Section 42, Low-Income Housing Credit Average Income Test Regulations, 61543-61544 [2022-22100]

Download as PDF 61543 Proposed Rules Federal Register Vol. 87, No. 196 Wednesday, October 12, 2022 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 Background and Explanation of Provisions 26 CFR Part 1 [REG–113068–22] RIN 1545–BQ47 Section 42, Low-Income Housing Credit Average Income Test Regulations Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed rulemaking. AGENCY: This document contains proposed regulations concerning recordkeeping and reporting requirements for the average income test for purposes of the low-income housing credit. If a building is part of a residential rental project that satisfies this test, the building may be eligible to earn low-income housing credits. These proposed regulations affect owners of low-income housing projects and State or local housing credit agencies that monitor compliance with the requirements for low-income housing credits. In the Rules and Regulations section of this issue of the Federal Register, the IRS is issuing temporary regulations concerning the recordkeeping and reporting requirements for the average income test. The text of the temporary regulations also serves as the text of these proposed regulations. DATES: Written (including electronic) comments must be received by December 12, 2022. ADDRESSES: Commenters are strongly encouraged to submit public comments electronically. Submit electronic submissions via the Federal eRulemaking Portal at www.regulations.gov (indicate IRS and REG–113068–22) by following the online instructions for submitting comments. Once submitted to the Federal eRulemaking Portal, comments cannot be edited or withdrawn. The Department of the Treasury (Treasury jspears on DSK121TN23PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 18:05 Oct 11, 2022 Department) and the IRS will publish for public availability any comment submitted electronically, and on paper, to its public docket. FOR FURTHER INFORMATION CONTACT: Concerning these proposed regulations, Dillon Taylor at (202) 317–4137; concerning submissions of comments, Regina L. Johnson at (202) 317–6901 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Jkt 259001 Temporary regulations in the Rules and Regulations section of this issue of the Federal Register add § 1.42–19T to the temporary Income Tax Regulations (26 CFR part 1) that relate to the average income test under section 42 of the Internal Revenue Code. These new temporary regulations set forth certain recordkeeping and reporting requirements that relate to the rules in § 1.42–19. The text of the temporary regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the amendments. These proposed regulations would integrate the text of the temporary regulations into portions of § 1.42–19 that are currently reserved. Special Analyses These proposed regulations are not subject to review under section 6(b) of Executive Order 12866 pursuant to the Memorandum of Agreement (April 11, 2018) between the Department of the Treasury and the Office of Management and Budget regarding review of tax regulations. Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it is hereby certified that these proposed regulations will not have a significant economic impact on a substantial number of small entities. The basis for this certification can be found in the Special Analyses section of the temporary regulations. Pursuant to section 7805(f) of the Internal Revenue Code, these proposed regulations will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on their impact on small business. Comments and a Request for Public Hearing Before these proposed amendments to the regulations are adopted as final PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 regulations, consideration will be given to comments that are submitted timely to the IRS as prescribed in the preamble under the ADDRESSES section. The Treasury Department and the IRS request comments on all aspects of the proposed regulations. Any electronic comments submitted, and any paper comments submitted, will be made available at www.regulations.gov or upon request. A public hearing will be scheduled if requested in writing by any person who timely submits electronic or written comments. Requests for a public hearing are also encouraged to be made electronically. If a public hearing is scheduled, notice of the date and time for the public hearing will be published in the Federal Register. Announcement 2020–4, 2020–17 IRB 1, provides that until further notice, public hearings conducted by the IRS will be held telephonically. Any telephonic hearing will be made accessible to people with disabilities. Drafting Information The principal author of these proposed regulations is Dillon Taylor, Office of Associate Chief Counsel (Passthroughs and Special Industries), IRS. However, other personnel from the IRS and 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, the Treasury Department and the IRS propose to amend 26 CFR part 1 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 * * * Section 1.42–19 also issued under 26 U.S.C. 42(n); * * * * * Par. 2. Section 1.42–19 is amended by adding paragraphs (c)(1) and (2), (c)(3)(iv), (c)(4), and (d)(2) and revising paragraph (f) to read as follows: ■ § 1.42–19 * Average income test. * * (c) * * * E:\FR\FM\12OCP1.SGM 12OCP1 * * 61544 Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 / Proposed Rules (1) [The text of proposed § 1.42– 19(c)(1) is the same as the text of § 1.42– 19T(c)(1) in the final and temporary rule published elsewhere in this issue of the Federal Register]. (2) [The text of proposed § 1.42– 19(c)(2) is the same as the text of § 1.42– 19T(c)(2) in the final and temporary rule published elsewhere in this issue of the Federal Register]. (3) * * * (iv) [The text of proposed § 1.42– 19(c)(3)(iv) is the same as the