1700 Federal Register / Vol. 62, No. 8 / Monday, January 13, 1997 / Proposed Rules

List of Subjects in 14 CFR part 71

Airspace, Incorporation by reference,

Navigation (Air).

The Proposed Amendment

In consideration of the foregoing, the

Federal Aviation Administration

proposes to amend 14 CFR Part 71 as

follows:

PART 71—[AMENDED]

1. The authority citation for 14 CFR

Part 71 continues to read as follows:

Authority: 49 U.S.C. 106(g); 40103, 40113,

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–

1963 Comp., p. 389; 14 CFR 11.69.

§ 71.1 [Amended]

2. The incorporation by reference in

14 CFR 71.1 of Federal Aviation

Administration Order 7400.9D, Airspace

Designations and Reporting Points,

dated September 4, 1996, and effective

September 16, 1996, is amended as

follows:

Paragraph 5000 Class D airspace.

* * * * *

ASO FL D Gainesville, FL [Revised]

Gainesville Regional Airport, FL

(lat. 29°41′24′′ N, long. 82°16′18′′ W)

Gainesville VORTAC

(lat. 29°34′20′′, N long 82°21′45′′ W)

That airspace extending upward from the

surface to and including 2,700 feet MSL

within a 4.3-mile radius of Gainesville

Regional Airport. This Class D airspace area

is effective during the days and times

established in advance by a Notice to

Airmen. The effective days and times will

thereafter be continuously published in the

Airport/Facility Directory.

* * * * *

Paragraph 6002 Class E airspace areas

designated as a surface area for an airport.

* * * * *

ASO E2 FL Gainesville, FL [Revised]

Gainesville Regional Airport, FL

(lat. 29°41′24′′ N, long. 82°16′18′′ W)

Gainesville VORTAC

(lat. 29°34′20′′, N long. 82°21′45′′ W)

Within a 4.3-mile radius of Gainesville

Regional Airport. This Class E airspace area

is effective during the days and times

established in advance by a Notice to

Airmen. The effective days and times will

thereafter be continuously published in the

Airport/Facility Directory.

* * * * *

Paragraph 6004 Class E airspace areas

designated as an extension to a Class D

surface area.

* * * * *

ASO FL E4 Gainesville, FL [Revised]

Gainesville Regional Airport, FL

(lat. 29°41′24′′ N, long. 82°16′18′′ W)

Gainesville VORTAC

(lat. 29°34′20′′, N long. 82°21′45′′ W)

That airspace extending upward from the

surface within 1.5 miles each side of the

Gainesville VORTAC 034° radial, extending

from the 4.3-mile radius of Gainesville

Regional Airport to 2.5 miles northeast of the

VORTAC. This Class E airspace area is

effective during the days and times

established in advance by a Notice to

Airmen. The effective days and times will

thereafter be continuously published in the

Airport/Facility Directory.

* * * * *

Issued in College Park, Georgia, on

December 23, 1996.

Lacy E. Wright,

Acting Manager, Air Traffic Division Southern

Region.

[FR Doc. 97–785 Filed 1–10–97; 8:45 am]

BILLING CODE 4910–13–M

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG–208288–90]

RIN 1545–AP36

Filing Requirements for Returns

Claiming the Foreign Tax Credit

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document contains a

proposed regulation relating to the

substantiation requirements for

taxpayers claiming foreign tax credits.

The proposed regulation is necessary to

provide guidance to U.S. taxpayers who

claim foreign tax credits.

DATES: Written comments and requests

for a public hearing must be received by

April 14, 1997.

ADDRESSES: Send Submissions to:

CC:DOM:CORP:R (REG–208288–90),

room 5228, 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–208288–90),

Courier’s Desk, Internal Revenue

Service, 1111 Constitution Avenue NW.,

Washington, DC. Alternatively,

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 HTTP://www.irs.ustreas.gov/

prod/taxlregs/comments.html.

FOR FURTHER INFORMATION CONTACT:

Concerning the regulations, Joan

Thomsen, (202) 622–3840 (not a toll-free

call); concerning submissions,

Evangelista Lee, (202) 622–7190 (not a

toll-free call).

SUPPLEMENTARY INFORMATION:

Background

On June 3, 1988, the Internal Revenue

Service issued a Notice (Notice 88–65,

1988–1 C.B. 552) which stated that

regulations would be issued suspending

portions of §1.905–2 of the Treasury

Regulations. Section 1.905–2 requires

taxpayers who claim foreign tax credits

to attach documents to their returns

substantiating the credits. The Notice

was issued in response to problems

taxpayers were experiencing because

they could not timely obtain and

prepare the necessary documentation in

a form suitable for submission with

their tax returns. The intent of the

Notice was to advise taxpayers that

Treasury and the IRS would issue a new

regulation that would suspend,

beginning on January 1, 1988, the

existing regulation requiring the

submission of this documentation with

a tax return. This new regulation has not

been issued. Instead of suspending the

relevant portions of the existing

regulation, Treasury and the IRS now

have decided to permanently eliminate

the requirement that documentation be

submitted with the tax return, effective

January 1, 1988.

