[Federal Register Volume 66, Number 8 (Thursday, January 11, 2001)]
[Proposed Rules]
[Page 2373]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-492]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 66, No. 8 / Thursday, January 11, 2001 / 
Proposed Rules

[[Page 2373]]



DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-116048-99]
RIN 1545-AX63


Stock Transfer Rules: Supplemental Rules

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Withdrawal of notice of proposed rulemaking.

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SUMMARY: This document withdraws proposed regulations relating to an 
election available to certain taxpayers under section 367(b). The 
withdrawal corresponds to the upcoming expiration of the availability 
of the election.

FOR FURTHER INFORMATION CONTACT: Mark Harris at (202) 622-3860 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    On January 24, 2000, the IRS and Treasury published in the Federal 
Register proposed regulations (65 FR 3629) (the proposed regulations), 
temporary regulations (65 FR 3586) (the temporary regulations), and 
final regulations (65 FR 3589) (the final regulations) under section 
367(b) of the Internal Revenue Code. The proposed and temporary 
regulations provide a modified version of an election contained in the 
proposed section 367(b) regulations issued on August 26, 1991 (1991 
proposed regulations), which was not adopted in the final regulations. 
This election allows certain taxpayers to recognize the gain (but not 
the loss) realized in certain section 367(b) exchanges, rather than 
including the all earnings and profits amount in income. The preamble 
to the final regulations explains the reasons for not including the 
taxable exchange election in the final regulations (65 FR 3589 at 
3592).
    The IRS and Treasury issued the proposed and temporary regulations 
in order to provide taxpayers with an opportunity to comment on the 
decision not to include the taxable exchange election in the final 
regulations. Section 1.367(b)-3(b)(4)(ii) of the proposed and temporary 
regulations provide that the taxable exchange election is applicable 
for transactions that occur between February 23, 2000, and February 24, 
2001. A public hearing was scheduled for April 20, 2000, and written 
comments were to be received by April 24, 2000. No one requested to 
speak at the public hearing, and no comments were submitted. In 
particular, the IRS and Treasury have not received any comments 
suggesting revisions to the effective date articulated in 
Sec. 1.367(b)-3(b)(4)(ii). Accordingly, this document withdraws 
Sec. 1.367(b)-3(b)(4) of the proposed regulations published in the 
Federal Register on January 24, 2000 (65 FR 3629).

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Withdrawal of Proposed Amendments to the Regulations

    Accordingly, under the authority of 26 U.S.C. 7805, proposed 
amendments to 26 CFR part 1 relating to Sec. 1.367(b)-3(b)(4) published 
January 24, 2000 (65 FR 6329), are withdrawn.

Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
[FR Doc. 01-492 Filed 1-10-01; 8:45 am]
BILLING CODE 4830-01-P