Requirement of Return and Time for Filing

DEPARTMENT OF THE TREASURY

26 CFR Part 53

[REG-247862-96]

RIN 1545-AU66

Requirement of Return and Time for Filing

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 regulations that provide that

disqualified persons and organization managers liable for section 4958

excise taxes are required to file Form 4720. The regulations also

specify the filing date for returns for the period to which the new

excise taxes apply retroactively. The text of those temporary

regulations also serves as the text of these proposed regulations.

DATES: Written comments must be received by April 2, 1997.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-247862-96), 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-247862-96), 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 of

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: Phyllis Haney, (202) 622-4290 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

Final and temporary regulations in the Rules and Regulations

section of this issue of the Federal Register amend the Foundation and

Similar Excise Taxes Regulations (26 CFR part 53) relating to sections

6011 and 6071. The final regulations contain rules relating to the

requirement of a return to accompany payment of section 4958 excise

taxes; the temporary regulations prescribe the time for filing that

return.

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.

These rules were first published in Notice 96-46 (1996-39 I.R.B. 7)

(September 23, 1996). The new section 4958 excise taxes were added by

section 1311 of the Taxpayer Bill of Rights 2, Public Law 104-168, 110

Stat. 1452, enacted July 30, 1996.

Special Analyses

It has been determined that this Treasury decision 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, and because the regulation does

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, these

temporary regulations will be submitted to the Chief Counsel for

Advocacy of the Small Business Administration for comment on their

impact on small business.

Comments and Request for 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 may be scheduled if requested in writing by a person that

timely submits written 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 Phyllis Haney, Office

of Associate Chief Counsel (Employee Benefits and Exempt

Organizations). However, other personnel from the IRS and Treasury

Department participated in their development.

List of Subjects in 26 CFR Part 53

Excise taxes, Foundations, Investments, Lobbying, Reporting and

recordkeeping requirements.

Proposed Amendments to the Regulations

Accordingly, 26 CFR part 53 is proposed to be amended as follows:

PART 53--FOUNDATION AND SIMILAR EXCISE TAXES

Paragraph 1. The authority citation for part 53 continues to read

as follows:

Authority: 26 U.S.C. 7805.

Par. 2. Section 53.6071-1 is amended by adding paragraph (f) to

read as follows:

Sec. 53.6071-1 Time for filing returns.

* * * * *

(f) [The text of paragraph (f) of this section is the same as the

text of Sec. 53.6071-1T(f) published elsewhere in this issue of the

Federal Register].

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 96-32377 Filed 12-31-96; 8:45 am]

BILLING CODE 4830-01-U