[Federal Register Volume 73, Number 131 (Tuesday, July 8, 2008)]
[Proposed Rules]
[Pages 38940-38941]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-15457]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-164965-04]
RIN 1545-BE77


Elections Regarding Start-Up Expenditures, Corporation 
Organizational Expenditures, and Partnership Organizational Expenses

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking 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 relating to 
the elections to deduct start-up expenditures under section 195 of the 
Internal Revenue Code (Code), organizational expenditures of 
corporations under section 248, and organizational expenses of 
partnerships under section 709. The American Jobs Creation Act of 2004 
amended these three sections of the Code to provide similar rules for 
deducting these types of expenses that are paid or incurred after 
October 22, 2004. The regulations affect taxpayers that pay or incur 
these expenses and provide guidance on how to elect to deduct the 
expenses in accordance with the new rules. The text of those

[[Page 38941]]

temporary regulations also serves as the text of these proposed 
regulations.

DATES: Comments or a request for a public hearing must be received by 
October 6, 2008.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-164965-04), 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-
164965-04), 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-164965-04).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Grace Matuszeski, (202) 622-7900; concerning submission of comments or 
a request for a public hearing, Richard Hurst, at 
[email protected] or (202) 622-7180 (not toll-free 
numbers).

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) to implement the changes to sections 195, 248, and 709 of the 
Code made by section 902 of the American Jobs Creation Act of 2004, 
Public Law 108-357 (118 Stat. 1418). The text of those temporary 
regulations also serves as the text of these proposed regulations. The 
preamble to the temporary regulations explains the amendments.

Special Analyses

    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 also has been determined that section 
553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does 
not apply to these regulations. 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 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 Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments (a signed original 
and eight (8) copies) or electronic comments that are submitted timely 
to the 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 comments. If a public hearing is scheduled, 
notice of the date, time and place for the hearing will be published in 
the Federal Register.

Drafting Information

    The principal author of these regulations is Grace Matuszeski of 
the Office of the Associate Chief Counsel (Income Tax & Accounting). 
However, other personnel from the IRS and Treasury Department 
participated in their development.

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 continues to read in 
part as follows:

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

    Par. 2. Section 1.195-1 is revised to read as follows:


Sec.  1.195-1  Election to amortize start-up expenditures.

    [The text of this section is the same as the text of Sec.  1.195-
1T(a) through (d) published elsewhere in this issue of the Federal 
Register.]
    Par. 3. Section 1.248-1 is amended by revising paragraphs (a) and 
(c), and adding paragraphs (d) through (f), to read as follows:


Sec.  1.248-1  Election to amortize organizational expenditures.

    (a) [The text of this proposed amendment to Sec.  1.248-1(a) is the 
same as the text of Sec.  1.248-1T(a) published elsewhere in this issue 
of the Federal Register.]
* * * * *
    (c) through (f) [The text of these proposed amendments to Sec.  
1.248-1(c) through (f) are the same as the text of Sec.  1.248-1T(c) 
through (f) published elsewhere in this issue of the Federal Register.]
    Par. 4. Section 1.709-1 is amended by revising the section heading 
and paragraph (b) to read as follows:


Sec.  1.709-1  Treatment of organizational expenses and syndication 
costs.

* * * * *
    (b) [The text of this proposed amendment to Sec.  1.709-1(b) is the 
same as the text of Sec.  1.709-1T(b)(1) through (b)(5) published 
elsewhere in this issue of the Federal Register.]

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-15457 Filed 7-7-08; 8:45 am]
BILLING CODE 4830-01-P