[Federal Register Volume 72, Number 119 (Thursday, June 21, 2007)]
[Proposed Rules]
[Pages 34204-34205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-12085]



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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG-149036-04]
RIN 1545-BE07


Application of Section 6404(g) of the Internal Revenue Code 
Suspension Provisions

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 application of section 6404(g) of the Internal Revenue Code (Code) 
suspension provisions. The regulations reflect changes to the law made 
by the Internal Revenue Service Restructuring and Reform Act of 1998, 
the American Jobs Creation Act of 2004, the gulf Opportunity zone act 
of 2005, and the Tax Relief and Health Care Act of 2006. The 
regulations provide guidance to individual taxpayers who have 
participated in listed transactions or undisclosed reportable 
transactions. The text of those regulations also serve as the text of 
these proposed regulations. This document also provides notice of a 
public hearing on these proposed regulations.

DATES: Written or electronic comments must be received by September 19, 
2007. Outlines of topics to be discussed at the public hearing 
scheduled for October 11, 2007, at 10 a.m. must be received by 
September 20, 2007.

ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-149036-04), 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-
149036-04), 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-149036-04). 
The public hearing will be held in the IRS Auditorium, Internal Revenue 
Building, 1111 Constitution Avenue, NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Stuart Spielman, (202) 622-7950; concerning submissions of comments, 
the hearing, and to be placed on the building access list to attend the 
hearing, Richard Hurst, (202) 622-7180 (not toll-free numbers) or 
[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 Regulations on Procedure and 
Administration (26 CFR part 301) relating to section 6404(g). The 
temporary regulations add rules relating to the suspension of interest, 
penalties, additions to tax, or additional amounts with respect to 
listed or other reportable transactions. The text of those 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. A regulatory assessment is therefore 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, and because 
these 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 regulation has 
been submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small business.

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 timely submitted 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 made available for public inspection and copying.
    A public hearing has been scheduled for October 11, 2007, beginning 
at 10 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 more than 30 minutes before the 
hearing starts. 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 the hearing. Persons who 
wish to present oral comments at the hearing must submit written or 
electronic comments by September 19, 2007, and an outline of the topics 
to be discussed and the time to be devoted to each topic (signed 
original and eight (8) copies) by September 20, 2007. A period of ten 
minutes will be allotted to each person for making comments. An agenda 
showing the scheduling of the 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.

Drafting information

    The principal author of these regulations is Stuart Spielman of the 
Office of Associate Chief Counsel (Procedure and Administration).

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 301.6404-0 is amended as follows:
    1. The introductory text is revised.
    2. Entries are added for Sec.  301.6404-4.
    The additions read as follows:


Sec.  301.6404-0  Table of contents.

    This section lists the paragraphs contained in Sec. Sec.  301.6404-
1 through 301.6404-4.
* * * * *
Sec.  301.6404-4 Listed transactions and undisclosed reportable 
transactions.

    [Reserved]. The text of the entries or this section is the same 
as the text of the entries in Sec.  301.6404T published elsewhere in 
this issue of the Federal Register.
    Par. 3. Section 301.6404-4 is added to read as follows:


Sec.  301.6404-4  Listed transactions and undisclosed reportable 
transactions.

    (a) through (b)(4) [Reserved].

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    (b)(5) [The text of proposed Sec.  6404-4(b)(5) is the same as the 
text of Sec.  301.6404-4T(b)(5) published elsewhere in this issue of 
the Federal Register].
    (c) and (d) [Reserved].

Kevin M. Brown,
Deputy Commissioner for Services and Enforcement.
 [FR Doc. E7-12085 Filed 6-20-07; 8:53 am]
BILLING CODE 4830-01-P