[Federal Register Volume 62, Number 94 (Thursday, May 15, 1997)]
[Proposed Rules]
[Pages 26755-26757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-12513]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1, 301, and 601
[REG-209837-96 and REG-105299-97]
RIN 1545-AU42 and 1545-AV20
Requirements Respecting the Adoption or Change of Accounting
Method; Extensions of Time To Make Elections
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations.
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SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS is issuing temporary regulations relating to
the procedure for requesting a change in accounting method and to the
standards for granting an extension of time to request a change in
accounting method. The regulations provide for a longer period of time
for filing an application for change in accounting method with the
Commissioner. The regulations also provide that an extension of time to
file an application for change in accounting method will be granted
only in unusual and compelling circumstances. The
[[Page 26756]]
regulations affect taxpayers requesting a change in method of
accounting for federal income tax purposes. The text of those temporary
regulations also serves as the text of these proposed regulations.
DATES: Written comments must be received by August 13, 1997.
ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-209837-96 and REG-
105299-97), room 5228, 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-209837-96
and REG-105299-97), Courier's Desk, Internal Revenue Service, 1111
Constitution Avenue NW, Washington, DC. Taxpayers may also 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.
FOR FURTHER INFORMATION CONTACT: Cheryl L. Oseekey, (202) 622-4970 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
Temporary regulations in the Rules and Regulations section of this
issue of the Federal Register amend Regulations on Income Taxes (26 CFR
part 1), the Regulations on Procedure and Administration (26 CFR part
301), and the Statement of Procedural Rules (26 CFR part 601) relating
to the requirements for changes in method of accounting and extensions
of time to make elections. Proposed and temporary regulations relating
to extensions of time to make elections were published in the Federal
Register for June 27, 1996 (61 FR 29714 and 61 FR 33365). These
regulations extend the time for filing an application for change in
accounting method under Sec. 1.446-1(e)(3)(i) and amend Secs. 301.9100-
1T and 301.9100-3T to provide that an extension of time to file an
application for change in accounting method will be granted only in
unusual and compelling circumstances.
The text of those temporary regulations also serves as the text of
these proposed regulations. The preamble to the temporary regulations
explains the rules provided by the 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 also has been determined
that section 553(b) of the Administrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these regulations. Sections 1.446-
1(e)(3)(i) and 601.204(b) require a taxpayer to file a Form 3115,
Application for Change in Accounting Method, with the Commissioner
within the first 180 days of the taxable year in which the taxpayer
desires to make the change. The proposed regulations in this document
merely extend the time for filing the Form 3115 and, therefore, do not
contain a new collection of information. Thus, because the regulations
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 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 comments that are submitted timely
to the IRS (a signed original and eight (8) copies if the comments are
written). All comments will be available for public inspection and
copy. A public hearing may be scheduled if requested in writing by a
person that timely submits comments. If a public hearing is scheduled,
notice of the date, time, and place for the hearing will be published
in the Federal Register.
Drafting Information
The principal author of these regulations is Cheryl L. Oseekey of
the Office of Assistant Chief Counsel (Income Tax and Accounting).
However, other personnel from the IRS and Treasury Department
participated in their development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
26 CFR Part 601
Administrative practice and procedure, Freedom of information,
Reporting and recordkeeping requirements, Taxes.
Proposed Amendments to the Regulations
Accordingly, 26 CFR parts 1, 301, and 601 are proposed to be
amended as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805. * * *
Par. 2. Section 1.446-1 is amended by revising paragraph (e)(3)(i)
to read as follows:
Sec. 1.446-1 General rule for methods of accounting.
[The text of proposed paragraph (e)(3)(i) is the same as the text
in Sec. 1.446-1T(e)(3)(i) published elsewhere in this issue of the
Federal Register].
PART 301--PROCEDURE AND ADMINISTRATION
Par. 3. The authority citation for part 301 continues to read in
part as follows:
Authority: 26 U.S.C. 7805. * * *
Par. 4. In Sec. 301.9100-1, paragraph (h) is added to read as
follows:
Sec. 301.9100-1 Extensions of time to make elections.
[The text of proposed paragraph (h) is the same as the text of
Sec. 301.9100-1T(h) published June 27, 1996, at 61 FR 33368, and
amended elsewhere in this issue of the Federal Register].
Par. 5. In proposed Sec. 301.9100-3, published June 27, 1996, at 61
FR 33409, paragraph (c)(2)(i) is revised to reads as follows:
Sec. 301.9100-3 Other extensions.
[The text of proposed paragraph (c)(2)(i) is the same as the text
in Sec. 301.9100-3T(c)(2)(i) published elsewhere in this issue of the
Federal Register.]
PART 601--STATEMENT OF PROCEDURAL RULES
Par. 6. The authority citation for part 601 continues to read as
follows:
Authority: 26 U.S.C. 301 and 552. * * *
Par. 7. In Sec. 601.204, paragraph (b) is revised to read as
follows:
Sec. 601.204 Changes in accounting periods and in methods of
accounting.
[The text of proposed paragraph (b) is the same as the text in
Sec. 601.204T(b)
[[Page 26757]]
published elsewhere in this issue of the Federal Register].
Margaret Milner Richardson,
Commissioner of Internal Revenue.
[FR Doc. 97-12513 Filed 5-14-97; 8:45 am]
BILLING CODE 4830-01-U
