[Federal Register Volume 64, Number 126 (Thursday, July 1, 1999)]
[Proposed Rules]
[Pages 35579-35580]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16622]
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Proposed Rules
Federal Register
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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. 64, No. 126 / Thursday, July 1, 1999 /
Proposed Rules
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-105327-99]
RIN 1545-AX03
Qualified Zone Academy Bonds; Obligations of States and Political
Subdivisions
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations and notice of public hearing.
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SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS is issuing temporary regulations providing
guidance to holders and issuers of qualified zone academy bonds. These
proposed regulations would change the method of ascertaining the
qualified zone academy bond credit rate and would provide reimbursement
rules. State and local governments that issue qualified zone academy
bonds would be affected by these proposed regulations. The text of the
temporary regulations also serves as the text of these proposed
regulations. This document also provides a notice of public hearing on
these proposed regulations.
DATES: Written and electronic comments must be received by September
29, 1999. Outlines of topics to be discussed at the public hearing
scheduled for November 9, 1999, at 10 a.m. must be received by October
19, 1999.
ADDRESSES: Send Submissions to: CC:DOM:CORP:R (REG-105327-99), room
5226, Internal Revenue Service, POB 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand delivered Monday through
Friday between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-
105327-99), 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/tax__regs/reglist.html.
The public hearing will be held in the room 2615, Internal Revenue
Building, 1111 Constitution Avenue NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Timothy L.
Jones at 202-622-3980; concerning submissions of comments, the hearing
and/or to be placed on the building access list to attend the hearing,
Michael Slaughter at 202-622-7190 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
Section 226(a) of the Taxpayer Relief Act of 1997, Public Law 105-
34 (111 Stat. 788) amended the Internal Revenue Code by redesignating
section 1397E as 1397F and adding a new section 1397E. Section 1397E
authorizes a new type of debt instrument known as a qualified zone
academy bond. Temporary Regulations (TD 8755) interpreting section
1397E were published on January 7, 1998 (63 FR 671), as Sec. 1.1397E-
1T.
Temporary regulations amending Sec. 1.1397E-1T are published in the
Rules and Regulations portion of this issue of the Federal Register.
Section 1.1397E-1T is amended by revising paragraphs (b) and (j),
redesignating paragraph (h) as paragraph (i) and adding new paragraph
(h). The text of the temporary regulations also serves as the text of
these proposed regulations. An explanation of the regulations may be
found in the preamble of 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. It has also
been determined that section 553(b) of the Administrative Procedure Act
(5 U.S.C. chapter 5) does not apply. The Regulatory Flexibility Act (5
U.S.C. chapter 6) does not apply because these regulations do not
impose a collection of information on small entities. Pursuant to
section 7805(f) of the 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 or electronic comments (a
signed original and eight (8) copies, if written) that are submitted
timely to the IRS. The IRS and Treasury specifically request comments
on the clarity of the proposed regulations and how the regulations may
be made easier to understand. All comments will be available for public
inspection and copying.
A public hearing has been scheduled for November 19, 1999,
beginning at 10 a.m. in room 2615 of the Internal Revenue Building,
1111 Constitution Avenue, NW., Washington, DC. Due to building security
procedures, visitors must enter at the 10th Street entrance, located
between Constitution and Pennsylvania Avenues, NW. In addition, all
visitors must present photo identification to enter the building.
Because of access restrictions, visitors will not be admitted beyond
the immediate entrance area more than 15 minutes before the hearing
starts. For information about having your name placed on the building
access list to
[[Page 35580]]
attend the hearing, see the FOR FURTHER INFORMATION CONTACT section of
this preamble.
The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who
wish to present oral comments at the hearing must submit written
comments by September 29, 1999 and submit an outline of the topics to
be discussed and the time to be devoted to each topic (signed original
and eight (8) copies) by October 19, 1999. 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 author of these regulations is Timothy L. Jones,
Office of Assistant Chief Counsel (Financial Institutions & Products).
However, other personnel from IRS and the Treasury Department
participated in their development.
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 in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.1397E-1 as proposed to be added at 63 FR 708 is
amended by:
1. Revising paragraphs (b) and (j);
2. Redesignating paragraph (h) as paragraph (i);
3. Adding new paragraph (h).
The revisions and addition read as follows:
Sec. 1.1397E-1
Qualified zone academy bonds.
[The text of proposed paragraphs (b), (h) and (j) is the same as
the text of Sec. 1.1397E-1T(b), (h), and (j) published elsewhere in
this issue of the Federal Register.]
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
[FR Doc. 99-16622 Filed 6-30-99; 8:45 am]
BILLING CODE 4830-01-P
