[Federal Register Volume 70, Number 8 (Wednesday, January 12, 2005)]
[Proposed Rules]
[Pages 2075-2076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-648]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[REG-130671-04]
RIN 1545-BD65
Returns Required on Magnetic Media
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations and notice of public hearing.
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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 requirements for filing corporate income tax returns, S corporation
returns, and returns of organizations required under section 6033 on
magnetic media under section 6011(e) of the Internal Revenue Code
(Code). 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.
DATES: Written or electronic comments must be received by February 28,
2005. Requests to speak (with outlines of topics to be discussed) at
the public hearing scheduled for March 16, 2005, must be received by
February 28, 2005.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-130671-04), Room
5203, Internal Revenue Service, POB 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-
130671-04), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC. Alternatively, taxpayers may submit
comments electronically via the IRS internet Web site at http://www.irs.gov/regs, or via the Federal eRulemaking Portal, http://www.regulations.gov (IRS-REG-130671-04). The public hearing will be
held in the auditorium of the Internal Revenue Building, 1111
Constitution Avenue, NW., Washington, DC 20224.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Michael E. Hara, (202) 622-4910 concerning submissions of comments, the
hearing, and/or to be placed on the building access list to attend the
hearing, Robin Jones at (202) 622-7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
Temporary regulations in the Rules and Regulations section of this
issue of the Federal Register amend the Regulations on Procedure and
Administration (26 CFR part 301) relating to the filing of corporate
income tax returns, S corporation returns, and returns of organizations
required under section 6033 on magnetic media under section 6011(e).
The temporary regulations require corporations and certain
organizations to file their Form 1120, ``U.S. Corporation Income Tax
Return,'' Form 1120S, ``U.S. Income Tax Return for an S Corporation,''
Form 990, ``Return of Organization Exempt From Income Tax,'' and Form
990-PF, ``Return of Private Foundation or Section 4947(a)(1) Trust
Treated as a Private Foundation,'' electronically if they are required
to file at least 250 returns during the calendar year ending with or
within their taxable year. 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 these proposed regulations are 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. Because these
regulations do not impose a collection of information on small
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not
apply. The IRS and Treasury Department note that these regulations only
prescribe the method of filing returns that are already required to be
filed. Further, these regulations are consistent with the requirements
imposed by statute.
Section 6011(e)(2)(A) provides that, in prescribing regulations
providing standards for determining which returns must be filed on
magnetic media or in other machine-readable form, the Secretary shall
not require any person to file returns on magnetic media unless the
person is required to file at least 250 returns during the calendar
year. Consistent with the statutory provision, these regulations do not
require Forms 1120, Forms 1120S, Forms 990, or Forms 990-PF to be filed
electronically unless 250 or more returns are required to be filed.
Further, if a taxpayer's operations are computerized, reporting in
accordance with the regulations should be less
[[Page 2076]]
costly than filing on paper. If the taxpayer's operations are not
computerized, the incremental cost of filing Forms 1120, Forms 1120S,
Forms 990, and Forms 990-PF electronically should be minimal in most
cases because of the availability of computer service bureaus. In
addition, the proposed regulations provide that the IRS may waive the
electronic filing requirements upon a showing of hardship.
Pursuant to section 7805(f) of the Code, these proposed 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 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 comments that are submitted timely to the
IRS. The IRS and Treasury Department request comments on the clarity of
the proposed regulations and how they can be made easier to understand.
The IRS and Treasury Department also request comments on the procedures
and criteria for hardship waivers from the electronic filing
requirements. The IRS and Treasury Department also request comments on
the accuracy of the certification that the regulations in this document
will not have a significant economic impact on a substantial number of
small entities. All comments will be available for public inspection
and copying.
A public hearing has been scheduled for March 16, 2005 at 10 a.m.
in the auditorium 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 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 comments and
an outline of the topics to be discussed and the time to be devoted to
each topic by February 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 proposed regulations is Michael E.
Hara, Office of the Assistant Chief Counsel (Procedure and
Administration).
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR parts 1 and 301 are 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. * * *
Par. 2. Section 1.6011-5 is added to read as follows:
Sec. 1.6011-5 Required use of magnetic media for corporate income tax
returns.
[The text of proposed Sec. 1.6011-5 is the same as the text of
Sec. 1.6011-5T published elsewhere in this issue of the Federal
Register].
Par. 3. Section 1.6033-4 is added to read as follows:
Sec. 1.6033-4 Required use of magnetic media for returns by
organizations required to file returns under section 6033.
[The text of proposed Sec. 1.6033-4 is the same as the text of
Sec. 1.6033-4T published elsewhere in this issue of the Federal
Register].
Par. 4. Section 1.6037-2 is added to read as follows:
Sec. 1.6037-2 Required use of magnetic media for income tax returns
of electing small business corporations.
[The text of proposed Sec. 1.6037-2 is the same as the text of
Sec. 1.6037-2T published elsewhere in this issue of the Federal
Register].
PART 301--PROCEDURE AND ADMINISTRATION
Par. 5. The authority citation for part 301 is amended by adding
entries, in numerical order, to read as follows:
Authority: 26 U.S.C. 7805 * *
Section 301.6011-5 also issued under 26 U.S.C. 6011. * * *
Section 301.6033-4 also issued under 26 U.S.C. 6033. * * *
Section 301.5037-2 also issued under 26 U.S.C. 6037. * * *
Par. 6. Section 301.6011-5 is added to read as follows:
Sec. 301.6011-5 Required use of magnetic media for corporate income
tax returns.
[The text of proposed Sec. 301.6011-5 is the same as the text of
Sec. 301.6011-5T published elsewhere in this issue of the Federal
Register].
Par. 7. Section 301.6033-4 is added to read as follows:
Sec. 301.6033-4 Required use of magnetic media for returns by
organizations required to file returns under section 6033.
[The text of proposed Sec. 301.6033-4 is the same as the text of
Sec. 3011.6033-4T published elsewhere in this issue of the Federal
Register].
Par. 8. Section 301.6037-2 is added to read as follows:
Sec. 301.6037-2 Required use of magnetic media for returns of
electing small business corporation.
[The text of proposed Sec. 301.6037-2 is the same as the text of
Sec. 301.6037-2T published elsewhere in this issue of the Federal
Register].
Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 05-648 Filed 1-11-05; 8:45 am]
BILLING CODE 4830-01-P