Part IV. Items of General Interest

rulemaking relating to basis reduction due to discharge of indebtedness under sections 108 and 1017 of the Internal Revenue Code of 1986.

DATES: The public hearing is being held on Thursday, May 29, 1997, beginning at 10 a.m. Requests to speak and outlines of oral comments must be received by April 3, 1997.

ADDRESSES: The public hearing originally scheduled in the IRS Auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC is changed to the Commissioner’s Conference Room, room 3313, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Evangelista Lee of the Regulations Unit, Assistant Chief Counsel (Corporate), (202) 622–7180 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

A notice of proposed rulemaking and notice of public hearing appearing in the Federal Register on Tuesday, January 7, 1997, (62 FR 955 [REG–208172–91, 1997–10 I.R.B. 59]) announced that a public hearing on proposed regulations relating to the basis reduction due to discharge of indebtedness under sections 108 and 1017 would be held on Thursday, April 24, 1997, beginning at 10 a.m. in the IRS Auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC and that requests to speak and outlines of oral comments should be received by Thursday, April 3, 1997.

The date and location of the public hearing has changed. The hearing is scheduled for Thursday, May 29, 1997, beginning at 10 a.m. in the Commissioner’s Conference Room, room 3313, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC. We must receive requests to speak and outlines of oral comments by Thursday, April 3, 1997. Because of the controlled access restrictions, attenders are not admitted beyond the lobby of the Internal Revenue Building until 9:45 a.m.

The Service will prepare an agenda showing the scheduling of the speakers after the outlines are received from the

Employee Plans; Examination Guidelines

Announcement 97–42

The Internal Revenue Service has developed proposed examination guidelines for employee plans examiners to use when examining Simplified Employee Plans (SEPs). The guidelines provide technical background and guidance as to issues that should be considered during an examination. The guidelines are not intended to be all inclusive, and may be modified based on specific issues encountered by the examiners during the examination.

As with earlier examination guidelines, the Service is seeking public comments with respect to the proposed examination guidelines pertaining to Simplified Employee Plans before the guidelines are finalized in the Internal Revenue Manual.

A copy of the proposed examination guidelines for Simplified Employee Plans may be obtained by submitting a written request to the Internal Revenue Service: Assistant Commissioner (Employee Plans and Exempt Organizations), CP:E:EP:FC, 1111 Constitution Avenue NW, Washington, DC 20224. Written comments on the guidelines pertaining to Simplified Employee Plans may be submitted on or before July 28, 1997, to the Internal Revenue Service, Attention: Assistant Commissioner (Employee Plans and Exempt Organizations), CP:E:EP:FC, 1111 Constitution Avenue, NW, Washington, DC 20224.

Simplification of Entity Classification Rules; Correction

Announcement 97–43

AGENCY: Internal Revenue Service, Treasury.

ACTION: Correction to the final regulations.

SUMMARY: This document contains corrections to the final regulations (T.D. 8697 [1997–2 I.R.B. 11]) which were published in the Federal Register on Wednesday, December 18, 1996 (61 FR 66584). The final regulations relate to the classification of business organizations.

EFFECTIVE DATE: January 1, 1997.

FOR FURTHER INFORMATION CONTACT: Mark D. Harris, (202) 622–3050 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are subject to these corrections are under section 7701 of the Internal Revenue Code.

Need for Correction

As published, the final regulations (T.D. 8697) contain errors which may prove to be misleading and are in need of clarification.

Correction of Publication

Accordingly, the publication of the final regulations (T.D. 8697) which are the subject of FR Doc. 96–31997 is corrected as follows:

§ 301.7701–3 [Corrected]

1. On page 66592, column 1, § 301.7701–3, paragraph (c)(1)(vi), Ex- ample 1, line 11 from the bottom of the paragraph, the language ‘‘by September 13, 1998. See paragraph’’ is corrected to read ‘‘by September 14, 1998. See paragraph’’.

2. On page 66592, column 1, § 301.7701–3, paragraph (c)(1)(vi), Ex- ample 1, line 7 from the bottom of the paragraph, the language ‘‘Form 8832 after September 13, 1998, it will’’ is corrected to read ‘‘Form 8832 after September 14, 1998, it will’’.

Cynthia E. Grigsby, Chief, Regulations Unit, Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on March 12, 1997, 8:45 a.m., and published in the issue of the Federal Register for March 13, 1997, 62 F.R. 11769)

Basis Reduction Due To Discharge of Indebtedness; Hearing

Announcement 97–44

AGENCY: Internal Revenue Service, Treasury.

ACTION: Proposed rule; change of date and location of public hearing.

SUMMARY: This document changes the date and location of the public hearing on the notice of proposed

19 1997–17 I.R.B.

persons testifying and make copies available free of charge at the hearing.

Cynthia E. Grigsby, Chief, Regulations Unit, Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on March 14, 1997, 8:45 a.m., and published in the issue of the Federal Register for March 17, 1997, 62 F.R. 12582)

Stock Options Contributed to a Plan

Announcement 97–45

On December 24, 1996, the Internal Revenue Service issued P.L.R. 9712033 which concerned the federal income tax (including unrelated business income tax) and federal excise tax consequences of the contribution of certain stock options to a qualified plan and the subse

quent exercise of those stock options to be used in the purchase of the common stock of the employer maintaining the plan.

The Service is reexamining the plan qualification and other tax issues under the Internal Revenue Code of 1986, as amended, raised by a contribution of stock options to a plan and subsequent exercise of those options.

1997–17 I.R.B. 20