Classification of Certain Foreign Entities
Federal Register: March 21, 2008 (Volume 73, Number 56)
Proposed Rules
Page 15107-15108
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DOCID:fr21mr08-21
DEPARTMENT OF THE TREASURY
Internal Revenue Service 26 CFR Part 301
REG-143468-07
RIN 1545-BH23
Classification of Certain Foreign Entities
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary regulations.
SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS and the Treasury Department are issuing temporary and final regulations relating to certain business entities included on the list of foreign business entities that are always classified as corporations for Federal tax purposes. The regulations are needed to make the Federal tax classification of Bulgarian public limited liability companies consistent with the Federal tax classification of public limited liability companies organized in other countries of the European Economic Area. They will affect persons owning an interest in a Bulgarian aktsionerno druzhestvo on or after
January 1, 2007. The text of the temporary regulations also serves as the text of these proposed regulations.
DATES: Written or electronic comments and requests for a public hearing must be received by June 19, 2008.
ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-143468-07), 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- 143468-07), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC 20224 or sent electronically via the
Federal eRulemaking Portal at www.regulations.gov (IRS REG-143468-07).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
S. James Hawes, (202) 622-3860; concerning submissions of comments,
Kelly Banks, (202) 622-7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
Temporary regulations in this issue of the Federal Register amend and revise 26 CFR part 301 relating to section 7701 of the Internal
Revenue Code. The temporary regulations add certain business entities to the list of foreign business entities that are always classified as corporations for Federal tax purposes. The preamble to the temporary regulations explains both 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 been determined that section 553(b) of the Administrative Procedure Act (5
Page 15108
U.S.C. Chapter 5) does not apply to this regulation. 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, either. 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.
Comments and Request 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
Internal Revenue Service (IRS). The IRS and the Treasury Department request comments on the clarity of the proposed rules and how they can be made easier to understand. All comments will be available for public inspection and copying. 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 Register.
Proposed Effective Date
The regulations proposed in this document would be applicable for entities existing on or after March 21, 2008.
Drafting Information
The principal author of these proposed regulations is S. James
Hawes of the Office of Associate Chief Counsel (International); however, other personnel from the IRS and the Treasury Department participated in their development.
List of Subjects in 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 part 301 is proposed to be amended as follows:
PART 301--PROCEDURE AND ADMINISTRATION
Paragraph 1. The authority citation for part 301 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 301.7701-2 is amended by revising paragraphs
(b)(8)(vi) and (e)(7) to read as follows:
Sec. 301.7701-2 Business entities; definitions.
* * * * *
(b) * * *
(8) * * *
(vi) [The text of the proposed amendment to Sec. 301.7701- 2(b)(8)(vi) is the same as the text of Sec. 301.7701-2T(b)(8)(vi) published elsewhere in this issue of the Federal Register.]
* * * * *
(e) * * *
(7) [The text of the proposed amendment to Sec. 301.7701-2(e)(7) is the same as the text of Sec. 301.7701-2T(e)(7) published elsewhere in this issue of the Federal Register.]
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
FR Doc. E8-5687 Filed 3-20-08; 8:45 am
BILLING CODE 4830-01-P
