[Federal Register Volume 62, Number 148 (Friday, August 1, 1997)]
[Proposed Rules]
[Pages 41322-41323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-20038]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-106043-97]
RIN 1545-AV22


Remedial Amendment Period

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 relating to 
the remedial amendment period during which a sponsor of a qualified 
retirement plan or an employer that maintains a qualified retirement 
plan can make retroactive amendments to the plan to eliminate certain 
qualification defects for the entire period. The text of those 
temporary regulations also serves as the text of these proposed 
regulations. These proposed regulations will affect sponsors of 
qualified retirement plans, and employers that maintain qualified 
retirement plans.

DATES: Written comments and requests for a public hearing must be 
received by October 30, 1997.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-106043-97), room 
5226, Internal Revenue Service, POB 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered between the 
hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-106043-97), Courier's 
Desk, Internal Revenue Service, 1111 Constitution Avenue NW, 
Washington, DC. Alternatively,

[[Page 41323]]

taxpayers may submit comments electronically via the internet by 
selecting the ``Tax Regs'' option on the IRS Home Page, or by 
submitting comments directly to the IRS internet site at <a href="http://
www.irs.ustreas.gov/prod/tax__regs/comments.html">http://
www.irs.ustreas.gov/prod/tax__regs/comments.html</a>.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Linda S. F. Marshall, (202) 622-6030; concerning submissions, 
Evangelista Lee, (202) 622-7190 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    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 401(b). The regulations 
provide guidance to clarify the scope of the Commissioner's authority 
to provide relief from plan disqualification under section 401(b) and 
the regulations.
    The text of the temporary regulations also serves as the text of 
these proposed regulations. The preamble to the final and temporary 
regulations explains the temporary regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in EO 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 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) 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 comments. If a public hearing is scheduled, 
notice of the date, time, and place for the hearing will be published 
in the Federal Register.

Drafting Information

    The principal author of these regulations is Linda S. F. Marshall, 
Office of the Associate Chief Counsel (Employee Benefits and Exempt 
Organizations). 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 1.401(b)-1 is amended by:
    1. Revising paragraphs (b)(3), (c) and (d)(1)(iv).
    2. Adding paragraph (d)(1)(v).
    The addition and revisions read as follows:


Sec. 1.401(b)-1  Certain retroactive changes in plan.

[The text of proposed paragraphs (b)(3), (c), (d)(1)(iv) and (v) is the 
same as the text of Sec. 1.401(b)-1T(b)(3), (c), (d)(1) (iv) and (v) 
published elsewhere in this issue of the Federal Register.]
Michael P. Dolan,
Acting Commissioner of Internal Revenue.
[FR Doc. 97-20038 Filed 7-31-97; 8:45 am]
BILLING CODE 4830-01-U