[Federal Register Volume 73, Number 218 (Monday, November 10, 2008)]
[Proposed Rules]
[Pages 66568-66569]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26674]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-118327-08]
RIN 1545-BH98


Information Reporting for Discharges of Indebtedness

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 final and temporary regulations 
relating to information returns for cancellation of indebtedness by 
certain entities. The temporary regulations will avoid premature 
information reporting from certain businesses that are currently 
required to report and will reduce the number of information returns 
required to be filed. The regulations will impact certain lenders who 
are currently required to file information returns under the existing 
regulations. The text of those temporary regulations also serves as 
text of these proposed regulations. This document also provides a 
notice of public hearing on these proposed regulations.

DATES: Written or electronic comments must be received by February 9, 
2009. Outlines of topics to be discussed at the public hearing 
scheduled for March 13, 2009, must be received by February 13, 2009.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-118327-08), 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-
118327-08), 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 118327-08). 
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 regulations, Barbara 
Pettoni at (202) 622-4910; concerning submission of comments, the 
hearing, and/or to be placed on the building access list to attend the 
hearing, Oluwafunmilayo Taylor at (202) 622-7180 (not toll-free 
numbers).

SUPPLEMENTARY INFORMATION:

Background

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register contain amendments to the Income Tax 
Regulations (26 CFR Part 1) under section 6050P relating to information 
reporting for cancellation of indebtedness by certain entities. The 
text of those regulations also serves as the text of these proposed 
regulations. The preamble to the temporary regulations explains 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 also 
been determined that section 553(b) of the Administrative Procedure Act 
(5 U.S.C. chapter 5) does not apply to these regulations. The proposed 
regulations under section 6050P do not impose a collection of 
information on small entities. Therefore, the Regulatory Flexibility 
Act (5 U.S.C. chapter 6) does not apply. The proposed regulations will 
reduce the number of information returns required to be filed under 
section 6050P rather than impose a collection of information on 
entities. Pursuant to section 7805(f) of the Internal Revenue Code, 
these regulations have 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 electronic or written comments (a 
signed original and eight (8) copies) that are submitted timely to the 
IRS. The Treasury Department and the IRS request comments on the 
clarity of the proposed rules and how they may be made easier to 
understand. All comments will be available for public inspection and 
copying. A public hearing has been scheduled for March 13, 2009, 
beginning at 10:00 a.m. in the IRS Auditorium, 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 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 electronic or 
written comments by February 9, 2009 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 February 13, 2009.
    A period of 10 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.

[[Page 66569]]

Drafting Information

    The principal author of these proposed regulations is Barbara 
Pettoni, Office of Associate Chief Counsel (Procedure and 
Administration).

List of Subjects 26 CFR Part 1

    Income tax, 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

    Par. 1. The authority citation for part 1 continues to read in part 
as follows:

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

    Par. 2. Section 1.6050P-0 is amended as follows:
    1. The introductory text is revised.
    2. The entries in Sec.  1.6050P-1(b)(2)(v) and (h)(1) are revised.
    3. The entry for Sec.  1.6050P-1T is removed.
    The revisions read as follows:


Sec.  1.6050P-0  Table of contents.

    This section lists the major captions that appear in Sec.  1.6050-
P-1 and Sec.  1.6050P-2.
* * * * *

Sec.  1.6050P-1 Information reporting for discharges of indebtedness by 
certain entities.

* * * * *
    (b) * * *
    (2) * * *
    (v) [The text of the proposed entry for Sec.  1.6050P-1(b)(2)(v) 
is the same as the text in Sec.  1.6050P-1T(b)(2)(v) in Sec.  
1.6050P-0 published elsewhere in this issue of the Federal Register]
* * * * *
    (h) * * *
    (1) [The text of the proposed entry for Sec.  1.6050P-1(h)(1) is 
the same as the text of Sec.  1.6050P-1T(h)(1) in Sec.  1.6050P-0 
published elsewhere in this issue of the Federal Register].

* * * * *
    Par. 3. Section 1.6050P-1 is amended by revising paragraphs 
(b)(2)(i)(H), (b)(2)(v) and (h)(1) to read as follows:


Sec.  1.6050P-1  Information reporting for discharges of indebtedness 
by certain entities.

* * * * *
    (b) * * *
    (2) * * *
    (i) * * *
    (H) [The text of the proposed amendments to Sec.  1.6050P-
1(b)(2)(i)(H) is the same as the text of Sec.  1.6050P-1T(b)(2)(i)(H) 
published elsewhere in this issue of the Federal Register].
* * * * *
    (v) [The text of the proposed amendments to Sec.  1.6050P-
1(b)(2)(v) is the same as the text of Sec.  1.6050P-1T(b)(2)(v) 
published elsewhere in this issue of the Federal Register].
* * * * *
    (h)(1) [The text of the proposed amendments to Sec.  1.6050P-1(h) 
is the same as the text of Sec.  1.6050P-1T(h) published elsewhere in 
this issue of the Federal Register].
* * * * *

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-26674 Filed 11-7-08; 8:45 am]
BILLING CODE 4830-01-P