Treasury Publishes IRS's Semiannual Regulatory Agenda

2675. EXTENSION OF IMPORT RESTRICTIONS IMPOSED ON ARCHAEOLOGICAL MATERIAL FROM GUATEMALA

Priority: Substantive, Nonsignificant

Legal Authority: 5 USC 301; 19 USC 66; 19 USC 1202; 19 USC 1624; 19 USC 2612

CFR Citation: 19 CFR 12

Legal Deadline: None

Abstract: Amendment to extend the import restrictions on certain archaeological material originating in the Republic of Guatemala.

Timetable:

Government Levels Affected: None

Agency Contact: Joseph Howard, Attorney, Intellectual Property Rights Branch, Department of the Treasury, United States Customs Service, Office of Regulations and Rulings, 1300 Pennsylvania Avenue NW., Washington, DC 20229 Phone: 202 572- 8701

Alfred Morawski, Chief, Other Government Agencies Branch, Department of the Treasury, United States Customs Service, Office of Field Operations, 1300 Pennsylvania Avenue NW., Washington, DC 20229 Phone: 202 927-0402

RIN: 1515-AD17

BILLING CODE 4820-02-S

Priority: Substantive, Nonsignificant

Legal Authority: 31 USC 330

CFR Citation: 26 CFR 10

Legal Deadline: None

Abstract: These regulations propose amendments to the rules governing practice before the Internal Revenue Service.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-122380-02 Drafting attorney: Brinton T. Warren (202) 622-4940 Reviewing attorney: Richard S. Goldstein (202) 622-7820 Treasury attorney: Julian Kim (202) 622-1981 CC:P&A:APJP

Agency Contact: Brinton T. Warren, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4940

RIN: 1545-BA72

2677. COMMUNICATIONS EXCISE TAX; TAXABLE COMMUNICATION SERVICES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 4251; 26 USC 7805

CFR Citation: 26 CFR 49

Legal Deadline: None

Abstract: This regulation provides a definition of taxable communications services under section 4251.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Additional Information: REG-137076-02

Drafting attorney: Cynthia McGreevy (202) 622-3130

Reviewing attorney: Richard A. Kocak (202) 622-3130

Treasury attorney: John Parcell (202) 622-2578 CC:P&SI

Agency Contact: Cynthia McGreevy, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3130

RIN: 1545-BB04

2678. MIXED USE OUTPUT FACILITIES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This advance notice of proposed rulemaking describes and illustrates rules that the Internal Revenue Service and Treasury Department expect to propose in a notice of proposed rulemaking.

Timetable:

Small Entities Affected: No

Government Levels Affected: State, Local

Federalism: Undetermined

Additional Information: REG-142599-02

Drafting attorney: Rose M. Weber (202) 622-3980

Reviewing attorney: Bruce M. Serchuk (202) 622-3980

Treasury attorney: Stephen J. Watson (202) 622-1322 CC:TEGE

Agency Contact: Rose M. Weber, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3980 Fax: 202 622-4437

RIN: 1545-BB23

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 864

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulation addresses whether matched book sale and repurchase transactions conducted by securities dealers qualify as integrated financial transactions under section 1.861- 10(c).

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-209604-93 (INTL-001-93)

Drafting attorney: Kenneth P. Christman (202) 622- 3870

Reviewing attorney: Paul S. Epstein (202) 622-3870

Treasury attorney: Patricia Brown (202) 622-1781

CC:INTL

Agency Contact: Kenneth P. Christman, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3870

RIN: 1545-AR20

2680. INTERCOMPANY TRANSFER PRICING FOR SERVICES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations will address the transfer pricing of services between related parties.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-209579-92 (INTL-051-92)

Drafting attorney: J. Peter Luedtke (202) 874-1490

Reviewing attorney: Elizabeth Beck (202) 874-1490

Treasury attorney: Rocco Femia (202) 622-1755

CC:INTL

Agency Contact: J. Peter Luedtke, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 950 L'Enfant Plaza SW, Washington, DC 20024 Phone: 202 874-1490

RIN: 1545-AR32

2681. CAPITAL GAIN GUIDANCE RELATING TO CRTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 1; 26 USC 664

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulation provides capital gain guidance relating to charitable remainder trusts in light of the changes made to section 1(h) of the Internal Revenue Code by the Taxpayer Relief Act of 1997.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-110896-98

Drafting attorney: William C. Bomar (202) 622-7830

Reviewing attorney: Katherine A. Mellody (202) 622- 3090

Treasury attorney: Catherine Hughes (202) 622-9407 CC:P&SI

Agency Contact: William C. Bomar, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7830

RIN: 1545-AW35

2682. CONSTRUCTIVE SALES OF APPRECIATED FINANCIAL POSITIONS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 1259

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These regulations relate to principles for determining if a taxpayer has constructively sold an appreciated financial position.

Timetable:

Small Entities Affected: Businesses, Organizations

Government Levels Affected: None

Additional Information: REG-102191-98

Drafting attorney: Kathleen Sleeth (202) 622-3920

Reviewing attorney: Alvin Kraft (202) 622-3920

Treasury attorney: Michael Novey (202) 622-1339 CC:FI&P

Agency Contact: Kathleen Sleeth, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3920

RIN: 1545-AW97

2683. STRADDLES -- ONE SIDE LARGER THAN THE OTHER

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 1092

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: A "straddle" occurs, for purposes of section 1092 of the Internal Revenue Code, when a taxpayer enters into two separate positions in financial instruments that "offset" each other. Positions offset each other when, taken together, they substantially diminish the taxpayer's risk of loss. A taxpayer in a "straddle" is subject to various limitations on recognition of loss on the positions until both positions are liquidated. These regulations deal with the situation in which one position is larger than the other (that is, the diminution of the risk of loss for one position is only partial).

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-107335-99

Drafting attorney: Charles W. Culmer (202) 622-3960

Reviewing attorney: Robert Williams (202) 622-3960

Treasury attorney: Viva Hammer (202) 622-0869

CC:FI&P

Agency Contact: Charles W. Culmer, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3960

RIN: 1545-AX16

2684. CASH OR DEFERRED ARRANGEMENTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation updates and revises regulations on qualified cash or deferred arrangements, "matching" contributions, and employee contributions.

Timetable:

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: REG-108639-99

Drafting attorney: R. Lisa Mojiri-Azad (202) 622- 6080

Reviewing attorney: Marjorie Hoffman (202) 622-6030

Treasury attorney: W. Thomas Reeder (202) 622-1341

CC:TEGE

Agency Contact: R. Lisa Mojiri-Azad, Senior Attorney, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6080

RIN: 1545-AX26

2685. INSPECTION OF WRITTEN DETERMINATIONS

Priority: Substantive, Nonsignificant

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This regulation amends Treasury Regulation section 301.6110 to include Chief Counsel Advice.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-113129-98

Drafting attorney: Deborah Lambert-Dean (202) 622- 4570

Reviewing attorney: Donald Squires (202) 622-4570

Treasury attorney: Elizabeth Askey (202) 622-0224

CC:P&A:D&PL

Agency Contact: Deborah Lambert-Dean, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4570 Fax: 202 622-9888

RIN: 1545-AX40

2686. CASH OR DEFERRED ARRANGEMENTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The proposed regulations update and revise regulations for cash or deferred arrangements.

Timetable:

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: REG-108639-99

Drafting attorney: R. Lisa Mojiri-Azad (202) 622- 6080

Reviewing attorney: Marjorie Hoffman (202) 622-6030

Treasury attorney: W. Thomas Reeder (202) 622-1341

CC:TEGE

Agency Contact: R. Lisa Mojiri-Azad, Senior Attorney, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6080

RIN: 1545-AX43

2687. AWARDING OF COSTS AND CERTAIN FEES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 7430

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The proposed amendments to the Treasury Regulations incorporate the 1997 and 1998 amendments to 26 U.S.C. 7430, relating to the awarding of attorney's fees in administrative and court proceedings. The amendments to 26 U.S.C. 7430 were enacted under the Taxpayer Relief Act of 1997 and the IRS Restructuring and Reform Act of 1998.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-111833-99

Drafting attorney: Kerry H. Bryan (202) 622-7940 Reviewing attorneys: Susan T. Mosley (202) 622-7940 and Henry S. Schneiderman (202) 622-7820

Treasury attorney: Julian Kim (202) 622-1981 CC:PA:APJP

Agency Contact: Kerry H. Bryan, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7940

RIN: 1545-AX46

2688. HIGHLY COMPENSATED EMPLOYEE

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 414

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations provide the definition of highly compensated employee.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-111277-99

Drafting attorney: R. Lisa Mojiri-Azad (202) 622- 6080

Reviewing attorney: Marjorie Hoffman (202) 622-6030

CC:TEGE

Agency Contact: R. Lisa Mojiri-Azad, Senior Attorney, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6080

RIN: 1545-AX48

2689. MODIFICATION TO SECTION 367(A) STOCK TRANSFER REGULATIONS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 367

CFR Citation: 26 CFR 1; 26 CFR 602

Legal Deadline: None

Abstract: This regulation will modify section 367(a), stock transfer regulations, to address abuses under check- the-box and through the use of convertible stock.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-116053-99

Drafting attorney: Robert W. Lorence (202) 622-3860

Reviewing attorney: Charles Besecky (202) 622-3860

Treasury attorney: Michael Caballero (202) 622-0851

CC:INTL

Agency Contact: Robert W. Lorence, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3860 Fax: 202 622-4476

RIN: 1545-AX77

2690. ASSUMPTION OF PARTNERSHIP LIABILITIES

Priority: Substantive, Nonsignificant

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 752

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This proposed regulation prevents the acceleration or duplication of losses through the assumption of liabilities in transactions involving partnerships.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Federalism: Undetermined

Additional Information: REG-106736-00

Drafting attorney: Horace Howells (202) 622-3050

Reviewing attorney: Dianna Miosi (202) 622-3050

Treasury attorney: Deborah Harrington (202) 622- 1788

CC:P&SI

Agency Contact: Horace Howells, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3050

RIN: 1545-AX93

2691. LIKE-KIND EXCHANGES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 168; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations relate to like-kind exchanges under section 168 of the Internal Revenue Code.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-106590-00

Drafting attorney: Alan H. Cooper (202) 622-3110

Reviewing attorney: Charles Ramsey (202) 622-3110

Treasury attorney: Christopher Ohmes (202) 622-1335

CC:P&SI

Agency Contact: Alan H. Cooper, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3110

RIN: 1545-AX95

2692. ELECTING MARK-TO-MARKET FOR MARKETABLE STOCK OF A PFIC

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 1296

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation describes the methods and procedures for electing mark-to-market treatment for marketable stock of a PFIC.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Federalism: Undetermined

Additional Information: REG-112306-00

Drafting attorney: Mark R. Pollard (202) 622-3850

Reviewing attorney: Phyllis Marcus (202) 622-3840

CC:INTL

Agency Contact: Mark R. Pollard, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3850

RIN: 1545-AY17

2693. GUIDANCE ON CHANGES TO THE LAWS FOR CORPORATE ESTIMATED TAXES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 6655

CFR Citation: Not Yet Determined

Legal Deadline: None

Abstract: The proposed regulations provide guidance on changes to the law for corporate estimated taxes.

Timetable:

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: REG-107722-00

Drafting attorney: Robert A. Desilets, Jr. (202) 622-4910

Reviewing attorney: Pamela W. Fuller (202) 622-4910

Treasury attorney: Christopher Ohmes (202) 622-1335 CC:P&A:APJP

Agency Contact: Robert A. Desilets Jr., Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4910

RIN: 1545-AY22

2694. USE OF TAXPAYER IDENTIFYING NUMBERS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 6109; 26 USC 1445; 26 USC 897

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation requires the use of taxpayer identifying numbers on submissions made by foreign taxpayers to reduce or eliminate tax under sections 897 and 1445 of the Internal Revenue Code.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Federalism: Undetermined

Additional Information: REG-106876-00

Drafting attorney: Robert W. Lorence (202) 622-3860

Reviewing attorney: Charles Besecky (202) 622-3860

Treasury attorney: Michael Caballero (202) 622-0851

CC:INTL

Agency Contact: Robert W. Lorence, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3860 Fax: 202 622-4476

RIN: 1545-AY24

2695. DUAL CONSOLIDATED LOSS RECAPTURE EVENTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This proposed regulation will revise provisions in section 1503(d) of the Internal Revenue Code relating to dual consolidated losses.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Federalism: Undetermined

Additional Information: REG-106879-00

Drafting attorney: Kathryn T. Holman (202) 622-3860 and Kenneth D. Allison (202) 622-3860

Reviewing attorney: Michael H. Frankel (202) 622- 3860

CC:INTL

Agency Contact: Kathryn T. Holman, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3860

Kenneth D. Allison, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3860

RIN: 1545-AY27

2696. TAXABLE YEARS OF CFCS AND FPHCS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 898

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation will provide definitions and rules for determining the required year for CFCs and FPHCs.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Federalism: Undetermined

Additional Information: REG-108523-00

Drafting attorney: Carl M. Cooper (202) 622-3840

Reviewing attorney: Phyllis Marcus (202) 622-3840

Treasury attorney: Patrick Brown (202) 622-1754

CC:INTL

Agency Contact: Carl M. Cooper, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3840

RIN: 1545-AY30

2697. ALLOCATION OF INCOME AND DEDUCTIONS FROM INTANGIBLES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 482

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulation will address the allocation of income and deductions from intangible property.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Federalism: Undetermined

Additional Information: REG-115037-00

Drafting attorney: John M. Breen (202) 874-1490

Reviewing attorney: Anne P. Shelburne (202) 874- 1490

Treasury attorney: Rocco Femia (202) 622-1755

CC:INTL

Agency Contact: John M. Breen, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 950 L'Enfant Plaza SW, Washington, DC 20224 Phone: 202 874-1490

RIN: 1545-AY38

2698. DOLLAR-VALUE LIFO

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 472; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation will provide guidance under the dollar-value last-in, first-out (LIFO) inventory method for taxpayers that define LIFO items based on components of cost.

