2856 Federal Register / Vol. 66, No. 9 / Friday, January 12, 2001 / Proposed Rules

Section 1.892–3T also issued under 26 U.S.C.

892(c).

Section 1.892–4T also issued under 26 U.S.C.

892(c).

Section 1.892–5 also issued under 26 U.S.C.

892(c).

Section 1.892–5T also issued under 26 U.S.C.

892(c).

Section 1.892–6T also issued under 26 U.S.C.

892(c).

Section 1.892–7T also issued under 26 U.S.C.

892(c). * * *

Par. 2. Section 1.892–5 is added to

read as follows:

§ 1.892–5 Controlled commercial entity.

(a) through (a)(2) [Reserved]. For

further information, see § 1.892–5T(a)

through (a)(2).

(3) For purposes of section

892(a)(2)(B), the term entity means and

includes a corporation, a partnership, a

trust (including a pension trust

described in § 1.892–2T(c)) and an

estate.

(4) Effective date. This section applies

on or after the earlier of January 14,

2002 or the date these regulations are

published as final regulations in the

Federal Register.

(b) through (d) [Reserved]. For further

information, see §§ 1.892–5T(b) through

(d).

Par. 3. Section 1.892–5T is amended

by:

1. Removing the flush language

immediately following paragraph (a)(2).

2. Adding paragraph (a)(3).

The addition reads as follows:

§ 1.892–5T Controlled commercial entity

(temporary regulations).

(a) * * *

(3) [Reserved]. For further

information, see § 1.892–5(a)(3).

* * * * *

PART 301—PROCEDURE AND

ADMINISTRATION

Par. 4. The authority citation for part

301 continues to read in part as follows:

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

Par. 5. Section 301.7701–2 is

amended by:

1. Revising paragraphs (b)(6) and

(c)(2)(ii).

2. Revising the first sentence of

paragraph (e).

The revisions read as follows:

§ 301.7701–2 Business entities;

definitions.

* * * * *

(b) * * *

(6) A business entity wholly owned

by a State or any political subdivision

thereof, or a business entity wholly

owned by a foreign government (as

defined in § 1.892–2T);

* * * * *

(c) * * *

(2) * * *

(ii) Special rule for certain business

entities. If the single owner of a business

entity is a bank (as defined in section

581, or, in the case of a foreign bank, as

defined in section 585(a)(2)(B) without

regard to the second sentence thereof),

then the special rules of the Internal

Revenue Code applicable to banks will

continue to apply to the single owner as

if the wholly owned entity were a

separate entity.

* * * * *

(e) Effective date. Except as otherwise

provided in this paragraph (e), the rules

of this section apply as of January 1,

1997, except that paragraph (b)(6)

applies on or after the earlier of January

14, 2002 or the date these regulations

are published as final regulations in the

Federal Register to a business entity

wholly owned by a foreign government

regardless of any prior entity

classification, and paragraph (c)(2)(ii) of

this section applies to taxable years

beginning after January 12, 2001. * * *

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

[FR Doc. 01–251 Filed 1–11–01; 8:45 am]

BILLING CODE 4830–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 7

[LR–230–76]

Requirements Relating to Certain

Exchanges Involving a Foreign

Corporation

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Withdrawal of notice of

proposed regulations.

SUMMARY: This document withdraws

proposed regulations under section

367(c). The proposed regulations

correspond to temporary regulations

that are also being removed in this issue

of the Federal Register. The temporary

regulations are being removed because

they are no longer necessary and, as a

result, may be misleading.

FOR FURTHER INFORMATION CONTACT:

Mark D. Harris at (202) 622–3860 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

On December 30, 1977, the IRS and

Treasury published in the Federal

Register proposed regulations (42 FR

65204) and temporary regulations (42

FR 65152) under section 367(c) of the

Internal Revenue Code. The principal

purpose of these regulations,

§§ 7.367(c)–1 and 7.367(c)–2, was to

distinguish between the treatment of

transfers described in section 367(c)

before and after the enactment of the

Tax Reform Act of 1976 (the Act) (90

Stat. 1634). Before enactment of the Act,

transfers described in section 367(c)

were subject to a ruling requirement.

After enactment of the Act, transfers

described in section 367(c) were within

the scope of §§ 7.367(b)–1 through

7.367(b)–12. In light of the substantial

time that has passed since enactment of

the Act and, moreover, in light of the

fact that §§ 1.367(b)–1 through 1.367(b)–

6 have substantially superceded

§§ 7.367(b)–1 through 7.367(b)–12,

§§ 7.367(c)–1 and 7.367(c)–2 are no

longer necessary and may be

misleading.

Accordingly, the IRS and Treasury are

removing temporary regulations

§§ 7.367(c)–1 and 7.367(c)–2 in this

issue of the Federal Register.

Correspondingly, this document

removes proposed regulations

§§ 7.367(c)–1 and 7.367(c)–2.

List of Subjects in 26 CFR Part 7

Income taxes, Reporting and

recordkeeping requirements.

Withdrawal of Proposed Amendments

to the Regulations

Accordingly, under the authority of

26 U.S.C. 7805, proposed regulations

under 26 CFR part 7 relating to

§§ 7.367(c)–1 and 7.367(c)–2, published

December 30, 1977 (42 FR 65204), are

withdrawn.

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

[FR Doc. 01–490 Filed 1–11–01; 8:45 am]

BILLING CODE 4830–01–U

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Parts 4003, 4007, and 4071

RIN 1212–AA95

Assessment of and Relief From

Penalties

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Proposed rule.

SUMMARY: The PBGC has issued a

number of policy statements about

penalties over the last few years. Some

of these policy statements have been

incorporated into the PBGC’s

regulations. For the convenience of the