[Federal Register: December 26, 2007 (Volume 72, Number 246)]
[Proposed Rules]
[Page 72970]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26de07-26]
[[Page 72970]]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-104713-07]
RIN 1545-BG39
Calculating and Apportioning the Section 11(b)(1) Additional Tax
Under Section 1561 for Controlled Groups
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations.
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SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS is issuing temporary regulations that affect
component members of a controlled group of corporations and
consolidated groups filing life-nonlife Federal income tax returns.
These temporary regulations provide guidance for calculating and
apportioning between component members any amount of additional tax and
any reduction in the amount exempted from the alternative minimum tax.
These temporary regulations also update and clarify the allocation of
tax-benefit items in the case in which a component member has a short
taxable year not including a December 31st date. Finally, these
temporary regulations provide explanations of two concepts: A group's
testing date and a member's testing period for use in determining which
members of the group and which taxable years of those members are
subject to the controlled group rules. The text of those regulations
also serves as the text of these proposed regulations.
DATES: Written or electronic comments and a request for a public
hearing must be received by March 25, 2008.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-104713-07), 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-
104713-07), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC, or sent electronically via the Federal
eRulemaking Portal at http://www.regulations.gov (IRS REG-104713-07).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulation,
Grid Glyer, (202) 622-7930, concerning submissions of comments and
requests for public hearings, Richard A. Hurst, (202) 622-7180 (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 amend 26 CFR part 1 to add Sec. Sec.
1.1502-47T and 1.1561-0T, remove Sec. 1.1561-2, and amend Sec. Sec.
1.1561-2T and 1.1563-1T. The text of those regulations also serves as
the text of these proposed regulations. The preamble to the final and
temporary regulations explains 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. 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. With respect
to Sec. 1.1502-47, it is hereby certified that these regulations will
not have a significant economic impact on a substantial number of small
entities. This certification is based on the fact that these
regulations primarily affect affiliated groups of corporations that
have elected to file consolidated returns, which tend to be larger
businesses. Further, these regulations do not require any additional
collection of information under Sec. 1.1502-47 because these
regulations simply add a section that had been inadvertently removed
from the Code of Federal Regulations. Therefore, a regulatory
flexibility analysis is not required. Pursuant to section 7805(f) of
the Internal Revenue Code, these regulations have been submitted to the
Chief Counsel for Advocacy of the Small Business Administration for
comment on their 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 written comments (a signed original
and eight (8) copies) or electronic comments that are submitted timely
to the IRS. The IRS and the Treasury Department specifically request
comments on the clarity of the proposed regulations and how they can be
made easier to understand. All comments will be available for public
inspection and copying. A public hearing may be scheduled if requested
in writing by any person that timely submits written or electronic
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 author of these regulations is Grid Glyer of the
Office of Associate Chief Counsel (Corporate). 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.
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 * * *
Par. 2. Section 1.1561-0 is added to read as follows:
Sec. 1.1561-0 Table of contents.
[The text of the proposed Sec. 1.1561-0 is the same as the text
for Sec. 1.1561-0T published elsewhere in this issue of the Federal
Register].
Par. 3. Section 1.1561-2 is added to read as follows:
Sec. 1.1561-2 Special rules for allocating reductions to certain
section 1561(a) tax-benefit items.
[The text of the proposed Sec. 1.1561-2 is the same as the text
for Sec. 1.1561-2T(a) through (f)(1) published elsewhere in this issue
of the Federal Register].
Par. 4. Section 1.1563-1 is amended to read as follows:
Sec. 1.1563-1 Definition of controlled group of corporations and
component members and related concepts.
[The text of the proposed Sec. 1.1563-1 is the same as the text
for Sec. 1.1563-1T published elsewhere in this issue of the Federal
Register].
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E7-24886 Filed 12-21-07; 8:45 am]
BILLING CODE 4830-01-P