This PDF is the current document as it appeared on Public Inspection on 06/11/2015 at 08:45 am.
Internal Revenue Service (IRS), Treasury.
Withdrawal of notice of proposed rulemaking and notice of proposed rulemaking by cross-reference to temporary regulations.
In the Rules and Regulations section of this issue of the Federal Register, the IRS and the Treasury Department are issuing temporary regulations that prevent a corporate partner from using a partnership to avoid corporate level gain required to be recognized. These regulations affect partnerships and their partners. The text of the temporary regulations in this issue of the Federal Register also serves as the text of these proposed regulations.
Comments and requests for a public hearing must be received by September 10, 2015.
Send submissions to: CC:PA:LPD:PR (REG-149518-03), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Start Printed Page 33452Washington, 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-149518-03), 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-149518-03).Start Further Info
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations, Kevin I. Babitz, (202) 317-6852; concerning submission of comments or to request a public hearing, Oluwafunmilayo Taylor at (202) 317-6901.End Further Info End Preamble Start Supplemental 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) relating to section 337(d). The temporary regulations set forth rules for applying section 337(d) to partnerships and S corporations. The text of the temporary regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the temporary regulations and these proposed regulations.
It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in Executive Order 12866, as supplemented by Executive Order 13563. Therefore, a regulatory assessment is not required. These proposed regulations do not impose a collection of information on small entities. Further, pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it is hereby certified that these proposed regulations would not have a significant economic impact on a substantial number of small entities. This certification is based on the fact that these proposed regulations would primarily affect sophisticated ownership structures with interlocking ownership of corporations, partnerships and corporate stock. Additionally, these proposed regulations contain a number of de minimis provisions that render the regulations inapplicable to most small businesses. Accordingly, 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 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 comments that are submitted timely to the IRS as prescribed in this preamble under the ADDRESSES heading. The Treasury Department and the IRS request comments on all aspects of the proposed rules. All comments will be available at www.regulations.gov or upon request. A public hearing will 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.
The principal authors of these regulations are Joseph R. Worst and Kevin I. Babitz, Office of the Associate Chief Counsel (Passthroughs and Special Industries). However, other personnel from the IRS and the Treasury Department participated in their development.
Withdrawal of Notice of Proposed Rulemaking
Accordingly, under the authority of 26 U.S.C. 7805, the notice of proposed rulemaking (PS-91-90; REG-208989-90) that was published in the Federal Register on December 15, 1992 (57 FR 59324), is withdrawn.Start List of Subjects
List of Subjects in 26 CFR Part 1
- Income taxes
- Reporting and recordkeeping requirements
Proposed Amendment to the Regulations
Accordingly, 26 CFR part 1 is proposed to be amended as follows:Start Part
PART I—INCOME TAXESEnd Part Start Amendment Part
Paragraph 1. The authority citation for part 1 is amended by adding an entry in numerical order to read in part as follows:End Amendment Part
Section 1.337(d)-3 also issued under 26 U.S.C. 337(d). * * *Start Amendment Part
Par. 2. Section 1.337(d)-3 is added to read as follows:End Amendment Part
[The text of proposed § 1.337(d)-3 is the same as the text of § 1.337(d)-3T(a) through (i) published elsewhere in this issue of the Federal Register].
Par. 3. Section 1.732-1 is amended by revising paragraphs (c)(1) and (c)(5)(ii) to read as follows:End Amendment Part
(c)(1) [The text of proposed § 1.732-1(c)(1) is the same as the text of § 1.732-1T(c)(1) published elsewhere in this issue of the Federal Register].
(5) * * *
(ii) [The text of proposed § 1.732-1(c)(5)(ii) is the same as the text of § 1.732-1T(c)(5)(ii) published elsewhere in this issue of the Federal Register].
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2015-14403 Filed 6-11-15; 8:45 am]
BILLING CODE 4830-01-P