text of § 1.42–19T(c)(3)(iv) in the final and temporary rule published elsewhere in this issue of the Federal Register]. (4) [The text of proposed § 1.42– 19(c)(4) is the same as the text of § 1.42– 19T(c)(4) in the final and temporary rule published elsewhere in this issue of the Federal Register]. (d) * * * (2) [The text of proposed § 1.42– 19(d)(2) is the same as the text of § 1.42– 19T(d)(2) in the final and temporary rule published elsewhere in this issue of the Federal Register]. * * * * * (f) [The text of proposed § 1.42–19(f) is the same as the text of § 1.42–19T(f) in the final and temporary rule published elsewhere in this issue of the Federal Register]. Douglas W. O’Donnell, Deputy Commissioner for Services and Enforcement. [FR Doc. 2022–22100 Filed 10–7–22; 11:15 am] BILLING CODE 4830–01–P Background The notice of proposed rulemaking and notice of public hearing that are the subject of this document are under section 7803(e) of the Internal Revenue Code. DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 301 [REG–125693–19] RIN 1545–BP72 Resolution of Federal Tax Controversies by the Independent Office of Appeals; Correction Internal Revenue Service (IRS), Treasury. ACTION: Correction to a notice of proposed rulemaking and notice of public hearing. AGENCY: This document contains a correction to a notice of proposed rulemaking and notice of public hearing (REG–125693–19) that were published in the Federal Register on Tuesday, September 13, 2022. The proposed regulations are related to the IRS Independent Office of Appeals’ resolution of Federal tax controversies without litigation and related to jspears on DSK121TN23PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 18:05 Oct 11, 2022 Jkt 259001 requests for referral to that office following the issuance of a notice of deficiency to a taxpayer by the IRS. DATES: Written or electronic comments are still being accepted and must be received by November 14, 2022. Requests to speak and outlines of topics to be discussed at the public hearing scheduled for November 29, 2022, at 10 a.m. EST must be received by November 14, 2022. ADDRESSES: Commenters are strongly encouraged to submit public comments electronically. Submit electronic submissions via the Federal eRulemaking Portal at www.regulations.gov (indicate IRS and REG–125693–19) by following the online instructions for submitting comments. Once submitted to the Federal eRulemaking Portal, comments cannot be edited or withdrawn. The Department of the Treasury (Treasury Department) and the IRS will publish for public availability any comment to its public docket. Send paper submissions to: CC:PA:LPD:PR (REG– 125693–19), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. FOR FURTHER INFORMATION CONTACT: Concerning this correction, Keith L. Brau at (202) 317–5437; concerning submissions of comments and outlines of topics for the public hearing, Regina Johnson, (202) 317–6901 (not toll-free numbers) or publichearings@irs.gov. SUPPLEMENTARY INFORMATION: Correction of Publication Accordingly, the notice of proposed rulemaking and notice of hearing (REG– 125693–19), which were the subject of FR Doc. 2022–19662, published September 13, 2022, at 87 FR 55934, are corrected as follows: On page 55951, in § 301.7803–2, the third column, the third and fourth lines of paragraph (h) are corrected to read ‘‘by Appeals made on or after [Date 30 days after a Treasury Decision finalizing these rules is published in the Federal Register]. Oluwafunmilayo A. Taylor, Branch Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration). [FR Doc. 2022–21826 Filed 10–11–22; 8:45 am] BILLING CODE 4830–01–P PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 DEPARTMENT OF VETERANS AFFAIRS 38 CFR Part 21 RIN 2900–AR56 85/15 Rule Calculations, Waiver Criteria, and Reports Department of Veterans Affairs. Proposed rule. AGENCY: ACTION: The Department of Veterans Affairs (VA) is proposing to amend its educational assistance regulations by eliminating the four 85/15 rule calculation exemptions for students in receipt of certain types of institutional aid. Currently, VA regulations provide exceptions that allow certain categories of students to be considered ‘‘nonsupported’’ for purposes of the 85/15 rule notwithstanding their receipt of institutional aid. VA is proposing to eliminate these exceptions, thus clarifying the types of scholarships that educational institutions must include in their calculations of ‘‘supported’’ students. Also, VA is proposing to revise the criteria that shall be considered by the Director of Education Service when granting an 85/15 rule compliance waiver. Lastly, VA is proposing to amend the timeline for certain educational institutions’ submission of 85/15 compliance reports. DATES: Comments must be received on or before December 12, 2022. ADDRESSES: Comments may be submitted through www.Regulations.gov, Comments should indicate that they are submitted in response to ‘‘RIN 2900–AR56(P)— Amendments to 85/15 Rule Calculations, Waiver Criteria, and Reports. Comments received will be available at regulations.gov for public viewing, inspection, or copies. FOR FURTHER INFORMATION CONTACT: Cheryl Amitay, Chief, Policy and Regulation Development Staff (225B), Chief of Policy & Regulations, Education Service, Department of Veterans Affairs, 810 Vermont Avenue NW, Washington, DC 20420, (202) 461–9800. (This is not a toll-free number.) SUPPLEMENTARY INFORMATION: The 85/15 rule (38 U.S.C. 3680A(d); 38 CFR 21.4201(a)) prohibits the Department of Veterans Affairs (VA) from paying educational assistance benefits to any new students once ‘‘more than 85 percent of the students enrolled in the [program of education] are having all or part of their tuition, fees, or other charges paid to or for them by the educational institution or by the Department of Veterans Affairs.’’ 38 SUMMARY: E:\FR\FM\12OCP1.SGM 12OCP1

