Extensions of Time To Make Elections

[[Page 33408]]

DEPARTMENT OF THE TREASURY

26 CFR Part 301

[IA-29-96]

RIN 1545-AU42

Extensions of Time To Make Elections

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary

regulations and notice of public hearing.

-----------------------------------------------------------------------

SUMMARY: In the Rules and Regulations section of this issue of the

Federal Register, the IRS is issuing temporary regulations relating to

extensions of time for making certain elections under the Internal

Revenue Code (Code). The regulations provide the standards that the

Commissioner will use to grant taxpayers extensions of time for making

these elections. The text of those temporary regulations also serves as

the text of these proposed regulations. This document also provides

notice of a public hearing on these proposed regulations.

DATES: Written comments must be received by September 25, 1996.

Outlines of oral comments to be presented at the public hearing

scheduled for Wednesday, October 30, 1996, at 10 a.m. must be received

by October 9, 1996.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (IA-29-96), room 5226,

Internal Revenue Service, POB 7604, Ben Franklin Station, Washington,

DC 20044. In the alternative, submissions may be delivered between the

hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (IA-29-96), Courier's

Desk, Internal Revenue Service, 1111 Constitution Avenue NW,

Washington, DC. The public hearing will be held in the IRS Classroom

(room 2617), Internal Revenue Building, 1111 Constitution Avenue NW,

Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Robert A.

Testoff of the Office of Assistant Chief Counsel (Income Tax &

Accounting) at (202) 622-4960; concerning submissions and the hearing,

Christina Vasquez of the Regulations Unit, (202) 622-7190 (not toll-

free numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collection of information contained in this notice of proposed

rulemaking has been submitted to the Office of Management and Budget

(OMB) for review in accordance with the Paperwork Reduction Act of 1995

(44 U.S.C. 3507).

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, T:FP, Washington, DC 20224.

Comments on the collection of information should be received by August

26, 1996.

An agency may not conduct or sponsor, and a person is not required

to respond to, a collection of information unless the collection of

information displays a valid control number.

The collection of information is in Secs. 301.9100-2T and 301.9100-

3T. This information is required for a taxpayer to obtain an extension

of time to make an election. This information will be used by the IRS

to determine whether to grant an extension of time to make an election.

The likely respondents are businesses or other for-profit institutions,

small businesses or organizations, nonprofit institutions, individuals

or households, and farms.

Books or records relating to the collection of information must be

retained as long as their contents may become material in the

administration of any internal revenue law. Generally, tax returns and

tax return information are confidential, as required by 26 U.S.C. 6103.

Estimated total annual reporting burden: 5,000 hours.

Estimated annual burden per respondent: 10 hours.

Estimated number of respondents: 500.

Estimated annual frequency of responses: Occasional.

Background

Temporary regulations in the Rules and Regulations section of this

issue of the Federal Register amend 26 CFR part 301. The temporary

regulations contain rules relating to extensions of time for making

certain elections.

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) and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do

not apply to these regulations, and, therefore, a Regulatory

Flexibility Analysis 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 businesses.

Comments and Public Hearing

Before these proposed regulations are adopted as final regulations,

consideration will be given to any written comments (a signed original

and eight (8) copies) that are submitted timely to the IRS. All

comments will be available for public inspection and copying.

A public hearing has been scheduled for Wednesday, October 30,

1996, at 10 a.m. in the IRS Classroom (room 2617), Internal Revenue

Building, 1111 Constitution Avenue NW, Washington, DC. Because of

access restrictions, visitors will not be admitted beyond the building

lobby more than 15 minutes before the hearing starts.

The rules of Sec. 601.601(a)(3) apply to the hearing.

Persons that have submitted written comments by September 25, 1996

and want to present oral comments at the hearing must submit, by

October 9, 1996, an outline of the topics to be discussed and the time

to be devoted to each topic (signed original and eight (8) copies). 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 the temporary regulations is Robert A.

Testoff 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 in 26 CFR Part 301

Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income

taxes, Penalties, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

Accordingly, 26 CFR part 301 is proposed to be amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

Paragraph 1. The authority citation for part 301 is amended by

removing the entries for Secs. 301.9100-1T through

[[Page 33409]]

301.9100-3T and adding entries in numerical order to read as follows:

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

Section 301.9100-1 also issued under 26 U.S.C. 6081;

Section 301.9100-2 also issued under 26 U.S.C. 6081;

Section 301.9100-3 also issued under 26 U.S.C. 6081; * * *

Par. 2. Sections 301.9100-1 and 301.9100-1T through 301.9100-3T are

removed.

Par. 3. Sections 301.9100-1 through 301.9100-3 are added to read as

follows:

Sec. 301.9100-1 Extensions of time to make elections.

Sec. 301.9100-2 Automatic extensions.

Sec. 301.9100-3 Other extensions.

[The text of these above proposed sections are the same as the text

of Secs. 301.9100-1T through 301.9100-3T published elsewhere in this

issue of the Federal Register.]

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 96-16377 Filed 6-26-96; 8:45 am]

BILLING CODE 4830-01-U