[Federal Register Volume 81, Number 199 (Friday, October 14, 2016)]
[Proposed Rules]
[Pages 71025-71026]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-24674]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-150992-13]
RIN 1545-BM03


Election To Take Disaster Loss Deduction for Preceding Year

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

[[Page 71026]]

Register, the IRS is issuing temporary regulations under section 165(i) 
of the Internal Revenue Code (Code) relating to the election to take a 
disaster loss in the preceding year. The text of those temporary 
regulations also serves as the text of these proposed regulations. This 
document also invites comments from the public regarding these proposed 
regulations.

DATES: Written or electronic comments and requests for a public hearing 
must be received by January 12, 2017.

ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-150992-13), 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-150992-
13), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue 
NW., Washington, DC, or sent electronically via the Federal eRulemaking 
Portal at www.regulations.gov (IRS REG-150992-13).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Daniel Cassano at (202) 317-7011; concerning comments or a request for 
a public hearing, Oluwafunmilayo Taylor (202) 317-6901 (not toll-free 
numbers).

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 165(i) of the Code. The 
temporary regulations extend the due date by which a taxpayer may elect 
to treat an allowable loss occurring in a disaster area and 
attributable to a Federally declared disaster as sustained in the 
taxable year immediately prior to the taxable year in which the 
disaster occurred, as provided in section 165(i). The temporary 
regulations provide rules governing the time and manner of making a 
section 165(i) election, as well as the time and manner of revoking a 
section 165(i) election. 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

    Certain IRS regulations, including these, are exempt from the 
requirements of Executive Order 12866, as supplemented and reaffirmed 
by Executive Order 13563. 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 regulation does 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 notice of proposed rulemaking will be 
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 Department of the Treasury and the IRS request comments 
concerning the extension of the due date by which a taxpayer may make a 
section 165(i) election, as well as the time and manner in which a 
taxpayer may revoke a section 165(i) election. 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 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 authors of these regulations are Daniel Cassano and 
Christopher Wrobel of the Office of the Associate Chief Counsel (Income 
Tax & Accounting). However, other personnel from the Department of the 
Treasury and the IRS participated in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Amendments to the Regulations

    Accordingly, the Internal Revenue Service proposes to amend 26 CFR 
part 1 as follows:

PART 1-- INCOME TAXES

0
1. The authority citation for part 1 continues to read, in part. as 
follows:

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

0
2. Section 1.165-11 is amended by:
0
a. Removing and reserving paragraphs (a) through (e) and
0
b. Adding reserved paragraphs (f) through (i).
    The revisions and additions read as follows:


Sec.  1.165-11  Election in respect of losses attributable to a 
disaster.

    (a) through (i) [Reserved]. [The text of proposed Sec.  1.165-11(a) 
through (i) is the same as the text of Sec.  1.165-11T(a) through (i) 
published elsewhere in this issue of the Federal Register].

John Dalrymple,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2016-24674 Filed 10-13-16; 8:45 am]
 BILLING CODE 4830-01-P