81 FR 26763 - Self-Employment Tax Treatment of Partners in a Partnership That Owns a Disregarded Entity
DEPARTMENT OF THE TREASURY
Internal Revenue Service Federal Register Volume 81, Issue 86 (May 4, 2016)
Internal Revenue Service
Federal Register Volume 81, Issue 86 (May 4, 2016)
| Page Range | 26763-26764 | |
| FR Document | 2016-10384 |
[Federal Register Volume 81, Number 86 (Wednesday, May 4, 2016)] [Proposed Rules] [Pages 26763-26764] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-10384] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 301 [REG-114307-15] RIN 1545-BM77 Self-Employment Tax Treatment of Partners in a Partnership That Owns a Disregarded Entity AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed rulemaking by cross-reference to temporary regulations. ----------------------------------------------------------------------- SUMMARY: In the Rules and Regulations section of this issue of the Federal Register, the IRS is issuing temporary regulations that clarify the employment tax treatment of partners in a partnership that owns a disregarded entity. These regulations affect partners in a partnership that owns a disregarded entity. The text of those temporary regulations serves as the text of these proposed regulations. DATES: Comments and requests for a public hearing must be received by August 2, 2016. ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-114307-15), 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- 114307-15), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC 20224 or sent electronically, via the Federal eRulemaking Portal at http://www.regulations.gov/ (IRS REG- 114307-15). FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Andrew K. Holubeck at (202) 317-4774; concerning submission of comments, or a request for a public hearing please contact Regina Johnson at (202) 317-6901 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Background and Explanation of Provisions Temporary regulations in the Rules and Regulations section of this issue of the Federal Register amend the Procedure and Administration Regulations (26 CFR part 301) relating to section 7701. The temporary regulations clarify that an entity disregarded as separate from its owner (a disregarded entity), that is treated as a corporation for purposes of employment taxes imposed under subtitle C, is not treated as a corporation for purposes of employing its individual owner (who is treated as a sole proprietor) or for purposes of employing an individual that is a partner in a partnership that owns the disregarded entity. Rather, the entity is disregarded as an entity separate from its owner for this purpose. The partners are subject to the same self- employment tax rules as partners in a partnership that does not own an entity that is disregarded as separate from its owner. The text of those regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the amendments. Special Analysis Certain IRS regulations, including this one, are exempt from the requirements of Executive Order 12866, as supplemented and reaffirmed by Executive Order 13563. Therefore, a regulatory impact assessment is not required. It has also 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 the regulations do not impose a collection of information on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the Internal Revenue Code, this notice of proposed rulemaking will be submitted [[Page 26764]] to the Chief Counsel for Advocacy of the Small Business Administration for comment on their impact on small business. Comments and Requests for 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 Treasury Department and the IRS request comments on all aspects of the proposed rules. 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 hearing will be published in the Federal Register. Drafting Information The principal author of these regulations is Andrew Holubeck of the Office of the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). However, other personnel from the IRS and the Treasury Department participated in their development. List of Subjects in 26 CFR Part 301 Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income taxes, Penalties, Reporting and recordingkeeping requirements. Proposed Amendments to the Regulations Accordingly, 26 CFR part 301 is proposed to be amended as follows: PART 301--PROCEDURE AND ADMINISTRATION 0 Paragraph 1. The authority citation for part 301 continues to read in part as follows: Authority: 26 U.S.C. 7805 * * * 0 Par. 2. Section 301.7701-2 is amended by revising paragraphs (c)(2)(iv)(C)(2) and adding paragraph (e)(8)(i) to read as follows: Sec. 301.7701-2 Business entities; definitions * * * * * (c) * * * (2) * * * (iv) * * * (C) * * * (2) [The text of the proposed amendment to Sec. 301.7701- 2(c)(2)(iv)(C)(2) is the same as the text of Sec. 301.7701- 2T(c)(2)(iv)(C)(2) published elsewhere in this issue of the Federal Register]. * * * * * (e) * * * (8)(i) [ The text of the proposed amendments to Sec. 301.7701- 2(e)(8)(i) is the same as the text of Sec. 301.7701-2T(e)(8)(i) published elsewhere in this issue of the Federal Register]. John Dalrymple, Deputy Commissioner for Services and Enforcement. [FR Doc. 2016-10384 Filed 5-3-16; 8:45 am] BILLING CODE 4830-01-P
![Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Proposed Rules 26763
IV. Evaluating the Demonstration connected tablets or smartphones, may be hand-delivered Monday through
The Demonstration will provide HUD reduce the barriers to participation for Friday between the hours of 8 a.m. and
insight into the UPCS–V model, PHAs as opposed to having PHAs use 4 p.m. to CC:PA:LPD:PR (REG–114307–
including its ability to expand HUD’s more specific devices such as those 15), Courier’s Desk, Internal Revenue
oversight and risk management required for other HUD UPCS Service, 1111 Constitution Avenue NW.,
capabilities through a reliable, inspections? Washington, DC 20224 or sent
repeatable inspection process that better 3. Are there other PHA characteristics electronically, via the Federal
identifies health and safety risks to that HUD should consider in selecting eRulemaking Portal at http://
families, before implementing such a PHAs to participate in the www.regulations.gov/ (IRS REG–
program nationwide. The demonstration? 114307–15).
