[Federal Register Volume 73, Number 56 (Friday, March 21, 2008)]
[Proposed Rules]
[Pages 15107-15108]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-5687]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG-143468-07]
RIN 1545-BH23


Classification of Certain Foreign Entities

AGENCY: Internal Revenue Service (IRS), Treasury.

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

-----------------------------------------------------------------------

SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS and the Treasury Department are issuing 
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 regulations 
are needed to make the Federal tax classification of Bulgarian public 
limited liability companies consistent with the Federal tax 
classification of public limited liability companies organized in other 
countries of the European Economic Area. They will affect persons 
owning an interest in a Bulgarian aktsionerno druzhestvo on or after 
January 1, 2007. The text of the temporary regulations also serves as 
the text of these proposed regulations.

DATES: Written or electronic comments and requests for a public hearing 
must be received by June 19, 2008.

ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-143468-07), 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-
143468-07), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC 20224 or sent electronically via the 
Federal eRulemaking Portal at www.regulations.gov (IRS REG-143468-07).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
S. James Hawes, (202) 622-3860; concerning submissions of comments, 
Kelly Banks, (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 26 CFR part 301 relating to section 7701 of the Internal 
Revenue 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 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. It has been 
determined that section 553(b) of the Administrative Procedure Act (5

[[Page 15108]]

U.S.C. Chapter 5) does not apply to this regulation. Because the 
regulation does not impose a collection of information on small 
entities, the Regulatory Flexibility Act (5 U.S.C. Chapter 6) does not 
apply, either. Pursuant to section 7805(f) of the Internal Revenue 
Code, this regulation has been submitted to the Chief Counsel for 
Advocacy of the Small Business Administration for comment on its 
impact.

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 
Internal Revenue Service (IRS). The IRS and the 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 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 public hearing will be published in the Federal Register.

Proposed Effective Date

    The regulations proposed in this document would be applicable for 
entities existing on or after March 21, 2008.

Drafting Information

    The principal author of these proposed regulations is S. James 
Hawes of the Office of Associate Chief Counsel (International); 
however, other personnel from the IRS and the 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 revising paragraphs 
(b)(8)(vi) and (e)(7) to read as follows:


Sec.  301.7701-2  Business entities; definitions.

* * * * *
    (b) * * *
    (8) * * *
    (vi) [The text of the proposed amendment to 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) * * *
    (7) [The text of the proposed amendment to Sec.  301.7701-2(e)(7) 
is the same as the text of Sec.  301.7701-2T(e)(7) published elsewhere 
in this issue of the Federal Register.]

 Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
 [FR Doc. E8-5687 Filed 3-20-08; 8:45 am]
BILLING CODE 4830-01-P