[Federal Register Volume 69, Number 26 (Monday, February 9, 2004)]
[Proposed Rules]
[Pages 5940-5942]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-2644]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-167217-03]
RIN 1545-BD03


Electronic Filing of Duplicate Forms 5472

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking, notice of proposed rulemaking by 
cross-reference to temporary regulations, and notice of public hearing.

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations providing 
that a Form 5472 that is timely filed electronically is treated as 
satisfying the requirement timely to file a duplicate Form 5472 with 
the Internal Revenue Service

[[Page 5941]]

Center in Philadelphia, Pennsylvania. This action is necessary to 
clarify how the duplicate filing requirements for Form 5472 apply when 
a reporting corporation electronically files its income tax return 
(including any attachments such as Form 5472). This document affects 
corporations subject to the reporting requirements in sections 6038A 
and 6038C that file Form 5472 electronically. The text of those 
temporary regulations also serves as the text of these proposed 
regulations. This document also provides notice of a public hearing on 
these proposed regulations.

DATES: Written or electronic comments must be received by May 10, 2004. 
Outlines of topics to be discussed at the public hearing scheduled for 
May 27, 2004, must be received by May 6, 2004.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-167217-03), 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-
167217-03), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC. Alternatively, taxpayers may submit 
electronic comments directly to the IRS Internet site at www.irs.gov/regs. The public hearing will be held in the IRS Auditorium, Internal 
Revenue Building, 1111 Constitution Avenue, NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Edward Barret, (202) 435-5265; concerning submissions and the hearing, 
Robin Jones, (202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

    The temporary regulations in the Rules and Regulations section of 
this issue of the Federal Register amend 26 CFR part 1. To clarify how 
the duplicate filing requirements for Form 5472 apply when a reporting 
corporation electronically files its income tax return (including any 
attachments such as Form 5472), the temporary regulations amend Sec. 
1.6038A-2(d) to provide that a Form 5472 that is timely filed 
electronically is treated as satisfying the requirement timely to file 
a duplicate Form 5472 with the Internal Revenue Service Center in 
Philadelphia, Pennsylvania. The text of the temporary regulations 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. 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, 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 businesses.

Comments and 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 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 has been scheduled for May 27, 2004, in the IRS 
Auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW., 
Washington, DC. Due to building security procedures, visitors must 
enter at the Constitution Avenue entrance. In addition, all visitors 
must present photo identification to enter the building. Because of 
access restrictions, visitors will not be admitted beyond the immediate 
entrance area more than 30 minutes before the hearing starts. For 
information about having your name on the building access list to 
attend the hearing, see the FOR FURTHER INFORMATION CONTACT section of 
this preamble.
    The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who 
wish to present oral comments must submit written or electronic 
comments by May 10, 2004, and an outline of the topics to be discussed 
and the time to be devoted to each topic (a signed original and eight 
(8) copies) by May 6, 2004. A period of 10 minutes will be allotted to 
each person for making comments.
    An agenda showing the scheduling of the speakers will be prepared 
after the deadline for receiving outlines has passed. Copies of the 
agenda will be available free of charge at the hearing.

Drafting Information

    The principal author of these proposed regulations is Edward 
Barret, Office of the Associate Chief Counsel (International). 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, 26 CFR part 1 is proposed to be amended as follows:

PART 1--INCOME TAXES

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

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

    Par. 2. Section 1.6038A-1 is amended by revising paragraph (n)(2) 
to read as follows:


Sec. 1.6038A-1  General requirements and definitions.

* * * * *
    (n) * * * (1) * * *
    (2) Section 1.6038A-2. Section 1.6038A-2 (relating to the 
requirement to file Form 5472) generally applies for taxable years 
beginning after July 10, 1989. However, Sec. 1.6038A-2 as it applies to 
reporting corporations whose sole trade or business in the United 
States is a banking, financing, or similar business as defined Sec. 
1.864-4(c)(5)(i) applies for taxable years beginning after December 10, 
1990. The final sentence of Sec. 1.6038A-2(d) applies for taxable years 
ending on or after January 1, 2003. For taxable years ending prior to 
January 1, 2003, see Sec. 1.6038A-2(d) in effect prior to January 1, 
2003 (see 26 CFR part 1 revised as of April 1, 2002).
* * * * *
    Par. 3. Section 1.6038A-2 is amended by revising paragraph (d) to 
read as follows:


Sec. 1.6038A-2  Requirement of return.

* * * * *
    (d) [The text of the proposed amendment to Sec. 1.6038A-2(d) is the 
same as the text for Sec. 1.6038A-2T(d)

[[Page 5942]]

published elsewhere in this issue of the Federal Register.]
* * * * *

Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 04-2644 Filed 2-6-04; 8:45 am]
BILLING CODE 4830-01-P