Demonstration is anticipated to begin 60 4. Are there other revisions outside of FOR FURTHER INFORMATION CONTACT:
days following the date of publication of the UPCS criteria that HUD should Concerning the proposed regulations,
this notice, with PHAs being added on consider when moving toward a single Andrew K. Holubeck at (202) 317–4774;
a rolling basis until a representative inspection protocol? concerning submission of comments, or
sample has been reached. At the HUD requests that PHAs interested in a request for a public hearing please
conclusion of the demonstration, HUD participating in the Demonstration contact Regina Johnson at (202) 317–
will assess its success and determine notify HUD by the public comment 6901 (not toll-free numbers).
whether to implement UPCS–V on a deadline for this Demonstration notice SUPPLEMENTARY INFORMATION:
permanent basis throughout the by emailing HUD at UPCSV@hud.gov,
country. and providing the PHA name, PHA Background and Explanation of
In the evaluation of the address, contact name, contact phone Provisions
Demonstration, HUD will assess such number, and email address. Temporary regulations in the Rules
factors as whether the use of the new Dated: April 28, 2016. and Regulations section of this issue of
UPCS–V protocol produces (1) more Lourdes Castro Ramı́rez, the Federal Register amend the
consistent and accurate results, (2) data Procedure and Administration
Principal Deputy Assistant Secretary for
standardization and a reliable method Public and Indian Housing. Regulations (26 CFR part 301) relating to
for information exchange, and (3) section 7701. The temporary regulations
[FR Doc. 2016–10460 Filed 5–3–16; 8:45 am]
increased oversight and administration clarify that an entity disregarded as
BILLING CODE 4210–67–P
of the HCV Program. The demonstration separate from its owner (a disregarded
also will review the feasibility of a PHA entity), that is treated as a corporation
to implement the UPCS–V protocol, a for purposes of employment taxes
factor HUD considers necessary for an DEPARTMENT OF THE TREASURY
imposed under subtitle C, is not treated
accurate evaluation of the as a corporation for purposes of
Demonstration’s success. Internal Revenue Service
employing its individual owner (who is
V. Solicitation of Public Comment 26 CFR Part 301 treated as a sole proprietor) or for
In accordance with section 470 of the purposes of employing an individual
[REG–114307–15] that is a partner in a partnership that
Housing and Urban-Rural Recovery Act
of 1983 (42 U.S.C. 3542), HUD is RIN 1545–BM77 owns the disregarded entity. Rather, the
seeking comment on the Demonstration. entity is disregarded as an entity
Section 470 provides that HUD may not Self-Employment Tax Treatment of separate from its owner for this purpose.
begin a demonstration program not Partners in a Partnership That Owns a The partners are subject to the same
expressly authorized by statute until a Disregarded Entity self-employment tax rules as partners in
description of the demonstration a partnership that does not own an
AGENCY: Internal Revenue Service (IRS), entity that is disregarded as separate
program is published in the Federal Treasury.
Register and a 60-day period expires from its owner. The text of those
ACTION: Notice of proposed rulemaking regulations also serves as the text of
following the date of publication, during by cross-reference to temporary
which time HUD solicits public these proposed regulations. The
regulations. preamble to the temporary regulations
comment and considers the comments
submitted. HUD has established a explains the amendments.
