[Federal Register Volume 59, Number 233 (Tuesday, December 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-29703]


[[Page Unknown]]

[Federal Register: December 6, 1994]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[EE-38-94]

RIN 1545-AS92

 

Nonbank Trustee Net Worth Requirements

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 
nonbank trustees and the adequacy of net worth requirements of 
Sec. 1.401-12(n) (6) and (7) of the Income Tax Regulations. The text of 
those temporary regulations also serves as the text of these proposed 
regulations.

DATES: Written comments must be received by January 5, 1995.

ADDRESSES: Send submissions to: Internal Revenue Service, POB 7604, Ben 
Franklin Station, Attn: CC:DOM:CORP:T:R (EE-38-94), room 5228, 
Washington, DC 20044. In the alternative, submissions may be hand 
delivered between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:T:R 
(EE-38-94), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Judith E. Alden, (202) 622-6030 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

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 section 401(d)(1). The temporary regulations 
contain rules relating to the net worth requirements for nonbank 
trustees.
    The text of those temporary regulations also serves as the text of 
these proposed regulations. The preamble to the temporary regulations 
explains the temporary regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in EO 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 (a signed original 
and eight (8) copies) that are submitted timely 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 Judith E. Alden, 
Office of the Associate Chief Counsel, (Employee Benefits and Exempt 
Organizations), IRS. 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 1.401-12 is amended by revising paragraphs 
(n)(6)(ii) and (n)(7)(i) to read as follows:


Sec. 1.401-12  Requirements for qualification of trusts and plans 
benefiting owner-employees.

[The text of proposed paragraphs (n)(6)(ii) and (n)(7)(i) are the same 
as the text of Sec. 1.401-12T published elsewhere in this issue of the 
Federal Register].
Margaret Milner Richardson,
Commissioner of Internal Revenue.
[FR Doc. 94-29703 Filed 12-5-94; 8:45 am]
BILLING CODE 4830-01-P