Explanation of Provisions

§ 1.905–2(a)(1), 1.905–2(b) (1) and (2),

and 1.905–2(c)

Sections 1.905–2(a)(1), 1.905–2(b) (1)

and (2), and 1.905–2(c) are unchanged

from the final regulations.

§ 1.905–2(a)(2)

Under § 1.905–2(a)(2), taxpayers

generally are required to attach to their

income tax returns either (1) the receipt

for the foreign tax payment, or (2) a

foreign tax return for accrued foreign

taxes. Proposed § 1.905–2(a)(2) removes

the requirement that the documentation

must be attached to the income tax

return.

The proposed regulation now

provides that such evidence of foreign

taxes must be presented to the district

director upon request.

§ 1.905–2(b)(3)

Section 1.905–2(b)(3) addresses issues

for taxes withheld at the source. The

section allows the district director to

accept secondary evidence of such

withholding. The proposed regulation

clarifies that evidence of a tax withheld

at the source and the amount withheld

is only sufficient for an interim credit.
Federal Register / Vol. 62, No. 8 / Monday, January 13, 1997 / Proposed Rules 1701

Upon request of the district director,

taxpayers must provide evidence, as

provided in § 1.905–2(a)(2), that the tax

withheld was actually paid to the

foreign country. Although this

regulation will be effective on the date

that is 30 days after the date the final

regulation is published in the Federal

Register, it reflects an IRS requirement

upheld as a reasonable interpretation of

current law by the Tax Court and the

Court of Appeals for the Seventh Circuit

in Continental Illinois Corp. v.

Commissioner, T.C. Memo. 1991–66, 61

T.C.M. (CCH) 1916, 1939–42 (1991),

aff’d in part and rev’d in part, 998 F.2d

513, 516–17 (7th Cir. 1993).

Special Analyses

It has been determined that this

Treasury decision 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 Procedures

Act (5 U.S.C. chapter 5) does not apply

to this regulation, 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 this proposed regulation is

adopted as a final regulation,

consideration will be given to any

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 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 this regulation

is Joan Thomsen of the Office of the

Associate Chief Counsel (International),

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, 26 CFR part 1 is

proposed to be amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for 26 CFR part 1 continues to read in

part as follows:

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

Par. 2. Section 1.905–2 is amended

by:

1. Revising the second through fourth

sentences in paragraph (a)(2).

2. Adding two sentences to the end of

paragraph (b)(3).

The revision and addition read as

follows:

§ 1.905–2 Conditions of allowance of

credit.

(a) * * *

(2) * * * Except where it is

established to the satisfaction of the

district director that it is impossible for

the taxpayer to furnish such evidence,

the taxpayer must provide upon request

the receipt for each such tax payment if

credit is sought for taxes already paid or

withheld, or the return on which each

such accrued tax was based if credit is

sought for taxes accrued. This receipt or

return must be either the original, a

duplicate original, or a duly certified or

authenticated copy. The preceding two

sentences are effective for returns whose

original due date falls on or after

January 1, 1988. * * *

(b) * * *

(3) * * * Any foreign tax credit

claimed for taxes withheld at the source

is an interim credit and the taxpayer

must prove that any taxes withheld at

the source were paid to the foreign

country, as required in paragraph (a) of

this section. The preceding sentence is

effective the date that is 30 days after

the date this regulation is published in

the Federal Register as a final

regulation, however, for periods prior to

the date that is 30 days after the date

this regulation is published in the

Federal Register as a final regulation,

see Continental Illinois Corp. v.

Commissioner, T.C. Memo. 1991–66, 61

T.C.M. (CCH) 1916, 1939–42 (1991),

aff’d in part and rev’d in part, 998 F.2d

513, 516–17 (7th Cir. 1993), wherein the

court upheld this rule as a reasonable

interpretation of section 905(b) of the

Internal Revenue Code.

* * * * *

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 97–527 Filed 1–10–97; 8:45 am]

BILLING CODE 4830–01–U

26 CFR Part 1

[REG–209729–94]

RIN 1545–AS94

Self-Employment Tax Treatment of

Members of Certain Limited Liability

Companies

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Withdrawal of notice of

proposed rulemaking.

SUMMARY: This document withdraws the

notice of proposed rulemaking relating

to the self-employment tax treatment of

members of certain limited liability

companies that was published in the

Federal Register on Thursday,

December 29, 1994. The proposed

regulations sought to provide guidance

concerning the applicability of certain

self-employment tax rules to certain

members of limited liability companies.

The IRS and Treasury have issued new

proposed regulations that will provide

guidance on this issue.

FOR FURTHER INFORMATION CONTACT:

Robert Honigman, (202) 622–3050

(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

On Thursday, December 29, 1994, the

IRS issued proposed regulations (EE–

45–94) relating to the self-employment

tax treatment of members of certain

limited liability companies (59 FR

67253). Upon consideration of the

written comments received and the oral

comments made at the public hearing

held on June 23,1995, the IRS has

decided to withdraw those proposed

regulations.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

Withdrawal of Notice of Proposed

Rulemaking

Accordingly, under the authority of

26 U.S.C. 7805, the notice of proposed

rulemaking that was published in the

Federal Register on Thursday,

December 29, 1994, at 59 FR 67253, is

withdrawn.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 97–700 Filed 1–10–97; 8:45 am]

BILLING CODE 4830–01–U