Section 6724.—Waiver — Internal Revenue Bulletin 2006-4

26 CFR 301.6724–1: Reasonable cause.

A notice explains that a payee/filer who is unable to comply with the reporting requirements for loan origination fees and capitalized interest may request that the Service waive, upon a showing of reasonable cause under section 6724 and the regulations, any penalty that might otherwise be imposed under sections 6721 or 6722 for failure to report these amounts. See Notice 2006-5, page 348.

January 23, 2006 338 2006–4 I.R.B.

(e) * - (3) [Reserved]. For further guidance, see §301.7701–2T(f).

(4) The reference to the Estonian, Latvian, Liechtenstein, Lithuanian, and Slovenian entities in paragraph (b)(8)(i) of this section applies to such entities formed on or after October 7, 2004, and to any such entity formed before such date from the date any person or persons, who were not owners of the entity as of October 7, 2004, own in the aggregate a 50 percent or greater interest in the entity. The reference to the European Economic Area/European Union entity in paragraph (b)(8)(i) of this section applies to such entities formed on or after October 8, 2004.

Par. 3. Section 301.7701–2T is amended by:

Removing paragraph (b)(8)(vi).
Revising paragraph (e)(3). The revision reads as follows:

§301.7701–2T Business entities; definitions (temporary).

- - - (e) * - (3) [Reserved]. For further guidance, see §301.7701–2(e)(4).

Mark E. Matthews, Deputy Commissioner for Services and Enforcement.

Approved December 8, 2005.

Eric Solomon, Acting Deputy Assistant Secretary of the Treasury.

(Filed by the Office of the Federal Register on December 15, 2005, 8:45 a.m., and published in the issue of the Federal Register for December 16, 2005, 70 F.R. 74658)

SE). Specifically, the temporary and proposed regulations added the SE, Estonian Aktsiaselts, Latvian Akciju Sabiedriba, Lithuanian Akcine Bendroves, Slovenian Delniska Druzba, and Liechtenstein Aktiengesellschaft to the per se list of corporations. For further background, see T.D. 9197, 2005–18 I.R.B. 985 [70 FR 19697] and Notice 2004–68, 2004–2 C.B. 706.

Explanation of Provisions

No substantive comments were received regarding the temporary and proposed regulations. Accordingly, these regulations finalize the proposed regulations without modification and revise the temporary regulations to cross reference to the new provisions.

Special Analysis

It has been determined that this Treasury decision is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It has also been determined that section 553(b) of the Administrative and Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations, and, 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. Pursuant to section 7805(f) of the Code, the Notice of Proposed Rulemaking preceding the final regulations was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on their impact on small business.

Drafting Information

The principal author of these regulations is Ronald M. Gootzeit of the Of

fice of Associate Chief Counsel (International). However, other personnel from the IRS and Treasury Department participated in their development.

- - - -

Amendments to the Regulations

Accordingly, 26 CFR part 301 is amended as follows:

PART 301 - PROCEDURE AND ADMINISTRATION

Paragraph 1. The authority citation for part 301 continues to read, in part, as follows:

Authority: 26 U.S.C. 7805 * * * Par. 2. Section 301.7701–2 is amended by:

Adding six entries in alphabetical order to paragraph (b)(8)(i).
Removing paragraph (b)(8)(vi).
Adding paragraphs (e)(3) and (4). The additions read as follows:

§301.7701–2 Business entities; definitions.

- - - (b) - - (8) - - (i) - - Estonia, Aktsiaselts European Economic Area/European Union, Societas Europaea
- - - Latvia, Akciju Sabiedriba
- - - Liechtenstein, Aktiengesellschaft Lithuania, Akcine Bendroves
- - - Slovenia, Delniska Druzba.

2006–4 I.R.B. 339 January 23, 2006