[Federal Register Volume 72, Number 114 (Thursday, June 14, 2007)]
[Proposed Rules]
[Pages 32828-32829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-11444]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-144540-06]
RIN 1545-BG03


Built-in Gains and Losses Under Section 382(h)

AGENCY: Internal Revenue Service (IRS), Treasury.

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

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations that apply 
to corporations that have undergone ownership changes within the 
meaning of section 382. These regulations provide guidance on the 
treatment of prepaid income under the built-in gain provisions of 
section 382(h). The text of the temporary regulations published in this 
issue of the Federal Register serves as the text of these proposed 
regulations.

DATES: Written or electronic comments and requests for a public hearing 
must be received by September 12, 2007.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-144540-06), Room 
5203, Internal Revenue Service, PO Box 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-
144540-06), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC; or sent electronically, via the Federal 
eRulemaking Portal at http://www.regulations.gov (IRS REG-144540-06).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Keith Stanley, (202) 622-7750; concerning submission of comments, the 
hearing, and/or to be placed on the building access list to attend the 
hearing, Richard Hurst, at (202) 622-2949 (TDD Telephone) (not toll 
free numbers) and his e-mail address is 
[email protected].

SUPPLEMENTARY INFORMATION: 

Background and Explanation of Provisions

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Income Tax Regulations (26 CFR 
part 1) relating to section 382 of the Code. 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 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. These 
regulations only apply in the rare circumstance in which a qualifying 
loss corporation that uses a particular accounting method undergoes an 
ownership change. Therefore, a Regulatory Flexibility Analysis under 
the Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required. 
Nevertheless, the IRS and Treasury Department request comments from 
small entities that believe they might be adversely affected by these 
regulations. 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 (a signed original and (8) 
copies) or electronic comments that are submitted timely to the IRS. 
Please see the ``Comments'' section of the temporary regulation on this 
subject for a description of specific issues on which comments are 
requested. The IRS and Treasury Department also 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. 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 Sean McKeever, Office 
of Associate Chief Counsel (Corporate).

[[Page 32829]]

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 
an entry in numerical order to read as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 1.382-7 is also issued under 26 U.S.C. 382(m). * * *

    Par. 2. Section 1.382-7 is added to read as follows:


Sec.  1.382-7  Built-in gains and losses.

    [The text of this proposed section is the same as the text of Sec.  
1.382-7T(a) through (b)(1) published elsewhere in this issue of the 
Federal Register].

Kevin M. Brown,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E7-11444 Filed 6-13-07; 8:45 am]
BILLING CODE 4830-01-P