[Federal Register: July 8, 2008 (Volume 73, Number 131)]
[Proposed Rules]
[Page 38940-38941]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08jy08-26]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-164965-04]
RIN 1545-BE77
Elections Regarding Start-Up Expenditures, Corporation
Organizational Expenditures, and Partnership Organizational Expenses
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 relating to
the elections to deduct start-up expenditures under section 195 of the
Internal Revenue Code (Code), organizational expenditures of
corporations under section 248, and organizational expenses of
partnerships under section 709. The American Jobs Creation Act of 2004
amended these three sections of the Code to provide similar rules for
deducting these types of expenses that are paid or incurred after
October 22, 2004. The regulations affect taxpayers that pay or incur
these expenses and provide guidance on how to elect to deduct the
expenses in accordance with the new rules. The text of those
[[Page 38941]]
temporary regulations also serves as the text of these proposed
regulations.
DATES: Comments or a request for a public hearing must be received by
October 6, 2008.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-164965-04), room
5203, Internal Revenue Service, POB 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-
164965-04), 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-164965-04).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Grace Matuszeski, (202) 622-7900; concerning submission of comments or
a request for a public hearing, Richard Hurst, at
Richard.A.Hurst@irscounsel.treas.gov or (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 the Income Tax Regulations (26 CFR
Part 1) to implement the changes to sections 195, 248, and 709 of the
Code made by section 902 of the American Jobs Creation Act of 2004,
Public Law 108-357 (118 Stat. 1418). The text of those temporary
regulations also serves as the text of these proposed regulations. The
preamble to the temporary regulations explains the amendments.
Special Analyses
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 also has been determined that section
553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does
not apply to these regulations. Because the regulations do not impose a
collection of information on small entities, the Regulatory Flexibility
Act (5 U.S.C. chapter 6) does not apply. 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 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 request comments on the
clarity of the proposed rules and how they can be made easier to
understand. All comments will be available for public inspection and
copying.
A public hearing will be scheduled if requested in writing by any
person that timely submits comments. If a public hearing is scheduled,
notice of the date, time and place for the hearing will be published in
the Federal Register.
Drafting Information
The principal author of these regulations is Grace Matuszeski of
the Office of the Associate Chief Counsel (Income Tax & Accounting).
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, 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 1.195-1 is revised to read as follows:
Sec. 1.195-1 Election to amortize start-up expenditures.
[The text of this section is the same as the text of Sec. 1.195-
1T(a) through (d) published elsewhere in this issue of the Federal
Register.]
Par. 3. Section 1.248-1 is amended by revising paragraphs (a) and
(c), and adding paragraphs (d) through (f), to read as follows:
Sec. 1.248-1 Election to amortize organizational expenditures.
(a) [The text of this proposed amendment to Sec. 1.248-1(a) is the
same as the text of Sec. 1.248-1T(a) published elsewhere in this issue
of the Federal Register.]
* * * * *
(c) through (f) [The text of these proposed amendments to Sec.
1.248-1(c) through (f) are the same as the text of Sec. 1.248-1T(c)
through (f) published elsewhere in this issue of the Federal Register.]
Par. 4. Section 1.709-1 is amended by revising the section heading
and paragraph (b) to read as follows:
Sec. 1.709-1 Treatment of organizational expenses and syndication
costs.
* * * * *
(b) [The text of this proposed amendment to Sec. 1.709-1(b) is the
same as the text of Sec. 1.709-1T(b)(1) through (b)(5) published
elsewhere in this issue of the Federal Register.]
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-15457 Filed 7-7-08; 8:45 am]
BILLING CODE 4830-01-P