Timetable:

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: REG-107580-00

Drafting attorney: Scott H. Rabinowitz (202) 622- 4970

Reviewing attorney: Jeffery G. Mitchell (202) 622- 4970

Treasury attorney: Sharon Kay (202) 622-0865 CC:IT&A

Agency Contact: Scott H. Rabinowitz, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4970

RIN: 1545-AY39

2699. NORMAL RETIREMENT AGE FOR PENSION PLANS

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is undetermined.

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 7805

CFR Citation: Not Yet Determined

Legal Deadline: None

Abstract: These regulations will provide guidance regarding the determination of normal retirement age in a pension plan, including a money purchase pension plan, target benefit plan and defined benefit plan. Section 411(a)(8) defines the term normal retirement age as the earlier of: 1) the time a participant attains normal retirement age under the plan; or 2) the later of the time a plan participant attains age 65, or the 5th anniversary of the time a plan participant commenced participation in the plan. These regulations also would provide section 411(d)(6) relief for amendments that modify a pension plan's normal retirement age to conform with the proposed regulation.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-125499-00

Drafting attorney: Janet A. Laufer (202) 622-6090

Reviewing attorney: Marjorie Hoffman (202) 622-6030

Treasury attorney: William Bortz (202) 622-1352

CC:TEGE

Agency Contact: Janet A. Laufer, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6090 Fax: 202 622-4084

RIN: 1545-AY61

2700. LIABILITIES ASSUMED IN CERTAIN CORPORATE TRANSACTIONS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 357

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These proposed regulations relate to the assumption of liabilities in certain corporate transactions under section 357 of the Internal Revenue Code, and affect corporations and their shareholders.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-100818-01

Drafting attorney: Douglas C. Bates (202) 622-7550

Reviewing attorney: Debra Carlisle (202) 622-7550

CC:CORP

Agency Contact: Douglas C. Bates, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7550

RIN: 1545-AY74

2701. NORMALIZATION

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 167; 26 USC 168; 26 USC 46

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These regulations relate to the sale or deregulation of generation assets.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Additional Information: REG-104385-01

Drafting attorney: David Selig (202) 622-3040

Reviewing attorney: Peter Friedman (202) 622-3110

Treasury attorney: John Parcell (202) 622-2578

CC:P&SI

Agency Contact: David Selig, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3040

RIN: 1545-AY75

2702. DISCLOSURE OF RETURNS AND RETURN INFORMATION IN JUDICIAL AND ADMINISTRATIVE TAX PROCEEDINGS

Priority: Substantive, Nonsignificant

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 6103

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This proposed rule relates to the disclosure of returns and return information in judicial and administrative tax proceedings pursuant to 26 U.S.C. 6103(h)(4).

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-120297-01

Drafting attorney: David L. Fish (202) 622-4590

Treasury attorney: Elizabeth Askey (202) 622-0224

CC:P&A:DPL

Agency Contact: David L. Fish, Senior Technician Reviewer, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4590

RIN: 1545-AY89

2703. PAYMENTS FOR INTEREST IN PARTNERSHIP

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 736

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The proposed regulations relate to section 736(b)(3)(B), regarding payments for interest in a partnership if the retiring or deceased partner was a general partner in the partnership.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-123382-01

Drafting attorney: James M. Gergurich (202) 622- 3070

Reviewing attorney: Christine Ellison (202) 622- 3070

CC:P&SI

Agency Contact: James M. Gergurich, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3070

RIN: 1545-AY90

2704. TAX SHELTER PENALTIES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6662; 26 USC 6664

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: The proposed regulations relate to sections 6662 and 6664 regarding tax shelter penalties. The project has arisen in connection with the revision to Circular 230.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-126016-01

Drafting attorney: Brinton T. Warren (202) 622-4940

Reviewing attorney: Richard S. Goldstein (202) 622- 7820

Treasury attorney: Julian Kim (202) 622-1981

CC:P&A:APJP

Agency Contact: Brinton T. Warren, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4940

RIN: 1545-AY97

2705. EXPENDITURES IN CONNECTION WITH THE CREATION OF INTANGIBLE ASSETS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 263

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The proposed regulations provide guidance on the treatment of costs incurred in connection with the creation of an intangible asset.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-125638-01

Drafting attorney: Andrew J. Keyso, Jr. (202) 622- 5020

Reviewing attorney: Robert Casey (202) 622-4950

Treasury attorney: Jodi Cohen (202) 622-0160

CC:IT&A

Agency Contact: Andrew J. Keyso Jr., Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-5020

RIN: 1545-BA00

2706. ALLOCATION AND APPORTIONMENT OF INTEREST EXPENSE

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 864

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This proposed regulation provides guidance with respect to methods of apportioning interest expense under section 864(e) of the Code.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-129447-01

Drafting attorney: Melissa D. Arndt (202) 622-3850

Reviewing attorney: Anne Devereaux (202) 622-3850 Treasury attorneys: Michael Caballero (202) 622-0851, John Harrington (202) 622-0589

CC:INTL

Agency Contact: Melissa D. Arndt, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3850

RIN: 1545-BA02

2707. REDUCTIONS OF ACCRUALS AND ALLOCATIONS BECAUSE OF INCREASED AGE

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 411; 26 USC 411

CFR Citation: 26 CFR 1

Legal Deadline: Final, Statutory, February 1, 1988.

Abstract: These regulations will prescribe rules regarding the requirement that accruals and allocations under qualified retirement plans cannot be reduced because of the attainment of any age.

Timetable:

Small Entities Affected: Businesses, Organizations

Government Levels Affected: None

Additional Information: REG-209500-86

Drafting attorney: Linda S.F. Marshall (202) 622- 6090

Reviewing attorney: Marjorie Hoffman (202) 622-6090

Treasury attorney: Harlan Weller (202) 622-1001 CC:TEGE

Agency Contact: Linda S.F. Marshall, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6090

RIN: 1545-BA10

2708. TRANSACTIONS INVOLVING OBLIGATIONS OF CONSOLIDATED GROUP MEMBERS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 1502

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The proposed regulations are in regard to intercompany obligations.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-107592-00

Drafting attorney: Frances Kelly (202) 622-7770

Reviewing attorney: Michael J. Wilder (202) 622- 7750

Treasury attorney: Audrey Nacamuli (202) 622-5721

CC:CORP

Agency Contact: Frances Kelly, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7770

RIN: 1545-BA11

2709. DEDUCTIBILITY OF EMPLOYER CONTRIBUTIONS FOR DEFERRED COMPENSATION

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These regulations will update and clarify the general rules for deductibility of employer contributions to qualified retirement plans and other deferred compensation arrangements.

Timetable:

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: REG-139449-01

Drafting attorney: Linda S.F. Marshall (202) 622- 6090

Reviewing attorney: Mark Schwimmer (202) 622-6090

Treasury attorney: Thomas Reeder (202) 622-1341

CC:TEGE

Agency Contact: Linda S.F. Marshall, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6090

RIN: 1545-BA13

2710. CONTINUATION OF A CONSOLIDATED GROUP

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 1502

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation addresses issues related to the continuation of consolidated groups under 1.1502-75.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-126022-01

Drafting attorney: Christopher M. Bass (202) 622- 7770

Reviewing attorney: Edward Cohen (202) 622-7770

CC:CORP

Agency Contact: Christopher M. Bass, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7770

RIN: 1545-BA14

2711. PROPERTY EXEMPT FROM LEVY

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6334

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This regulation will describe the judicial procedures for approval of a principal residence seizure, pursuant to I.R.C. sections 6334(a)(13(B)(i) and 6334(e)(1).

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-140378-01

Drafting attorney: Robin M. Ferguson (202) 622-3610

Reviewing attorney: Alan Levine (202) 622-3610

CC:P&A:CB&S

Agency Contact: Robin M. Ferguson, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3610

RIN: 1545-BA22

2712. GASOLINE TAX CLAIMS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 48

Legal Deadline: None

Abstract: The proposed regulation will provide guidance regarding claims for credit or refund of the gasoline tax under section 6416(a)(4) of the Internal Revenue Code.

Timetable:

Small Entities Affected: Businesses, Governmental Jurisdictions

Government Levels Affected: State, Local, Tribal

Additional Information: REG-143219-01

Drafting attorney: Frank K. Boland (202) 622-3130

CC:P&SI

Agency Contact: Frank K. Boland, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3130

RIN: 1545-BA27

2713. SUSPENSION OF STATUTES OF LIMITATION IN JOHN DOE AND THIRD- PARTY SUMMONS DISPUTES AND EXPANSION OF TAXPAYERS' RIGHTS TO RECEIVE NOTICE AND SEEK JUDICIAL REVIEW OF THIRD PARTY SUMMONSES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: The proposed regulation provides guidance regarding modified rules for serving summonses on third-party recordkeepers, the broadened range of summonses subject to the notice requirements, and the suspension of limitations periods when court actions are brought or when a summoned third party fails to fully respond to a summons. This proposed regulation incorporates the changes enacted in RRA 1998, OBRA 1990, TAMRA 1988, and TRA 1986. This regulation is a continuation of the regulation project previously numbered at REG-208225-88.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-153037-01

Drafting attorney: Elizabeth D. Rawlins (202) 622- 3630

Reviewing attorney: Robert A. Miller (202) 622-3630

CC:P&A:CB&S

Agency Contact: Elizabeth D. Rawlins, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3630

RIN: 1545-BA31

2714. AMENDMENTS TO RULES FOR ALLOCATION OF BASIS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 755

CFR Citation: 26 CFR 755

Legal Deadline: None

Abstract: The proposed regulation amends the regulations under section 755 (section 1.755-1) in order to better coordinate with recent revisions to section 1.755-2 relating to rules for allocation of basis.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-155345-01

Drafting attorney: Craig A. Gerson (202) 622-3050

Reviewing attorney: David Haglund (202) 622-3050

Treasury attorney: Deborah Harrington (202) 622- 1788

CC:P&SI

Agency Contact: Craig A. Gerson, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3050

RIN: 1545-BA32

2715. EARNED INCOME CREDIT

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation removes 26 CFR 1.32-2 because of legislative changes.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-135061-01

Drafting attorney: Shoshanna Chaiton (202) 622-6080

Reviewing attorney: Karin Loverud (202) 622-6080

CC:TEGE

Agency Contact: Shoshanna Chaiton, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6080

RIN: 1545-BA34

2716. INCOME FROM SOURCES WITHIN SPECIFIED POSSESSION

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 931; 26 USC 911

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation will remove the reference to section 911 in the section 931 regulations and update the definition of a possession under those regulations.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-159068-01

Drafting attorney: Jonathan A. Sambur (202) 622- 3840

Reviewing attorney: Phyllis E. Marcus (202) 622- 3840

Treasury attorney: Michael Mundaca (202) 622-1752

CC:INTL

Agency Contact: Jonathan A. Sambur, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington Phone: 202 622-3840

RIN: 1545-BA37

2717. MULTI-FAMILY HOUSING BONDS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These regulations relate to various issues with respect to multi-family housing bonds.

Timetable:

Small Entities Affected: No

Government Levels Affected: State, Local

Additional Information: REG-163765-01

Drafting attorney: Rose M. Weber (202) 622-3980

Reviewing attorney: Bruce M. Serchuk (202) 622-3980

Treasury attorney: Stephen J. Watson (202) 6622- 1322

CC:TEGE

Agency Contact: Rose M. Weber, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3980 Fax: 202 622-4437

RIN: 1545-BA45

2718. DETERMINATION OF BASIS OF PARTNER'S INTEREST; SPECIAL RULES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: Not Yet Determined

Legal Deadline: None

Abstract: These proposed regulations will provide the appropriate basis adjustment under section 705 in certain situations in which a corporation has a direct or indirect interest in a partnership that owns stock in that corporation where the partnership distributes money or other property to another partner and that partner recognizes gain on the distribution during a year in which the partnership does not have an election under section 754 in effect, and the partnership subsequently sells or exchanges the stock.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-167648-01

Drafting attorney: Barbara MacMillan (202) 622-3050

Reviewing attorney: David Haglund (202) 622-3050

Treasury attorney: Stephanie Robinson (202) 622- 9858

CC:P&SI

Agency Contact: Barbara MacMillan, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3050

RIN: 1545-BA50

2719. PARTNERSHIP OPTIONS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 704; 26 USC 721

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This proposed regulation provides tax treatment of partnership options.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Federalism: Undetermined

Additional Information: REG-103580-02

Drafting attorney: Audrey W. Ellis (202) 622-3188 Reviewing attorneys: Matthew Lay (202) 622-3060 and Jeanne Sullivan (202) 622-3060

Treasury attorney: Deborah Harrington (202) 622- 1788

CC:P&SI

Agency Contact: Audrey W. Ellis, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3188

RIN: 1545-BA53

2720. USER FEES FOR OFFERS TO COMPROMISE

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 31 USC 9701

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations relating to user fees would be amended to provide for the imposition of a user fee for processing of offers to compromise. The charging of user fees implements the Independent Offices Appropriations Act, 31 U.S.C. 9701.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-103777-02

Drafting attorney: Gene W. Beard (202) 622-3620

Reviewing attorney: Frederick W. Schindler (202) 622-3620

Treasury attorney: Jodi Cohen (202) 622-0160 CC:P&A:CB&S

Agency Contact: Gene W. Beard, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3620

RIN: 1545-BA54

2721. MODIFICATION OF CHECK THE BOX (TEMPORARY)

Priority: Substantive, Nonsignificant

Legal Authority: Not Yet Determined

CFR Citation: 26 CFR 1; 26 CFR 301

Legal Deadline: None

Abstract: The Modification of Check the Box regulations will add a new section to the 301.7701-2 regulations to provide that in certain circumstances, namely in State law mergers and conversions, a surviving disregarded entity will be regarded for purposes of assessment and collection of prior year tax liabilities of predecessor entities. Thus, following a transaction in which a regarded entity is merged or converted into a disregarded entity, the Commissioner will be able to exercise collection and assessment authority against the disregarded entity for any liabilities stemming from tax periods of the regarded entity prior to the date of the transaction.

