[Federal Register Volume 65, Number 42 (Thursday, March 2, 2000)]
[Proposed Rules]
[Pages 11269-11271]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4843]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-103735-00]
RIN 1545-AX81


Tax Shelter Disclosure Statements

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Cross-reference notice of proposed rulemaking and notice of 
public hearing.

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SUMMARY: In the Rules and Regulations portion of this issue of the 
Federal Register, the IRS is issuing temporary regulations requiring 
certain corporate taxpayers to file a statement under section 6011 and 
maintain certain documents under section 6001. The temporary 
regulations affect corporations participating in certain reportable 
transactions. The text of

[[Page 11270]]

those temporary regulations also serves as the text of these proposed 
regulations. This document also gives notice of a public hearing on 
this subject.

DATES: Written comments, requests to speak and outlines of topics to be 
discussed at the public hearing scheduled for Tuesday, June, 20, 2000, 
from 10 a.m. through 1 p.m. must be received by May 31, 2000.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-103735-00), 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-103735-00), Courier's 
Desk, Internal Revenue Service, 1111 Constitution Avenue NW., 
Washington, DC. Alternatively, taxpayers may submit comments 
electronically via the Internet by selecting the ``Tax Regs'' option of 
the IRS Home Page or by submitting comments directly to the IRS 
Internet site at http://www.irs.gov/tax--regs/regslist.html. A public 
hearing will be held at 10 a.m. on Tuesday, June 20, 2000, in the IRS 
Auditorium, Internal Revenue Building, 1111 Constitution Avenue NW., 
Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Richard 
Castanon or Mary Beth Collins, (202) 622-3070; concerning submissions 
and the hearings, Guy Traynor, (202) 622-7180.

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collections of information contained in this notice of proposed 
rulemaking have been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)). Comments on the collections 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, OP:FS:FP, Washington, DC 
20224. Comments on the collections of information should be received by 
May 1, 2000. Comments are specifically requested concerning:
    Whether the proposed collections of information is necessary for 
the proper performance of the functions of the Internal Revenue 
Service, including whether the information will have practical utility;
    The accuracy of the estimated burden associated with the proposed 
collection of information (see below);
    How the quality, utility, and clarity of the information to be 
collected may be enhanced;
    How the burden of complying with the proposed collections of 
information may be minimized, including through the application of 
automated collection techniques or other forms of information 
technology; and
    Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of service to provide information.
    The collections of information in this proposed regulation are in 
Sec. 1.6011-4T(a), (c), (d), and (e). This information is required to 
provide the Service with notice of certain large corporate transactions 
that provide tax savings in excess of certain dollar thresholds. This 
information will be used to ensure compliance with the Federal tax 
laws. The collections of information are mandatory. The likely 
respondents and recordkeepers are business or other for-profit 
institutions.
    Estimated total annual reporting and/or recordkeeping burden: 25 
hours.
    Estimated average annual burden hours per respondent and/or 
recordkeeper: 30 minutes.
    Estimated number of respondents and/or recordkeepers: 50.
    Estimated annual frequency of responses: Once annually.An agency 
may not conduct or sponsor, and a person is not required to respond to, 
a collection of information unless it displays a valid control number 
assigned by the Office of Management and Budget.
    Books or records relating to a collection of information must be 
retained as long as their contents may become material in the 
administration of any internal revenue law. Generally, tax returns and 
tax return information are confidential, as required by 26 U.S.C. 6103.

Background

    The temporary regulations amend the Income Tax regulations (26 CFR 
part 1) relating to section 6011. The temporary regulations contain 
rules relating to the filing and records requirements for certain 
corporate taxpayers.
    The text of the temporary regulations also serves as the text of 
these proposed regulations. The preamble to the temporary regulations 
explains the 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 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. It is hereby 
certified that the collection of information in these regulations will 
not have a significant economic impact on a substantial number of small 
entities. This certification is based upon the fact that the persons 
responsible for filing the statement required by these regulations are 
principally large publicly traded corporations, and the burden is not 
significant as described earlier in the preamble. Therefore, a 
Regulatory Flexibility Analysis under the Regulatory Flexibility Act (5 
U.S.C. chapter 6) 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 Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments (preferably a 
signed original and eight (8) copies) or electronically generated 
comments that are submitted timely to the IRS. The IRS and Treasury 
specifically request comments on the clarity of the proposed 
regulations and how they may be made easier to understand.
    Further, the IRS and Treasury specifically request comments on (1) 
the scope and breadth of the characteristics used in the proposed 
regulations to identify reportable transactions; (2) the exceptions to 
disclosure provided for in the proposed regulations; and (3) whether 
particular types of transactions should be identified as excepted from 
disclosure. All comments will be available for public inspection and 
copying.
    A public hearing has been scheduled for June 20, 2000, from 10 a.m. 
through 1 p.m., in the IRS Auditorium, Internal Revenue Building, 1111 
Constitution Avenue NW., Washington, DC. Due to building security 
procedures, visitors must enter at the 1111 Constitution Avenue 
entrance, located between 10th and 12th streets. In addition, all 
visitors must present photo identification to enter the building. 
Because of access restrictions, visitors will not be admitted beyond 
the immediate entrance area more than 15 minutes before the hearing 
starts. For information about having your name placed on the access 
list to attend the

[[Page 11271]]

hearing, see the FOR FURTHER INFORMATION CONTACT section of this 
preamble.
    The rules of 26 CFR 601.601(a)(3) apply to the hearing.
    Persons who wish to present oral comments at the hearing must 
submit timely written comments and an outline of the topics to be 
discussed and the time to be devoted to each topic (signed original and 
eight (8) copies) by May 31, 2000. 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

    The principal authors of these regulations are Mary Beth Collins 
and Richard Castanon, 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 continues to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * * 
    Par. 2. Section 1.6011-4 is added to read as follows:


Sec. 1.6011-4  Requirement of statement disclosing participation in 
certain transactions by corporate taxpayers.

    [The text of this proposed section is the same as the text of 
Sec. 1.6011-4T published elsewhere in this issue of the Federal 
Register.]

Charles O. Rossotti,
Commissioner of Internal Revenue.
[FR Doc. 00-4843 Filed 2-28-00; 8:45 am]
BILLING CODE 4830-01-P