82 FR 48779 - Definition of Political Subdivision

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 82, Issue 202 (October 20, 2017)

Page Range		48779-48779
FR Document		2017-22777

This document withdraws a notice of proposed rulemaking regarding the definition of a political subdivision for purposes of tax-exempt bonds.

Federal Register, Volume 82 Issue 202 (Friday, October 20, 2017)

[Federal Register Volume 82, Number 202 (Friday, October 20, 2017)]
[Proposed Rules]
[Page 48779]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-22777]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 82, No. 202 / Friday, October 20, 2017 / 
Proposed Rules

[[Page 48779]]



DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-129067-15]
RIN 1545-BM99


Definition of Political Subdivision

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Withdrawal of notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: This document withdraws a notice of proposed rulemaking 
regarding the definition of a political subdivision for purposes of 
tax-exempt bonds.

DATES: As of October 20, 2017, the notice of proposed rulemaking (REG-
129067-15) that was published in the Federal Register on February 23, 
2016, (81 FR 8870) is withdrawn.

FOR FURTHER INFORMATION CONTACT: Spence Hanemann at (202) 317-6980 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    On February 23, 2016, the Department of the Treasury (the Treasury 
Department) and the IRS published in the Federal Register a notice of 
proposed rulemaking (81 FR 8870) that defines political subdivision for 
purposes of tax-exempt bonds under section 103 of the Internal Revenue 
Code (the Proposed Regulations). The Treasury Department and the IRS 
received public comments and, on June 6, 2016, held a public hearing on 
the Proposed Regulations. In response to the Proposed Regulations, 
commenters stated that long-settled law establishes the meaning of 
political subdivision and that no further guidance is necessary. 
Commenters also stated that the Proposed Regulations would call into 
doubt the status of numerous existing issuers and users of tax-exempt 
bonds and that reorganizing these entities to qualify as political 
subdivisions under the Proposed Regulations would be burdensome.
    Executive Order 13789, issued on April 21, 2017, instructs the 
Secretary of the Treasury (the Secretary) to review all significant tax 
regulations issued on or after January 1, 2016, and to take concrete 
action to alleviate the burdens of regulations that (i) impose an undue 
financial burden on U.S. taxpayers; (ii) add undue complexity to the 
Federal tax laws; or (iii) exceed the statutory authority of the IRS. 
E.O. 13789 further instructs the Secretary to submit to the President 
within 60 days an interim report that identifies regulations that meet 
these criteria. Notice 2017-38 (2017-30 I.R.B. 147 (July 24, 2017)) 
included the Proposed Regulations in a list of eight regulations 
identified by the Secretary in the interim report as meeting at least 
one of the first two criteria specified in E.O. 13789.
    E.O. 13789 further instructs the Secretary to submit to the 
President by September 18, 2017, a final report that recommends 
specific actions to mitigate the burden imposed by regulations 
identified in the interim report. On October 16, 2017, the Secretary 
published this final report in the Federal Register (82 FR 48013), 
recommending a complete withdrawal of the Proposed Regulations to 
mitigate their potential burden. To implement the Secretary's 
recommendation, the Treasury Department and the IRS are withdrawing the 
Proposed Regulations.

Drafting Information

    The principal authors of this withdrawal notice are Spence Hanemann 
and Timothy Jones, Office of the Associate Chief Counsel (Financial 
Institutions and Products), IRS.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Withdrawal of Notice of Proposed Rulemaking

    Accordingly, under the authority of 26 U.S.C. 7805, the notice of 
proposed rulemaking (REG-129067-15) that was published in the Federal 
Register on February 23, 2016, (81 FR 8870) is withdrawn.

Kirsten Wielobob,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2017-22777 Filed 10-19-17; 8:45 am]
BILLING CODE 4830-01-P