Timetable:

Small Entities Affected: Businesses

Government Levels Affected: Undetermined

Federalism: Undetermined

Additional Information: REG-106681-02

Drafting attorney: James M. Gergurich (202) 622- 3070

Reviewing attorney: Jeanne Sullivan (202) 622-3070

Treasury attorney: Stephanie Robinson (202) 622- 9858

CC:P&SI

Agency Contact: James M. Gergurich, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3070

RIN: 1545-BA58

2722. MODIFICATION OF CHECK THE BOX

Priority: Substantive, Nonsignificant

Legal Authority: Not Yet Determined

CFR Citation: 26 CFR 1; 26 CFR 301

Legal Deadline: None

Abstract: The Modification of Check the Box regulation will add a new section to the 301.7701-2 regulations to provide that in certain circumstances, namely in State law mergers and conversions, a surviving disregarded entity will be regarded for purposes of assessment and collection of prior year tax liabilities of predecessor entities. Thus, following a transaction in which a regarded entity is merged or converted into a disregarded entity, the Commissioner will be able to exercise collection and assessment authority against the disregarded entity for any liabilities stemming from tax periods of the regarded entity prior to the date of the transaction.

Timetable:

Small Entities Affected: Businesses

Government Levels Affected: Undetermined

Federalism: Undetermined

Additional Information: REG-106681-02

Drafting attorney: James M. Gergurich (202) 622- 3070

Reviewing attorney: Jeanne Sullivan (202) 622-3070

Treasury attorney: Stephanie Robinson (202) 622- 9858

CC:P&SI

Agency Contact: James M. Gergurich, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3070

RIN: 1545-BA59

2723. ABATEMENT OF INTEREST ON LARGE ERRONEOUS REFUNDS

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is undetermined.

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 6404(e)

CFR Citation: Not Yet Determined

Legal Deadline: None

Abstract: This proposed regulation will provide rules that address whether the Internal Revenue Service may abate interest on an erroneous refund exceeding $50,000 pursuant to I.R.C. section 6404(e) (26 U.S.C. 6404(e)).

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Federalism: Undetermined

Additional Information: REG-167500-01

Drafting attorney: David A. Abernathy (202) 622- 7940

Reviewing attorney: Richard Goldman (202) 622-7940

CC:P&A:AP JP

Agency Contact: David A. Abernathy, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7940

RIN: 1545-BA61

2724. ALLOCATION AND APPORTIONMENT RULES: GUIDANCE ON SELECTED ISSUES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 863

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation provides guidance with respect to the allocation and apportionment under section 861 of selected deductions; e.g., charitable contributions and research and experimentation expenses.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-128240-01

Drafting attorney: Teresa B. Hughes (202) 622-3850

Reviewing attorney: Anne Devereaux (202) 622-3850

Treasury attorney: John Harrington (202) 622-0589

CC:INTL

Agency Contact: Teresa B. Hughes, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3850

RIN: 1545-BA64

2725. PROVISIONS REGARDING CROSS-BORDER TRANSACTIONS

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is undetermined.

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 7805; 26 USC 368(a)

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This proposed regulation will make conforming changes to account for cross-border section 368(a)(1)(A) mergers.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Federalism: Undetermined

Additional Information: REG-125628-01

Drafting attorney: Robert W. Lorence (202) 622-3860

Reviewing attorney: Charles Besecky (202) 622-3860

CC:INTL

Agency Contact: Robert W. Lorence, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3860 Fax: 202 622-4476

RIN: 1545-BA65

2726. INTEREST OTHER THAN THAT OF A CREDITOR

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 465; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation provides guidance under section 465(b)(3) of the Internal Revenue Code. The regulations state when 465(b)(3) will apply to activities and clarify who has an interest other than that of a creditor.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Additional Information: REG-209377-89

Drafting attorney: Tara P. Volungis (202) 622-3080

Reviewing attorney: Christine Ellison (202) 622- 3070

Treasury attorney: John Parcell (202) 622-2578 CC:P&SI

Agency Contact: Tara P. Volungis, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224

Phone: 202 622-3080

RIN: 1545-BA69

2727. DEFINITION OF REORGANIZATIONS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulation addresses the continuity of business enterprise and continuity of interest requirements for a reorganization when stock ownership in the target corporation represents an insubstantial part of the entire value of the target corporation.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-119726-02

Drafting attorney: Richard C. Starke (202) 622-7750

Reviewing attorney: Kenneth Cohen (202) 622-7790

Treasury attorney: Audrey Nacamuli (202) 622-5721 CC:CORP

Agency Contact: Richard C. Starke, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7750

RIN: 1545-BA71

2728. CONTROLLED FOREIGN PARTNERSHIP REPORTING

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is undetermined.

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 7805; 26 USC 6038

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation will provide guidance regarding controlled foreign partnership reporting.

Timetable:

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: REG-124069-02

Drafting attorney: Tasheaya Warren (202) 622-3860

Reviewing attorney: Michael H. Frankel (202) 622- 3860

CC:INTL

Agency Contact: Tasheaya Warren, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3860

RIN: 1545-BA77

2729. DISCLOSURE OF RELATIVE VALUE OF DISTRIBUTION FORMS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805(b); 26 USC 417(a)(3)(A)

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation will specify the disclosures that must be made to participants in qualified pension plans to describe the relative value of the available optional forms of benefit.

Timetable:

Small Entities Affected: Businesses, Organizations

Government Levels Affected: None

Additional Information: REG-124667-02

Drafting attorney: Linda S.F. Marshall (202) 622- 6090

Reviewing attorney: Marjorie Hoffman (202) 622-6000

Treasury attorney: Harlan Weller (202) 622-1001 CC:TEGE

Agency Contact: Linda S.F. Marshall, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6090

RIN: 1545-BA78

2730. REDEMPTIONS TREATED AS DIVIDENDS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This proposed regulation under section 302 of the Internal Revenue Code (Code), permits basis of redeemed stock to be recovered by the redeemed shareholder. Proposed regulations under section 304 of the Code reflect changes made by the Internal Revenue Service Restructuring and Reform Act of 1998, Taxpayer Relief Act of 1997, Tax Reform Act of 1986, Deficit Reduction Act of 1984, and the Tax Equity and Fiscal Responsibility Act of 1982 to the statute. Proposed regulations under section 304 also reference proposed regulations under section 302 as they relate to the treatment of basis of redeemed stock in redemptions treated as dividends.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-150313-01

Drafting attorney: Lisa K. Leong (202) 622-7530

Reviewing attorney: Lewis K. Brickates (202) 622- 7530

Treasury attorney: Audrey Nacamuli (202) 622-5721

CC:CORP

Agency Contact: Lisa K. Leong, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7530

RIN: 1545-BA80

2731. PARTNERSHIP TRANSACTIONS INVOLVING LONG-TERM CONTRACTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 460

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: Currently, regulations under section 460 divide the rules regarding a mid-contract change in taxpayer engaged in completing long- term contracts into two categories-constructive completion transactions and step-in-the-shoes transactions. The regulations provide that a transfer described in section 721(a) of a long-term contract to a partnership and a transfer of a partnership interest are step-in-the- shoes transactions. These regulations will explain the tax consequences of contributions of long-term contracts to, transfers of interests in, and distributions from, partnerships holding long-term contracts.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Additional Information: REG-128203-02

Drafting attorney: Richard T. Probst (202) 622-3060

Reviewing attorney: Matthew Lay (202) 622-3060

Treasury attorney: Deborah Harrington (202) 622- 1788

CC:P&SI

Agency Contact: Richard T. Probst, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3060

RIN: 1545-BA81

2732. ALLOCATION OF NEW MARKETS TAX CREDIT

Priority: Substantive, Nonsignificant

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 45D; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations will address how the section 45D new markets tax credit should be allocated to the partners of a partnership under section 704(b) of the Internal Revenue Code and will address related partnership issues.

Timetable:

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: REG-131999-02

Drafting attorney: James A. Quinn (202) 622-3070

Reviewing attorney: Matthew Lay (202) 622-3060

CC:P&SI

Agency Contact: James A. Quinn, Senior Counsel, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3070

RIN: 1545-BA84

2733. CARRYOVER AND STACKING RULE AMENDMENT

Priority: Substantive, Nonsignificant

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 42

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The low-income housing tax credit rules that concern carryover allocations under section 1.42-6 and stacking rules under section 1.42-14 are amended to reflect changes under the Community Renewal Tax Relief Act of 2000.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Additional Information: REG-131997-02

Drafting attorney: Christopher J. Wilson (202) 622- 3040

Reviewing attorney: Susan Reaman (202) 622-3040

Treasury attorney: Steve Watson (202) 622-1322

CC:P&SI

Agency Contact: Christopher J. Wilson, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3040

RIN: 1545-BA85

2734. GUIDANCE ON REPORTING OF DEPOSIT INTEREST PAID TO NONRESIDENT ALIENS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1; 26 CFR 31

Legal Deadline: None

Abstract: This regulation will provide guidance on the reporting requirements for interest on deposits maintained at U.S. offices of certain financial institutions and paid to nonresident aliens that are residents of certain specified countries.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-133254-02

Drafting attorney: Alexandra R. Helou (202) 622- 3840

Reviewing attorney: Valerie Mark Lippe (202) 622- 3840

Treasury attorney: Patrick Brown (202) 622-1781

CC:INTL

Agency Contact: Alexandra R. Helou, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3840

RIN: 1545-BA86

2735. AGGREGATE COMPUTATION AND ALLOCATION OF RESEARCH CREDIT

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 41

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation will provide guidance on the proper method of computing the research credit for a controlled group. In addition, this regulation will provide guidance on the allocation of the research credit among members of a controlled group.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-133791-01

Drafting attorney: Jolene J. Shiraishi (202) 622- 3120

Reviewing attorneys: Joseph Makurath (202) 622-3120 Christine Ellison (202) 622-3070

Treasury attorney: Julian Kim (202) 622-1981 CC:P&SI

Agency Contact: Jolene J. Shiraishi, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20044 Phone: 202 622-3120

Related RIN: Related To 1545-AX05

RIN: 1545-BA88

2736. DESIGNATED IRS OFFICER OR EMPLOYEE

Priority: Routine and Frequent

Legal Authority: 26 USC 7602

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulatory amendment clarifies that Chief Counsel attorneys can receive the designated authority to take summoned testimony under oath.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-134026-02

Drafting attorney: Elizabeth D. Rawlins (202) 622- 3630

Reviewing attorney: Robert A. Miller (202) 622-3630

CC:P&A:CB&S

Agency Contact: Elizabeth D. Rawlins, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3630

Related RIN: Related To 1545-BA98

RIN: 1545-BA89

2737. TRANSFER OF NOTES OR STOCK TO PROVIDE FOR SATISFACTION OF CONTESTED LIABILITIES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The proposed regulations would amend section 1.461-2 that allows a taxpayer to deduct in the taxable year of transfer the amount of money on other property transferred to satisfy an asserted liability that the taxpayer contests. The amendment to section 1.461-2(c)(1) would provide that transfers of a taxpayer's own note or stock of the note or stock of a related person are not transfers to provide for the satisfaction of an asserted liability, except where the transfer has been made to the person who is asserting the liability.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-136890-02

Drafting attorney: Norma C. Rotunno (202) 622-7900

Reviewing attorney: Thomas D. Moffitt (202) 622- 7900

Treasury attorney: Christopher Ohmes (202) 622-1335 CC:IT&A

Agency Contact: Norma C. Rotunno, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7900

Related RIN: Related To 1545-BA91

RIN: 1545-BA90

2738. TRANSFER OF NOTES OR STOCK TO PROVIDE FOR SATISFACTION OF CONTESTED LIABILITIES (TEMPORARY)

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The temporary regulations would amend section 1.461-2 that allows a taxpayer to deduct in the taxable year of transfer the amount of money or other property transferred to satisfy an asserted liability that the taxpayer contests. The amendment to section 1.461-2(c)(1) would provide that transfers of a taxpayer's own note or stock or the note or stock of a related person are not transfers to provide for the satisfaction of an asserted liability, except where the transfer has been made to the person who is asserting the liability.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-136890-02

Drafting attorney: Norma C. Rotunno (202) 622-7900

Reviewing attorney: Thomas D. Moffitt (202) 622- 7900

Treasury attorney: Christopher Ohmes (202) 622-1335

CC:IT&A

Agency Contact: Norma C. Rotunno, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7900

Related RIN: Related To 1545-BA90

RIN: 1545-BA91

2739. INCLUSION RATIO

Priority: Substantive, Nonsignificant

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 2642

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This proposed regulation issue regulations under section 642(g) relating to relief provisions.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-136761-02

Drafting attorney: Lian A. Mito (202) 622-7830

Reviewing attorney: James F. Hogan (202) 622-7830

Treasury attorney: Catherine Hughes (202) 622-9407

CC:P&SI

Agency Contact: Lian A. Mito, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7830

RIN: 1545-BA94

2740. EMPLOYMENT TAXES -- FAILURE-TO-DEPOSIT PENALTY

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6656; 26 USC 6302

CFR Citation: 26 CFR 31

Legal Deadline: None

Abstract: Reconsideration of Rev. Rul. 75-191 (situations 1 and 2) regarding the application of the section 6656 failure-to-deposit penalty where employment taxes should have been withheld but were not. Ruling provides employer will not be subject to the penalty if employer did not actually withhold the taxes. In contrast, Treas. Reg. section 1.1461-1(a)(2) provides that penalty will be due for taxes under chapter 3 of the Code if the withholding agent should have withheld the tax but in fact did not withhold as required. Regulation will conform treatment of employment taxes to chapter 3 taxes.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-136778-02

