52218
Proposed Rules Federal Register
Vol. 73, No. 175
Tuesday, September 9, 2008
This section of the FEDERAL REGISTER Send submissions to:
ADDRESSES: techniques or other forms of information
contains notices to the public of the proposed
CC:PA:LPD:PR (REG–142333–07), Room technology; and
issuance of rules and regulations. The 5203, Internal Revenue Service, P.O. Estimates of capital or start-up costs
purpose of these notices is to give interested
Box 7604, Ben Franklin Station, and costs of operation, maintenance and
persons an opportunity to participate in the
Washington, DC 20044. Submissions purchase of service to provide
rule making prior to the adoption of the final information.
rules.
may be hand-delivered Monday through
Friday between the hours of 8 a.m. and The collection of information in this
4 p.m. to: CC:PA:LPD:PR (REG–142333– proposed regulation is in § 1.6033–2T.
DEPARTMENT OF THE TREASURY 07), Courier’s Desk, Internal Revenue The information collected under
Service, 1111 Constitution Avenue, § 1.6033–2T relates to compensation
Internal Revenue Service NW., Washington, DC, or sent reporting by tax exempt organizations.
electronically, via the Federal The information that is required to be
26 CFR Part 1 eRulemaking Portal at http:// collected for purposes of § 1.6033–2T is
www.regulations.gov (IRS REG–142333– required to be submitted on Form 990,
[REG–142333–07] 07). ‘‘Return of Organization Exempt From
FOR FURTHER INFORMATION CONTACT:
Income Tax.’’ The estimated number of
RIN 1545–BH28 recordkeepers that will submit Form
Concerning the proposed regulations,
990 is approximately 105,000.
Implementation of Form 990
Terri Harris, at (202) 622–6070;
Estimated total annual reporting
concerning submissions of comments or burden: One hour.
AGENCY: Internal Revenue Service (IRS),
requests for a hearing, Oluwafunmilayo
Treasury.
An agency may not conduct or
Taylor, at (202) 622–3401 (not toll-free sponsor, and a person is not required to
ACTION: Notice of proposed rulemaking
numbers).
respond to, a collection of information
by cross-reference to temporary
SUPPLEMENTARY INFORMATION: unless it displays a valid control
regulations.
number assigned by the Office of
Paperwork Reduction Act
SUMMARY: In the Rules and Regulations Management and Budget.
The collection of information Books or records relating to a
section of this issue of the Federal contained in this notice of proposed
Register, the IRS and the Treasury collection of information must be
rulemaking has been reviewed and retained as long as their contents may
Department are issuing temporary approved by the Office of Management
regulations necessary to implement the become material in the administration
and Budget in accordance with the of any internal revenue law. Generally,
redesigned Form 990, ‘‘Return of Paperwork Reduction Act of 1995 (44 tax returns and tax return information
Organization Exempt From Income U.S.C. 3507(d)) under control number are confidential, as required by 26
Tax.’’ The temporary regulations make 1545–2117. Comments on the collection U.S.C. 6103.
revisions to the regulations under of information should be sent to the
section 6033 and section 6043 to allow Office of Management and Budget, Attn: Background and Explanation of
for new threshold amounts for reporting Desk Officer for the Department of the Provision
compensation, to require that Treasury, Office of Information and Temporary regulations in the Rules
compensation be reported on a calendar Regulatory Affairs, Washington, DC and Regulations section of this issue of
year basis, and to modify the scope of 20503, with copies to the Internal the Federal Register amend the Income
organizations subject to information Revenue Service, Attn: IRS Reports Tax Regulations (26 CFR part 1) relating
reporting requirements upon a Clearance Officer, SE:W:CAR: to sections 170(b), 507, 509(a), 6033,
substantial contraction. The temporary MP:T:T:SP, Washington, DC 20224. and 6043. The amendments to
regulations also eliminate the advance Comments on the collection of §§ 1.170A–9, 1.507–2 and 1.509(a)–3
ruling process for new organizations, information should be received by eliminate the advance ruling process,
change the public support computation November 10, 2008. Comments are clarify that support must be reported
period for organizations described in specifically requested concerning: using the organization’s overall method
sections 170(b)(1)(A)(vi) and 509(a)(1) Whether the proposed collection of of accounting, eliminate the exception
and in section 509(a)(2) to five years, information is necessary for the proper for material changes in sources of
consistent with the revised Form 990, performance of the functions of the support, and change the public support
and clarify that support must be Internal Revenue Service, including computation period for organizations
reported using the organization’s overall whether the information will have described in sections 170(b)(1)(A)(vi)
