80 FR 18171 - Allocation of Controlled Group Research Credit

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 80, Issue 64 (April 3, 2015)

Page Range		18171-18172
FR Document		2015-07380

This document contains proposed regulations relating to the allocation of the group credit. The proposed regulations will affect certain taxpayers claiming the credit. In the Rules and Regulations section of this issue of the Federal Register, the IRS is issuing temporary regulations providing guidance relating to the allocation of the credit for increasing research activities (research credit) to corporations and trades or businesses under common control (controlled groups). The temporary regulations also contain rules relating to the allocation of the railroad track maintenance credit (RTMC) and the election for a reduced research credit. The text of the temporary regulations also serves as the text of these proposed regulations.

Federal Register, Volume 80 Issue 64 (Friday, April 3, 2015)

[Federal Register Volume 80, Number 64 (Friday, April 3, 2015)]
[Proposed Rules]
[Pages 18171-18172]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-07380]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-133489-13]
RIN 1545-BL76


Allocation of Controlled Group Research Credit

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations and notice of public hearing.

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

SUMMARY: This document contains proposed regulations relating to the 
allocation of the group credit. The proposed regulations will affect 
certain taxpayers claiming the credit. In the Rules and Regulations 
section of this issue of the Federal Register, the IRS is issuing 
temporary regulations providing guidance relating to the allocation of 
the credit for increasing research activities (research credit) to 
corporations and trades or businesses under common control (controlled 
groups). The temporary regulations also contain rules relating to the 
allocation of the railroad track maintenance credit (RTMC) and the 
election for a reduced research credit. The text of the temporary 
regulations also serves as the text of these proposed regulations.

DATES: Comments and requests for a public hearing must be received by 
July 2, 2015.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-133489-13), Room 
5203, 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-
133489-13), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue NW., Washington, DC. Submissions may also be sent electronically 
via the Federal eRulemaking Portal at www.regulations.gov (IRS REG-
133489-13). The public hearing will be held in the IRS Auditorium, 
Internal Revenue Building, 1111 Constitution Avenue NW., Washington, 
DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, James A. 
Holmes, (202) 317-4137; concerning submission of comments, the hearing, 
and/or to be placed on the building access list to attend the hearing, 
Oluwafunmilayo (Funmi) Taylor at (202) 317-6901 (not toll-free 
numbers).

SUPPLEMENTARY INFORMATION:

Background

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Income Tax Regulations (26 CFR 
part 1) relating to section 41. The temporary regulations amend 
Sec. Sec.  1.41-6,1.45G-1, and 1.280C-4. The regulations are being 
prescribed to update the regulations in a manner that is consistent 
with the amendments made to sections 41(f)(1)(A)(ii) and 
41(f)(1)(B)(ii) in Section 301(c) of the Act. The text of the temporary 
regulations also serves as the text of these proposed regulations. The 
preamble to those 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 
the 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, this 
notice of proposed rulemaking will be submitted to the Chief Counsel 
for Advocacy of the Small Business Administration for comment on their 
impact on small business.

Comments and Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any comments that are submitted timely 
to the IRS. The Treasury Department and the IRS request comments on all 
aspects of the proposed rules. All comments will be available at 
www.regulations.gov or upon request.
    A public hearing will be scheduled if requested in writing by any 
person that timely submits written 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.

Drafting Information

    The principal author of these regulations is James A. Holmes, 
Office of Associate Chief Counsel (Passthroughs and Special 
Industries), IRS. However, other personnel from the IRS and Treasury 
Department participated in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read, in 
part as follows:

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

    Section 1.41-6 also issued under 26 U.S.C. 41(f)(1) * * *
    Section 1.45G-1 also issued under 26 U.S.C. 45G(e)(2) * * *
    Section 1.280C-4 also issued under 26 U.S.C. 280C(c)(4) * * *
0
Par. 2. Section 1.41-6 is amended to read as follows:


Sec.  1.41-6.  Aggregation of expenditures.

    [The text of the amendments to this proposed section is the same as 
the text of Sec.  1.41-6T published elsewhere in this issue of the 
Federal Register].
0
Par. 3. Section 1.45G-1 is amended to read as follows:


Sec.  1.45G-1.  Railroad track maintenance credit.

    [The text of the amendments to this proposed section is the same as 
the text

[[Page 18172]]

of Sec.  1.45G-1T published elsewhere in this issue of the Federal 
Register].
0
Par. 4. Section 1.280C-4 is amended to read as follows.


Sec.  1.280C-4.  Credit for increasing research activities.

    [The text of the amendments to this proposed section is the same as 
the text of Sec.  1.280C-4T published elsewhere in this issue of the 
Federal Register].

John M. Dalrymple,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2015-07380 Filed 4-2-15; 8:45 am]
 BILLING CODE 4830-01-P

Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Proposed Rules 18171

intentional falsification will be referred track maintenance credit (RTMC) and section 7805(f) of the Internal Revenue
to an appropriate FAA office for further the election for a reduced research Code, this notice of proposed
handling. The FAA may use such credit. The text of the temporary rulemaking will be submitted to the
reports for enforcement purposes, and regulations also serves as the text of Chief Counsel for Advocacy of the Small
will refer such reports to law these proposed regulations. Business Administration for comment
enforcement agencies, if appropriate. To DATES: Comments and requests for a on their impact on small business.
withhold information in these public hearing must be received by July Comments and Public Hearing
circumstances would be inconsistent 2, 2015.
with the agency’s safety responsibilities ADDRESSES: Send submissions to:
Before these proposed regulations are
because it could prevent, or at least CC:PA:LPD:PR (REG–133489–13), Room adopted as final regulations,
diminish the FAA’s ability to effectively 5203, Internal Revenue Service, P.O. consideration will be given to any
address egregious misconduct. Box 7604, Ben Franklin Station, comments that are submitted timely to
f. Summary of how the FAA will Washington, DC 20044. Submissions the IRS. The Treasury Department and
distinguish information protected under may be hand delivered Monday through the IRS request comments on all aspects
part 193 from information the FAA Friday between the hours of 8 a.m. and of the proposed rules. All comments
receives from other sources. 4 p.m. to: CC:PA:LPD:PR (REG–133489– will be available at www.regulations.gov
All employee SAFER–FCT and 13), Courier’s Desk, Internal Revenue or upon request.
ATSAP–X reports are clearly labeled as A public hearing will be scheduled if
Service, 1111 Constitution Avenue NW.,
such. Each employee must submit their requested in writing by any person that
Washington, DC. Submissions may also
own report. timely submits written comments. If a
be sent electronically via the Federal
public hearing is scheduled, notice of
5. Designation eRulemaking Portal at
the date, time, and place for the public
www.regulations.gov (IRS REG–133489–
The FAA designates the information hearing will be published in the Federal
13). The public hearing will be held in
described in paragraph 5b to be Register.
the IRS Auditorium, Internal Revenue
protected from disclosure in accordance
Building, 1111 Constitution Avenue Drafting Information
with 49 U.S.C., section 40123 and 14
NW., Washington, DC. The principal author of these
CFR part 193.
FOR FURTHER INFORMATION CONTACT: regulations is James A. Holmes, Office
Issued in Washington, DC on March 27, Concerning the regulations, James A.
2015. of Associate Chief Counsel
Holmes, (202) 317–4137; concerning (Passthroughs and Special Industries),
Michael P. Huerta, submission of comments, the hearing, IRS. However, other personnel from the
Administrator, Federal Aviation and/or to be placed on the building
Administration.
IRS and Treasury Department
access list to attend the hearing, participated in their development.
[FR Doc. 2015–07743 Filed 4–2–15; 8:45 am] Oluwafunmilayo (Funmi) Taylor at
BILLING CODE 4910–13–P (202) 317–6901 (not toll-free numbers). List of Subjects in 26 CFR Part 1
SUPPLEMENTARY INFORMATION: Income taxes, Reporting and
recordkeeping requirements.
DEPARTMENT OF THE TREASURY Background
Temporary regulations in the Rules Proposed Amendments to the
Internal Revenue Service and Regulations section of this issue of Regulations
the Federal Register amend the Income Accordingly, 26 CFR part 1 is
26 CFR Part 1 Tax Regulations (26 CFR part 1) relating proposed to be amended as follows:
[REG–133489–13] to section 41. The temporary regulations
amend §§ 1.41–6,1.45G–1, and 1.280C– PART 1—INCOME TAXES
RIN 1545–BL76 4. The regulations are being prescribed
■ Paragraph 1. The authority citation
to update the regulations in a manner
Allocation of Controlled Group for part 1 continues to read, in part as
that is consistent with the amendments
Research Credit follows:
made to sections 41(f)(1)(A)(ii) and
AGENCY: Internal Revenue Service (IRS), 41(f)(1)(B)(ii) in Section 301(c) of the Authority: 26 U.S.C. 7805 * * *
Treasury. Act. The text of the temporary Section 1.41–6 also issued under 26 U.S.C.
ACTION: Notice of proposed rulemaking regulations also serves as the text of 41(f)(1) * * *
by cross-reference to temporary these proposed regulations. The Section 1.45G–1 also issued under 26
regulations and notice of public hearing. preamble to those regulations explains U.S.C. 45G(e)(2) * * *
the amendments. Section 1.280C–4 also issued under 26
SUMMARY: This document contains U.S.C. 280C(c)(4) * * *
proposed regulations relating to the Special Analyses ■ Par. 2. Section 1.41–6 is amended to
allocation of the group credit. The It has been determined that this notice read as follows:
proposed regulations will affect certain of proposed rulemaking is not a § 1.41–6. Aggregation of expenditures.
taxpayers claiming the credit. In the significant regulatory action as defined [The text of the amendments to this
Rules and Regulations section of this in Executive Order 12866. Therefore, a
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS

proposed section is the same as the text
issue of the Federal Register, the IRS is regulatory assessment is not required. It of § 1.41–6T published elsewhere in this
issuing temporary regulations providing also has been determined that section issue of the Federal Register].
guidance relating to the allocation of the 553(b) of the Administrative Procedure ■ Par. 3. Section 1.45G–1 is amended to
credit for increasing research activities Act (5 U.S.C. chapter 5) does not apply read as follows:
(research credit) to corporations and to these regulations, and because the
trades or businesses under common regulations do not impose a collection § 1.45G–1. Railroad track maintenance
control (controlled groups). The of information on small entities, the credit.
temporary regulations also contain rules Regulatory Flexibility Act (5 U.S.C. [The text of the amendments to this
relating to the allocation of the railroad chapter 6) does not apply. Pursuant to proposed section is the same as the text

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18172 Federal Register / Vol. 80, No. 64 / Friday, April 3, 2015 / Proposed Rules

of § 1.45G–1T published elsewhere in business hours. (TTY and TDD users Background
this issue of the Federal Register]. may call the Federal relay service toll- The Pension Benefit Guaranty
■ Par. 4. Section 1.280C–4 is amended free at 1–800–877–8339 and ask to be Corporation (PBGC) is a federal
to read as follows. connected to 202–326–4040.) corporation created under the Employee
FOR FURTHER INFORMATION CONTACT: Retirement Income Security Act of 1974
§ 1.280C–4. Credit for increasing research
activities. Catherine B. Klion (klion.catherine@ (ERISA) to guarantee the payment of
pbgc.gov), Assistant General Counsel for pension benefits earned by more than 41
[The text of the amendments to this Regulatory Affairs, or Donald McCabe
proposed section is the same as the text million American workers and retirees
(mccabe.donald@pbgc.gov), Attorney, in nearly 24,000 private-sector defined
of § 1.280C–4T published elsewhere in Office of the General Counsel, Pension
this issue of the Federal Register]. benefit pension plans. PBGC
Benefit Guaranty Corporation, 1200 K administers two insurance programs—
John M. Dalrymple, Street NW., Washington, DC 20005– one for single-employer defined benefit
Deputy Commissioner for Services and 4026; 202–326–4024. (TTY/TDD users pension plans and a second for
Enforcement. may call the Federal relay service toll- multiemployer defined benefit pension
[FR Doc. 2015–07380 Filed 4–2–15; 8:45 am] free at 1–800–877–8339 and ask to be plans.
BILLING CODE 4830–01–P
connected to 202–326–4024.) The multiemployer program protects
SUPPLEMENTARY INFORMATION: benefits of approximately 10 million
Executive Summary workers and retirees in approximately
PENSION BENEFIT GUARANTY 1,400 plans. A multiemployer plan is a
CORPORATION Purpose of the Regulatory Action collectively bargained pension
This proposed rule is part of PBGC’s arrangement involving two or more
29 CFR Parts 4000, 4041A, and 4281 ongoing implementation of the unrelated employers, usually in a
RIN 1212–AB28 Government Paperwork Elimination Act common industry such as construction
and is consistent with the Office of or trucking, where workers move from
Multiemployer Plans; Electronic Filing Management and Budget’s directive to employer to employer on a regular basis.
Requirements remove regulatory impediments to Under PBGC’s multiemployer program,
electronic transactions. The proposal when a plan becomes insolvent, PBGC
AGENCY: Pension Benefit Guaranty builds in flexibility to allow PBGC to provides financial assistance directly to
Corporation. update the electronic filing process as the insolvent plan sufficient to pay
ACTION: Proposed rule. technology advances. guaranteed benefits to participants and
PBGC’s legal authority for this beneficiaries, and the reasonable and
SUMMARY: The Pension Benefit Guaranty regulatory action comes from section necessary administrative expenses of
Corporation (PBGC) is proposing to 4002(b)(3) of the Employee Retirement the insolvent plan.
amend its regulations to require Income Security Act of 1974 (ERISA),
electronic filing of certain which authorizes PBGC to issue Multiemployer Plan Notices