Drafting attorney: Charles A. Hall (202) 622-4940

Reviewing attorney: Judith Wall (202) 622-4940

Treasury attorney: John Parcell (202) 622-2578

CC:PA:APJP

Agency Contact: Charles A. Hall, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4940

RIN: 1545-BA97

2741. DESIGNATED IRS OFFICER OR EMPLOYEE (TEMPORARY)

Priority: Routine and Frequent

Legal Authority: 26 USC 7602(a)

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This regulatory amendment clarifies that Chief Counsel attorneys can receive the designated authority to take summoned testimony under oath.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-134026-02

Drafting attorney: Elizabeth D. Rawlins (202) 622- 3630

Reviewing attorney: Robert Miller (202) 622-3630

CC:P&A:CB&S

Agency Contact: Elizabeth D. Rawlins, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3630

Related RIN: Related To 1545-BA89

RIN: 1545-BA98

2742. TIMELY MAILING TREATMENT

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7502

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This regulation will expressly provide that a registered or certified mail receipt is the sole means to prove delivery of a document to the Internal Revenue Service.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-138176-02

Drafting attorney: Charles A. Hall (202) 622-4940

Reviewing attorney: Ashton Trice (202) 622-4940

Treasury attorney: John Parcell (202) 622-2578

CC:PA:APJP

Agency Contact: Charles A. Hall, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4940

RIN: 1545-BA99

2743. HAND CARRY RETURNS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6091

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation provides guidance to taxpayers on the proper place to file a return by hand carrying the return to the Internal Revenue Service. Currently, the regulations provide that handcarried returns should be filed with the District Director.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-138173-02

Drafting attorney: Ann M. Kramer (202) 622-4940

Reviewing attorney: Ashton Trice (202) 622-4940

Treasury attorney: John Parcell (202) 622-2578

CC:PA:APJP

Agency Contact: Ann M. Kramer, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4940

RIN: 1545-BB00

2744. REDUCED EXCLUSION OF GAIN FROM SALE OR EXCHANGE OF PRINCIPAL RESIDENCE

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 121; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This proposed regulation provides guidance on when a taxpayer who has not owned and used the property for two years or who has claimed the exclusion within the last two years is eligible to claim a reduced exclusion under section 121(c).

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-138882-02

Drafting attorney: Sara P. Shepherd (202) 622-4960

Reviewing attorney: George Baker (202) 622-4930

Treasury attorney: Elizabeth Askey (202) 622-0224

CC:IT&A

Agency Contact: Sara P. Shepherd, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4960

RIN: 1545-BB01

2745. REDUCED EXCLUSION OF GAIN FROM SALE OR EXCHANGE OF PRINCIPAL RESIDENCE (TEMPORARY)

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 121; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation provides guidance on when a taxpayer who has not owned and used the property for two years or who has claimed the exclusion within the last two years is eligible to claim a reduced exclusion under section 121(c).

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-138882-02

Drafting attorney: Sara P. Shepherd (202) 622-4960

Reviewing attorney: George Baker (202) 622-4930

Treasury attorney: Elizabeth Askey (202) 622-0224

CC:IT&A

Agency Contact: Sara P. Shepherd, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4960

RIN: 1545-BB02

2746. HEAVY VEHICLE TAX; DEFINITION OF HIGHWAY TRACTOR

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 4051; 26 USC 7805

CFR Citation: 26 CFR 48

Legal Deadline: None

Abstract: This regulation provides the definition of highway tractor under section 4051.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Additional Information: REG-137079-02

Drafting attorney: Celia A. Gabrysh (202) 622-3130

Reviewing attorney: Richard A. Kocak (202) 622-3130

Treasury attorney: John Parcell (202) 622-2570

CC:P&SI

Agency Contact: Celia A. Gabrysh, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3130

RIN: 1545-BB03

2747. CHANGE IN USE; ACCELERATED COST RECOVERY SYTSTEM

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 168

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This proposed regulation provides guidance under section 168 regarding depreciation of property for which the use changes.

Timetable:

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: REG-138499-02

Drafting attorney: Kathleen Reed (202) 622-3110

Reviewing attorney: Charles Ramsey (202) 622-3110

CC:P&SI

Agency Contact: Kathleen Reed, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3110

RIN: 1545-BB05

2748. DEPRECIATION OF VANS AND LIGHT TRUCKS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 280F(d)(5)(B)

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation amends section 1.280F- 6T(c)(3) to provide that a truck or van that is a qualified nonpersonal use vehicle, as defined in section 274(i) and section 1.274-5T(k), is not a "passenger automobile" for purposes of section 280F.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-138495-02

Drafting attorney: Bernard P. Harvey, III (202) 622-3110

Reviewing attorney: Charles B. Ramsey (202) 622- 3110

Treasury attorney: John Parcell (202) 622-2578

CC:P&SI

Agency Contact: Bernard P. Harvey III, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3110

RIN: 1545-BB06

2749. CAPITAL ACCOUNT BOOKUP

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 704; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This proposed regulation will expand the circumstances under which a revaluation of partnership capital accounts is permitted.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-139796-02

Drafting attorney: Craig A. Gerson (202) 622-3050

Reviewing attorney: David Haglund (202) 622-3050

Treasury attorney: Deborah Harrington (202) 622- 1788

CC:P&SI

Agency Contact: Craig A. Gerson, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3050

RIN: 1545-BB10

2750. ALLOCATION OF FOREIGN TAX CREDITS AMONG PARTNERS

Priority: Substantive, Nonsignificant

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 704(b); 26 USC 703(b)(3); 26 USC 702(a)(b)

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulation will provide guidance on how foreign tax credits must be allocated to partners under section 704(b).

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-139792-02

Drafting attorney: Beverly M. Katz (202) 622-3050

Reviewing attorney: Daniel Carmody (202) 622-3050

Treasury attorney: Deborah Harrington (202) 622- 1788

CC:P&SI

Agency Contact: Beverly Katz, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3050

RIN: 1545-BB11

2751. DISTRIBUTIONS OF PROPERTY

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 1023; 26 USC 1024; 26 USC 2032

CFR Citation: 26 CFR 301; 26 CFR 20

Legal Deadline: None

Abstract: This regulation will clarify the language in section 301.9100-6T to remove confusion as to whether relief for making an election under section 2032 is available under sections 301.9100-1 and 301-9100-3.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-139845-02

Drafting attorney: Theresa M. Melchiorre (202) 622- 7830

Reviewing attorney: Katherine A. Mellody (202) 622- 7830

Treasury attorney: Catherine Hughes (202) 622-9407

CC:P&SI

Agency Contact: Theresa M. Melchiorre, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7830

RIN: 1545-BB12

2752. PENALTIES FOR UNAUTHORIZED INSPECTION OF RETURNS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6103(n)

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This regulation amends 26 CFR 301.6103(n)-1 to require that contractors notify their employees regarding penalties for unauthorized inspection of returns and/or return information necessitated by amendment of 26 U.S.C. 7213A.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-129271-02

Drafting attorney: Carol A. Marchant (202) 622-4590

Reviewing attorney: Michael B. Froseh (202) 622- 4590

Treasury attorney: Elizabeth Askey (202) 622-0224

CC:P&A:D&PL

Agency Contact: Carol A. Marchant, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4590

RIN: 1545-BB13

2753. STRUCTURED SETTLEMENT FACTORING TRANSACTIONS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 115

CFR Citation: 26 CFR 1; 26 CFR 602

Legal Deadline: None

Abstract: These regulations relate to section 5891 of the Internal Revenue Code. Section 5891 imposes 240 percent excise tax upon any person who acquires certain payment rights in a structured settlement factoring transaction. The regulations provide guidance necessary to comply with the reporting requirements of the excise tax.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-139768-02

Drafting attorney: Shareen S. Pflanz (202) 622-4920

Reviewing attorney: Charles Strickland (202) 622- 4960

CC:IT&A

Agency Contact: Shareen S. Pflanz, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4920

Related RIN: Related To 1545-BB24

RIN: 1545-BB14

2754. TESTIMONY AUTHORIZATIONS AND REQUESTS FOR IRS INFORMATION

Priority: Substantive, Nonsignificant

Legal Authority: 5 USC 301

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This proposed regulation will amend existing regulations on testimony authorizations and requests for IRS information.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-140930-02

Drafting attorney: James A. Clark (202) 622-4590

Reviewing attorney: David L. Fish (202) 622-4590

CC:P&A:DP&L

Agency Contact: James A. Clark, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4590

RIN: 1545-BB15

2755. INVESTIGATIVE DISCLOSURES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6103(k)(6)

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This proposed regulation will amend existing regulations on disclosure of return information by Internal Revenue Officers and employees for investigative purposes.

Timetable:

Small Entities Affected: No

Government Levels Affected: Federal

Additional Information: REG-140808-02

Drafting attorney: Helene R. Newsome (202) 622-4570

Reviewing attorney: Donald M. Squires (202) 622- 4570

Treasury attorney: Elizabeth Askey (202) 622-0224

CC:P&A:DP&L

Agency Contact: Helene R. Newsome, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4570

Related RIN: Related To 1545-BB17

RIN: 1545-BB16

2756. INVESTIGATIVE DISCLOSURES (TEMPORARY)

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6103(K)(6)

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This proposed regulation will amend existing regulations on disclosure of return information by Internal Revenue Officers and employees for investigative purposes.

Timetable:

Small Entities Affected: No

Government Levels Affected: Federal

Additional Information: REG-140808-02

Drafting attorney: Helene R. Newsome (202) 622-4570

Reviewing attorney: Donald M. Squires (202) 622- 4570

Treasury attorney: Elizabeth Askey (202) 622-0224

CC:P&A:DP&L

Agency Contact: Helene R. Newsome, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4570

Related RIN: Related To 1545-BB16

RIN: 1545-BB17

2757. TOLL TELEPHONE SERVICE-DEFINITION

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 49

Legal Deadline: None

Abstract: This proposed regulation provides amendments to regulations relating to definition of toll telephone service.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Additional Information: REG-141097-02

Drafting attorney: Bernard H. Weberman (202) 622- 3130

Reviewing attorney: Richard Kocak (202) 622-3130

Treasury attorney: John Parcell (202) 622-2578

CC:P&SI

Agency Contact: Bernard H. Weberman, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3130

RIN: 1545-BB18

2758. SUBSTANTIATION OF INCIDENTAL EXPENSES (TEMPORARY)

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 274(d)

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These temporary regulations amend the regulations under section 1.274-5 to grant the Commissioner authority to establish a method under which a taxpayer may elect to use a specified amount or amounts for incidental expenses paid or incurred while traveling away from home in lieu of substantiating the actual incidental expenses.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Federalism: Undetermined

Additional Information: REG-141832-02

Drafting attorney: John Moriarty (202) 622-4930

Reviewing attorney: Donna Crissali (202) 622-4800

CC:IT&A

Agency Contact: John P. Moriarty, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4930

Related RIN: Related To 1545-BB20

RIN: 1545-BB19

2759. SUBSTANTIATION OF INCIDENTAL EXPENSES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 274(d)

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These proposed regulations amend the regulations under section 1.274-5 to grant the Commissioner authority to establish a method under which a taxpayer may elect to use a specified amount or amounts for incidental expenses paid or incurred while traveling away from home in lieu of substantiating the actual incidental expenses.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Federalism: Undetermined

Additional Information: REG-141832-02

Drafting attorney: John Moriarty (202) 622-4930

Reviewing attorney: Donna Crissali (202) 622-4800

CC:IT&A

Agency Contact: John P. Moriarty, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4930

Related RIN: Related To 1545-BB19

RIN: 1545-BB20

2760. DUPLICATE TAX BENEFITS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation prevents a consolidated group from deriving more than one tax benefit from a single economic loss. A loss on consolidated return, with respect to the sale of a subsidiary's stock, will be suspended to the extent of duplication (i.e. the group retains the loss asset) as long as a the subsidiary remains a member of the group. In addition, there is a basis leveling rule, which prevents groups from loading onto a single block of subsidiary stock and selling only that stock, while maintaining that subsidiary as part of the group.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-131478-02

Drafting attorney: Aimee K. Meacham (202) 622-7530

Reviewing attorney: Sean Duffley (202) 622-7530

CC:CORP

Agency Contact: Aimee K. Meacham, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7530

RIN: 1545-BB25

2761. COST SHARING

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 482

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These proposed regulations will provide additional guidance on cost sharing arrangements under section 482.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Federalism: Undetermined

Additional Information: REG-144615-02

Drafting attorney: Bradley A. Smith (202) 874-1490

Reviewing attorney: Elizabeth G. Beck (202) 874- 1490

Treasury attorney: Rocco Femia (202) 622-1755

CC:INTL

Agency Contact: Bradley A. Smith, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 950 L'Enfant Plaza South SW, Washington, DC 20024 Phone: 202 874-1490

RIN: 1545-BB26

2762. APPLICATION OF SEPARATE LIMITATIONS TO DIVIDENDS FROM NONCONTROLLED SECTION 902 CORPORATION

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 904(d)(6)

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The Taxpayer Relief Act of 1997 amended the foreign tax credit limitation rules under section 904(d) and extended lookthrough treatment to dividends paid by a 10/50 lookthrough corporation, effective for earnings and profits accumulated in tax years beginning after 12/31/02. These regulations would provide guidance needed to comply with these changes, including transition rules for dividends paid by a 10/50 lookthrough corporation.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-144784-02

Drafting attorney: Ginny Y. Chung (202) 622-3850

Reviewing attorney: Bethany Ingwalson (202) 622- 3850

CC:INTL

Agency Contact: Ginny Y. Chung, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3850

RIN: 1545-BB28

2763. EXTENSION OF TIME FOR FILING RETURNS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6081

CFR Citation: 26 CFR 31

Legal Deadline: None

Abstract: This regulation will amend the section 6081 regulations to remove the signature requirement for Form 8809, Request for Extension of Time to File Information Returns. This will enable filers of information returns to request an extension of time to file using an online version of the Form 8809.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-107618-02

Drafting attorney: Charles A. Hall (202) 622-4940

Reviewing attorney: Judith Wall (202) 622-4940

CC:P&A:APJP

Agency Contact: Charles A. Hall, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4940

RIN: 1545-BB29

2764. EXCLUSIONS FROM GROSS INCOME OF FOREIGN CORPORATIONS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 883; 26 USC 872

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation will provide rules with respect to whether a foreign country will be considered to grant a reciprocal Aircraft/ Shipping exemption to U.S. corporations for purposes of section 883 of the Code. This regulations will also provide rules with respect to whether a foreign corporation satisfies the ownership requirements of section 883(c) and the activity requirements of section 883(a). The regulation affects a large segment of the shipping and air transport industries.