Agencies

[Federal Register Volume 87, Number 196 (Wednesday, October 12, 2022)]
[Proposed Rules]
[Pages 61543-61544]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-22100]


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

========================================================================


Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 / 
Proposed Rules

[[Page 61543]]



DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-113068-22]
RIN 1545-BQ47


Section 42, Low-Income Housing Credit Average Income Test 
Regulations

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This document contains proposed regulations concerning 
recordkeeping and reporting requirements for the average income test 
for purposes of the low-income housing credit. If a building is part of 
a residential rental project that satisfies this test, the building may 
be eligible to earn low-income housing credits. These proposed 
regulations affect owners of low-income housing projects and State or 
local housing credit agencies that monitor compliance with the 
requirements for low-income housing credits. In the Rules and 
Regulations section of this issue of the Federal Register, the IRS is 
issuing temporary regulations concerning the recordkeeping and 
reporting requirements for the average income test. The text of the 
temporary regulations also serves as the text of these proposed 
regulations.

DATES: Written (including electronic) comments must be received by 
December 12, 2022.

ADDRESSES: Commenters are strongly encouraged to submit public comments 
electronically. Submit electronic submissions via the Federal 
eRulemaking Portal at www.regulations.gov (indicate IRS and REG-113068-
22) by following the online instructions for submitting comments. Once 
submitted to the Federal eRulemaking Portal, comments cannot be edited 
or withdrawn. The Department of the Treasury (Treasury Department) and 
the IRS will publish for public availability any comment submitted 
electronically, and on paper, to its public docket.

FOR FURTHER INFORMATION CONTACT: Concerning these proposed regulations, 
Dillon Taylor at (202) 317-4137; concerning submissions of comments, 
Regina L. Johnson at (202) 317-6901 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register add Sec.  1.42-19T to the temporary 
Income Tax Regulations (26 CFR part 1) that relate to the average 
income test under section 42 of the Internal Revenue Code. These new 
temporary regulations set forth certain recordkeeping and reporting 
requirements that relate to the rules in Sec.  1.42-19. The text of the 
temporary regulations also serves as the text of these proposed 
regulations. The preamble to the temporary regulations explains the 
amendments. These proposed regulations would integrate the text of the 
temporary regulations into portions of Sec.  1.42-19 that are currently 
reserved.

