does not ultimately
reduce the value of such interest to the
transferee.
On August 4, 2016, the Treasury
Department and the IRS published in
the Federal Register (81 FR 51413) a
notice of proposed rulemaking under
section 2704 (REG–163113–02), relating
to restrictions on the liquidation of an
interest in a corporation or a
partnership. The proposed regulations
sought to amend the existing
regulations: (1) To address what
constitutes control of a limited liability
company or other entity or arrangement
that is not a corporation, partnership, or
limited partnership; (2) to address the
effect of deathbed transfers that result in
the lapse of a liquidation right; (3) to
clarify the treatment of a transfer that
results in the creation of an assignee
interest; (4) to address the effect of
restrictions created by state law; (5) to
address restrictions on withdrawal from
an entity and the liquidation of an
interest in an entity; and (6) to address
the effect of insubstantial interests held
by persons who are not members of the
family.
The Treasury Department and the IRS
received numerous written comments
on the proposed regulations from
interested parties, and held a public
hearing on December 1, 2016.
Executive Order 13789, issued on
April 21, 2017, instructs the Secretary of
the Treasury (the Secretary) to review
all significant tax regulations issued on
or after January 1, 2016, and to take
concrete action to alleviate the burdens
of regulations that (i) impose an undue
financial burden on U.S. taxpayers; (ii)
add undue complexity to the Federal tax
laws; or (iii) exceed the statutory
authority of the IRS. E.O. 13789 further
instructs the Secretary to submit to the
President within 60 days an interim
report that identifies regulations that
meet these criteria. Notice 2017–38
(2017–30 I.R.B. 147 (July 24, 2017))
included the proposed regulations in a
list of eight regulations identified by the
VerDate Sep<11>2014
15:00 Oct 19, 2017
Jkt 244001
Secretary in the interim report as
meeting at least one of the first two
criteria specified in E.O. 13789.
E.O. 13789 further instructs the
Secretary to submit to the President by
September 18, 2017, a final report that
recommends specific actions to mitigate
the burden imposed by regulations
identified in the interim report. The
Secretary published this final report in
the Federal Register (82 FR 48013),
recommending a complete withdrawal
of the proposed regulations to mitigate
their potential burden. To implement
the Secretary’s recommendation, the
Treasury Department and the IRS, are
withdrawing the proposed regulations.
List of Subjects in 26 CFR Part 25
Gift taxes, Reporting and
recordkeeping requirements.
Withdrawal of Notice of Proposed
Rulemaking
Accordingly, under the authority of
26 U.S.C. 7805, the notice of proposed
rulemaking (REG–163113–02) that was
published in the Federal Register on
August 4, 2016 (81 FR 51413) is
withdrawn.
Kirsten Wielobob,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2017–22776 Filed 10–17–17; 4:15 pm]
BILLING CODE 4830–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R05–OAR–2017–0157; FRL–9969–86–
Region 5]
Air Plan Approval; Wisconsin;
Regional Haze Progress Report
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
The Environmental Protection
Agency (EPA) is proposing to approve
the regional haze progress report under
the Clean Air Act as a revision to the
Wisconsin State Implementation Plan
(SIP). Wisconsin has satisfied the
progress report requirements of the
Regional Haze Rule. Wisconsin has also
met the requirements for a
determination of the adequacy of its
regional haze plan with its negative
declaration submitted with the progress
report.
DATES: Comments must be received on
or before November 20, 2017.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R05–
SUMMARY:
PO 00000
Frm 00002
Fmt 4702
Sfmt 4702
OAR–2017–0157 at https://
www.regulations.gov or via email to
aburano.douglas@epa.gov. For
comments submitted at Regulations.gov,
follow the online instructions for
submitting comments. Once submitted,
comments cannot be edited or removed
from Regulations.gov. For either manner
of submission, EPA may publish any
comment received to its public docket.
Do not submit electronically any
information you consider to be
Confidential Business Information (CBI)
or other information whose disclosure is
restricted by statute. Multimedia
submissions (audio, video, etc.) must be
accompanied by a written comment.
The written comment is considered the
official comment and should include
discussion of all points you wish to
make. EPA will generally not consider
comments or comment contents located
outside of the primary submission (i.e.
on the web, cloud, or other file sharing
system). For additional submission
methods, please contact the person
identified in the FOR FURTHER
INFORMATION CONTACT section.
For the full EPA public comment
policy, information about CBI or
multimedia submissions, and general
guidance on making effective
comments, please visit https://
www2.epa.gov/dockets/commentingepa-dockets.
FOR FURTHER INFORMATION CONTACT:
Gilberto Alvarez, Environmental
Scientist, Attainment Planning and
Maintenance Section, Air Programs
Branch (AR–18J), Environmental
Protection Agency, Region 5, 77 West
Jackson Boulevard, Chicago, Illinois
60604, (312) 886–6143,
alvarez.gilberto@epa.gov.