Timetable:

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: REG-136311-01

Drafting attorneys: Patricia A. Bray (202) 622-3880 and David L. Lundy (202) 622-3880

Reviewing attorney: Elizabeth U. Karzon (202) 622- 3880

Treasury attorney: Dirk Suringa (202) 622-1779 This regulation (formerly 1545-BA07) is being reproposed and Reg-208280 (1545-AJ57) is being withdrawn.

CC:INTL

Agency Contact: Patricia A. Bray, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3880

David L. Lundy, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3880

RIN: 1545-BB30

2765. TAX SHELTER DISCLOSURE STATEMENTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 6001; 26 USC 601(a)

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These regulations modify the rules relating to the disclosure of reportable transactions by certain taxpayers under section 6011(a).

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-103735-00

Drafting attorney: Tara P. Volungis (202) 622-3080

Reviewing attorney: Christine Ellison (202) 622- 3080

Treasury attorney: Julian Kim (202) 622-1981

CC:P&SI

Agency Contact: Tara P. Volungis, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3080

Related RIN: Related To 1545-AX81, Related To 1545- BA62

RIN: 1545-BB32

2766. REQUIREMENT TO MAINTAIN LIST OF INVESTORS IN POTENTIALLY ABUSIVE TAX SHELTERS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 6112

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: These regulations modify the rules relating to the list maintenance requirements for sellers and organizers of potentially abusive tax shelters under section 6112.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-103736-00

Drafting attorney: Charlotte Chyr (202) 622-3080

Reviewing attorney: Mary Beth Collins (202) 622- 3080

Treasury attorney: Julian Kim (202) 622-1981

CC:P&SI

Agency Contact: Charlotte Chyr, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3080

Related RIN: Related To 1545-AX79, Related To 1545- BA62

RIN: 1545-BB33

2767. OTHER ASSESSABLE PENALTIES WITH RESPECT TO THE PREPARATION OF INCOME TAX RETURNS FOR OTHER PERSONS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6107; 26 USC 6061; 26 USC 6695; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This proposed regulation relates to persons who prepare income tax returns for compensation who may satisfy the requirement of providing a signed copy of the return to the taxpayer by copies which are singed electronically or as otherwise prescribed by the Secretary.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-141659-02

Drafting attorney: Richard C. Grosenick (202) 622- 7940

Reviewing attorney: Stuart Spielman (202) 622-7940

CC:P&A:APJP

Agency Contact: Richard C. Grosenick, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7940

RIN: 1545-BB34

2768. FRACTIONAL PARTS OF A DOLLAR

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7504

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These proposed regulations will authorize the Internal Revenue Service to round figures when transcribing amounts from forms into the Service's databases.

Timetable:

Government Levels Affected: None

Additional Information: REG-147965-02

Drafting attorney: Marcy W. Mendelsohn (202) 622- 4940

Reviewing attorney: Charles A. Hall (20) 622-4940 CC:P&A:APJP

Agency Contact: Marcy W. Mendelsohn, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4940

RIN: 1545-BB35

Priority: Substantive, Nonsignificant

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 7805; 26 USC 280G

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These regulations will provide rules relating to restrictions on golden parachute payments. The regulations will provide guidance to taxpayers, who must comply with section 280G, by delineating the circumstances under which payments may be considered excess parachute payments.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-209114-90 (EE-30-90)

Drafting attorney: Erinn Madden (202) 622-6060

Reviewing attorney: Robert Misner (202) 622-6060

CC:TEGE

Agency Contact: Erinn M. Madden, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6030

RIN: 1545-AH49

2770. NONRECOGNITION OF CORPORATE DISTRIBUTIONS AND REORGANIZATIONS UNDER THE FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 897

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These regulations will provide rules concerning the effect of certain distributions including dividends, redemptions, distributions pursuant to reorganizations, and liquidations on corporations and their shareholders under the Foreign Investment in Real Property Tax Act. Regulations will also provide rules for determining the extent to which nonrecognition would apply to certain transfers of real property interests and the extent to which certain reorganizations will be treated as sales of property at fair market value.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-209039-87 (INTL-491-87)

Drafting attorney: Robert W. Lorence (202) 622-3860

Reviewing attorney: Charles P. Besecky (202) 622- 3860

CC:INTL

Agency Contact: Robert W. Lorence, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3860 Fax: 202 622-4476

RIN: 1545-AK79

2771. COMPUTATION OF A BRANCH'S TAXABLE INCOME; TAXATION OF EXCHANGE GAIN OR LOSS ON BRANCH REMITTANCES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These regulations relate to branch rules and how to translate branch income, the taxation of exchange gain or loss on branch remittances.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-208270-86 (INTL-965-86)

Drafting attorney: Kenneth P. Christman (202) 622- 3870

Reviewing attorney: Jeffrey Dorfman (202) 622-3870

Treasury attorney: Patrick Brown (202) 622-1754

CC:INTL

Agency Contact: Kenneth P. Christman, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3870

RIN: 1545-AM12

2772. LIMITATIONS ON PASSIVE ACTIVITY LOSSES AND CREDITS -- SELF- CHARGED ITEMS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 0469

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The proposed regulation addresses the treatment of self- charged items of income and expense in connection with transactions between passthrough entities and owners of interests in those entities.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-209365-89 (PS-39-89)

Drafting attorney: Danielle M. Grimm (202) 622-3080

Reviewing attorney: Jeanne Sullivan (202) 622-3080

Treasury attorney: John Parcell (202) 622-2578

CC:P&SI

Agency Contact: Danielle M. Grimm, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3080

RIN: 1545-AN64

2773. TAXATION OF GLOBAL TRADING

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 864; 26 USC 482; 26 USC 863

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These regulations will improve the taxation of global trading.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-208299-90 (INTL-70-90)

Drafting attorney: Kenneth P. Christman (202) 622- 3870

Reviewing attorney: Paul S. Epstein (202) 622-3870

Treasury attorney: Patricia Brown (202) 622-1781

CC:INTL

Agency Contact: Kenneth P. Christman, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3870

RIN: 1545-AP01

2774. INTEREST-FREE ADJUSTMENTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 6205

CFR Citation: 26 CFR 31

Legal Deadline: None

Abstract: Under section 6205(a)(1) of the Code, if less than the correct amount of tax imposed under the FICA, the RRTA, or the income tax withholding provisions is paid with respect to any payment of wages or compensation, proper adjustments with respect to both the tax and amount to be deducted must be made without interest in such manner and in such times as the Secretary may by regulations prescribe. The proposed amendments would add language to clarify that an interest-free adjustment can be made in certain situations in which the error is ascertained before the appropriate return is filed. The proposed amendments are intended to apply only to situations in which no return was filed because the employer improperly failed to treat its workers as employees.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-209538-92 (EE-12-92)

Drafting attorney: Karin Loverud (202) 622-6060

Reviewing attorney: Mary Oppenheimer (202) 622-6010

CC:TEGE

Agency Contact: Karin Loverud, Tax Law Specialist, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6060

RIN: 1545-AQ61

2775. DEFINITION OF "HIGHLY COMPENSATED EMPLOYEE"

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 414

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations define the term "highly compensated employee" under section 414(q) of the Code. Temporary and proposed regulations, under sections 414(q) and 414(s), were published February 19, 1988 (53 FR 4965). Final regulations, under section 414(s), were published September 19, 1991 (56 FR 47659) under project EE-129-86. The regulations under 414(q) were split off from project EE-129-86. It is anticipated that proposed regulations under section 414(q) will be published in the future under project REG- 209558-92 (EE-32-92).

Timetable:

Small Entities Affected: No

Government Levels Affected: State, Local

Federalism: Undetermined

Additional Information: REG-209558-92

Drafting attorney: R. Lisa Mojiri-Azad (202) 622- 6080

Reviewing attorney: Marjorie Hoffman (202) 622-6030

Treasury attorney: W. Thomas Reeder (202) 622-1341

CC:TEGE

Agency Contact: R. Lisa Mojiri-Azad, Senior Attorney, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6080

RIN: 1545-AQ74

2776. ESCROW FUNDS AND OTHER SIMILAR FUNDS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 0468B

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation provides further guidance relating to certain escrow funds and other similar funds.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-209619-93 (IA-17-93)

Drafting attorney: Richard Shevak (202) 622-4930

Reviewing attorney: Jeffery G. Mitchell (202) 622- 4930

CC:IT&A

Agency Contact: Richard Shevak, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4930

RIN: 1545-AR82

2777. MARK-TO-MARKET UPON DISPOSITION

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 475

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations address the relationship between mark-to- market accounting and accrual of stated interest, discount and premium, and between mark-to-market accounting and the tax treatment of bad debts. The regulations also provide that securities are to be marked to market upon disposition by a dealer and the exemption from marking to market in certain securitization transactions.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-209724-94 (FI-42-94)

Drafting attorney: Stephen J. Coleman (202) 622- 3060

Reviewing attorney: Al Kraft (202) 622-3920

CC:FI&P

Sections 1.475(a)-3 finalized in TD 8700. Sections 1.475(b)-4 finalized in TD 8700. Sections 1.475(c)-2 finalized in TD 8700.

Agency Contact: Stephen J. Coleman, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3060

RIN: 1545-AS85

2778. STRADDLES -- -MISCELLANEOUS ISSUES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 1092

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation holds equity swaps to be straddles.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-209768-95 (FI-21-95)

Drafting attorney: Mary Truchly (202) 622-3960

Reviewing attorney: Christina Morrison (202) 622- 3960

CC:FI&P

Agency Contact: Mary Truchly, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3960

RIN: 1545-AT46

2779. AGREEMENTS FOR PAYMENT OF TAX LIABILITIES IN INSTALLMENTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: The regulations reflect the amendment of IRC section 6159, section 202 of the Taxpayer Bill of Rights 2, which provides that upon request by a taxpayer the Secretary shall provide an independent review of the termination of an installment agreement. The regulations reflect the amendment to section 6159, which guarantees the availability of installment agreements to taxpayers.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-100841-97

Drafting attorney: Frederick W. Schindler (202) 622-3620

Reviewing attorney: Lawrence Schattner (202) 622- 3620

CC:P&A:CB&S

Agency Contact: Frederick W. Schindler, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3620

RIN: 1545-AU97

2780. DEFINITION OF "PRIVATE ACTIVITY BONDS" ALLOCATION AND ACCOUNTING REGULATIONS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 141; 26 USC 142; 26 USC 145; 26 USC 148; 26 USC 150

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These regulations will provide general allocation and accounting rules for purposes of applying the private activity bond tests to tax-exempt bonds issued by State and local governments.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-101563-97

Drafting attorney: Bruce M. Serchuk (202) 622-3980 CC:TEGE

Agency Contact: Bruce M. Serchuk, Senior Technician Reviewer, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3980 Fax: 202 622-4437

RIN: 1545-AU98

2781. RETURN OF LEVIED PROPERTY IN CERTAIN CASES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: Section 501(b) of the Taxpayer Bill of Rights 2 amended section 6343 of the Internal Revenue Code to authorize the Secretary to return levied property in four enumerated circumstances. Section 1102(d)(1)(B) of RRA 98 changed "Taxpayer Advocate" to "National Taxpayer Advocate" as a person who determines what is in the best interest of the taxpayer. The regulations set forth the circumstances in which the Secretary may return property and procedures to implement these sections.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-101520-97

Drafting attorney: Kevin B. Connelly (202) 622-3630

Reviewing attorney: Robert Miller (202) 622-3630

Treasury attorney: Rita Cavanagh (202) 622-1981

CC:P&A:CB&S

Agency Contact: Kevin B. Connelly, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3630

RIN: 1545-AV01

2782. INTEREST ON EDUCATION LOANS

Priority: Substantive, Nonsignificant

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 221; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation provides guidance on the deduction of interest on education loans under section 221.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-116826-97

Drafting attorney: Kelly M. Davidson (202) 622-5020 Drating attorney: Donna Crisalli (202) 622-5020

CC:IT&A

Agency Contact: Kelly M. Davidson, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-5020

RIN: 1545-AW01

2783. MARK-TO-MARKET ACCOUNTING FOR DEALERS IN COMMODITIES AND TRADERS IN SECURITIES AND COMMODITIES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 475; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation provides guidance concerning mark-to-market accounting for securities traders and commodities dealers and traders.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-104924-98

Drafting attorney: Stephen J. Coleman (202) 622- 3060

Reviewing attorney: Alvin Kraft (202) 622-3920

CC:FI&P

Agency Contact: Stephen J. Coleman, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3060

RIN: 1545-AW06

2784. ELECTION TO TREAT TRUST AS ESTATE

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 645; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulation will provide guidance regarding the operation of section 645 of the Internal Revenue Code, relating to certain revocable trusts treated as part of an estate.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-106542-98

Drafting attorney: Faith Colson (202) 622-3060

Reviewing attorney: J. Thomas Hines (202) 622-3060

CC:P&SI

Agency Contact: Faith Colson, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3060

