[Federal Register Volume 87, Number 196 (Wednesday, October 12, 2022)]
[Proposed Rules]
[Pages 61543-61544]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-22100]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
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.
========================================================================
Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 /
Proposed Rules
[[Page 61543]]
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-113068-22]
RIN 1545-BQ47
Section 42, Low-Income Housing Credit Average Income Test
Regulations
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This document contains proposed regulations concerning
recordkeeping and reporting requirements for the average income test
for purposes of the low-income housing credit. If a building is part of
a residential rental project that satisfies this test, the building may
be eligible to earn low-income housing credits. These proposed
regulations affect owners of low-income housing projects and State or
local housing credit agencies that monitor compliance with the
requirements for low-income housing credits. In the Rules and
Regulations section of this issue of the Federal Register, the IRS is
issuing temporary regulations concerning the recordkeeping and
reporting requirements for the average income test. The text of the
temporary regulations also serves as the text of these proposed
regulations.
DATES: Written (including electronic) comments must be received by
December 12, 2022.
ADDRESSES: Commenters are strongly encouraged to submit public comments
electronically. Submit electronic submissions via the Federal
eRulemaking Portal at www.regulations.gov (indicate IRS and REG-113068-
22) by following the online instructions for submitting comments. Once
submitted to the Federal eRulemaking Portal, comments cannot be edited
or withdrawn. The Department of the Treasury (Treasury Department) and
the IRS will publish for public availability any comment submitted
electronically, and on paper, to its public docket.
FOR FURTHER INFORMATION CONTACT: Concerning these proposed regulations,
Dillon Taylor at (202) 317-4137; concerning submissions of comments,
Regina L. Johnson at (202) 317-6901 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
Temporary regulations in the Rules and Regulations section of this
issue of the Federal Register add Sec. 1.42-19T to the temporary
Income Tax Regulations (26 CFR part 1) that relate to the average
income test under section 42 of the Internal Revenue Code. These new
temporary regulations set forth certain recordkeeping and reporting
requirements that relate to the rules in Sec. 1.42-19. The text of the
temporary regulations also serves as the text of these proposed
regulations. The preamble to the temporary regulations explains the
amendments. These proposed regulations would integrate the text of the
temporary regulations into portions of Sec. 1.42-19 that are currently
reserved.
Special Analyses
These proposed regulations are not subject to review under section
6(b) of Executive Order 12866 pursuant to the Memorandum of Agreement
(April 11, 2018) between the Department of the Treasury and the Office
of Management and Budget regarding review of tax regulations.
Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it
is hereby certified that these proposed regulations will not have a
significant economic impact on a substantial number of small entities.
The basis for this certification can be found in the Special Analyses
section of the temporary regulations.
Pursuant to section 7805(f) of the Internal Revenue Code, these
proposed regulations will be submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on their
impact on small business.
Comments and a Request for Public Hearing
Before these proposed amendments to the regulations are adopted as
final regulations, consideration will be given to comments that are
submitted timely to the IRS as prescribed in the preamble under the
ADDRESSES section. The Treasury Department and the IRS request comments
on all aspects of the proposed regulations. Any electronic comments
submitted, and any paper comments submitted, will be made available at
www.regulations.gov or upon request.
A public hearing will be scheduled if requested in writing by any
person who timely submits electronic or written comments. Requests for
a public hearing are also encouraged to be made electronically. If a
public hearing is scheduled, notice of the date and time for the public
hearing will be published in the Federal Register. Announcement 2020-4,
2020-17 IRB 1, provides that until further notice, public hearings
conducted by the IRS will be held telephonically. Any telephonic
hearing will be made accessible to people with disabilities.
Drafting Information
The principal author of these proposed regulations is Dillon
Taylor, Office of Associate Chief Counsel (Passthroughs and Special
Industries), IRS. 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, the Treasury Department and the IRS propose to amend
26 CFR part 1 as follows:
PART 1--INCOME TAXES
0
Paragraph 1.The authority citation for part 1 continues to read, in
part, as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.42-19 also issued under 26 U.S.C. 42(n);
* * * * *
0
Par. 2. Section 1.42-19 is amended by adding paragraphs (c)(1) and (2),
(c)(3)(iv), (c)(4), and (d)(2) and revising paragraph (f) to read as
follows:
Sec. 1.42-19 Average income test.
* * * * *
(c) * * *
[[Page 61544]]
(1) [The text of proposed Sec. 1.42-19(c)(1) is the same as the
text of Sec. 1.42-19T(c)(1) in the final and temporary rule published
elsewhere in this issue of the Federal Register].
(2) [The text of proposed Sec. 1.42-19(c)(2) is the same as the
text of Sec. 1.42-19T(c)(2) in the final and temporary rule published
elsewhere in this issue of the Federal Register].
(3) * * *
(iv) [The text of proposed Sec. 1.42-19(c)(3)(iv) is the same as
the text of Sec. 1.42-19T(c)(3)(iv) in the final and temporary rule
published elsewhere in this issue of the Federal Register].
(4) [The text of proposed Sec. 1.42-19(c)(4) is the same as the
text of Sec. 1.42-19T(c)(4) in the final and temporary rule published
elsewhere in this issue of the Federal Register].
(d) * * *
(2) [The text of proposed Sec. 1.42-19(d)(2) is the same as the
text of Sec. 1.42-19T(d)(2) in the final and temporary rule published
elsewhere in this issue of the Federal Register].
* * * * *
(f) [The text of proposed Sec. 1.42-19(f) is the same as the text
of Sec. 1.42-19T(f) in the final and temporary rule published
elsewhere in this issue of the Federal Register].
Douglas W. O'Donnell,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2022-22100 Filed 10-7-22; 11:15 am]
BILLING CODE 4830-01-P