Source: https://www.federalregister.gov/documents/2007/07/16/E7-13663/qualified-zone-academy-bonds-obligations-of-states-and-political-subdivisions
Timestamp: 2017-10-21 16:09:47
Document Index: 477205213

Matched Legal Cases: ['§\u20091', 'art 1', '§\u20091', '§\u20091', '§\u20091', '§\u20091', '§\u20091', '§\u20091', '§\u20091', '§\u20091', '§\u20091', '§\u20091', '§\u20091', '§\u20091', '§\u20091', '§\u20091', '§\u20091', '§\u20091']

A Proposed Rule by the Internal Revenue Service on 07/16/2007
Written or electronic comments and requests for a public hearing must be received by October 15, 2007.
https://www.federalregister.gov/d/E7-13663 https://www.federalregister.gov/d/E7-13663
Notice of proposed rulemaking by cross-reference to temporary regulations and withdrawal of proposed regulations.
In the Rules and Regulations section of this issue of the Federal Register, the IRS is issuing temporary regulations relating to the Federal income tax treatment of qualified zone academy bonds. This document contains proposed regulations that provide guidance to state and local governments that issue qualified zone academy bonds and to banks, insurance companies, and other taxpayers that hold those bonds on the program requirements for qualified zone academy bonds. The regulations implement the amendments to section 1397E of the Internal Revenue Code (Code) and provide guidance on the maximum term, permissible use of proceeds, and remedial actions for qualified zone academy bonds. The text of those regulations also serves as the text of these proposed regulations. This document also withdraws proposed regulations published March 26, 2004.
Send submissions to: CC:PA:LPD:PR (REG-121475-03), room 5203, Internal Revenue Service, PO 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-121475-03), 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-121475-03).
Concerning the proposed regulations, Zoran Stojanovic, (202) 622-3980; concerning submissions of comments and/or requests for a hearing, Richard A. Hurst, (202) 622-7180 (not toll-free numbers).
The collection of information contained in these proposed regulations has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-1908. Responses to this collection of information are required to obtain or retain a benefit. This collection of information is required by the IRS to verify compliance with section 1397E. Comments on the collection of information should be sent to the Office of Management and Budget, Attn: Desk Officer for the Department of the Treasury, Office of Information and Regulatory Affairs, Washington, DC 20503, with copies to the Internal Revenue Service, Attn: IRS Reports Clearance Officer, SE:W:CAR:MP:T:T:SP; Washington, DC 20224. Comments on the collection of information should be received by September 14, 2007. Comments are specifically requested concerning:
The collection of information in this proposed regulation is in § 1.1397E-1(h). This collection of information is required by the IRS to verify compliance with section 1397E. This information will be used to identify issuers of qualified zone academy bonds that have established a defeasance escrow as a remedial action taken because of failure Start Printed Page 38803to satisfy certain requirements of section 1397E. The collection of information is required to obtain or retain a benefit. The likely respondents are states or local governments that issue qualified zone academy bonds.
Temporary regulations in the Rules and Regulations section of this issue of the Federal Register amend the Income Tax Regulations (26 CFR part 1) relating to section 1397E. The temporary regulations amend the final regulations adopted September 26, 2000 (TD 8903) (65 FR 57732), and provide guidance to state and local governments that issue qualified zone academy bonds and to bank, insurance companies, and other taxpayers that hold those bonds. The temporary regulations provide guidance on the program requirements for qualified zone academy bonds. The text of those regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the temporary regulations and these proposed regulations.
It has been determined that this notice of proposed rule rulemaking 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 Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations. It is hereby certified that the collection of information in these regulations will not have a significant economic impact on a substantial number of small entities. It is estimated that each year six issuers of QZABs will be required to report the establishment of a defeasance escrow, and the average estimated burden of each such reporting is 30 minutes. In addition, the establishment of a defeasance escrow need only be reported once. Therefore, a regulatory flexibility analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required. Pursuant to section 7805(f) of the Internal Revenue Code, this regulation has been submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business.
Before these proposed regulations are adopted as final regulations, consideration will be given to any written comments (a signed original and eight (8) copies) or electronic comments that are submitted timely to the IRS. The IRS and Treasury Department specifically request comments on the clarity of the proposed rules and how they may be made easier to understand. All comments will be available for public inspection and copying. A public hearing will be scheduled if requested in writing by any person that submits written 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.
The principal authors of these regulations are Timothy L. Jones and Zoran Stojanovic, Office of Division Counsel/Associate Chief Counsel, IRS (Tax Exempt and Government Entities). However, other personnel from the IRS and the Treasury Department participated in their development.
Under the authority of 26 U.S.C. 7805, the notice of proposed rulemaking (REG-121475-03) published in the Federal Register on March 26, 2004 (69 FR 15747) is withdrawn.
Section 1.1397E-1 also issued under 26 U.S.C. 1397E. * * *
Par. 2. Section 1.1397E-1 is amended by revising paragraphs (a), (d), (h), (i), (j), (k), (l), and (m) to read as follows:
(a) [The text of the proposed amendment to § 1.1397E-1(a) is the same as the text of § 1.1397E-1T(a) published elsewhere in this issue of the Federal Register].
(d) [The text of the proposed amendment to § 1.1397E-1(d) is the same as the text of § 1.1397E-1T(d) published elsewhere in this issue of the Federal Register].
(h) [The text of the proposed amendment to § 1.1397E-1(h) is the same as the text of § 1.1397E-1T(h) published elsewhere in this issue of the Federal Register].
(i) [The text of the proposed amendment to § 1.1397E-1(i) is the same as the text of § 1.1397E-1T(i) published elsewhere in this issue of the Federal Register].
(j) [The text of the proposed amendment to § 1.1397E-1(j) is the same as the text of § 1.1397E-1T(j) published elsewhere in this issue of the Federal Register].
(k) [The text of the proposed amendment to § 1.1397E-1(k) is the same as the text of § 1.1397E-1T(k) published elsewhere in this issue of the Federal Register].
(l) [The text of the proposed amendment to § 1.1397E-1(l) is the same as the text of § 1.1397E-1T(l) published elsewhere in this issue of the Federal Register].
(m) [The text of the proposed amendment to § 1.1397E-1(m) is the same as the text of § 1.1397E-1T(m)(1) and (m)(2) published elsewhere in this issue of the Federal Register].
[FR Doc. E7-13663 Filed 7-13-07; 8:45 am]