[Federal Register Volume 68, Number 238 (Thursday, December 11, 2003)]
[Proposed Rules]
[Page 69062]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-30637]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR 1

[REG-153319-03]
RIN 1545-BC74


Guidance Under Section 1502; Application of Section 108 to 
Members of a Consolidated Group

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

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SUMMARY: Temporary regulations in the Rules and Regulations section of 
this issue of the Federal Register amend the Income Tax Regulations 
relating to section 1502. The text of those regulations also serves as 
the text of these proposed regulations.

DATES: Written or electronic comments must be received by January 12, 
2004.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-153319-03), room 
5203, Internal Revenue Service, POB 7604 Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered Monday through 
Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-
153319-03), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC. Alternatively, taxpayers may submit 
comments electronically directly to the IRS Internet site at 
www.irs.gov/regs.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Amber Renee Cook or Marie C. Milnes-Vasquez at (202) 622-7530; 
concerning submission of comments, La Nita Van Dyke at (202) 622-7180 
(not toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Background and Explanation of Provisions

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend 26 CFR part 1 relating to section 
1502. The text of the temporary regulations also serves as the text of 
these proposed regulations. The preamble to the temporary regulations 
explains the amendments.

Special Analysis

    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. Further, 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 on 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. 
Moreover, the number of taxpayers affected and the average burden are 
minimal. Accordingly, 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 Request for a 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. The IRS and Treasury Department specifically request comments on 
the clarity of the proposed rules and how they may 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 hearing will be 
published in the Federal Register.

Drafting Information

    The principal author of these regulations is Marie C. Milnes-
Vasquez of the Office of Associate Chief Counsel (Corporate). 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

    1. The authority citation continues to read in part as follows:

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

    Section 1.1502-28 also issued under 26 U.S.C. 1502. * * *
    2. Section 1.1502-28 is added to read as follows:


Sec.  1.1502-28  Consolidated section 108.

    (The text of this proposed section is the same as the text of Sec.  
1.1502-28T published elsewhere in this issue of the Federal Register).

Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 03-30637 Filed 12-10-03; 8:45 am]
BILLING CODE 4830-01-P