[Federal Register Volume 77, Number 25 (Tuesday, February 7, 2012)]
[Proposed Rules]
[Pages 6027-6028]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-2339]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-135071-11]
RIN 1545-BK63
Application for Recognition as a 501(c)(29) Organization
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 are temporary regulations authorizing the IRS to
prescribe the procedures by which a qualified nonprofit health
insurance issuer participating in the Consumer Operated and Oriented
Plan program, established by the Centers for Medicare and Medicaid
Services, may apply for recognition as a tax-exempt organization under
the Internal Revenue Code. The text of those regulations also serves as
the text of these proposed regulations.
DATES: Written or electronic comments and requests for a public hearing
must be received by April 9, 2012.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-135071-11), Room
5203, Internal Revenue Service, P.O. 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-
135071-11), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue NW., Washington, DC, or sent electronically via the Federal
eRulemaking Portal at www.regulations.gov (IRS REG-135071-11).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Amy Franklin or Martin Sch[auml]ffer at (202) 622-6070; concerning
submission of comments and request for hearing, Oluwafunmilayo Taylor
at (202) 622-7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
The temporary regulations in the Rules and Regulations section of
this issue of the Federal Register make additions to the Income Tax
Regulations (26 CFR part 1) relating to section 501(c)(29) of the
Internal Revenue Code (Code). The temporary regulations provide that
the Commissioner has the authority to prescribe the procedures under
which a qualified nonprofit health insurance issuer (within the meaning
of section 1322(c) of the Patient Protection and Affordable Care Act,
Public Law 111-148 (March 23, 2010)) which has received a loan or grant
from the Centers for Medicare and Medicaid Services under the Consumer
Operated and Oriented Plan program may request to be recognized as tax-
exempt under section 501(a) as an organization described in section
501(c)(29). The temporary regulations expressly authorize the
Commissioner to recognize a qualified nonprofit health insurance issuer
as exempt effective as of a date prior to the date of its application,
provided that the application is submitted in the manner and within the
time prescribed by the Commissioner and the organization's prior
purposes and activities were consistent with the requirements for
exempt status under section 501(c)(29). The text of the temporary
regulations also serves as the text of these proposed regulations. The
preamble to the temporary regulations explains the additions.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
12866, as supplemented by Executive Order 13563. Therefore, a
regulatory assessment is not required. It also has
[[Page 6028]]
been determined that section 553(b) of the Administrative Procedure Act
(5 U.S.C. chapter 5) does not apply, and because no collection of
information is imposed on small entities, the provisions of the
Regulatory Flexibility Act (5 U.S.C. chapter 6) do not apply. Pursuant
to section 7805(f) of the Code, the proposed regulation has been
submitted to the Chief Counsel for Advocacy of the Small Business
Administration for comments on its impact on small businesses.
Comments and Requests for a Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any comments that are submitted timely
to the IRS as prescribed in this preamble under the ADDRESSES heading.
The IRS and the Treasury Department request comments on the proposed
regulations, including how they might be made easier to understand. All
comments will be available at www.regulations.gov or upon request. A
public hearing will be scheduled if requested in writing by any person
that timely submits written comments. If a public hearing is scheduled,
notice of the date, time, and place for the public hearing will be
published in the Federal Register.
Drafting Information
The principal authors of these regulations are Amy Franklin and
Martin Sch[auml]ffer of the Office of Division Counsel/Associate Chief
Counsel (Tax Exempt and Government Entities), although other persons in
the IRS and the Treasury Department participated in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Proposed Amendment 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 is amended by adding
an entry in numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.501(c)(29)-1 also issued under 26 U.S.C.
501(c)(29)(B)(i). * * *
Par. 2. Section 1.501(c)(29)-1 is added to read as follows:
Sec. 1.501(c)(29)-1 CO-OP Health Insurance Issuers.
[The text of proposed amendment to Sec. 1.501(c)(29)-1 is the same
as the text for Sec. 1.501(c)(29)-1T(a) through (c) published
elsewhere in this issue of the Federal Register].
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2012-2339 Filed 2-6-12; 8:45 am]
BILLING CODE 4830-01-P