RIN: 1545-AW24

2785. CORPORATE TAX SHELTER REGISTRATION

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 6111

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This regulation provides guidance on the registration requirements for confidential corporate tax shelters under section 6111(d) of the Internal Revenue Code.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-110311-98 Drafting attorneys: Danielle M. Grimm (202) 622-3080 and Tara P. Volungis (202) 622-3080

Reviewing attorney: Christine Ellison (202) 622- 3070

CC:P&SI

Agency Contact: Danielle M. Grimm, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3080

Tara P. Volungis, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3080

Related RIN: Related To 1545-AX81, Related To 1545- AX79, Related To 1545-BA62

RIN: 1545-AW26

2786. INTERCOMPANY OBLIGATIONS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 1502; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulation provides clarification of the tax treatment of certain transfers of intercompany obligations by or to a member of a consolidated group.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-105964-98

Drafting attorney: Theresa Abell (202) 622-7700

Reviewing attorney: Ken Cohen (202) 622-7790

CC:CORP

Agency Contact: Theresa Abell, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7700

RIN: 1545-AW30

2787. REPORTING OF PAYMENTS TO ATTORNEY

Priority: Substantive, Nonsignificant

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 6045

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulation provides information reporting requirements for payments of gross proceeds made in the course of a trade or business to attorneys in connection with legal services.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-126024-01

Drafting attorney: Nancy L. Rose (202) 622-4910

Reviewing attorney: James C. Gibbons (202) 622-4910

Treasury attorney: Michael Novey (202) 622-1339

CC:P&A:APJP

Agency Contact: Nancy L. Rose, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4910

RIN: 1545-AW72

2788. QUALIFIED OFFERS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation relates to the qualified offer rule allowing the recovery of reasonable administrative or litigation costs.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-121928-98

Drafting attorney: Melinda G. Williams (202) 622- 7940 Reviewing attorneys: Henry Schneiderman (202) 622-7820 and Susan T. Mosley (202) 622-7940

Treasury attorney: Julian Kim (202) 622-1981

CC:PA:APJP

Agency Contact: Melinda G. Williams, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7940

RIN: 1545-AW99

2789. NOTICE OF CONTACT OF THIRD PARTIES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This regulation implements and interprets section 7602(c) of the Internal Revenue Code, concerning third-party contacts. The Restructuring and Reform Act of 1998, section 3417(a), created a new section 7602(c), which provides that the IRS may not contact third parties with respect to the determination or collection of the tax liability of a taxpayer without providing reasonable notice to the taxpayer in advance. It also requires the IRS to keep a list of contacts and provide it periodically to the taxpayer.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-104906-99

Drafting attorney: Charles B. Christopher (202) 622-3630

Reviewing attorney: Robert A. Miller (202) 622-3630

Treasury attorney: Julian Kim (202) 622-1981

CC:P&A:CB&S

Agency Contact: Charles B. Christopher, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3630

RIN: 1545-AX04

2790. ALLOCATION OF RESEARCH CREDIT

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 41

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation will provide guidance on the proper method of computing the research credit for a controlled group and the allocation of the research credit among members of the controlled group.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-105606-99

Drafting attorney: Jolene J. Shiraishi (202) 622- 3120

Reviewing attorney: Joseph H. Makurath (202) 622- 3120

Treasury attorney: Julian Kim (202) 622-1981

CC:P&SI

Agency Contact: Jolene J. Shiraishi, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20044 Phone: 202 622-3120

Related RIN: Related To 1545-BA88

RIN: 1545-AX05

2791. DELAY RENTAL PAYMENTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 263

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations clarify that section 1.612-3(c) applies to delay rental payments to the extent that section 263A does not require the payments to be capitalized.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-103882-99

Drafting attorney: Brenda M. Stewart (202) 622-3120

Reviewing attorney: J.H. Makurath (202) 622-3120

Treasury attorney: John Parcell (202) 622-2578

CC:P&SI

Agency Contact: Brenda M. Stewart, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3120

RIN: 1545-AX06

2792. HIGHWAY VEHICLE -- DEFINITION

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 48

Legal Deadline: None

Abstract: This regulation provides amendments to regulations relating to definition of a highway vehicle.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-103829-99

Drafting attorney: Bernard H. Weberman (202) 622- 3130

Reviewing attorney: Richard Kocak (202) 622-3130

Treasury attorney: John Parcell (202) 622-2578

CC:P&SI

Agency Contact: Bernard H. Weberman, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3130

RIN: 1545-AX10

2793. GUIDANCE ON COST RECOVERY IN THE ENTERTAINMENT INDUSTRY

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation relates to the application of the income forecast method under section 167(g) of the Internal Revenue Code.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-103823-99

Drafting attorney: Bernard P. Harvey, III (202) 622-3110

Reviewing attorney: Charles B. Ramsey (202) 622- 3110

Treasury attorney: Christopher Ohmes (202) 622-0865

CC:P&SI

Agency Contact: Bernard P. Harvey III, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3110

RIN: 1545-AX12

2794. ALLOCATING BASIS ADJUSTMENTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 755; 26 USC 1060

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations will provide rules for determining the fair market value of partnership assets for the purpose of allocating basis adjustments under sections 732(d), 734(b) and 743(b) among partnership assets under section 755, using the residual method of section 1060 of the Internal Revenue Code.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-107872-99

Drafting attorney: Craig A. Gerson (202) 622-3050

Reviewing attorney: David Haglund (202) 622-3050

Treasury attorney: Deborah Harrington (202) 622- 1788 CC:P&SI

Agency Contact: Craig A. Gerson, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3050

RIN: 1545-AX18

2795. EXCLUSION OF GAIN ON THE SALE OR EXCHANGE OF PRINCIPAL RESIDENCE

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 121

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These regulations reflect changes made by the Taxpayer Relief Act of 1997 to sections 121 and 1034 of the Code, relating to the exclusion of gain from the sale or exchange of a taxpayer's principal residence.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-105235-99

Drafting attorney: Sara P. Shepherd (202) 622-4960

Reviewing attorney: George Baker (202) 622-4960

Treasury attorney: Elizabeth Askey (202) 622-0224

CC:IT&A

Agency Contact: Sara P. Shepherd, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4960

RIN: 1545-AX28

2796. SPECIAL RULES FOR RETROACTIVE PAYMENTS UNDER SECTION 417(A)(7)(A) FOR QUALIFIED RETIREMENT PLANS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 417; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulation provides guidance regarding the special rule in IRC section 417(a)(7)(A), which permits qualified retirement plans to provide written explanation of QJSA after the annuity starting date.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Additional Information: REG-109481-99

Drafting attorney: Robert M. Walsh (202) 622-6090

Reviewing attorney: Marjorie Hoffman (202) 622-6000

CC:TEGE

Agency Contact: Robert M. Walsh, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6090

RIN: 1545-AX34

2797. COMPENSATION DEFERRED UNDER ELIGIBLE SECTION 457(B) PLANS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 457

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations relate to deferred compensation plans of State and local governments and tax-exempt entities under section 457 of the Internal Revenue Code.

Timetable:

Small Entities Affected: No

Government Levels Affected: State, Local

Federalism: Undetermined

Additional Information: REG-105885-99

Drafting attorney: Cheryl E. Press (202) 622-6060

Reviewing attorney: Robert Patchell (202) 622-6060

Treasury attorney: William Bortz (202) 622-1352

CC:TEGE

Agency Contact: Cheryl E. Press, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6060 Fax: 202 622-4631

RIN: 1545-AX52

2798. STOCK TRANSFER RULES: CARRYOVER OF EARNINGS AND TAXES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 367

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation provides guidance with respect to how earnings and profits and foreign income tax accounts carry over under section 381 and are allocated under section 312 in certain transactions described in section 367(b) of the Internal Revenue Code.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-116050-99

Drafting attorney: Mark R. Pollard (202) 622-3850

Reviewing attorney: Anne Devereaux (202) 622-3850

Treasury attorney: Michael Caballero (202) 622-0851

CC:INTL

Agency Contact: Mark R. Pollard, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3850

RIN: 1545-AX65

2799. LOANS TO PARTICIPANTS OR BENEFICIARIES FROM QUALIFIED EMPLOYEE PLANS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 72

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulation will provide guidance on the application of rules for determining the income tax treatment to be accorded loans to participants or beneficiaries from qualified employer plans. The loans rules are provided in section 72(p) of the Internal Revenue Code.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-116495-99

Drafting attorney: Vernon Carter (202) 622-6060

Reviewing attorney: Catherine Fernandez (202) 622- 6030

Treasury attorney: William Bortz (202) 622-1352

CC:TEGE

Agency Contact: Vernon Carter, Tax Law Specialist, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6060

RIN: 1545-AX68

2800. REQUIREMENT TO MAINTAIN LIST OF INVESTORS IN POTENTIALLY ABUSIVE TAX SHELTERS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6112; 26 USC 7805

CFR Citation: 26 CFR 301; 26 CFR 602

Legal Deadline: None

Abstract: These regulations require the maintenance of lists of investors in potentially abusive tax shelters described in section 6112 of the Internal Revenue Code.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-103736-00 Drafting attorneys: Danielle M. Grimm (202) 622-3080 and Tara P. Volungis (202) 622-3080

Reviewing attorney: Christine Ellison (202) 622- 3080

CC:P&SI

Agency Contact: Danielle M. Grimm, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3080

Tara P. Volungis, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3080

Related RIN: Related To 1545-AW26, Related To 1545- AX81, Related To 1545-BA62

RIN: 1545-AX79

2801. TAX SHELTER DISCLOSURE STATEMENTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6011; 26 USC 7805

CFR Citation: 26 CFR 1; 26 CFR 602

Legal Deadline: None

Abstract: The regulations require certain taxpayers to file a statement under section 6011 and maintain certain documents under section 6001 of the Internal Revenue Code.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-103735-00

Drafting attorneys: Danielle M. Grimm (202) 622- 3080 and Tara P. Volungis (202) 622-3080

Reviewing attorney: Christine Ellison (202) 622- 3080

CC:P&SI

Agency Contact: Danielle M. Grimm, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3080

Tara P. Volungis, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3080

Related RIN: Related To 1545-AX79, Related To 1545- AW26, Related To 1545-BA62

RIN: 1545-AX81

2802. DISCLOSURE OF RETURN AND RETURN INFORMATION TO DESIGNEE OF TAXPAYER

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6103

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This regulation finalizes regulations implementing the amendment contained in the Taxpayer Bill of Rights II (TBOR II) to Internal Revenue Code section 6103(c). TBOR II eliminated the requirement for a request or consent for disclosure to be in writing. The proposed regulations which will be identical to temporary regulations already in effect will permit the Internal Revenue Service to disclose returns and return information to a taxpayer's designee, pursuant to a non-written request for or consent to disclosure. The regulations will also provide rules and guidance for consent in an electronic environment. Additionally, the regulations will provide guidance to Internal Revenue Service personnel to clarify a number of issues that have arisen since the regulation was initially promulgated in the late 1970s.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-103320-00

Drafting attorney: Joseph E. Conley (202) 622-4580

Reviewing attorney: David Fish (202) 622-4570

Treasury attorney: Elizabeth Askey (202) 622-0224

CC:P&A:D&PL

Agency Contact: Joseph E. Conley, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4580

RIN: 1545-AX85

2803. STATUTE OF LIMITATIONS ON COLLECTION INSTALLMENT AGREEMENTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6331

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This regulation provides for the prohibition of levy while an installment agreement is pending with the Secretary, while an installment agreement is in effect, and following the rejection or termination of an installment agreement. This levy prohibition is established in section 6331(k) of title 26, as added by the IRS Restructuring and Reform Act of 1998. The regulation clarifies when levy is prohibited and the effect of the prohibition on the statute of limitations for collection.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-104762-00

Drafting attorney: Frederick W. Schindler (202) 622-3620

Reviewing attorney: Lawrence Schattner (202) 622- 3620

CC:P&A:CB&S

Agency Contact: Frederick W. Schindler, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3620

RIN: 1545-AX89

2804. DEFINITION OF INCOME

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 643; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations provide guidance under section 643 of the Internal Revenue Code, on whether State law definition of trust income is trust income for Federal tax purposes.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Federalism: Undetermined

Additional Information: REG-106513-00

Drafting attorney: Bradford R. Poston (202) 622- 3060

Reviewing attorney: J. Thomas Hines (202) 622-3060

CC:P&SI

Agency Contact: Bradford R. Poston, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3060

RIN: 1545-AX96

2805. CONSTRUCTIVE TRANSFERS AND TRANSFERS OF PROPERTY TO THIRD PARTIES ON BEHALF OF A SPOUSE

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulation will provide rules for determining when a redemption by a corporation of the stock of one spouse or former spouse results in a constructive transfer to the other spouse or former spouse of the proceeds of the redemption.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-107151-00

Drafting attorney: Edward C. Schwartz (202) 622- 4960

Reviewing attorney: William A. Jackson (202) 622- 4960

CC:IT&A

Agency Contact: Edward C. Schwartz, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4960

RIN: 1545-AX99

2806. DAMAGES FOR INTENTIONAL OR RECKLESS DISREGARD OF THE INTERNAL REVENUE CODE

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This regulation will implement a number of new provisions of section 7433, including raising the cap on damages for the intentional or reckless disregard of the Internal Revenue Code, or regulations in connection with a collection action, authorizing actions for the negligent disregard of the Code or regulations. It will provide rules with respect to administrative claims for damages caused by violations of the automatic stay and discharge provisions of the Bankruptcy Code.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-107366-00

Drafting attorney: Robert A. Miller (202) 622-3640

Reviewing attorney: Kevin B. Connelly (202) 622- 3630

Treasury attorney: Rita Cavanagh (202) 622-1981

CC:P&A:CB&S

Agency Contact: Robert A. Miller, Technical Assistant, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3640

RIN: 1545-AY08

2807. INVESTMENT TYPE PROPERTY (PREPAYMENT)

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation defines investment type property for purposes of determining whether bonds are arbitrage bonds under section 148 of the Internal Revenue Code.