48779

Proposed Rules Federal Register
Vol. 82, No. 202

Friday, October 20, 2017

This section of the FEDERAL REGISTER the Proposed Regulations would be February 23, 2016, (81 FR 8870) is
contains notices to the public of the proposed burdensome. withdrawn.
issuance of rules and regulations. The
purpose of these notices is to give interested Executive Order 13789, issued on Kirsten Wielobob,
persons an opportunity to participate in the April 21, 2017, instructs the Secretary of Deputy Commissioner for Services and
rule making prior to the adoption of the final the Treasury (the Secretary) to review Enforcement.
rules. all significant tax regulations issued on [FR Doc. 2017–22777 Filed 10–19–17; 8:45 am]
or after January 1, 2016, and to take BILLING CODE 4830–01–P
concrete action to alleviate the burdens
DEPARTMENT OF THE TREASURY of regulations that (i) impose an undue
financial burden on U.S. taxpayers; (ii) DEPARTMENT OF THE TREASURY
Internal Revenue Service
add undue complexity to the Federal tax
laws; or (iii) exceed the statutory Internal Revenue Service
26 CFR Part 1
authority of the IRS. E.O. 13789 further
[REG–129067–15] 26 CFR Part 25
instructs the Secretary to submit to the
RIN 1545–BM99 President within 60 days an interim [REG–163113–02]
report that identifies regulations that RIN 1545–BB71
Definition of Political Subdivision meet these criteria. Notice 2017–38
(2017–30 I.R.B. 147 (July 24, 2017)) Estate, Gift, and Generation-Skipping
AGENCY: Internal Revenue Service (IRS), included the Proposed Regulations in a Transfer Taxes; Restrictions on
Treasury.
list of eight regulations identified by the Liquidation of an Interest
ACTION: Withdrawal of notice of Secretary in the interim report as
proposed rulemaking. AGENCY: Internal Revenue Service (IRS),
meeting at least one of the first two
Treasury.
SUMMARY: This document withdraws a criteria specified in E.O. 13789.
ACTION: Withdrawal of notice of
notice of proposed rulemaking regarding E.O. 13789 further instructs the proposed rulemaking.
the definition of a political subdivision Secretary to submit to the President by
for purposes of tax-exempt bonds. September 18, 2017, a final report that SUMMARY: This document withdraws
DATES: As of October 20, 2017, the recommends specific actions to mitigate proposed regulations concerning the
notice of proposed rulemaking (REG– the burden imposed by regulations estate, gift and generation-skipping
129067–15) that was published in the identified in the interim report. On transfer (GST) tax treatment of lapses of
Federal Register on February 23, 2016, October 16, 2017, the Secretary liquidation rights in family-controlled
(81 FR 8870) is withdrawn. published this final report in the entities, as well as the valuation of
FOR FURTHER INFORMATION CONTACT: Federal Register (82 FR 48013), interests in family-controlled
Spence Hanemann at (202) 317–6980 recommending a complete withdrawal corporations and partnerships for estate,
(not a toll-free number). of the Proposed Regulations to mitigate gift, and GST tax purposes. Specifically,
their potential burden. To implement the proposed regulations would have
SUPPLEMENTARY INFORMATION:
the Secretary’s recommendation, the treated certain lapses of liquidation
Background rights as transfers occurring at death.
Treasury Department and the IRS are
The proposed regulations also
On February 23, 2016, the Department withdrawing the Proposed Regulations.
addressed the treatment of restrictions
of the Treasury (the Treasury
Drafting Information on liquidation and withdrawal in
Department) and the IRS published in
determining the value of transferred
the Federal Register a notice of The principal authors of this interests in family-controlled entities.
proposed rulemaking (81 FR 8870) that withdrawal notice are Spence This withdrawal affects certain
defines political subdivision for Hanemann and Timothy Jones, Office of transferors of interests in corporations
purposes of tax-exempt bonds under
the Associate Chief Counsel (Financial and partnerships.
section 103 of the Internal Revenue
Institutions and Products), IRS. DATES: The notice of proposed
Code (the Proposed Regulations). The
Treasury Department and the IRS List of Subjects in 26 CFR Part 1 rulemaking published August 4, 2016
received public comments and, on June (81 FR 51413) is withdrawn as of
6, 2016, held a public hearing on the Income taxes, Reporting and October 20, 2017.
Proposed Regulations. In response to the recordkeeping requirements. FOR FURTHER INFORMATION CONTACT: John
Proposed Regulations, commenters D. MacEachen, (202) 317–6859 (not a
Withdrawal of Notice of Proposed
stated that long-settled law establishes toll-free number).
Rulemaking
nlaroche on DSK9F9SC42PROD with PROPOSALS

the meaning of political subdivision and SUPPLEMENTARY INFORMATION:
that no further guidance is necessary. Accordingly, under the authority of
Commenters also stated that the Background
26 U.S.C. 7805, the notice of proposed
Proposed Regulations would call into rulemaking (REG–129067–15) that was Section 2704 of the Internal Revenue
doubt the status of numerous existing published in the Federal Register on Code provides special rules for purposes
issuers and users of tax-exempt bonds of subtitle B (relating to estate, gift, and
and that reorganizing these entities to GST taxes). Under section 2704(a), a
qualify as political subdivisions under lapse of certain voting or liquidation

VerDate Sep<11>2014 15:00 Oct 19, 2017 Jkt 244001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\20OCP1.SGM 20OCP1

Document Created: 2017-10-20 00:05:58
Document Modified: 2017-10-20 00:05:58

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		Withdrawal of notice of proposed rulemaking.
Dates		As of October 20, 2017, the notice of proposed rulemaking (REG- 129067-15) that was published in the Federal Register on February 23, 2016, (81 FR 8870) is withdrawn.
Contact		Spence Hanemann at (202) 317-6980 (not a toll-free number).
FR Citation		82 FR 48779
RIN Number		1545-BM99
CFR Associated		Income Taxes and Reporting and Recordkeeping Requirements

82 FR 48779 - Definition of Political Subdivision

DEPARTMENT OF THE TREASURYInternal Revenue Service

Federal Register Volume 82, Issue 202 (October 20, 2017)

DEPARTMENT OF THE TREASURY
Internal Revenue Service