Internal Revenue Service (IRS), Treasury.
Withdrawal of notice of proposed rulemaking.
This document withdraws a notice of proposed rulemaking relating to the circumstances in which accounts or notes receivable are “acquired * * * for services rendered” within the meaning of section 1221(a)(4).Start Further Info
FOR FURTHER INFORMATION CONTACT:
K. Scott Brown, (202) 622-7454 (not a toll-free call).End Further Info End Preamble Start Supplemental Information
On August 7, 2006, the Treasury Department and the IRS published in the Federal Register (71 FR 44600) proposed regulations § 1.1221-1(e) under section 1221(a)(4) of the Internal Revenue Code. These regulations sought to clarify the circumstances in which accounts or notes receivable are “acquired * * * for services rendered” within the meaning of section 1221(a)(4).
Written comments were received from interested parties, and public hearings to discuss these regulations were held on November 7, 2006, and August 22, 2007. Most of the comments focused on the decisions in Burbank Liquidating Corp. v. Commissioner, 39 T.C. 999 (1963), acq. sub nom. United Assocs., Inc., 1965-1 C.B. 3, aff'd in part and rev'd in part on other grounds, 335 F.2d 125 (9th Cir. 1964) and Federal National Mortgage Association v. Commissioner, 100 T.C. 541 (1993). The Treasury Department and the IRS considered the comments and have decided to withdraw the proposed regulations.
The IRS will not challenge return reporting positions of taxpayers under section 1221(a)(4) that apply existing law, including Burbank Liquidating; Federal National Mortgage Association; and Bieldfeldt v. Commissioner, 231 F.3d 1035 (7th Cir. 2000), cert. denied, 534 U.S. 813 (2001). See also Rev. Rul. 80-56 (1980-1 C.B. 154) and Rev. Rul. 80-57 (1980-1 C.B. 157). The IRS and the Treasury Department will continue to study this area and may issue guidance in the future.Start List of Subjects
List of Subjects in 26 CFR Part 1End List of Subjects
Withdrawal of Notice of Proposed RulemakingStart Signature
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-8817 Filed 4-22-08; 8:45 am]
BILLING CODE 4830-01-P