[Federal Register Volume 69, Number 179 (Thursday, September 16, 2004)]
[Proposed Rules]
[Page 55790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-20915]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1

[REG-169135-03]
RIN 1545-BC99


Treatment of Certain Nuclear Decommissioning Funds for Purposes 
of Allocating Purchase Price in Certain Deemed and Actual Asset 
Acquisitions

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 section of this issue of the 
Federal Register, the IRS is issuing temporary regulations relating to 
the treatment of certain nuclear decommissioning funds in the 
allocation of purchase price in deemed and actual asset acquisitions 
under sections 338 and 1060. The text of those temporary regulations 
also serves as the text of these proposed regulations.

DATES: Written or electronic comments must be received by December 15, 
2004.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-169135-03), 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-
169135-03), 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 http://www.irs.gov/regs, or via the Federal eRulemaking Portal at http://www.regulations.gov (IRS--REG-169135-03).

FOR FURTHER INFORMATION CONTACT: Richard Starke at (202) 622-7790 (not 
a toll-free number).

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 1 relating to sections 338 
and 1060. The temporary regulations affect the treatment of certain 
nuclear decommissioning funds in the allocation of purchase price in 
deemed and actual asset acquisitions under sections 338 and 1060. The 
text of those temporary regulations also serves as the text of these 
proposed regulations. The preamble to the temporary regulations 
explains the amendments.

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 will be scheduled if requested in writing by any 
person timely submitting 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.

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 is hereby 
certified that these proposed regulations will not have a significant 
economic impact on a substantial number of small entities. 
Nevertheless, the IRS and Treasury Department request comments from 
small entities that believe they might be adversely affected by these 
regulations. This certification is based on the fact that the 
regulations provide relief to purchasers of nuclear power plants, which 
are generally not small businesses. Therefore, the Regulatory 
Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to 
section 7805(f) of the Code, this notice of proposed rulemaking will be 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on the impact of these regulations.

Drafting Information

    The principal author of these regulations is Richard Starke, Office 
of the Associate Chief Counsel (Corporate).

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

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

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

    Par. 2. Section 1.338-6 is amended by adding paragraph (c)(5) to 
read as follows:


Sec.  1.338-6  Allocation of ADSP and AGUB among target assets.

    [The proposed text of this section is the same as the text of 
Sec.  1.338-6T(c)(5) published elsewhere in this issue of the 
Federal Register].

    Par. 3. Section 1.1060-1 is amended by revising paragraph (c)(3) to 
read as follows:


Sec.  1.1060-1  Special allocation rules for certain asset 
acquisitions.

    [The proposed text of this section is the same as the text of 
Sec.  1.1060-1T(c)(3) and (e)(1)(ii)(C) published elsewhere in this 
issue of the Federal Register].

Mark E. Matthews,
 Deputy Commissioner for Services and Enforcement.
[FR Doc. 04-20915 Filed 9-15-04; 8:45 am]
BILLING CODE 4830-01-P