Timetable:

Small Entities Affected: No

Government Levels Affected: State, Local

Additional Information: REG-105369-00

Drafting attorney: Johanna L. Som de Cerff (202) 622-3980

Reviewing attorney: Rebecca L. Harrigal (202) 622- 3980

Treasury attorney: Stephen Watson (202) 622-1322

CC:TEGE

The previous notice of proposed rulemaking (REG-113526-98; 64 FR 46320), published on August 25, 1999, relating to arbitrage and related restrictions applicable to tax-exempt bonds issued by State and Local governments, is withdrawn (67 FR 18835).

Agency Contact: Johanna L. Som de Cerff, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3980 Fax: 202 622-4437

Related RIN: Related To 1545-AW44

RIN: 1545-AY12

2808. AUTHORIZED PLACEMENT AGENCY

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 152

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations amend the definition of "authorized placement agency" (for purposes of determining whether a child placed for legal adoption in a taxpayer's home is a dependent of the taxpayer) to include biological parents and other persons authorized by State law to place children for legal adoption.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-107279-00

Drafting attorney: Elizabeth K. Kaye (202) 622-4910

Reviewing attorney: Pamela W. Fuller (202) 622-4910

CC:P&A:APJP

Agency Contact: Elizabeth K. Kaye, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4910 Fax: 202 622-6232

RIN: 1545-AY18

2809. HIPAA GENERAL NONDISCRIMINATION

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 9833

CFR Citation: 26 CFR 54

Legal Deadline: None

Abstract: These regulations provide guidance regarding the requirements imposed on group health plans not to discriminate in rules for eligibility under the plan on the basis of any health factor, and not to require any individual to pay a higher premium or contribution for coverage under the plan than any similarly situated individual based on any health factor.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-114082-00

Drafting attorney: Russell Weinheimer (202) 622- 6080

Reviewing attorney: Alan Tawshunsky (202) 622-6000

Treasury attorney: Kevin Knopf (202) 622-2329

CC:TEGE

Agency Contact: Russell Weinheimer, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6080

RIN: 1545-AY32

2810. HIPAA NONDISCRIMINATION/EXCEPTION FOR CHURCH PLANS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 7853

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These regulations provide guidance on the exception for certain grandfathered church plans from the general rule requiring group health plans not to discriminate in rules for eligibility on the basis of any health factor.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-114083-00

Drafting attorney: Russell Weinheimer (202) 622- 6080

Reviewing attorney: Alan Tawnshunsky (202) 622-6000

Treasury attorney: Kevin Knopf (202) 622-2329

CC:TEGE

Agency Contact: Russell Weinheimer, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6080

RIN: 1545-AY33

2811. HIPAA NONDISCRIMINATION/BONA FIDE WELLNESS PROGRAMS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 9833

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These regulations provide guidance regarding the exception for certain wellness programs to the general rule imposed on group health plans not to require a higher premium or contribution from an individual than from a similarly situated individual based on any health factor.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-114084-00

Drafting attorney: Russell Weinheimer (202) 622- 6080

Reviewing attorney: Alan Tawnshunsky (202) 622-6080

Treasury attorney: Kevin Knopf (202) 622-2329

CC:TEGE

Agency Contact: Russell Weinheimer, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6080

RIN: 1545-AY34

2812. RECOGNITION OF GAIN ON CERTAIN DISTRIBUTIONS OR STOCK OF SECURITIES IN CONNECTION WITH AN ACQUISITION

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 355(e)(5)

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation provides that a distributing corporation will recognize gain on the distribution of stock of a controlled corporation if 50 percent of the stock of the distributing corporation or controlled corporation is acquired pursuant to a plan that includes the distribution.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-163892-01

Drafting attorney: Amber R. Cook (202) 622-7530

Reviewing attorney: Stephen P. Fattman (202) 622- 7700

Treasury attorney: Audrey Nacamuli (202) 622-5721 CC:CORP On January 2, 2001, a notice of proposed rulemaking was published in the Federal Register (REG-107566-00; 66 FR 66) under section 355(e) of the Internal Revenue Code of 1986. A public hearing regarding those proposed regulations was held on May 15, 2001. On August 3, 2001, those proposed regulations were published as temporary regulations in the Federal Register (REG-107566-00; 66 FR 40590). The notice of proposed rulemaking withdraws the notice of proposed rulemaking that was published on January 2, 2001 and provides new rules under section 355(e) of the Internal Revenue Code of 1986 by cross-reference to temporary regulations published in the same issue of the Federal Register.

Agency Contact: Amber R. Cook, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7530

RIN: 1545-AY42

2813. MODIFIED GUARANTEED CONTRACTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 817A

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations will provide guidance to issuers of modified guaranteed contracts.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-248110-96

Drafting attorney: Ann H. Logan (202) 622-3970

Reviewing attorney: Donald J. Drees (202) 622-3970

CC:FI&P

Agency Contact: Ann H. Logan, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3970

RIN: 1545-AY48

2814. ELECTRONIC FURNISHING OF PAYEE STATEMENTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6050; 26 USC 6051; 26 USC 6041; 26 USC 6724

CFR Citation: 26 CFR 1; 26 CFR 31

Legal Deadline: None

Abstract: This regulation amends the regulations to allow for the electronic furnishing of Forms W-2, 1098-E and 1098-T.

Timetable:

Small Entities Affected: No

Government Levels Affected: State

Additional Information: REG-107186-00

Drafting attorney: Michael E. Hara (202) 622-4910

Reviewing attorney: John McGreevy (202) 622-4910

Treasury attorney: John Parcell (202) 622-2578

CC:PA:APJP

Agency Contact: Michael E. Hara, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue, Washington, DC 20224 Phone: 202 622-4910

RIN: 1545-AY50

2815. DISCLOSURE OF RETURN INFORMATION TO OFFICERS AND EMPLOYEES OF THE DEPARTMENT OF COMMERCE FOR CERTAIN STATISTICAL PURPOSES AND RELATED ACTIVITIES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6103

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: The regulations relate to additions to the list of items of information disclosed to the Bureau of the Census for use in the Longitudinal Employer-Household Dynamics (LEHD) project and the Survey of Income and Program Participation (SIPP) project.

Timetable:

Small Entities Affected: No

Government Levels Affected: Federal

Additional Information: REG-121109-00

Drafting attorney: Christine Irwin (202) 622-4570

Reviewing attorney: Donald Squires (202) 622-4570

Treasury attorney: Elizabeth Askey (202) 622-0224 CC:PA:DPL

Agency Contact: Christine Irwin, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4570

RIN: 1545-AY52

2816. TAX TREATMENT OF CAFETERIA PLANS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 125

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation provides information about the tax treatment of cafeteria plans.

Timetable:

Small Entities Affected: No

Government Levels Affected: Federal

Additional Information: REG-209461-79

Drafting attorney: Shoshanna Chaiton (202) 622-6080

Reviewing attorney: Janet A. Laufer (202) 622-6090

CC:TEGE

Agency Contact: Shoshanna Chaiton, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6080

RIN: 1545-AY67

2817. OBLIGATION OF STATES AND POLITICAL SUBDIVISIONS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation provides guidance to State and local governments that issue bonds for output facilities. This document also withdraws the NPRM REG-110965-97, 1545-AV47, published on January 22, 1998 (63 FR 3296).

Timetable:

Small Entities Affected: No

Government Levels Affected: State, Local

Additional Information: REG-114998-99 and REG- 145082-02

Drafting attorney: Rose M. Weber (202) 622-3980

Reviewing attorney: Bruce M. Serchuk (202) 622-3980

Treasury attorney: Stephen J. Watson (202) 622-1322 The Notice of Proposed Rulemaking partially withdraws the NPRM REG- 110965-97, 1545-AV47 published on Jan. 22, 1998 (63 FR 3296) REG- 114998-99, RIN 1545-AY71 was published on Jan. 18, 2001 at 66 FR 4754. REG-145082-02 (final regulation), will finalize those regulations. CC:TEGE

Agency Contact: Rose M. Weber, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3980 Fax: 202 622-4437

RIN: 1545-AY71

2818. QUALIFIED S ELECTION FOR TESTAMENTARY TRUSTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 1361

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These final regulations relate to the qualified subchapter S election for testamentary trusts. A testamentary trust may qualify as a permitted shareholder of an S corporation for a two-year period beginning on the day the stock is transferred to the trust. These regulations would provide that the beneficiary of a qualifying testamentary trust that also qualifies as a qualified subchapters S trust (QSST) may make a QSST election at any time up to the end of the 16-day-and-2-month period beginning after the two-year qualifying period.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-106431-01

Drafting attorney: Deane M. Burke (202) 622-3070

Reviewing attorney: Mary Beth Collins (202) 622- 3070

Treasury attorney: Elizabeth Askey (202) 622-0224 CC:P&SI

Agency Contact: Deane M. Burke, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3070

RIN: 1545-AY76

2819. DISCLOSURE OF RETURNS AND RETURN INFORMATION BY OTHER AGENCIES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This regulation permits the Commissioner to authorize agencies with access to returns and return information under section 6103 of the Code to redisclose such returns and return information, with the Commissioner's approval, to the Congressional Budget Office and other agencies authorized to receive such information in accordance with IRC section 6103.

Timetable:

Small Entities Affected: No

Government Levels Affected: Federal

Additional Information: REG-105344-01

Drafting attorney: Julie C. Schwartz (202) 622-4570

Reviewing attorney: Philip Lendenmuth (202) 622- 4560

Treasury attorney: Elizabeth Askey (202) 622-0224

CC:P&A:D&PL

Agency Contact: Julie C. Schwartz, Senior Counsel, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4570

RIN: 1545-AY77

2820. RESEARCH CREDIT III

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 41

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation relates to the computation of the research credit under section 41(c) and the definition of the qualified research under section 41(d) of the Internal Revenue Code.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Additional Information: REG-112991-01

Drafting attorney: Nicole R. Cimino (202) 622-3120 Reviewing attorneys: Leslie Finlow (202) 622-3120 and Brenda Stewart (202) 622-3120

Treasury attorney: Julian Kim (202) 622-1981

CC:P&SI

Agency Contact: Nicole R. Cimino, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3120

RIN: 1545-AY82

2821. LOW-INCOME TAXPAYER CLINICS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation will amend the regulations pertaining to the definition of income tax return preparer to exclude low-income taxpayer clinics and their volunteers when operating as authorized by 26 U.S.C. 7526.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-115285-01

Drafting attorney: Brinton T. Warren (202) 622-4940

Reviewing attorney: Judith M. Wall (202) 622-4940

Treasury attorney: Julian Kim (202) 622-1981

CC:P&A:APJP

Agency Contact: Brinton T. Warren, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4940

RIN: 1545-AY84

2822. NEW MARKET TAX CREDIT

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 45D; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: These regulations relate to the new markets tax credit under section 45D, which was enacted by section 121(a) of the Community Renewal Tax Relief Act of 2000 (Pub. L. 106- 554).

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Additional Information: REG-119436-01

Drafting attorney: Paul F. Handleman (202) 622-3040

Reviewing attorney: Susan Reaman (202) 622-3040

Treasury attorney: Steve Watson (202) 622-1322

CC:P&SI

Agency Contact: Paul F. Handleman, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3040 Fax: 202 622-4753

RIN: 1545-AY87

2823. NET GIFT TREATMENT

Priority: Substantive, Nonsignificant

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 25

Legal Deadline: None

Abstract: This regulation is intended to cover the effect of gift tax entitled to be recovered by the donor, pursuant to the right of recovery under section 2207A, on the amount of the gift under section 2519 (i.e., whether the transfer is a "net gift"). The section was reserved when the regulations under section 2519 were finalized, because of uncertainty regarding whether section 2207A shifts the liability for the gift tax to the beneficiaries of the transfer. After considering the issue in conjunction with several TAMS and PLRS, we have adopted a position that section 2207A does not shift the liability for the gift tax imposed on a section 2519 transfer.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-123345-01

Drafting attorney: DeAnn K. Malone (202) 622-7830

Reviewing attorney: Melissa Liquerman (202) 622- 7076

CC:P&SI

Agency Contact: DeAnn K. Malone, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7830

RIN: 1545-AY91

2824. EXCISE TAX IMPOSED ON FOREIGN INSURERS OR REINSURERS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 4374

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation is intended to amend Treasury Regulation section 46.4374-1(a), which deals with an excise tax imposed on foreign insurers or reinsurers. The existing regulation was published in 1970 and provides that the "tax shall be remitted by the person who makes the payment of the premium to a foreign insurer or reinsurer or to any nonresident agent, solicitor, or broker. For purposes of this paragraph, the person who makes payment means that resident person who actually transfers the money, check, or its equivalent to the foreign insurer or reinsurer (including transfers to any bank, trust fund, or similar recipient, designated by the foreign insurer or reinsurer), or to any nonresident agent, solicitor, or broker." In 1976, I.R.C. section 4374 was amended to impose liability on "any person who makes, signs, issues, or sells any of the documents and instruments subject to the tax, or for whose use or benefit the same are made, signed, issued or sold." For example, there have been cases recently where a foreign parent corporation has purchased from a foreign insurer policies covering risks and policies for the benefit of a U.S. subsidiary. The IRS often has no ability to collect the excise tax on such a policy from the foreign parent, and the U.S. subsidiary has relied on the existing regulation to argue that the IRS may not collect the tax from the subsidiary, because it did not actually pay the premium to the foreign insurer.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Additional Information: REG-125450-01

Drafting attorney: Amanda A. Ehrlich (202) 622-3880

Reviewing attorney: W. Edward Williams (202) 622- 3880

Treasury attorney: Michael Caballero (202) 622-0851

CC:INTL

Agency Contact: Amanda A. Ehrlich, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3880

RIN: 1545-AY93

2825. DEFINITION OF AGENT AND SAFEGUARD CERTIFICATIONS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 6103

CFR Citation: 26 CFR 301

Legal Deadline: None

Abstract: This regulation relates to the definition of agent for purposes of I.R.C. sections 6103(1) and (m).

