[Federal Register Volume 71, Number 246 (Friday, December 22, 2006)]
[Proposed Rules]
[Pages 76955-76956]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-9757]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-161919-05]
RIN 1545-BF25


Guidance Necessary To Facilitate Business Electronic Filing Under 
Section 1561

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 Register, the IRS is issuing temporary regulations that affect 
component members of controlled groups of corporations and consolidated 
groups filing life-nonlife Federal income tax returns. They provide 
guidance regarding the apportionment of tax benefit items and the 
amount and type of information these members are required to submit 
with their returns. The text of those regulations also serves as the 
text of these proposed regulations.

DATES: Written or electronic comments, and a request for a public 
hearing, must be received by March 22, 2007.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-161919-05), Room 
5203, Internal Revenue Service, P.O. 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-
161919-05), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC, or sent electronically, via the IRS 
Internet site at http://www.irs.gov/regs or via the Federal eRulemaking 
Portal at www.regulations.gov (indicate IRS and REG-161919-05).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Grid Glyer, (202) 622-7930, concerning submissions of comments and 
requests for public hearings, Kelly Banks (202) 622-7180 (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 amend 26 CFR part 1 to add Sec. Sec.  
1.1502-43T, 1.1561-1T, 1.1561-2T and 1.1561-3T, and amend Sec. Sec.  
1.1502-47T and 1.1563-1T. 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

    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 also 
been determined that section 553(b) of the Administrative Procedure Act 
(5 U.S.C. chapter 5) does not apply to the following proposed 
regulations, Sec. Sec.  1.1561-1, 1.1561-3 and 1.1563-1, 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. With respect to the following proposed regulations, Sec. Sec.  
1.1502-43, 1.1502-47 and 1.1561-2, it is hereby certified that these 
regulations will not have a significant economic impact on a 
substantial number of small entities. This certification is based on 
the fact that these regulations primarily affect large corporations 
(which are members of either controlled or consolidated groups). 
Therefore, a regulatory flexibility analysis is not required. 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 their 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. All comments will be available for public inspection and 
copying. A public hearing may be scheduled if requested in writing by 
any person that timely submits written or electronic 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 author of these regulations is Grid Glyer of the 
Office of Associate Chief Counsel (Corporate). Other personnel from the 
Treasury Department and the IRS 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 1.1502-43 is amended by revising paragraph (d) and 
adding paragraph (e) to read as follows:


Sec.  1.1502-43  Consolidated accumulated earnings tax.

    [The text of the proposed amendment to Sec.  1.1502-43 is the same 
as the text for Sec.  1.1502-43T published elsewhere in this issue of 
the Federal Register].
    Par. 3. Section 1.1502-47 is amended by revising paragraph (s) and 
adding paragraph (t) to read as follows:


Sec.  1.1502-47  Consolidated returns by life-nonlife groups.

    [The text of the proposed amendment to Sec.  1.1502-47 is the same 
as the text for Sec.  1.1502-47T published elsewhere in this issue of 
the Federal Register].
    Par. 4. Section 1.1561-1 is added to read as follows:


Sec.  1.1561-1  General rules regarding certain tax benefits available 
to the component members of a controlled group of corporations.

    [The text of the proposed Sec.  1.1561-1 is the same as the text 
for Sec.  1.1561-1T

[[Page 76956]]

published elsewhere in this issue of the Federal Register].
    Par. 5. Section 1.1561-2 is amended by revising paragraphs (a), 
(b), (c) and (d) and adding paragraph (f) to read as follows:


Sec.  1.1561-2  Determination of amount of tax benefits.

    [The text of the proposed amendment to Sec.  1.1561-2 is the same 
as the text for 1.1561-2T published elsewhere in this issue of the 
Federal Register].
    Par. 6. Section 1.1561-3 is added to read as follows:


Sec.  1.1561-3  Allocating the section 1561(a) tax items.

    [The text of the proposed Sec.  1.1561-3 is the same as the text 
for Sec.  1.1561-3T published elsewhere in this issue of the Federal 
Register].
    Par. 7. Section 1.1563-1 is added to read as follows:


Sec.  1.1563-1  Definition of controlled group of corporations and 
component members.

    [The text of the proposed Sec.  1.1563-1 is the same as the text 
for Sec.  1.1563-1T published elsewhere in this issue of the Federal 
Register].

Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 06-9757 Filed 12-21-06; 8:45 am]
BILLING CODE 4830-01-P