[Federal Register Volume 59, Number 50 (Tuesday, March 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5985]


[[Page Unknown]]

[Federal Register: March 15, 1994]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[PS-55-93]
RIN 1545-AS11

 

Certain Elections for Intangible Property

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 section of this issue of the 
Federal Register, the IRS is issuing temporary regulations relating to 
the procedures for making elections regarding the amortization of 
certain intangible property. The temporary regulations reflect changes 
to the law made by the Omnibus Budget Reconciliation Act of 1993 (OBRA 
'93) and affect electing taxpayers who acquired intangible property 
after July 25, 1991, or who acquired intangibles under a written 
binding contract in effect on August 10, 1993. The text of the 
temporary regulations also serves as the text of these proposed 
regulations.

DATES: Written comments must be received by May 16, 1994.

ADDRESSES: Send submissions to: CC:DOM:CORP:T:R (PS-55-93), room 5228, 
Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, 
Washington, DC 20044. In the alternative, comments and requests may be 
hand delivered to: CC:DOM:CORP:T:R (PS-55-93), Internal Revenue 
Service, room 5228, 1111 Constitution Avenue NW, Washington, DC 20224.

FOR FURTHER INFORMATION CONTACT: John Huffman, (202) 622-3110 (not 
toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collection of information contained in this notice of proposed 
rulemaking has been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act (44 U.S.C. 
3504(h)). Comments on the collection of information should be sent to 
the Office of Management and Budget, Attn: Desk Officer for the 
Department of the Treasury, Office of Information and Regulatory 
Affairs, Washington, DC 20503, with copies to the Internal Revenue 
Service, Attn: IRS Reports Clearance Officer, PC:FP, Washington, DC 
20224.
    The collection of information is in Sec. 1.197-1T(e). This 
information is required by the IRS in order to verify that electing 
taxpayers have properly determined amortization and depreciation 
deductions allowable under sections 167(f) and 197. The likely 
reporting entities are businesses and other for-profit institutions.
    Estimated total annual reporting burden: 10,000 hours.
    The estimated annual burden per respondent varies from 30 minutes 
to 75 minutes, depending on individual circumstances, with an estimated 
average of 1 hour.
    Estimated number of respondents: 10,000.
    Estimated annual frequency of responses: One time.

Background

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Income Tax Regulations (26 CFR 
part 1) relating to sections 167(f) and 197 by adding Secs. 1.167(a)-
13T and 1.197-1T. The temporary regulations contain rules relating to 
the depreciation and amortization of certain intangible property.
    The text of those temporary regulations also serves as the text of 
these proposed regulations. The preamble to the temporary regulations 
explains the temporary and proposed regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866. Therefore, a regulatory assessment is not required. It 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, this notice of proposed 
rulemaking will be submitted to the Chief Counsel for Advocacy of the 
Small Business Administration for comment on its impact on small 
business.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments that are submitted 
timely (preferably a signed original and eight copies) to the IRS. All 
comments will be available for public inspection and copying. A public 
hearing may be scheduled if requested in writing by a person that 
timely submits written comments. If a public hearing is scheduled, 
notice of the date, time, and place for the hearing will be published 
in the Federal Register.

Drafting Information

    The principal author of these regulations is John Huffman, Office 
of Assistant Chief Counsel (Passthroughs and Special Industries). 
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 is amended by adding 
an entry in numerical order to read as follows:

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

    Section 1.197-1 also issued under 26 U.S.C. 197(g). * * *
    Par. 2. Sec. 1.167(a)-13 is added to read as follows:


Sec. 1.167(a)-13  Certain elections for intangible property.

    For rules applying the elections under sections 13261(g) (2) and 
(3) of the Omnibus Budget Reconciliation Act of 1993 to intangible 
property described in section 167(f), see Sec. 1.197-1.
    Par. 3. Sec. 1.197-1 is added to read as follows:


Sec. 1.197-1  Certain elections for intangible property.

    (The text of this proposed section is the same as the text of 
Sec. 1.197-1T published elsewhere in this issue of the Federal 
Register).
Margaret Milner Richardson,
Commissioner of Internal Revenue.
[FR Doc. 94-5985 Filed 3-10-94; 3:04 pm]
BILLING CODE 4830-01-P