[Federal Register Volume 59, Number 13 (Thursday, January 20, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-667]


[[Page Unknown]]

[Federal Register: January 20, 1994]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[INTL-0177-90]
RIN 1545-AO73

 

Revisions of the Section 338 Consistency Rules With Respect to 
Target Affiliates That Are Controlled Foreign Corporations

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

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SUMMARY: In the Rules and Regulations portion of this issue of the 
Federal Register, the IRS is issuing temporary regulations revising the 
consistency rules under section 338 of the Internal Revenue Code of 
1986 applicable to certain cases involving controlled foreign 
corporations. The text of those temporary regulations also serves as 
the text of these proposed regulations.

DATES: Comments and requests for a public hearing must be received by 
March 21, 1994.

ADDRESSES: Send comments and requests for a public hearing to: Internal 
Revenue Service, P.O. Box 7604, Ben Franklin Station, Attn: 
CC:DOM:CORP:T:R (INTL-0177-90), room 5228, 1111 Constitution Avenue, 
NW., Washington, DC 20044. In the alternative, comments and requests 
may be hand delivered to: CC:DOM:CORP:T:R (INTL-0117-90), Internal 
Revenue Service, room 5228, 1111 Constitution Ave. NW., Washington, DC 
20224.

FOR FURTHER INFORMATION CONTACT: Kenneth D. Allison at (202) 622-3860 
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The temporary regulations published in the Rules and Regulations 
portion of this issue of the Federal Register revise Sec. 1.338-4T of 
the Income Tax Regulations. The final regulations that will result from 
the regulations proposed in this notice would be based on the text of 
the temporary regulations and would revise the consistency rules 
relating to controlled foreign corporations under section 338 of the 
Internal Revenue Code of 1986.
    The text of those temporary regulations also serves as the text of 
these proposed regulations. The preamble to the temporary regulations, 
along with the preamble to the notice of proposed rulemaking published 
on January 14, 1992, in the Federal Register (57 FR 1409) under section 
338, contains a full explanation of the reasons underlying the issuance 
of the proposed regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866. It also has been determined that section 553(b) of the 
Administrative Procedure Act (5 U.S.C. chapter 5) and the Regulatory 
Flexibility Act (5 U.S.C. chapter 6) do not apply to these regulations, 
and therefore, a Regulatory Flexibility Analysis is not required. 
Pursuant to section 7805(f) of the Internal Revenue Code, these 
proposed regulations will be submitted to the Chief Counsel for 
Advocacy of the Small Business Administration for comment on its impact 
on small business.

Comments and Request for a Public Hearing

    Before adopting these proposed regulations, consideration will be 
given to any written comments that are submitted timely (preferably a 
signed original and eight copies) to the Internal Revenue Service. All 
comments will be available for public inspection and copying. A public 
hearing will be held upon written request by any person who submits 
written comments on the proposed rules. Notice of the time and place 
for the hearing will be published in the Federal Register.

Drafting Information

    The principal author of these proposed regulations is Kenneth D. 
Allison of the Office of Associate Chief Counsel (International), 
Internal Revenue Service. However, other personnel from the IRS and 
Treasury Department participated in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1--INCOME TAXES

    Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *

    Par. 2. Section 1.338-4 is amended by adding paragraphs (h) and (k) 
to read as follows:


Sec. 1.338-4  Asset and stock consistency.

* * * * *
    (h) [The text of this proposed paragraph is the same as the text of 
Sec. 1.338-4T(h) published elsewhere in this issue of the Federal 
Register.]
* * * * *
    (k) [The text of this proposed paragraph is the same as the text of 
Sec. 1.338-4T(k) published elsewhere in this issue of the Federal 
Register.]
Margaret Milner Richardson,
Commissioner of Internal Revenue.
[FR Doc. 94-667 Filed 1-12-94; 2:54 pm]
BILLING CODE 4830-01-U