SUMMARY: In the Rules and Regulations
public comment period of 60 days. The section of this issue of the Federal Special Analysis
public comment period provided allows Register, the IRS is issuing temporary
HUD the opportunity to consider those Certain IRS regulations, including this
regulations that clarify the employment one, are exempt from the requirements
comments during the 60-day period, tax treatment of partners in a
and be in a position to commence of Executive Order 12866, as
partnership that owns a disregarded supplemented and reaffirmed by
implementation of the demonstration entity. These regulations affect partners
following the conclusion of the 60-day Executive Order 13563. Therefore, a
in a partnership that owns a disregarded regulatory impact assessment is not
period. entity. The text of those temporary
While HUD solicits comment on all required. It has also been determined
regulations serves as the text of these that section 553(b) of the Administrative
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS
aspects of the Demonstration, HUD proposed regulations.
specifically solicits comment on the Procedure Act (5 U.S.C. chapter 5) does
DATES: Comments and requests for a not apply to these regulations, and
following:
1. HUD is considering selecting for public hearing must be received by because the regulations do not impose a
participation only PHAs that do not August 2, 2016. collection of information on small
utilize contract inspectors. Are there ADDRESSES: Send submissions to: entities, the Regulatory Flexibility Act
any instances where an exception to this CC:PA:LPD:PR (REG–114307–15), Room (5 U.S.C. chapter 6) does not apply.
criterion might be useful? 5203, Internal Revenue Service, P.O. Pursuant to section 7805(f) of the
2. Will utilizing commercial, off-the- Box 7604, Ben Franklin Station, Internal Revenue Code, this notice of
shelf hardware, such as internet Washington, DC 20044. Submissions proposed rulemaking will be submitted
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![26764 Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Proposed Rules
to the Chief Counsel for Advocacy of the published elsewhere in this issue of the NE., Washington, DC 20226: ATTN:
Small Business Administration for Federal Register]. ATF29P.
comment on their impact on small * * * * * Instructions: All submissions received
business. (e) * * * must include the agency name and
Comments and Requests for Public (8)(i) [ The text of the proposed docket number for this rulemaking. All
Hearing amendments to § 301.7701–2(e)(8)(i) is comments received will be posted
the same as the text of § 301.7701– without change to the Federal
Before these proposed regulations are 2T(e)(8)(i) published elsewhere in this eRulemaking portal, http://
adopted as final regulations, issue of the Federal Register]. www.regulations.gov, including any
consideration will be given to any personal information provided. For
comments that are submitted timely to John Dalrymple,
detailed instructions on submitting
the IRS as prescribed in this preamble Deputy Commissioner for Services and comments and additional information
under the ADDRESSES heading. The Enforcement.
on the rulemaking process, see the
Treasury Department and the IRS [FR Doc. 2016–10384 Filed 5–3–16; 8:45 am]
‘‘Public Participation’’ heading of the
request comments on all aspects of the BILLING CODE 4830–01–P SUPPLEMENTARY INFORMATION section of
proposed rules. All comments will be this document.
available at www.regulations.gov or
FOR FURTHER INFORMATION CONTACT:
upon request. A public hearing will be DEPARTMENT OF JUSTICE
scheduled if requested in writing by any Shermaine Kenner, Office of Regulatory
person that timely submits written Bureau of Alcohol, Tobacco, Firearms, Affairs, Enforcement Programs and
comments. If a public hearing is and Explosives Services, Bureau of Alcohol, Tobacco,
scheduled, notice of the date, time, and Firearms, and Explosives, U.S.
place for the hearing will be published 27 CFR Parts 478 and 479 Department of Justice, 99 New York
in the Federal Register. Avenue NE., Washington, DC 20226;
[Docket No. ATF 29P] telephone: (202) 648–7070.
Drafting Information RIN 1140–AA33 SUPPLEMENTARY INFORMATION:
The principal author of these I. Background
Identification Markings Placed on
regulations is Andrew Holubeck of the
Firearm Silencers and Firearm Mufflers
Office of the Division Counsel/Associate Section 923(i) of the Gun Control Act
Chief Counsel (Tax Exempt and AGENCY: Bureau of Alcohol, Tobacco, of 1968 (GCA), as amended (18 U.S.C.