SUPPLEMENTARY INFORMATION: In the
Final Rules section of this Federal
Register, EPA is approving the State’s
SIP submittal as a direct final rule
without prior proposal because the
Agency views this as a noncontroversial
submittal and anticipates no adverse
comments. A detailed rationale for the
approval is set forth in the direct final
rule. If no adverse comments are
received in response to this rule, no
further activity is contemplated. If EPA
receives adverse comments, the direct
final rule will be withdrawn and all
public comments received will be
addressed in a subsequent final rule
based on this proposed rule. EPA will
not institute a second comment period.
Any parties interested in commenting
on this action should do so at this time.
Please note that if EPA receives adverse
comment on an amendment, paragraph,
or section of this rule and if that
provision may be severed from the
E:\FR\FM\20OCP1.SGM
20OCP1
]]>Agencies
[Federal Register Volume 82, Number 202 (Friday, October 20, 2017)]
[Proposed Rules]
[Pages 48779-48780]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-22776]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 25
[REG-163113-02]
RIN 1545-BB71
Estate, Gift, and Generation-Skipping Transfer Taxes;
Restrictions on Liquidation of an Interest
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Withdrawal of notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This document withdraws proposed regulations concerning the
estate, gift and generation-skipping transfer (GST) tax treatment of
lapses of liquidation rights in family-controlled entities, as well as
the valuation of interests in family-controlled corporations and
partnerships for estate, gift, and GST tax purposes. Specifically, the
proposed regulations would have treated certain lapses of liquidation
rights as transfers occurring at death. The proposed regulations also
addressed the treatment of restrictions on liquidation and withdrawal
in determining the value of transferred interests in family-controlled
entities. This withdrawal affects certain transferors of interests in
corporations and partnerships.
DATES: The notice of proposed rulemaking published August 4, 2016 (81
FR 51413) is withdrawn as of October 20, 2017.
FOR FURTHER INFORMATION CONTACT: John D. MacEachen, (202) 317-6859 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
Section 2704 of the Internal Revenue Code provides special rules
for purposes of subtitle B (relating to estate, gift, and GST taxes).
Under section 2704(a), a lapse of certain voting or liquidation
[[Page 48780]]
rights is treated as a transfer of an amount equal to the excess of the
fair market value of all interests held by the transferor, determined
as if the voting or liquidation rights were nonlapsing, over the fair
market value of such interests after the lapse. In addition, under
section 2704(b) certain restrictions on liquidation are disregarded in
determining the fair market value of the transferred interest. Section
2704(b)(4) authorizes the Secretary to provide by regulation that other
restrictions may be disregarded if the restriction has the effect of
reducing the value of an interest transferred to a member of the
transferor's family for estate, gift, or GST tax purposes but does not
ultimately reduce the value of such interest to the transferee.
On August 4, 2016, the Treasury Department and the IRS published in
the Federal Register (81 FR 51413) a notice of proposed rulemaking
under section 2704 (REG-163113-02), relating to restrictions on the
liquidation of an interest in a corporation or a partnership. The
proposed regulations sought to amend the existing regulations: (1) To
address what constitutes control of a limited liability company or
other entity or arrangement that is not a corporation, partnership, or
limited partnership; (2) to address the effect of deathbed transfers
that result in the lapse of a liquidation right; (3) to clarify the
treatment of a transfer that results in the creation of an assignee
interest; (4) to address the effect of restrictions created by state
law; (5) to address restrictions on withdrawal from an entity and the
liquidation of an interest in an entity; and (6) to address the effect
of insubstantial interests held by persons who are not members of the
family.
The Treasury Department and the IRS received numerous written
comments on the proposed regulations from interested parties, and held
a public hearing on December 1, 2016.
Executive Order 13789, issued on April 21, 2017, instructs the
Secretary of the Treasury (the Secretary) to review all significant tax
regulations issued on or after January 1, 2016, and to take concrete
action to alleviate the burdens of regulations that (i) impose an undue
financial burden on U.S. taxpayers; (ii) add undue complexity to the
Federal tax laws; or (iii) exceed the statutory authority of the IRS.
E.O. 13789 further instructs the Secretary to submit to the President
within 60 days an interim report that identifies regulations that meet
these criteria. Notice 2017-38 (2017-30 I.R.B. 147 (July 24, 2017))
included the proposed regulations in a list of eight regulations
identified by the Secretary in the interim report as meeting at least
one of the first two criteria specified in E.O. 13789.
E.O. 13789 further instructs the Secretary to submit to the
President by September 18, 2017, a final report that recommends
specific actions to mitigate the burden imposed by regulations
identified in the interim report. The Secretary published this final
report in the Federal Register (82 FR 48013), recommending a complete
withdrawal of the proposed regulations to mitigate their potential
burden. To implement the Secretary's recommendation, the Treasury
Department and the IRS, are withdrawing the proposed regulations.
List of Subjects in 26 CFR Part 25
Gift taxes, Reporting and recordkeeping requirements.
Withdrawal of Notice of Proposed Rulemaking
Accordingly, under the authority of 26 U.S.C. 7805, the notice of
proposed rulemaking (REG-163113-02) that was published in the Federal
Register on August 4, 2016 (81 FR 51413) is withdrawn.
Kirsten Wielobob,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2017-22776 Filed 10-17-17; 4:15 pm]
BILLING CODE 4830-01-P