method of accounting. All tax exempt practical utility; and 509(a)(1) and in section 509(a)(2) to
organizations required under section The accuracy of the estimated burden five years, consistent with the revised
6033 of the Internal Revenue Code associated with the proposed collection Schedule A to the redesigned Form 990,
(Code) to file annual information returns of information; ‘‘Return of Organization Exempt From
are affected by the temporary How the quality, utility and clarity of Income Tax.’’ The amendments to
yshivers on PROD1PC62 with PROPOSALS
regulations. The text of the temporary the information to be collected may be §§ 1.6033–2(a)(2)(ii)(g) and (h) allow for
regulations also serves as the text of enhanced; new threshold amounts for reporting
these proposed regulations. How the burden of complying with compensation and require that
DATES: Written or electronic comments the proposed collection of information organizations use a calendar year basis
and requests for a public hearing must may be minimized, including through or a basis that is prescribed by
be received by November 10, 2008. the application of automated collection publication, form or instruction when
VerDate Aug2005 15:24 Sep 08, 2008 Jkt 214001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\09SEP1.SGM 09SEP1
Federal Register / Vol. 73, No. 175 / Tuesday, September 9, 2008 / Proposed Rules 52219
reporting listed officer, director, trustee, hearing will be published in the Federal (i) [The text of this proposed
key employee and independent Register. amendment to § 1.509(a)–3(a)(3)(i) is the
contractor compensation. The same as the text of § 1.509(a)–3T(a)(3)(i)
Drafting Information
amendments to §§ 1.6043–3(b)(8) and published elsewhere in this issue of the
(d) expand the scope of organizations The principal author of this regulation Federal Register.]
subject to information reporting is Terri Harris of the Office of Division * * * * *
requirements upon a substantial Counsel/Associate Chief Counsel (Tax (c) [The text of this proposed
contraction. The text of those temporary Exempt and Government Entities). amendment to § 1.509(a)–3(c) is the
regulations also serves as the text of However, other personnel from the IRS same as the text of § 1.509(a)–3T(c)
these proposed regulations. The and the Treasury Department published elsewhere in this issue of the
preamble to the temporary regulations participated in their development. Federal Register.]
explains the temporary regulations and (d) [The text of this proposed
List of Subjects for 26 CFR Part 1
these proposed regulations. amendment to § 1.509(a)–3(d) is the
Income taxes, Reporting and same as the text of § 1.509(a)–3T(d)
Special Analyses
recordkeeping requirements. published elsewhere in this issue of the
It has been determined that this notice Federal Register.]
of proposed rulemaking is not a Proposed Amendments to the
Regulations (e) [The text of this proposed
significant regulatory action as defined amendment to § 1.509(a)–3(e) is the
in Executive Order 12866. Therefore, a Accordingly, 26 CFR part 1 is same as the text of § 1.509(a)–3T(e)
regulatory assessment is not required. It proposed to be amended as follows: published elsewhere in this issue of the
has also been determined that section Federal Register.]
553(b) of the Administrative Procedure PART 1—INCOME TAXES
Act (5 U.S.C. chapter 5) does not apply. * * * * *
Paragraph 1. The authority citation (k) [The text of this proposed
It is hereby certified that the collection
for part 1 continues to read in part as amendment to § 1.509(a)–3(k) is the
of information in this regulation will not
follows: same as the text of § 1.509(a)–3T(k)
have a significant economic impact on
Authority: 26 U.S.C. 7805 * * * published elsewhere in this issue of the
a substantial number of small entities.
Federal Register.]
This certification is based on the fact Par. 2. Section 1.170A–9 is amended
that burden on tax-exempt entities will * * * * *
by revising paragraphs (f) and (k) to read (n) [The text of this proposed
be reduced by (1) eliminating the as follows:
separate advance ruling process and the amendment to § 1.509(a)–3(n) is the
additional process for subsequently § 1.170A–9 Definition of section same as the text of § 1.509(a)–3T(n)
seeking a definitive ruling, (2) clarifying 170(b)(1)(A) organization. published elsewhere in this issue of the
rules regarding the method of * * * * * Federal Register.]
accounting and period for reporting (f) [The text of this proposed (o) [The text of this proposed
certain items, and (3) providing amendment to § 1.170A–9(f) is the same § 1.509(a)–3(o) is the same as the text of
discretion for the IRS to narrow or as the text of § 1.170A–9T(f) published § 1.509(a)–3T(o)(1) and (o)(2) published
clarify circumstances under which elsewhere in this issue of the Federal elsewhere in this issue of the Federal
reporting is required. Accordingly, a Register.] Register.]
