[Federal Register Volume 66, Number 152 (Tuesday, August 7, 2001)]
[Proposed Rules]
[Pages 41169-41170]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19616]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 301

[REG-103735-00; REG-110311-98; REG-103736-00]
RIN 1545-AX81; 1545-AW26; 1545-AX79


Modification of Tax Shelter Rules II

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Cross-reference notice of proposed rulemaking.

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SUMMARY: These proposed rules provide the public with additional 
guidance needed to comply with the disclosure rules under section 
6011(a), the registration requirement under section 6111(d), and the 
list maintenance requirement under section 6112 applicable to tax 
shelters. The proposed rules affect corporations participating in 
certain reportable transactions, persons responsible for registering 
confidential corporate tax shelters, and organizers of potentially 
abusive tax shelters. In the rules and regulations portion of this 
issue of the Federal Register, the IRS is issuing temporary regulations 
modifying the rules relating to the requirement that certain corporate 
taxpayers file a statement with their Federal corporate income tax 
returns under section 6011(a) and the registration of confidential 
corporate tax shelters under section 6111(d). The text of those 
temporary regulations also serves as the text of these proposed 
regulations.

DATES: Written or electronic comments and requests for a public hearing 
must be received by October 31. 2001.

ADDRESSES: Send submissions to: CC:ITA:RU (REG-103735-00; REG-110311-
98; REG-103736-00), 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:ITA:RU (REG-
103735-00; REG-110311-98; REG-103736-00), 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.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Danielle 
M. Grimm, (202) 622-3080; concerning submissions, Guy Traynor, (202) 
622-7180 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The temporary regulations amend the Income Tax Regulations (26 CFR 
part 1) regarding rules relating to the filing and records requirements 
for certain corporate taxpayers under section 6011. The temporary 
regulations also amend the temporary procedure and administration 
regulations (26 CFR part 301) regarding the registration of 
confidential corporate tax shelters under section 6111.
    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. Because these 
regulations impose no new collection of information on small entities, 
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 Requests for a 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 
request comments on the clarity of the proposed rules and how they can 
be made easier to understand.
    All comments will be available for public inspection and copying. A 
public hearing will be scheduled if requested in writing by any person 
that timely submits written comments. If a public hearing is scheduled, 
notice of the date, time, and place for the public hearing will be 
published in the Federal Register.

Drafting Information

    The principal author of these regulations is Danielle M. Grimm, 
Office of the Associate Chief Counsel (Passthroughs and Special 
Industries).

[[Page 41170]]

However, other personnel from the IRS and Treasury Department 
participated in their development.

List of Subjects

26 CFR Part 1

    Income taxes, reporting and recordkeeping requirements.

26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR parts 1 and 301, which were proposed to be 
amended at 65 FR 49909 (August 16, 2000), are proposed to be further 
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 as proposed at 65 FR 49909 (August 16, 
2000) is amended as follows:


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

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

PART 301-- PROCEDURE AND ADMINISTRATION

    Par. 3. The authority citation for part 301 continues to read in 
part as follows:

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

    Par. 4. Section 301.6111-2 as proposed to be added at 65 FR 49909 
(August 16, 2000) is amended as follows:


Sec. 301.6111-2  Confidential corporate tax shelters.

    [The text of the amendments to this proposed section is the same as 
the text of the amendments to Sec. 301.6111-2T published elsewhere in 
this issue of the Federal Register.]

David A. Mader,
Acting Deputy Commissioner of Internal Revenue.
[FR Doc. 01-19616 Filed 8-2-01; 2:50 pm]
BILLING CODE 4830-01-P