[Federal Register Volume 70, Number 71 (Thursday, April 14, 2005)]
[Proposed Rules]
[Pages 19722-19723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-6855]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG-148521-04]
RIN 1545-BD77


Classification of Certain Foreign Entities

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: This issue of the Federal Register contains temporary and 
final regulations relating to certain business entities included on the 
list of foreign business entities that are always classified as 
corporations for Federal tax purposes. The text of those temporary 
regulations also serves as the text of these proposed regulations. This 
document also provides a notice of a public hearing on these proposed 
regulations.

DATES: Written or electronic comments must be received by July 13, 
2005. Requests to speak and outlines of topics to be discussed at the 
public hearing scheduled for July 27, 2005, must be received by July 6, 
2005.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-148521-04), Room 
5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may also be hand-delivered Monday 
through Friday (excluding Federal holidays) between the hours of 8 a.m. 
and 4 p.m. to CC:PA:LPD:PR (REG-148521-04), Courier's Desk, Internal 
Revenue Service, 1111 Constitution Avenue NW., Washington, DC or sent 
electronically, via either the IRS Internet site at www.irs.gov/regs or 
the Federal eRulemaking Portal at www.regulations.gov (IRS and REG-
148521-04). The public hearing will be held in the Auditorium, Internal 
Revenue Building, 1111 Constitution Avenue NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Ronald M. Gootzeit, (202) 622-3860; concerning submissions of comments 
or the public hearing, Jacqueline B. Turner, (202) 622-7180 (not toll-
free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

    Temporary regulations in this issue of the Federal Register amend 
and revise

[[Page 19723]]

26 CFR part 301 relating to section 7701 of the Internal Revenue Code 
of 1986 (Code). The temporary regulations add certain business entities 
to the list of foreign business entities that are always classified as 
corporations for Federal tax purposes. The text of those regulations 
also serves as the text of these proposed regulations. The preamble to 
the temporary regulations explains both the temporary regulations and 
these proposed 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. Also, 
because the regulations do not impose a collection of information on 
small entities, 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 its impact.

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. The IRS and Treasury Department 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 has been scheduled for July 27, 2005 at 10:00 a.m. 
in the Auditorium of the Internal Revenue building, 1111 Constitution 
Avenue, NW., Washington, DC. Due to building security procedures, 
visitors must enter at the Constitution Avenue entrance. 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 earlier than 30 minutes prior to the start 
of the hearing. 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 this hearing. Persons 
who wish to present oral comments at the hearing must submit electronic 
or written comments and an outline of the topics to be discussed and 
the time devoted to each topic (signed original and eight (8) copies) 
by July 6, 2005. A period of ten minutes will be allotted to each 
person for making comments. An agenda showing the scheduling of 
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.

Proposed Effective Date

    Except as otherwise specified, these regulations are proposed to 
apply as of October 7, 2004.

Drafting Information

    The principal author of these proposed regulations is Ronald M. 
Gootzeit of the Office of Associate Chief Counsel (International). 
However, other personnel from the IRS and Treasury Department 
participated in their development.

List of Subjects in 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 part 301 is proposed to be amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    Paragraph 1. The authority citation for part 301 continues to read, 
in part, as follows:

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

    Par. 2. Section 301.7701-2 is amended by:
    1. Adding paragraph (b)(8)(vi)
    2. Revising the heading for paragraph (e)
    3. Adding paragraph (e)(3)
    The additions and revisions read as follows:


Sec.  301.7701-2  Business entities; definitions.

* * * * *
    (b) * * *
    (8) * * *
    (vi) [The text of the proposed amendment adding Sec.  301.7701-
2(b)(8)(vi) is the same as the text of Sec.  301.7701-2T(b)(8)(vi) 
published elsewhere in this issue of the Federal Register.]
    (e) [The text of the proposed amendment is the same as the text of 
Sec.  301.7701-2T(e)(3) published elsewhere in this issue of the 
Federal Register.]

Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 05-6855 Filed 4-13-05; 8:45 am]
BILLING CODE 4830-01-P