# Consolidated Returns; Intercompany Obligations
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Partial withdrawal of notice of proposed rulemaking.
**SUMMARY:**
This document withdraws a portion of a notice of proposed rulemaking (REG-107592-00) published in the *Federal Register* on September 28, 2007 (72 FR 55139). The withdrawn portion relates to the treatment of transactions involving the provision of insurance between members of a consolidated group.
**FOR FURTHER INFORMATION CONTACT:**
Frances L. Kelly, (202) 622-7770 (not a toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
On September 28, 2007, the IRS and the Treasury Department published a notice of proposed rulemaking (REG-107592-00) in the *Federal Register* (72 FR 55139) which proposed to amend § 1.1502-13(g) (regarding the treatment of transactions involving obligations between members of a consolidated group) and to add § 1.1502-13(e)(2)(ii)(C) (regarding the treatment of certain transactions involving the provision of insurance between members of a consolidated group).
Under proposed § 1.1502-13(e)(2)(ii)(C), certain intercompany insurance transactions would be taken into account on a single entity basis. Written comments were received with respect to proposed § 1.1502-13(e)(2)(ii)(C). After consideration of these comments, the IRS and the Treasury Department have decided to withdraw proposed § 1.1502-13(e)(2)(ii)(C). However, the IRS and the Treasury Department continue to study whether revisions to the rules for intercompany transactions are necessary to clearly reflect the taxable income of consolidated groups.
**List of Subjects in 26 CFR Part 1**
Income taxes, Reporting and recordkeeping requirements.
**Partial Withdrawal of a Notice of Proposed Rulemaking**
Accordingly, under the authority of 26 U.S.C. 7805 and 26 U.S.C. 1502, § 1.1502-13(e)(2)(ii)(C) of the notice of proposed rulemaking (REG-107592-00) that was published in the *Federal Register* on September 28, 2007 (72 FR 55139) is withdrawn.
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.