[Federal Register Volume 79, Number 147 (Thursday, July 31, 2014)]
[Proposed Rules]
[Pages 44324-44325]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-17831]



Internal Revenue Service

26 CFR Part 1

RIN 1545-BM17

Segregation Rule Effective Date

AGENCY: Internal Revenue Service (IRS), Treasury.

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


SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations that modify 
the effective date provision of recently published final regulations 
under Section 382 of the Internal Revenue Code. The temporary 
regulations affect corporations whose stock is or was acquired by the 
Department of the Treasury (Treasury) pursuant to certain programs 
under the Emergency Economic Stabilization Act of 2008 (EESA). The text 
of those temporary regulations published in this issue of the Federal 
Register also serves as the text of these proposed regulations.

DATES: Written or electronic comments and requests for a public hearing 
must be submitted by October 29, 2014.

ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-105067-14), 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-
105067-14), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue NW., Washington, DC 20224, or sent electronically via the 
Federal eRulemaking Portal at www.regulations.gov (IRS REG-105067-14).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Stephen R. Cleary, (202) 317-5353; concerning submission of comments 
and requests for a public hearing, Oluwafumnilayo Taylor, (202) 317-
6901 (not toll-free numbers).


Background and Explanation of Provisions

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend 26 CFR Part 1. The temporary 
regulations modify the effective date provision for TD 9638 [78 FR 
62418], published on October 22, 2013, which provided final regulations 
that altered the operation of certain of the public group segregation 
rules under section 382. The temporary regulations apply to stock 
acquired by Treasury pursuant to certain programs under EESA 
(Programs). In particular, the temporary regulations apply to the 
subsequent sale by Treasury of that stock. 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, as supplemented by Executive Order 13563. Therefore, a 
regulatory assessment is not required. It is hereby certified that 
these regulations will not have a significant economic impact on a 
substantial number of small entities. This certification is based on 
the fact that, if the regulations apply to any small entities, the 
effect will not be to increase their tax liability, but to prevent a 
potential increase in tax liability that might otherwise occur. 
Therefore, a Regulatory Flexibility Analysis under the Regulatory 
Flexibility Act (5 U.S.C. chapter 6) is not required. Pursuant to 
section 7805(f) of the Code, these regulations have been submitted to 
the Chief Counsel for Advocacy of the Small Business Administration for 
comment on their 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 (a signed original and eight 
(8) copies) or electronic copies that are submitted timely to the IRS. 
The IRS and the Treasury Department request comments on the clarity of 
the proposed rules and how they can be made easier to understand. All 
comments will be made available for public inspection and copying 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 

Drafting information

    The principal author of these regulations is Stephen R. Cleary, 
Office of Associate Chief Counsel (Corporate). However, other personnel 
from the IRS and the Treasury Department participated in their 

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 1 is proposed to be amended as follows:


Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority:  26 U.S.C. 7805 * * *
    Section 1.382-3 also issued under 26 U.S.C. 382(g)(4)(C) and 26 
U.S.C. 382(m). * * *

Par. 2. Section 1.382-3 is amended by revising paragraph (j)(17) to 
read as follows:

Sec.  1.382-3  Definitions and Rules Relating to a 5-percent 

* * * * *
    (j) * * *
    (17) Effective/applicability date. [The text of the proposed 
amendment to

[[Page 44325]]

Sec.  1.382-3(j)(17) is the same as the text of Sec.  1.382-3T(j)(17) 
published elsewhere in this issue of the Federal Register].

John Dalrymple,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2014-17831 Filed 7-30-14; 8:45 am]