Timetable:

Small Entities Affected: No

Government Levels Affected: State, Federal, Local

Additional Information: REG-120135-01

Drafting attorney: Helene R. Newsome (202) 622-4570

Reviewing attorney: Donald M. Squires (202) 622- 4570

CC:P&A:D&PL

Agency Contact: Helene R. Newsome, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4570

RIN: 1545-AY94

2826. CONSOLIDATED RETURN INTERCOMPANY TRANSACTION RULES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 446; 26 USC 1502

CFR Citation: 26 CFR 446

Legal Deadline: None

Abstract: The regulation is related to the treatment of the consolidated return intercompany transaction rules as a method of accounting.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-125161-01

Drafting attorney: Marie C. Milnes-Vasquez (202) 622-7770

Reviewing attorney: Edward Cohen (202) 622-7770

Treasury attorney: Audrey Nacamuli (202) 622-5721

CC:CORP

Agency Contact: Marie Milnes-Vasquez, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7770

RIN: 1545-BA05

2827. MERGERS INVOLVING DISREGARDED ENTITIES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 368

Legal Deadline: None

Abstract: The regulation will provide guidance concerning the requirements to be met in order for a merger or consolidation to qualify as a reorganization under section 368(a)(1)(A). They will also address whether certain mergers involving disregarded entities can qualify as reorganizations under section 368(a)(1)(A).

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-126485-01

Drafting attorneys: Richard Heinecke (202) 622-7930

Reviewing attorney: Reginald Mombrum (202) 622-7930

Treasury attorney: Audrey Nacamuli (202) 622-5721

CC:CORP

Agency Contact: Richard M. Heinecke, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7930

RIN: 1545-BA06

2828. NOTICE OF SIGNIFICANT REDUCTION IN THE RATE OF FUTURE BENEFIT ACCRUAL

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 4980

CFR Citation: 26 CFR 1; 26 CFR 54; 26 CFR 602

Legal Deadline: None

Abstract: The final regulations will update the regulations currently in section 1.411(d) for changes made as a result of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). EGTRAA amends ERISA section 204(h) and adds section 4980F to the Code. Section 4980F imposes an excise tax for failure to satisfy notice requirements.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-136193-01

Drafting attorney: Pamela R. Kinard (202) 622-6060

Reviewing attorney: Janet A. Laufer (202) 622-6090

Treasury attorney: William Bortz (202) 622-6090

CC:TEGE

Agency Contact: Pamela R. Kinard, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6060

RIN: 1545-BA08

2829. CONSOLIDATED RETURNS; NON-APPLICABILITY OF SECTION 357(C)

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 1502

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations make amendments to section 1.1502-80(d) of the consolidated return regulations dealing with the scope of the non- applicability of section 357(c) in a consolidated group.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-137519-01

Drafting attorney: Thomas I. Russell (202) 622-7930

Reviewing attorney: Al Bishop (202) 622-7930

Treasury attorney: Audrey Nacamuli (202) 622-5721

CC:CORP

Agency Contact: Thomas I. Russell, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7930

RIN: 1545-BA09

2830. COUNTING 2100 NOTICES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 3406

CFR Citation: 26 CFR 31

Legal Deadline: None

Abstract: The regulations will amend the rule for determining the number of notices a payer received from the Internal Revenue Service for purposes of determining whether a payer must impose backup withholding pursuant to section 31.3406(d).

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-116644-01

Drafting attorney: Nancy L. Rose (202) 622-4910

Reviewing attorney: Pamela W. Fuller (202) 622-4910

Treasury attorney: Jodi Cohen (202) 622-0160

CC:P&A:APJP

Agency Contact: Nancy L. Rose, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4910

RIN: 1545-BA18

2831. CATCH-UP CONTRIBUTIONS FOR INDIVIDUALS AGE 50 OR OVER

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulations would provide guidance for plans that permit individuals aged 50 or over to make catch-up contributions under the plan.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-142499-01

Drafting attorney: John T. Ricotta (202) 622-6060

Reviewing attorney: Marjorie Hoffman (202) 622-6060

Treasury attorney: Elizabeth Drigotas (202) 622- 1332

CC:TEGE

Agency Contact: John T. Ricotta, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6060

RIN: 1545-BA24

2832. UNIT LIVESTOCK PRICING METHOD

Priority: Substantive, Nonsignificant

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 471; 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The final action contains requirements to annually reevaluate and upwardly or downwardly adjust unit livestock prices.

Timetable:

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: REG-125626-01

Drafting attorney: A. Katharine Kiss (202) 622-4930

Reviewing attorney: Gerald M. Horan (202) 622-4970

CC:IT&A

Agency Contact: A. Katharine Kiss, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4930

RIN: 1545-BA25

2833. GUIDANCE REGARDING FOREIGN PERSONAL HOLDING COMPANY INCOME

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is undetermined.

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 7805; 26 USC 954(h)(8)

CFR Citation: 26 CFR 1.954-2(f); 26 CFR 1.954-2(g)

Legal Deadline: None

Abstract: These proposed regulations relate to the definition of foreign personal holding company income in the case of gain or loss arising from certain commodities hedging transactions and in the case of currency gain or loss arising from certain interest-bearing liabilities.

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Additional Information: REG-154920-01 Drafting attorneys: Theodore Setzer (202) 622-3870, Kenneth P. Christman (202) 622-3870

Reviewing attorney: Jeffrey Dorfman (202) 622-3870

Treasury attorney: Patrick Brown: (202) 622-1754

CC:INTL

Agency Contact: Kenneth P. Christman, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3870

RIN: 1545-BA33

2834. WITHHOLDING AT TREATY RATE EXCEPTION FOR TAXPAYER IDENTIFYING NUMBER

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 1441

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation will address the taxpayer identifying number rule when taxpayer claims treaty rate and is entitled to an immediate payment.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-159079-01

Drafting attorney: Jonathan A. Sambur (202) 622- 3840

Reviewing attorney: Phyllis E. Marcus (202) 622- 3840

Treasury attorney: Patrick Brown (202) 622-1754

CC:INTL

Agency Contact: Jonathan A. Sambur, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington Phone: 202 622-3840

RIN: 1545-BA38

2835. SPLIT-DOLLAR LIFE INSURANCE

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 7872

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation provides guidance under sections 7872, 61, and 83 on the taxation of split-dollar life insurance arrangements pursuant to Notice 2001-10 and Notice 2002-8.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-164754-01

Drafting attorney: Rebecca E. Asta (202) 622-3940

Reviewing attorney: David Silber (202) 622-3524

Treasury attorney: Mike Novey (202) 622-1339

CC:FI&P

Agency Contact: Rebecca E. Asta, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3940

RIN: 1545-BA44

2836. AMENDMENT TO THE DEFINITION OF REFUNDING

Priority: Substantive, Nonsignificant

Legal Authority: Not Yet Determined

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation would amend the definition of a refunding issue applicable to tax-exempt bonds issued by States and local governments.

Timetable:

Small Entities Affected: No

Government Levels Affected: State, Local

Additional Information: REG-165706-01

Drafting attorney: Michael P. Brewer (202) 622-3980

Reviewing attorney: Bruce Serchuk (202) 622-3980

CC:TEGE

Agency Contact: Michael P. Brewer, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3980

RIN: 1545-BA46

2837. TREATMENT OF FUNDED WELFARE BENEFIT PLANS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation provides special rules concerning employer deductions for contributions to a welfare benefit fund that is part of a 10 or more employer plan.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-165868-01

Drafting attorney: Betty J. Clary (202) 622-6080

Reviewing attorney: Mark Schwimmer (202) 622-6080

Treasury attorney: Harlan Weller (202) 622-1001

CC:TEGE

Agency Contact: Betty J. Clary, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6080

RIN: 1545-BA47

2838. LOSS LIMITATION RULES

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 337(d)

CFR Citation: 26 CFR 1; 26 CFR 602

Legal Deadline: None

Abstract: The regulations provide guidance on the treatment of certain losses recognized on sales of subsidiary stock by members of a consolidated group under section 337(d) and section 1502 of the Internal Revenue Code. For related matters see the proposed regulations published on March 12, 2002 at 67 FR 11070 regarding REG-102740-02.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-123305-02

Drafting attorney: Lola L. Johnson (202) 622-7550

Reviewing attorney: Sean P. Duffley (202) 622-7530

CC:CORP

Agency Contact: Lola L. Johnson, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7550

Related RIN: Related To 1545-BA51, Related To 1545- BA74

RIN: 1545-BA52

2839. CARRYBACK OF CONSOLIDATED NET OPERATING LOSSES TO SEPARATE RETURN YEARS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805; 26 USC 1502

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulation will harmonize the waiver election in section 1.1502-21(b)(3) with the Amendments to IRC 172(b) with the Job Creation and Worker Assistance Act of 2002.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-122564-02

Drafting and reviewing attorney: Marie C. Milnes- Vasquez (202) 622-7770

Treasury attorney: Audrey Nacamuli (202) 622-5721 CC:CORP

Agency Contact: Marie Milnes-Vasquez, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-7770

Related RIN: Related To 1545-BA76

RIN: 1545-BA73

2840. STATUTORY OPTIONS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 421

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation provides rules for the creation, and or maintenance, of a statutory stock option plan. It includes rules on adopting a plan, plan requirements, permissible provisions of a plan, and disqualification of a statutory option.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-122917-02

Drafting attorney: Erinn M. Madden (202) 622-6030

Reviewing attorney: Robert Misner (202) 622-6030

Treasury attorney: Elizabeth Drigotas (202) 622- 1332

CC:TEGE

Agency Contact: Erinn M. Madden, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6030

RIN: 1545-BA75

2841. EARNINGS CALCULATION FOR RETURNED OR RECHARACTERIZED CONTRIBUTIONS

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is undetermined.

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation sets forth a rule for calculating net income attributable to IRA contributions being returned under Code section 408(d)(4) or recharacterized under Code section 408A(d)(6).

Timetable:

Small Entities Affected: No

Government Levels Affected: Undetermined

Federalism: Undetermined

Additional Information: REG-124256-02

Drafting attorney: Cathy A. Vohs (202) 622-6090

Reviewing attorney: Marjorie Hoffman (202) 622-6090

CC:TEGE

Agency Contact: Cathy A. Vohs, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-6090

RIN: 1545-BA82

2842. REPORTING REQUIREMENTS FOR WIDELY HELD FIXED INVESTMENT TRUSTS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: The regulation relates to reporting requirements for widely held fixed investment trusts.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-106871-00

Drafting attorney: Faith Colson (202) 622-3060

Reviewing attorney: J. Thomas Hines (202) 622-3060

Treasury attorney: Viva Hammer (202) 622-0869

CC:P&SI

Agency Contact: Faith Colson, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3060

Related RIN: Related To 1545-AU15

RIN: 1545-BA83

2843. LOW-INCOME TAXPAYER CLINICS

Priority: Substantive, Nonsignificant

Legal Authority: 26 USC 7805

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation amends the provisions pertaining to the definition of income tax return preparer to exclude low-income taxpayer clinics and their volunteers when operating as authorized by 26 U.S.C. 7526.

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Additional Information: REG-115285-01

Drafing attorney: Brinton T. Warren (202) 622-4940

Reviewing attorney: Judith Wall (202) 622-4940

Treasury attorney: Elizabeth Askey (202) 622-0224

CC:P&A:APJP

Agency Contact: Brinton T. Warren, Attorney- Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-4940

Related RIN: Related To 1545-AY84

RIN: 1545-BA95

2844. 6038 ISSUES RELATING TO CERTAIN FOREIGN CORPORATIONS AND PARTNERSHIPS

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is undetermined.

Unfunded Mandates: Undetermined

Legal Authority: 26 USC 7805; 26 USC 6038

CFR Citation: 26 CFR 1

Legal Deadline: None

Abstract: This regulation will provide guidance regarding controlled foreign partnership reporting.

Timetable:

Small Entities Affected: Businesses

Government Levels Affected: None

Additional Information: REG-124069-02

Drafting attorney: Tasheaya Warren (202) 622-3860

Reviewing attorney: Michael H. Frankel (202) 622- 3860

Agency Contact: Tasheaya Warren, Attorney-Advisor, Department of the Treasury, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC 20224 Phone: 202 622-3860

RIN: 1545-BB36

Priority: Substantive, Nonsignificant

CFR Citation: 26 CFR 1; 26 CFR 301; 26 CFR 602

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Margaret A. Hogan Phone: 202 622- 3850

RIN: 1545-AC09

2846. INCOME TAX -- DEFINITION OF QUALIFIED POSSESSION SOURCE INVESTMENT INCOME FOR PURPOSES OF PUERTO RICO AND POSSESSION TAX CREDIT

Priority: Substantive, Nonsignificant

CFR Citation: 26 CFR 1

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: W. Edward Williams Phone: 202 622- 3880

RIN: 1545-AC10

2847. FSC TRANSFER PRICING RULES, DISTRIBUTIONS, DIVIDENDS RECEIVED, DEDUCTION, AND OTHER SPECIAL RULES FOR FSC

Priority: Substantive, Nonsignificant

CFR Citation: 26 CFR 1

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Douglas L. Giblen Phone: 202 874- 1490

RIN: 1545-AI16

2848. INFORMATION FROM PASSPORT AND IMMIGRATION APPLICANTS

Priority: Substantive, Nonsignificant

CFR Citation: 26 CFR 301

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Amanda A. Ehrlich Phone: 202 622- 3880

RIN: 1545-AJ93

2849. FOREIGN CORPORATIONS

Priority: Substantive, Nonsignificant

CFR Citation: 26 CFR 1

Timetable:

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Michael H. Frankel Phone: 202 622- 3860

RIN: 1545-AK74

2850. FOREIGN INSURANCE COMPANIES

Priority: Substantive, Nonsignificant

CFR Citation: 26 CFR 1

Timetable: