[Federal Register Volume 63, Number 4 (Wednesday, January 7, 1998)]
[Proposed Rules]
[Pages 707-708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-119449-97]
RIN 1545-AV75


Qualified Zone Academy Bonds

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations and notice of public hearing.

-----------------------------------------------------------------------

SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations that provide 
guidance to holders and issuers of qualified zone academy bonds. These 
proposed regulations reflect changes made by the Taxpayer Relief Act of 
1997, Pub. L. No. 105-34, 111 Stat. 788 (1997), and affect holders and 
issuers of qualified zone academy bonds. The text of those temporary 
regulations also serves as the text of these proposed regulations. This 
document also provides a notice of public hearing on these proposed 
regulations.

DATES: Written comments must be received by April 7, 1998. Outlines of 
topics to be discussed at the public hearing scheduled for May 27, 
1998, must be received by May 6, 1998.

ADDRESSES: Send submissions to CC:DOM:CORP:R (REG-119449-97), room 
5226, Internal Revenue Service, POB 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered between the 
hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-119449-97), Courier's 
Desk, Internal Revenue Building, 1111 Constitution Avenue NW, 
Washington, DC. Alternatively, taxpayers may submit comments 
electronically via the Internet by selecting the ``Tax Regs'' option on 
the IRS Home Page, or by submitting directly to the IRS Internet site 
at http:www.irs.ustreas.gov/prod/taxregs/comments.html. The public 
hearing will be held in Room 2615, Internal Revenue Building, 1111 
Constitution Ave. NW, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Timothy L. 
Jones, (202) 622-3980; concerning submissions and the hearing, LaNita 
Van Dyke (202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    Section 1.1397E-1T, published in the Rules and Regulations portion 
of this issue of the Federal Register, is issued to provide guidance to 
holders and issuers of qualified zone academy bonds.
    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 has also been determined 
that section 553(b) of the Administrative Procedure Act (5 U.S.C. 
chapter 5) does not apply to these regulations, and, because the 
regulations do not impose a collection of information on small 
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not 
apply. 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

[[Page 708]]

Business Administration for comment on its impact on small business.

Comments and Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written (a signed original and eight 
(8) copies) or electronic comments that are submitted timely to the 
IRS. All comments will be available for public inspection and copying.
    A public hearing has been scheduled for May 27, 1998, at 10:00 a.m. 
in Room 2615, Internal Revenue Building, 1111 C Constitution Avenue NW, 
Washington, DC. Because of access restrictions, visitors will not be 
admitted beyond the building lobby more than 15 minutes before the 
hearing starts.
    The rules of 26 C.F.R. 601.601(a)(3) apply to the hearing.
    Persons that wish to present oral comments at the hearing must 
submit written comments by April 7, 1998 and submit an outline of the 
topics to be discussed and time to be devoted to each topic (signed 
original and eight (8) copies) by May 6, 1998.
    A period of 10 minutes will be allotted to each person for making 
comments.
    An agenda showing the scheduling of the speakers will be prepared 
after the deadline for receiving outlines has passed. Copies of the 
agenda will be available free of charge at the hearing.

Drafting Information

    Several persons from the Office of Chief Counsel and the Treasury 
Department participated in the development and drafting of these 
regulations.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Proposed Amendment to the Regulations

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

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 1.1397E-1 also issued under 26 U.S.C. 1397E(b) and 
1397E(d). * * *
    Par. 2. Sections 1.1397E-1 is added to read as follows:


Sec. 1.1397E-1  Qualified zone academy bonds.

    [The text of this proposed section is the same as the text of 
Sec. 1.1397E-1 published elsewhere in this issue of the Federal 
Register.]
Michael P. Dolan,
Deputy Commissioner of Internal Revenue.
[FR Doc. 98-17 Filed 1-6-98; 8:45 am]
BILLING CODE 4830-01-U