[Federal Register Volume 63, Number 14 (Thursday, January 22, 1998)]
[Proposed Rules]
[Pages 3296-3298]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-717]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-110965-97]
RIN 1545-AV47
Obligations of States and Political Subdivisions
AGENCY: Internal Revenue Service (IRS), Treasury.
[[Page 3297]]
ACTION: Partial withdrawal of notice of proposed rulemaking; notice of
proposed rulemaking by cross-reference to temporary regulations; and
notice of public hearing.
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SUMMARY: This document withdraws portions of the notice of proposed
rulemaking published in the Federal Register (59 FR 67658) on December
30, 1994. In the Rules and Regulations section of this issue of the
Federal Register, the IRS is issuing temporary regulations that provide
guidance to state and local governments that issue bonds for output
facilities and to certain nongovernmental persons that are engaged in
the local furnishing of electric energy or gas using facilities
financed with state or local bonds. These proposed regulations reflect
changes made by the Tax Reform Act of 1986 and the Small Business Job
Protection Act of 1996. The text of those temporary regulations also
serves as the text of these proposed regulations. This document
provides a notice of public hearing on these proposed regulations.
DATES: Written comments must be received by April 22, 1998. Outlines of
topics to be discussed at the public hearing scheduled for April 28,
1998, at 10:00 a.m. must be received by April 7, 1998.
ADDRESSES: Send Submissions to: CC:DOM:CORP:R (REG-110965-97), room
5226, Internal Revenue Service, POB 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand delivered between the
hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-110965-97), Courier's
Desk, Internal Revenue Service, 1111 Constitution Avenue, NW,
Washington, DC. Alternatively, taxpayers may submit comments
electronically via the Internet by selecting the ``Tax Regs'' option on
the IRS Home Page, or by submitting comments directly to the IRS
Internet site at http://www.irs.ustreas.gov/prod/tax__regs/
comments.html. The public hearing will be held in the Auditorium,
Internal Revenue Building, 1111 Constitution Avenue, NW, Washington,
DC.
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Allan B.
Seller, 202-622-3980; concerning submissions and the hearing, Michael
L. Slaughter, Jr., 202-622-7190 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
Proposed regulations Secs. 1.141-7 and 1.141-8, published on
December 30, 1994 (59 FR 67658) addressed the application of the
private activity bond tests of section 141(b)(2) to output contract for
output facilities and the application of the $15 million limitation on
output facility financings of section 141(b)(4). These proposed
sections are withdrawn. These sections were issued as part of proposed
regulations under Secs. 1.141-0 through 1.141-16, Definition of Private
Activity Bonds, which were finalized in part in TD 8712 published in
the Federal Register on January 16, 1997.
Sections 1.141-7T, 1.141-8T, 1.141-15T, 1.142(f)(4)-1T, and 1.150-
5T published in the Rules and Regulations portion of this issue of the
Federal Register are issued to provide guidance on certain aspects of
the private activity bond restrictions under section 141 of the
Internal Revenue Code.
The text of those temporary regulations also serves as the text of
these proposed regulations. The preamble to the temporary regulations
explains the temporary regulations.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in EO 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 these regulations do not have a
significant impact on a substantial number of small entities. This
certification is based upon the fact that in the years 1987 through
1993 a total of 61 different state or local government issuers of
exempt facility bonds issued under section 142(f) for the local
furnishing of electric energy or gas filed information returns with the
Internal Revenue Service under section 149(e). Further, an election
under section 142(f)(4) is in no event required to be filed with the
Internal Revenue Service more than once by a person engaged in the
local furnishing of electric energy or gas. 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 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 Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written comments that are submitted
timely (a signed original and eight (8) copies) to the IRS. All
comments will be available for public inspection and copying.
A public hearing has been scheduled for April 28, 1998, at 10:00
a.m. in the Auditorium, Internal Revenue Building, 1111 Constitution
Avenue, NW, Washington, DC. Because of access restrictions, visitors
will not be admitted beyond the lobby more than 15 minutes before the
hearing starts.
The rules of 26 CFR 601.601(a)(3) apply to the hearing.
Persons that wish to present oral comments at the hearing must
submit written comments by April 22, 1998 and submit an outline of the
topics to be discussed and the time to be devoted to each topic by
April 7, 1998.
A period of 10 minutes will be allotted to each person for making
comments.
An agenda showing the scheduling of the speakers will be prepared
after the deadline for receiving outlines has passed. Copies of the
agenda will be available free of charge at the hearing.
Drafting Information
The principal authors of these regulations are Michael G. Bailey
and Allan Seller, Office of the Assistant Chief Counsel (Financial
Institutions and Products), and Nancy M. Lashnits, formerly of that
office. However, other personnel from the IRS and Treasury Department
participated in their development.
Partial Withdrawal of Notice of Proposed Rulemaking
Under the authority of 26 U.S.C. 7805, Secs. 1.141-7 and 1.141-8 in
the notice of proposed rulemaking that was published on December 30,
1994 (59 FR 67658) are withdrawn.
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 part 1 continues to read as
follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.141-7 is added to read as follows:
Sec. 1.141-7 Special rules for output facilities.
[The text of this proposed section is the same as the text of
Secs. 1.141-7T
[[Page 3298]]
published elsewhere in this issue of the Federal Register.]
Par. 3. Section 1.141-8 is amended by adding the text of the
section to read as follows:
Sec. 1.141-8 $15 million limitation for output facilities.
[The text of this proposed section is the same as the text of
Sec. 1.141-8T published elsewhere in this issue of the Federal
Register.]
Par. 4. Section 1.141-15 is amended by adding paragraphs (f)
through (i) to read as follows:
Sec. 1.141-15 Effective dates.
* * * * *
(f) through (i) [The text of proposed paragraphs (f) through (i)
are the same as the text of Sec. 1.141-15T(f) through (i) published
elsewhere in this issue of the Federal Register.]
Par. 5. Section 1.142(f)(4)-1 is added to read as follows:
Sec. 1.142(f)(4)-1 Manner of making election to terminate tax-exempt
bond financing.
[The text of this proposed section is the same as the text of
Sec. 1.142(f)(4)-1T published elsewhere in this issue of the Federal
Register.]
Par. 6. Section 1.150-5 is added to read as follows:
Sec. 1.150-5 Filing notices and elections.
[The text of this proposed section is the same as the text of
Sec. 1.150-5T published elsewhere in this issue of the Federal
Register.]
Michael P. Dolan,
Deputy Commissioner of Internal Revenue.
[FR Doc. 98-717 Filed 1-21-98; 8:45 am]
BILLING CODE 4830-01-U