Regulatory Flexibility Analysis under Par. 5. Section 1.6033–2 is amended
* * * * * by revising paragraphs (a)(2)(ii)(g),
the Regulatory Flexibility Act (5 U.S.C. (k) [The text of this proposed
chapter 6) is not required. Pursuant to (a)(2)(ii)(h) and (k) to read as follows:
amendment to § 1.170A–9(k) is the same
section 7805(f) of the Code, these as the text of § 1.170A–9T(k)(1) and § 1.6033–2 Returns by exempt
regulations have been submitted to the (k)(2) published elsewhere in this issue organizations (taxable years beginning after
Chief Counsel for Advocacy of the Small of the Federal Register.] December 31, 1969) and returns by certain
Business Administration for comment Par. 3. Section 1.507–2 is revised to nonexempt organizations (taxable years
on their impact on small business. beginning after December 31, 1980).
read as follows:
(a) * * *
Comments and Requests for Public § 1.507–2 Special rules; transfer to, or (2) * * *
Hearing operation as, public charity. (ii) * * *
Before these proposed regulations are [The text of this proposed amendment (g) [The text of this proposed
adopted as final regulations, to § 1.507–2 is the same as the text of amendment to § 1.6033–2(a)(2)(ii)(g) is
consideration will be given to any § 1.507–2T(a) through (f)(2) published the same as the text of § 1.6033–
written comments (a signed original and elsewhere in this issue of the Federal 2T(a)(2)(ii)(g) published elsewhere in
eight (8) copies) or electronic comments Register.] this issue of the Federal Register.]
that are submitted timely to the IRS. Par. 4. Section 1.509(a)–3 is amended (h) [The text of this proposed
Comments are requested on all aspects by revising paragraphs (a)(2), (a)(3)(i), amendment to § 1.6033–2(a)(2)(ii)(h) is
of the proposed regulations. The IRS (c), (d), (e), (k), and (n) and adding the same as the text of § 1.6033–
and the Treasury Department request paragraph (o) to read as follows: 2T(a)(2)(ii)(h) published elsewhere in
comments on the clarity of the proposed this issue of the Federal Register.]
rules and how they can be made easier § 1.509(a)–3 Broadly, publicly supported * * * * *
to understand. All comments will be organizations. (k) [The text of this proposed
available for public inspection and (a) * * * amendment to § 1.6033–2(k) is the same
yshivers on PROD1PC62 with PROPOSALS
copying. (2) [The text of this proposed as the text of § 1.6033–2T(k)(1) and
A public hearing will be scheduled if amendment to § 1.509(a)–3(a)(2) is the (k)(2) published elsewhere in this issue
requested in writing by any person that same as the text of § 1.509(a)–3T(a)(2) of the Federal Register.]
timely submits written comments. If a published elsewhere in this issue of the Par. 6. Section 1.6043–3 is amended
public hearing is scheduled, notice of Federal Register.] by revising paragraphs (b)(8) and (d) and
the date, time, and place for the public (3) * * * adding paragraph (e) to read as follows:
VerDate Aug2005 15:24 Sep 08, 2008 Jkt 214001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\09SEP1.SGM 09SEP1
52220 Federal Register / Vol. 73, No. 175 / Tuesday, September 9, 2008 / Proposed Rules
§ 1.6043–3 Returns regarding liquidation, Washington, DC 20044. Submissions public approval requirement under
dissolution, termination, or substantial may be hand-delivered Monday through section 147(f). The likely respondents
contraction of organizations exempt from Friday between the hours of 8 a.m. and are issuers of qualified private activity
taxation under section 501(a). 4 p.m. to CC:PA:LPD:PR (REG–128841– bonds.
* * * * * 07), Courier’s Desk, Internal Revenue Estimated total annual reporting
(b) * * * Service, 1111 Constitution Avenue, burden: 2,600 hours.
(8) [The text of this proposed NW., Washington, DC or sent Estimated average annual burden per
amendment to § 1.6043–3(b)(8) is the electronically, via the Federal respondent: 1.3 hours.
same as the text of § 1.6043–3T(b)(8) eRulemaking Portal at Estimated number of respondents:
published elsewhere in this issue of the www.regulations.gov (IRS REG–128841– 2,000.
