[Federal Register Volume 77, Number 122 (Monday, June 25, 2012)]
[Proposed Rules]
[Pages 37838-37839]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-15421]



Internal Revenue Service

26 CFR Parts 1 and 301

RIN 1545-BK38

Disregarded Entities and the Indoor Tanning Services Excise Tax

AGENCY: Internal Revenue Service (IRS), Treasury.

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


SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations relating to 
disregarded entities (including qualified subchapter S subsidiaries) 
and the indoor tanning services excise tax. These regulations affect 
disregarded entities responsible for collecting the indoor tanning 
services excise tax and owners of those disregarded entities. The text 
of the temporary regulations also serves as the text of the proposed 

DATES: Comments and requests for a public hearing must be received by 
September 24, 2012.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-125570-11), Room 
5205, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand-delivered to: 
CC:PA:LPD:PR Monday through Friday between the hours of 8 a.m. and 4 
p.m. to: CC:PA:LPD:PR (REG-125570-11), 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-125570-11).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,

[[Page 37839]]

Michael H. Beker, (202) 622-3130; concerning submissions of comments 
and requests for a public hearing, Oluwafunmilayo Taylor, (202) 622-
7180 (not toll-free numbers).



    This document contains proposed amendments to the Income Tax 
Regulations (26 CFR part 1) under section 1361 of the Internal Revenue 
Code (Code) and the Procedure and Administration Regulations (26 CFR 
part 301) under section 7701 of the Code. The text of temporary 
regulations published in this issue of the Federal Register 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, as supplemented by Executive Order 13563. 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, 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, this 
regulation has been submitted to the Chief Counsel for Advocacy of the 
Small Business Administration for comment on its 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 comments that are submitted timely 
to the IRS as prescribed in this preamble under the ADDRESSES heading. 
The IRS and the Treasury Department request comments on all aspects of 
the proposed rules. All comments will be available at 
www.regulations.gov or upon request. 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 

Drafting Information

    The principal author of these regulations is Michael H. Beker, 
Office of the Associate Chief Counsel (Passthroughs and Special 
Industries). However, other personnel from the IRS and the Treasury 
Department participated in their development.

List of Subjects

26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

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 parts 1 and 301 are proposed to be amended as 


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

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

    Par. 2. Section 1.1361-4 is amended by adding paragraph (a)(8)(iii) 
to read as follows:

Sec.  1.1361-4  Effect of QSub election.

    (a) * * *
    (8) * * *
    (iii) [The text of proposed Sec.  1.1361-4(a)(8)(iii) is the same 
as the text of Sec.  1.1361-4T(a)(8)(iii)(A) and (B) published 
elsewhere in this issue of the Federal Register].
* * * * *


    Par. 3. The authority citation for part 301 continues to read in 
part as follows:

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

    Par. 4. Section 301.7701-2 is amended by adding new paragraphs 
(c)(2)(vi) and (e)(9) to read as follows:

Sec.  301.7701-2  Business entities; definitions.

* * * * *
    (c) * * *
    (2) * * *
    (vi) [The text of proposed Sec.  301.7701-2(c)(2)(vi) is the same 
as the text of Sec.  301.7701-2T(c)(2)(vi) published elsewhere in this 
issue of the Federal Register].
* * * * *
    (e) * * *
    (9) [The text of proposed Sec.  301.7701-2(e)(9) is the same as the 
text of Sec.  301.7701-2T(e)(9)(i) published elsewhere in this issue of 
the Federal Register].

Steven T. Miller,
 Deputy Commissioner for Services and Enforcement.
[FR Doc. 2012-15421 Filed 6-22-12; 8:45 am]