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