Federal Register.] 07). The public hearing will be held in Estimated frequency of responses: Not
* * * * * the auditorium beginning at 10 a.m. at applicable (this is a third-party
(d) [The text of this proposed the Internal Revenue Building, 1111 disclosure requirement).
amendment to § 1.6043–3(d) is the same Constitution Avenue, NW., Washington, An agency may not conduct or
as the text of § 1.6043–3T(d) published DC. sponsor, and a person is not required to
elsewhere in this issue of the Federal FOR FURTHER INFORMATION CONTACT: respond to, a collection of information
Register.] Concerning the proposed regulations, unless it displays a valid control
(e) [The text of this proposed David White, (202) 622–3980; number assigned by the Office of
amendment to § 1.6043–3(e) is the same concerning submissions of comments Management and Budget.
as the text of § 1.6043–3T(e)(1) and and the hearing, contact Fumni Taylor Books or records relating to a
(e)(2) published elsewhere in this issue at (202) 622–7180 (not toll-free collection of information must be
of the Federal Register.] numbers). retained as long as their contents may
become material in the administration
Linda E. Stiff, SUPPLEMENTARY INFORMATION:
of any internal revenue law. Generally,
Deputy Commissioner for Services and tax returns and tax return information
Paperwork Reduction Act
Enforcement.
The collection of information are confidential, as required by 26
[FR Doc. E8–20556 Filed 9–8–08; 8:45 am] U.S.C. 6103.
BILLING CODE 4830–01–P
contained in the proposed regulations
has been submitted to the Office of Background
Management and Budget in accordance
This document contains proposed
DEPARTMENT OF THE TREASURY with the Paperwork Reduction Act of
amendments to the Income Tax
1995 (44 U.S.C. 3507(d)). Comments on
Internal Revenue Service Regulations (26 CFR part 1) to add new
the collection of information should be
§ 1.147(f)–1 (the ‘‘Proposed
sent to the Office of Management and
26 CFR Part 1 Regulations’’) relating to the public
Budget, Attn: Desk Officer for the
approval requirement for tax-exempt
Department of the Treasury, Office of
[REG–128841–07] private activity bonds under section
Information and Regulatory Affairs,
147(f) of the Internal Revenue Code.
RIN 1545–BG91 Washington, DC 20503, with copies to
the Internal Revenue Service, Attn: IRS Explanation of Provisions
Public Approval Guidance for Tax- Reports Clearance Officer,
Exempt Bonds
I. Introduction
SE:W:CAR:MP:T:T:SP, Washington, DC
20224. Comments on the collection of In general, interest on State and local
AGENCY: Internal Revenue Service (IRS),
information should be received by bonds is excludable from gross income
Treasury.
under section 103 of the Internal
November 10, 2008. Comments are
ACTION: Notice of proposed rulemaking
specifically requested concerning: Revenue Code of 1986 (the ‘‘Code’’).
and notice of public hearing.
Whether the proposed collection of Interest on a private activity bond is
information is necessary for the proper excludable from gross income under
SUMMARY: This document contains
performance of the functions of the IRS, section 103 only if the bond meets the
proposed regulations on the public
including whether the information will requirements for a ‘‘qualified bond’’
approval requirements under section
have practical utility; under section 141(e) and other
147(f) of the Internal Revenue Code
The accuracy of the estimated burden applicable requirements under section
(Code) applicable to tax-exempt private
associated with the proposed collection 103. Section 141(e) requires that a bond
activity bonds issued by State and local
of information; meet the public approval requirement of
governments. The proposed regulations
How the quality, utility, and clarity of section 147(f), among other
affect State and local governmental
the information to be collected may be requirements, to be a qualified bond.
issuers of tax-exempt private activity
enhanced;
bonds. This document also provides II. Statutory Predecessor and Existing
How the burden of complying with
notice of a public hearing on these Regulations
the proposed collection of information
proposed regulations. The predecessor to section 147(f) was
may be minimized, including through
DATES: Written or electronic comments the application of automated collection section 103(k) of the Internal Revenue
must be received by December 8, 2008. techniques or other forms of information Code of 1954 (‘‘1954 Code’’), which was
Outlines of topic to be discussed at the technology; and added by the Tax Equity and Fiscal
public hearing scheduled for January 26, Estimates of capital or start-up costs Responsibility Act of 1982, Public Law
yshivers on PROD1PC62 with PROPOSALS
2009, at 10 a.m., must be received by and costs of operation, maintenance, 97–248, 96 Stat. 324 (1982). Section
December 29, 2008. and purchase of services to provide 103(k) of the 1954 Code imposed a
ADDRESSES: Send submissions to information. public approval requirement on
CC:PA:LPD:PR (REG–128841–07), room The collection of information in this industrial development bonds.
5203, Internal Revenue Service, P.O. proposed regulation is in § 1.147(f)–1(b). Temporary Income Tax Regulations
Box 7604, Ben Franklin Station, This information is required to meet the § 5f.103–2 were published under section
VerDate Aug2005 15:24 Sep 08, 2008 Jkt 214001 PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 E:\FR\FM\09SEP1.SGM 09SEP1