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###### Department of the Treasury

###### Internal Revenue Service

          - 26 CFR Part 301
          - [REG-160868-04]
          - RIN 1545-BF61

# AGENCY:

Internal Revenue Service (IRS), Treasury.

# ACTION:

Notice of proposed rulemaking by cross-reference to temporary regulations.

# SUMMARY:

                        In the Rules and Regulations section of this issue of the                         **Federal Register**                        , the IRS is issuing temporary regulations under section 6707A of the Internal Revenue Code (Code), which provide the rules relating to the assessment of penalties under section 6707A for the failure to include on any return or statement any information required to be disclosed under section 6011 with respect to a reportable transaction. The text of those temporary regulations also serves as the text of these proposed regulations.                    

# DATES:

Written or electronic comments and requests for a public hearing must be received by December 10, 2008.

# ADDRESSES:

                        Send submission to: CC:PA:LPD:PR (REG-160868-04), 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-160868-04), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC, or sent electronically via the Federal eRulemaking Portal at                         *http://www.regulations.gov*                         (IRS REG-160868-04).                    

# FOR FURTHER INFORMATION CONTACT:

                        Concerning the proposed regulations, Matthew Cooper (202) 622-4940; concerning submissions of comments and requests for a public hearing, Richard Hurst (202) 622-2949 (TDD telephone) (not toll-free numbers) and his e-mail address is                         *Richard.A.Hurst@irscounsel.treas.gov*.                    

# SUPPLEMENTARY INFORMATION:

## Background and Explanation of Provisions

                    Temporary regulations in the Rules and Regulations section of this issue of the                     **Federal Register**                     amend the Procedure and Administration Regulations (26 CFR part 301) relating to section 6707A. Section 811 of the American Jobs Creation Act of 2004, Public Law 108-357 (118 Stat. 1418) added section 6707A to the Code to provide a monetary penalty for the failure to include on any return or statement any information required to be disclosed under section 6011 with respect to a reportable transaction. The temporary regulations set forth the rules relating to the assessment of the penalty as well as the factors that the Commissioner (or the Commissioner's delegate) will consider in deciding whether the penalty should be rescinded based on promoting compliance with the Code and effective tax administration. 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 also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply                           ( print page 52806)                        to these regulations, and because they 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 Code, these regulations have been 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 (a signed original and eight (8) copies) or electronic comments that are submitted timely to the IRS. The IRS and the Treasury Department request comments on the clarity of the proposed rules and how they can be made easier to understand. All comments will be made available for public inspection and copying. A public hearing may be scheduled if requested by any person who timely submits 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 Matthew Cooper, Office of the Associate Chief Counsel (Procedure and Administration).

# List of Subjects in 26 CFR Part 301

      - Employment taxes
      - Estate taxes
      - Excise taxes
      - Gift taxes
      - Income taxes
      - Penalties
      - Reporting and recordkeeping requirements

## Proposed Amendments to the Regulations

Accordingly, 26 CFR part 301 is proposed to be amended as follows:

# PART 301—PROCEDURE AND ADMINISTRATION

**Paragraph 1.**                         The authority citation for part 301 continues to read in part as follows:                    

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

**Par. 2.**                         Section 301.6707A-1 is added to read as follows:                    

§ 301.6707A-1

                            [The text of proposed § 301.6707A-1 is the same as the text of § 301.6707A-1T published elsewhere in this issue of the                             **Federal Register**                            ].                        

Linda E. Stiff,

Deputy Commissioner for Services and Enforcement.

[FR Doc. E8-21158 Filed 9-10-08; 8:45 am]

BILLING CODE 4830-01-P