[Federal Register Volume 73, Number 141 (Tuesday, July 22, 2008)]
[Proposed Rules]
[Pages 42538-42539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16664]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
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  Federal Register / Vol. 73, No. 141 / Tuesday, July 22, 2008 / 
Proposed Rules  

[[Page 42538]]



DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-161695-04]
RIN 1545-BE23


Farmer and Fisherman Income Averaging

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 is issuing final and temporary regulations 
under section 1301 of the Internal Revenue Code (Code) relating to the 
averaging of farm and fishing income in computing income tax liability. 
The regulations reflect changes to the law made by the American Jobs 
Creation Act of 2004. The regulations provide guidance to individuals 
engaged in a farming or fishing business who elect to reduce their tax 
liability by treating all or a portion of the current taxable year's 
farm or fishing income as if one-third of it had been earned in each of 
the prior three taxable years. The text of those 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 October 20, 2008.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-161695-04), Internal 
Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. 
Taxpayers also may submit comments electronically via the Federal 
eRulemaking Portal at http://www.regulations.gov (IRS REG-161695-04).

FOR FURTHER INFORMATION CONTACT: Concerning submission of comments or 
to request a hearing, Richard Hurst at 
[email protected]; concerning the proposed 
regulations, Amy Pfalzgraf, (202) 622-4950 (not a toll-free number).

SUPPLEMENTARY INFORMATION: 

Background and Explanation of Provisions

    Final and 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 1301 of the Internal 
Revenue Code (Code). The final and temporary regulations provide rules 
for averaging taxable income from a farming or fishing business under 
section 1301. The text of those temporary regulations also serves as 
the text of these proposed regulations. The preamble to the final and 
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 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, and 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 (either a signed paper 
original with 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 will be scheduled if requested 
in writing by any person who 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.

Drafting Information

    The principal author of these regulations is Amy Pfalzgraf of the 
Office of 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. In Sec.  1.1301-1, paragraphs (a), (b)(1), (b)(3), (c)(1), 
(d)(3)(ii), (d)(4), (e), (f)(2), and (f)(4) are revised to read as 
follows:


Sec.  1.1301-1  Averaging of farm and fishing income.

    (a) [The text of the proposed amendment to Sec.  1.1301-1(a) is the 
same as the text of Sec.  1.1301-1T(a) published elsewhere in this 
issue of the Federal Register].
    (b) * * * (1) [The text of the proposed amendment to Sec.  1.1301-
1(b)(1) is the same as the text of Sec.  1.1301-1T(b)(1) published 
elsewhere in this issue of the Federal Register].
* * * * *
    (3) [The text of the proposed amendment to Sec.  1.1301-1(b)(3) is 
the same as the text of Sec.  1.1301-1T(b)(3) published elsewhere in 
this issue of the Federal Register].
    (c) * * * (1) [The text of the proposed amendment to Sec.  1.1301-
1(c)(1) is the same as the text of Sec.  1.1301-1T(c)(1) published 
elsewhere in this issue of the Federal Register].
* * * * *
    (d) * * *
    (3) * * *
    (ii) [The text of the proposed amendment to Sec.  1.1301-
1(d)(3)(ii) is the same as the text of Sec.  1.1301-1T(d)(3)(ii) 
published elsewhere in this issue of the Federal Register].
    (4) [The text of the proposed amendment to Sec.  1.1301-1(d)(4) is 
the

[[Page 42539]]

same as the text of Sec.  1.1301-1T(d)(4) published elsewhere in this 
issue of the Federal Register].
    (e) [The text of the proposed amendment to Sec.  1.1301-1(e) is the 
same as the text of Sec.  1.1301-1T(e) published elsewhere in this 
issue of the Federal Register].
    (f) * * *
    (2) [The text of the proposed amendment to Sec.  1.1301-1(f)(2) is 
the same as the text of Sec.  1.1301-1T(f)(2) published elsewhere in 
this issue of the Federal Register].
* * * * *
    (4) [The text of the proposed amendment to Sec.  1.1301-1(f)(4) is 
the same as the text of Sec.  1.1301-1T(f)(4) published elsewhere in 
this issue of the Federal Register].

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-16664 Filed 7-21-08; 8:45 am]
BILLING CODE 4830-01-P