Special Analyses

    These proposed regulations are not subject to review under section 
6(b) of Executive Order 12866 pursuant to the Memorandum of Agreement 
(April 11, 2018) between the Department of the Treasury and the Office 
of Management and Budget regarding review of tax regulations.
    Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it 
is hereby certified that these proposed regulations will not have a 
significant economic impact on a substantial number of small entities. 
The basis for this certification can be found in the Special Analyses 
section of the temporary regulations.
    Pursuant to section 7805(f) of the Internal Revenue Code, these 
proposed regulations will be submitted to the Chief Counsel for 
Advocacy of the Small Business Administration for comment on their 
impact on small business.

Comments and a Request for Public Hearing

    Before these proposed amendments to the regulations are adopted as 
final regulations, consideration will be given to comments that are 
submitted timely to the IRS as prescribed in the preamble under the 
ADDRESSES section. The Treasury Department and the IRS request comments 
on all aspects of the proposed regulations. Any electronic comments 
submitted, and any paper comments submitted, will be made available at 
www.regulations.gov or upon request.
    A public hearing will be scheduled if requested in writing by any 
person who timely submits electronic or written comments. Requests for 
a public hearing are also encouraged to be made electronically. If a 
public hearing is scheduled, notice of the date and time for the public 
hearing will be published in the Federal Register. Announcement 2020-4, 
2020-17 IRB 1, provides that until further notice, public hearings 
conducted by the IRS will be held telephonically. Any telephonic 
hearing will be made accessible to people with disabilities.

Drafting Information

    The principal author of these proposed regulations is Dillon 
Taylor, Office of Associate Chief Counsel (Passthroughs and Special 
Industries), IRS. However, other personnel from the IRS and 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, the Treasury Department and the IRS propose to amend 
26 CFR part 1 as follows:

PART 1--INCOME TAXES

0
Paragraph 1.The authority citation for part 1 continues to read, in 
part, as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 1.42-19 also issued under 26 U.S.C. 42(n);
* * * * *
0
Par. 2. Section 1.42-19 is amended by adding paragraphs (c)(1) and (2), 
(c)(3)(iv), (c)(4), and (d)(2) and revising paragraph (f) to read as 
follows:


Sec.  1.42-19  Average income test.

* * * * *
    (c) * * *

[[Page 61544]]

    (1) [The text of proposed Sec.  1.42-19(c)(1) is the same as the 
text of Sec.  1.42-19T(c)(1) in the final and temporary rule published 
elsewhere in this issue of the Federal Register].
    (2) [The text of proposed Sec.  1.42-19(c)(2) is the same as the 
text of Sec.  1.42-19T(c)(2) in the final and temporary rule published 
elsewhere in this issue of the Federal Register].
    (3) * * *
    (iv) [The text of proposed Sec.  1.42-19(c)(3)(iv) is the same as 
the text of Sec.  1.42-19T(c)(3)(iv) in the final and temporary rule 
published elsewhere in this issue of the Federal Register].
    (4) [The text of proposed Sec.  1.42-19(c)(4) is the same as the 
text of Sec.  1.42-19T(c)(4) in the final and temporary rule published 
elsewhere in this issue of the Federal Register].
    (d) * * *
    (2) [The text of proposed Sec.  1.42-19(d)(2) is the same as the 
text of Sec.  1.42-19T(d)(2) in the final and temporary rule published 
elsewhere in this issue of the Federal Register].
* * * * *
    (f) [The text of proposed Sec.  1.42-19(f) is the same as the text 
of Sec.  1.42-19T(f) in the final and temporary rule published 
elsewhere in this issue of the Federal Register].

Douglas W. O'Donnell,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2022-22100 Filed 10-7-22; 11:15 am]
BILLING CODE 4830-01-P
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