Internal Revenue Bulletin:  2009-43 

October 26, 2009 


Notice of Proposed Rulemaking by Cross-Reference to Temporary Regulations Definition of Omission from Gross Income


Internal Revenue Service (IRS), Treasury.


Notice of proposed rulemaking by cross-reference to temporary regulations.


This document contains proposed regulations defining an omission from gross income for purposes of the six-year minimum period for assessment of tax attributable to partnership items and the six-year period for assessing tax. The regulations resolve a continuing issue as to whether an overstatement of basis in a sold asset results in an omission from gross income. The regulations will affect any taxpayer who overstates basis in a sold asset creating an omission from gross income exceeding twenty-five percent of the income stated in the return. The text of the temporary regulations (T.D. 9466) published in this issue of the Bulletin also serves as the text of these proposed regulations. This document also provides notice of a public hearing on these proposed and temporary regulations.


Written or electronic comments and requests for a public hearing must be received by December 28, 2009.


Send submissions to: CC:PA:LPD:PR (REG-108045-08), room 5205, 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-108045-08), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC, or sent electronically via the Federal eRulemaking Portal at (IRS REG-108045-08).


Concerning the proposed regulations, William A. Heard, III at (202) 622-4570; concerning submissions of comments and requests for a public hearing,, (202) 622-7180 (not toll-free numbers).


Background and Explanation of Provisions

Temporary regulations in this issue of the Bulletin amend the Procedure and Administration Regulations (26 CFR part 301) relating to sections 6229(c)(2) and 6501(e). 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 this notice of proposed rulemaking is 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 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 Internal Revenue Code, these regulations have been submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on their impact on small business.

Comments and Requests for a 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 the Treasury Department request comments on the substance of the proposed regulations, as well as on the clarity of the proposed rules and how they can be made easier to understand. All public comments will be made available for public inspection and copying. A public hearing will be scheduled if requested in writing by any person that timely submits comments. If a public hearing is scheduled, notice of the date, time, and place for the public hearing will be published in the Federal Register.

Proposed Amendments to the Regulations

Accordingly, 26 CFR Part 301 is proposed to be amended as follows:


Paragraph 1. The authority citation for part 301 is amended by adding the entry in numerical order to read in part as follows:

Authority: 26 U.S.C. 7805 * * *

Section 301.6229(c)(2)-1 is also issued under 26 U.S.C. §6230(k). * * *

Par. 2. Section 301.6229(c)(2)-1 is added to read as follows:

§301.6229(c)(2)-1 Substantial omission of income.

[The text of §301.6229(c)(2)-1 is the same as the text of §301.6229(c)(2)-1T published elsewhere in the Bulletin].

Par. 3. Section 301.6501(e)-1 is added to read as follows:

§301.6501(e)-1 Omission from return.

[The text of §301.6501(e)-1 is the same as the text of §301.6501(e)-1T published elsewhere in the Bulletin].

Linda E. Stiff,
Deputy Commissioner for
Services and Enforcement.


(Filed by the Office of the Federal Register on September 24, 2009, 4:15 p.m., and published in the issue of the Federal Register for September 28, 2009, 74 F.R. 46345)

Drafting Information

The principal author of these regulations is William A. Heard III of the Office of the Associate Chief Counsel (Procedure and Administration).

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