Federal Register: December 26, 2007 (Volume 72, Number 246)
DOCID: fr26de07-26 FR Doc E7-24886
DEPARTMENT OF THE TREASURY
Internal Revenue Service
CFR Citation: 26 CFR Part 1
RIN ID: RIN 1545-BG39
REG ID: [REG-104713-07]
NOTICE: PROPOSED RULES
DOCID: fr26de07-26
ACTION: Income taxes:
DOCUMENT ACTION: Notice of proposed rulemaking by cross-reference to temporary regulations.
SUBJECT CATEGORY:
Calculating and Apportioning the Section 11(b)(1) Additional Tax Under Section 1561 for Controlled Groups
DATES: Written or electronic comments and a request for a public hearing must be received by March 25, 2008.
DOCUMENT 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 lifenonlife 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 taxbenefit 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.
SUMMARY:
Controlled groups of corporations; additional tax calculation and apportionment; cross-reference,
SUPPLEMENTAL 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. 1.150247T and 1.15610T, remove Sec. 1.15612, and amend Sec. Sec. 1.15612T and 1.15631T. 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. 1.150247, 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. 1.150247 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 1INCOME 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 1.15610 is added to read as follows: Sec. 1.15610 Table of contents.
[The text of the proposed Sec. 1.15610 is the same as the text
for Sec. 1.15610T published elsewhere in this issue of the Federal Register].
Par. 3. Section 1.15612 is added to read as follows:
Sec. 1.15612 Special rules for allocating reductions to certain section 1561(a) taxbenefit items.
[The text of the proposed Sec. 1.15612 is the same as the text
for Sec. 1.15612T(a) through (f)(1) published elsewhere in this issue of the Federal Register].
Par. 4. Section 1.15631 is amended to read as follows:
Sec. 1.15631 Definition of controlled group of corporations and component members and related concepts.
[The text of the proposed Sec. 1.15631 is the same as the text
for Sec. 1.15631T published elsewhere in this issue of the Federal Register].
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E724886 Filed 122107; 8:45 am]
BILLING CODE 483001P
FOR FURTHER INFORMATION CONTACT
Concerning the proposed regulation, Grid Glyer, (202) 6227930, concerning submissions of comments and requests for public hearings, Richard A. Hurst, (202) 6227180 (not tollfree numbers).