Internal Revenue Service August 16, 2007 – Federal Register Recent Federal Regulation Documents

The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Pub. L. 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning an existing final regulation, PS-102-88 (TD 8612), Income, Gift and Estate Tax (20.2056A-3, 20.2056A-4, and 20.2056A-10).

This document contains corrections to notice of proposed rulemaking by cross-reference to temporary regulations (REG-142039-06) and notice of proposed rulemaking (REG-139268-06) that were published in the Federal Register on Friday, July 6, 2007 (72 FR 36927) providing guidance under 4965 of the Internal Revenue Code and relating to entity-level and manager-level excise taxes with respect to prohibited tax shelter transactions to which tax-exempt entities are parties; Sec. Sec. 6033(a)(2) and 6011(g), relating to certain disclosure obligations with respect to such transactions; and Sec. Sec. 6011 and 6071, relating to the requirement of a return and time for filing with respect to section 4965 taxes.

This document contains final regulations under which qualified subchapter S subsidiaries and single-owner eligible entities that currently are disregarded as entities separate from their owners for Federal tax purposes will be treated as separate entities for employment tax and related reporting requirement purposes. This document also contains final regulations that treat such disregarded entities as separate entities for purposes of certain excise taxes reported on Forms 720, ``Quarterly Federal Excise Tax Return;'' 730, ``Monthly Tax Return for Wagers;'' 2290, ``Heavy Highway Vehicle Use Tax Return;'' and 11-C, ``Occupation Tax and Registration Return for Wagering;'' excise tax refunds or payments claimed on Form 8849, ``Claim for Refund of Excise Taxes;'' and excise tax registrations on Form 637, ``Application for Registration (For Certain Excise Tax Activities).'' These regulations affect disregarded entities and the owners and employees of disregarded entities with respect to the payment and reporting of Federal employment taxes and the reporting of wage payments. These regulations also affect disregarded entities and their owners in the payment and reporting of certain Federal excise taxes and in registration and claims related to certain Federal excise taxes.

This document contains correction to temporary regulations (TD 9335) that were published in the Federal Register on Friday, July 6, 2007 (72 FR 36869) under section 6033(a)(2) of the Internal Revenue Code that provide rules regarding the form, manner and timing of disclosure obligations with respect to prohibited tax shelter transactions to which tax-exempt entities are parties.