[Federal Register Volume 70, Number 99 (Tuesday, May 24, 2005)]
[Proposed Rules]
[Pages 29662-29663]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-10236]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-134030-04 and REG-133791-02]
RIN 1545-BD60 and RIN 1545-BA88
Credit for Increasing Research Activities
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations; notice of public hearing; and withdrawal of previously
proposed 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 computation and allocation of the credit for increasing research
activities for members of a controlled group of corporations, including
consolidated groups, or a group of trades or businesses under common
control. The text of those regulations also serves as the text of these
proposed regulations. This document also provides notice of a public
hearing on these proposed regulations and withdraws the proposed
regulations published in the Federal Register on July 29, 2003 (68 FR
44499).
DATES: Written or electronic comments must be received by September 28,
2005. Requests to speak and outlines of the topics to be discussed at
the public hearing scheduled for October 19, 2005, at 10 a.m. must be
received by September 28, 2005.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-134030-04), room
5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-
134030-04), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue NW., Washington, DC 20224. Alternatively, taxpayers may submit
electronic comments directly to the IRS Internet site at http://www.irs.gov/regs or via the Federal eRulemaking Portal at http://www.regulations.gov (IRS and REG-134030-04). The public hearing will be
held in the Auditorium, 7th Floor, Internal Revenue Building, 1111
Constitution Avenue, NW., Washington, DC 20224.
FOR FURTHER INFORMATION CONTACT: Concerning these proposed regulations,
Nicole R. Cimino at (202) 622-3120; concerning submissions of comments,
the hearing, and/or to be placed on the building access list to attend
the hearing, Robin R. Jones at (202) 622-7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
This document withdraws the notice of proposed rulemaking (REG-
133791-02) published on July 29, 2003 and amends the Income Tax
Regulations (26 CFR 1) relating to section 41. The temporary
regulations set forth the rules relating to the computation and
allocation of the credit for increasing research activities for members
of a controlled group of corporations, including consolidated groups,
or a group of trades or businesses under common control under section
41(f) for taxable years ending on or after December 31, 2004. The text
of those regulations also serves as the text of these proposed
regulations. The preamble to the temporary regulations explains the
amendments.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
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
these regulations do not impose on small entities a collection of
information requirement, the Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply. 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 business.
Comments and Requests for a 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) or electronic comments that are submitted timely
to the IRS. All comments will be available for public inspection and
copying.
A public hearing has been scheduled for October 19, 2005, beginning
at 10 a.m. in the Auditorium, 7th Floor, of the Internal Revenue
Building, 1111 Constitution Avenue, NW., Washington, DC. Due to
building security procedures, visitors must enter at the Constitution
Avenue entrance. In
[[Page 29663]]
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 30 minutes before the
hearing starts. For information about having your name placed on the
building access list to 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 and an outline of the topics to be discussed and the time to
be devoted to each topic (signed original and eight (8) copies) by
September 28, 2005. 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 Nicole R. Cimino,
Office of the Associate Chief Counsel (Passthroughs and Special
Industries). However, other personnel from the IRS and Treasury
Department participated in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Withdrawal of Proposed Amendments to the Regulations
Accordingly, under the authority of 26 U.S.C. 7805, the notice of
proposed rulemaking (REG-133791-02) published in the Federal Register
on July 29, 2003, (68 FR 44499) is withdrawn.
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 * * *
Section 1.41-6 also issued under 26 U.S.C. 41(f).* * *
Par. 2. In Sec. 1.41-0, the table of contents is amended as
follows:
Sec. 1.41-0 Table of contents.
[The text of proposed Sec. 1.41-0 is the same as the text of Sec.
1.41-0 published elsewhere in this issue of the Federal Register].
Par. 3. Section 1.41-6 is revised to read as follows:
Sec. 1.41-6 Aggregation of expenditures.
[The text of proposed Sec. 1.41-6 is the same as the text of Sec.
1.41-6T published elsewhere in this issue of the Federal Register].
Par. 4. Section 1.41-8 is revised to read as follows:
Sec. 1.41-8. Special rules for taxable years ending on or after
January 3, 2001.
[The text of proposed Sec. 1.41-8 is the same as the text of Sec.
1.41-8T published elsewhere in this issue of the Federal Register].
Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 05-10236 Filed 5-23-05; 8:45 am]
BILLING CODE 4830-01-P