[Federal Register Volume 74, Number 186 (Monday, September 28, 2009)]
[Proposed Rules]
[Pages 49354-49355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-23423]



Internal Revenue Service

26 CFR Part 301

RIN 1545-BI44

Definition of Omission From Gross Income

AGENCY: Internal Revenue Service (IRS), Treasury.

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


SUMMARY: This document contains proposed regulations defining an 
omission from gross income for purposes of the six-year minimum period 
for assessment of tax attributable to partnership items and the six-
year period for assessing tax. The regulations resolve a continuing 
issue as to whether an overstatement of basis in a sold asset results 
in an omission from gross income. The regulations will affect any 
taxpayer who overstates basis in a sold asset creating an omission from 
gross income exceeding twenty-five percent of the income stated in the 
return. The text of the temporary regulations published in the Rules 
and Regulations section of this issue of the Federal Register also 
serves as the text of these proposed regulations. This document also 
provides notice of a public hearing on these proposed and temporary 

DATES: Written or electronic comments and requests for a public hearing 
must be received by December 28, 2009.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-108045-08), room 
5205, Internal Revenue Service, P.O. 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-
108045-08), 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-108045-08).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
William A. Heard, III at (202) 622-4570; concerning submissions of 
comments and requests for a public hearing, 
[email protected], (202) 622-7180 (not toll-free 


Background and Explanation of Provisions

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Procedure and Administration 
Regulations (26 CFR part 301) relating to sections 6229(c)(2) and 
6501(e). 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. 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 
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 Internal Revenue Code, these 
regulations have been submitted to the Chief Counsel for Advocacy of 
the Small Business Administration for comment on their impact on small 

Comments and Requests 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 
IRS. The IRS and the Treasury Department request comments on the 
substance of the proposed regulations, as well as on the clarity of the 
proposed rules and how they can be made easier to understand. All 
public comments will be made 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 public hearing 
will be published in the Federal Register.

Drafting Information

    The principal author of these regulations is William A. Heard III 
of the Office of the Associate Chief Counsel (Procedure and 

List of Subjects in 26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

[[Page 49355]]

Proposed Amendments to the Regulations

    Accordingly, 26 CFR Part 301 is proposed to be amended as follows:


    Paragraph 1. The authority citation for part 301 is amended by 
adding the entry in numerical order to read in part as follows:

    Authority:  26 U.S.C. 7805 * * *
    Section 301.6229(c)(2)-1 is also issued under 26 U.S.C. 6230(k). 
* * *
    Par. 2. Section 301.6229(c)(2)-1 is added to read as follows:

Sec.  301.6229(c)(2)-1  Substantial omission of income.

    [The text of Sec.  301.6229(c)(2)-1 is the same as the text of 
Sec.  301.6229(c)(2)-1T published elsewhere in this issue of the 
Federal Register].
    Par. 3. Section 301.6501(e)-1 is added to read as follows:

Sec.  301.6501(e)-1  Omission from return.

    [The text of Sec.  301.6501(e)-1 is the same as the text of Sec.  
301.6501(e)-1T published elsewhere in this issue of the Federal 

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E9-23423 Filed 9-24-09; 4:15 pm]