Government Entities). However, other Firearms, and Explosives (ATF), chapter 44), requires licensed importers
personnel from the IRS and the Treasury Department of Justice. and licensed manufacturers to identify,
Department participated in their ACTION: Advance notice of proposed by means of a serial number, each
development. rulemaking. firearm imported or manufactured by
such importer or manufacturer. The
List of Subjects in 26 CFR Part 301
SUMMARY: The Department of Justice is serial number must be engraved or cast
Employment taxes, Estate taxes, considering amending the regulations of on the receiver or frame of the weapon
Excise taxes, Gift taxes, Income taxes, the Bureau of Alcohol, Tobacco, in such manner as the Attorney General
Penalties, Reporting and Firearms, and Explosives (ATF) to prescribes by regulation. As defined in
recordingkeeping requirements. require licensed manufacturers, licensed section 921(a)(3) of the GCA, the term
importers, and nonlicensed makers to ‘‘firearm’’ includes any firearm muffler
Proposed Amendments to the
place identification markings on the or firearm silencer. The terms ‘‘firearm
Regulations
outer tube of firearm silencers and silencer’’ and ‘‘firearm muffler’’ are also
Accordingly, 26 CFR part 301 is firearm mufflers. The Department defined in section 921(a)(24), as follows:
proposed to be amended as follows: wishes to gather information and [A]ny device for silencing, muffling, or
comments from the public and industry diminishing the report of a portable firearm,
PART 301—PROCEDURE AND concerning whether or not the including any combination of parts, designed
ADMINISTRATION regulations should be amended. or redesigned, and intended for use in
DATES: Written comments must be assembling or fabricating a firearm silencer or
■ Paragraph 1. The authority citation firearm muffler, and any part intended only
postmarked and electronic comments
for part 301 continues to read in part as for use in such assembly or fabrication.
must be submitted on or before August
follows:
2, 2016. Commenters should be aware With respect to certain firearms
Authority: 26 U.S.C. 7805 * * * that the electronic Federal Docket subject to the National Firearms Act
■ Par. 2. Section 301.7701–2 is Management System will not accept (NFA) (26 U.S.C. chapter 53) (e.g.,
amended by revising paragraphs comments after Midnight Eastern Time machine guns, any silencer (as defined
(c)(2)(iv)(C)(2) and adding paragraph on the last day of the comment period. in section 921(a)(24) of the GCA)), 26
(e)(8)(i) to read as follows: ADDRESSES: You may submit comments, U.S.C. 5842(a) requires each
identified by docket number (ATF 29P), manufacturer and importer and anyone
§ 301.7701–2 Business entities; definitions
by any of the following methods: making a firearm to identify by a serial
asabaliauskas on DSK3SPTVN1PROD with PROPOSALS
* * * * * • Federal eRulemaking Portal: http:// number each firearm manufactured,
(c) * * * www.regulations.gov. Follow the imported, or made. The serial number
(2) * * * instructions for submitting comments. may not be readily removed, obliterated,
(iv) * * * • Fax: (202) 648–9741. or altered. Section 5842(a) also requires
(C) * * * • Mail: Shermaine Kenner, Mailstop the firearm to be identified by the name
(2) [The text of the proposed 6N–518, Office of Regulatory Affairs, of the manufacturer, importer, or maker,
amendment to § 301.7701– Enforcement Programs and Services, and such other identification as the
2(c)(2)(iv)(C)(2) is the same as the text Bureau of Alcohol, Tobacco, Firearms, Attorney General may prescribe by
of § 301.7701–2T(c)(2)(iv)(C)(2) and Explosives, 99 New York Avenue regulation.
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Document Created: 2016-05-04 01:22:58
Document Modified: 2016-05-04 01:22:58
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Proposed Rules | |
| Action | Notice of proposed rulemaking by cross-reference to temporary regulations. | |
| Dates | Comments and requests for a public hearing must be received by August 2, 2016. | |
| Contact | Concerning the proposed regulations, Andrew K. Holubeck at (202) 317-4774; concerning submission of comments, or a request for a public hearing please contact Regina Johnson at (202) 317-6901 (not toll-free numbers). | |
| FR Citation | 81 FR 26763 | |
| RIN Number | 1545-BM77 | |
| CFR Associated | Employment Taxes; Estate Taxes; Excise Taxes; Gift Taxes; Income Taxes; Penalties and Reporting and Recordingkeeping Requirements |
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