[Federal Register Volume 66, Number 3 (Thursday, January 4, 2001)]
[Proposed Rules]
[Pages 747-748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-197]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register / Vol. 66, No. 3 / Thursday, January 4, 2001 / 
Proposed Rules  

[[Page 747]]



DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-119352-00]
RIN 1545-AY58


Guidance on Filing an Application for a Tentative Carryback 
Adjustment in a Consolidated Return Context

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations 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 relating to 
the filing of an application for a tentative carryback adjustment by a 
consolidated group and by certain new members of a consolidated group. 
The text of those temporary regulations also serves as the text of 
these proposed regulations. In addition, this document provides notice 
of a public hearing on these proposed regulations.

DATES: Written or electronic comments must be received by April 4, 
2001. The public hearing has been scheduled for April 26, 2001. 
Outlines of topics to be discussed at the public hearing scheduled for 
April 26, 2001, at 10 a.m. must be received by April 5, 2001.

ADDRESSES: Send submissions to: Regulations Unit CC, room 5226 (REG-
119352-00), Internal Revenue Service, POB 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may also be hand delivered Monday 
through Friday between the hours of 8 a.m. and 5 p.m. to Regulations 
Unit CC, room 5226 (REG-119352-00), Courier's Desk, Internal Revenue 
Service, 1111 Constitution Avenue, NW., Washington, DC. Alternatively, 
taxpayers may submit comments electronically via the Internet directly 
to the IRS Internet site at http://www.irs.gov/tax_regs/regslist.html. 
The public hearing is scheduled for April 26, 2001, and will be held in 
room 4718, Internal Revenue Building, 1111 Constitution Avenue, NW., 
Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulation, Christopher 
M. Bass or Frances L. Kelly, (202) 622-7770; concerning submissions, 
the hearing, and/or to be placed on the building access list to attend 
the hearing, Guy Traynor, (202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    Temporary regulations in the Rules and Regulations sections of this 
issue of the Federal Register amend the Income Tax Regulations (26 CFR 
Part 1) under section 1502 of the Internal Revenue Code of 1986 (Code). 
The temporary regulations provide guidance as to the time for filing an 
application for a tentative carryback adjustment by a consolidated 
group. The amendments also extend the time for filing an application 
for a tentative carryback adjustment by certain corporations for the 
separate return year created by their becoming new members of a 
consolidated group. The text of those temporary regulations also serves 
as the text of these proposed regulations. The preamble to the 
temporary regulations explains the amendments.

Special Analyses

    It has been determined that this notice of proposed rule making is 
not a significant regulatory action as defined in Executive Order 
12866. Therefore, a regulatory assessment is not required. It is hereby 
certified that these regulations will not have a significant economic 
impact on a substantial number of small entities. This certification is 
based upon the fact that these regulations will primarily affect 
affiliated groups of corporations that have elected to file 
consolidated returns, which tend to be larger businesses, and, 
moreover, that any burden on taxpayers is minimal. 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 
Code, these regulations will be submitted to the Chief Counsel for 
Advocacy of the Small Business Administration for comment on their 
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 (a signed original 
and eight (8) copies) or electronic comments that are timely submitted 
to the IRS. The IRS and Treasury Department specifically request 
comments on the clarity of the proposed regulations and how they can be 
made easier to understand. All comments will be made available for 
public inspection and copying.
    A public hearing has been scheduled for April 26, 2001, beginning 
at 10 a.m., in room 4718, Internal Revenue Service Building, 1111 
Constitution Avenue, NW., Washington, DC. Due to building security 
procedures, visitors must enter at the 10th Street entrance, located 
between Constitution and Pennsylvania Avenues, NW. 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 building 
access list to attend the 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 request to speak, and 
submit written comments and an outline of the topics to be discussed 
and the time to be devoted to each topic (a signed original and eight 
(8) copies) by April 5, 2001. A period of ten minutes will be allocated 
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 proposed regulations are Christopher 
M. Bass and Frances L. Kelly, Office of the Associate Chief Counsel 
(Corporate). However, other personnel from the IRS and Treasury 
Department participated in their development.

[[Page 748]]

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 
the following entries in numerical order to read in part as follows:

    Authority: 26 U.S.C. 7805 * * * Section 1.1502-78 also issued 
under 26 U.S.C. 1502 and 6411(c). * * *
    Par. 2. Section 1.1502-78, as proposed to be amended, reads as 
follows:


Sec. 1.1502-78  Tentative carryback adjustments.

    [The text of the amendments to this proposed section is the same as 
the text of the amendments to Sec. 1.1502-78T published elsewhere in 
this issue of the Federal Register.]

Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
[FR Doc. 01-197 Filed 1-3-01; 8:45 am]
BILLING CODE 4830-01-P