multiemployer notices. These changes regulations to carry out the purposes of ERISA section 4041A provides for two
would make the provision of title IV of ERISA; section 4041A(f)(2), types of multiemployer plan
information to PBGC more efficient and which gives PBGC authority to prescribe terminations: mass withdrawal and plan
effective. reporting requirements for terminated amendment. A mass withdrawal
DATES: Comments must be submitted on plans; section 4245(e)(4), which termination occurs when all employers
or before June 2, 2015. authorizes PBGC to issue regulations on withdraw or cease to be obligated to
ADDRESSES: Comments, identified by notices related to insolvency and contribute to the plan. A plan
Regulation Identifier Number (RIN) resource benefit levels; and section amendment termination occurs when
1212–AB28, may be submitted by any of 4281(d), which directs PBGC to the plan adopts an amendment that
the following methods: prescribe by regulation the notice provides that participants will receive
• Federal eRulemaking Portal: http:// requirements to plan participants and no credit for service with any employer
www.regulations.gov. Follow the Web beneficiaries in the event of a benefit after a specified date, or an amendment
site instructions for submitting suspension under an insolvent plan. that makes it no longer a covered plan.
comments. This proposed rule does not involve Unlike terminated single-employer
• Email: reg.comments@pbgc.gov. any conforming amendments reflecting plans, terminated multiemployer plans
• Fax: 202–326–4112. the Multiemployer Pension Reform Act generally continue to pay all vested
• Mail or Hand Delivery: Regulatory of 2014 (MPRA).1 PBGC expects to benefits out of existing plan assets and
Affairs Group, Office of the General address such changes in a future withdrawal liability payments. PBGC’s
Counsel, Pension Benefit Guaranty rulemaking. regulation on Termination of
Corporation, 1200 K Street NW., Major Provisions of the Regulatory Multiemployer Plans (29 CFR part
Washington, DC 20005–4026. Action 4041A) implements these provisions,
All submissions must include the among other things by requiring the
This proposed rule would require the
Regulation Identifier Number for this plan sponsor of a terminated
following notices to be filed
rulemaking (RIN 1212–AB28). multiemployer plan to file with PBGC a
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS

electronically with PBGC: notices of
Comments received, including personal notice of termination containing basic
termination under part 4041A, notices
information provided, will be posted to information necessary to alert PBGC to
of insolvency and of insolvency benefit
www.pbgc.gov. Copies of comments may possible demands on the multiemployer
level under parts 4245 and 4281, and
also be obtained by writing to insurance program.
applications for financial assistance
Disclosure Division, Office of the ERISA section 4245(e) requires two
under part 4281.
General Counsel, Pension Benefit types of notice:
Guaranty Corporation, 1200 K Street 1 Division O of the Consolidated and Further • Notice of insolvency, which states a
NW., Washington DC 20005–4026, or Continuing Appropriations Act, 2015, Public Law plan sponsor’s determination that the
calling 202–326–4040 during normal No. 113–235, enacted December 16, 2014. plan is or may become insolvent.

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Document Created: 2015-12-18 15:29:17
Document Modified: 2015-12-18 15:29:17

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		Notice of proposed rulemaking by cross-reference to temporary regulations and notice of public hearing.
Dates		Comments and requests for a public hearing must be received by July 2, 2015.
Contact		Concerning the regulations, James A. Holmes, (202) 317-4137; concerning submission of comments, the hearing, and/or to be placed on the building access list to attend the hearing, Oluwafunmilayo (Funmi) Taylor at (202) 317-6901 (not toll-free numbers).
FR Citation		80 FR 18171
RIN Number		1545-BL76
CFR Associated		Income Taxes and Reporting and Recordkeeping Requirements

80 FR 18171 - Allocation of Controlled Group Research Credit

DEPARTMENT OF THE TREASURYInternal Revenue Service

Federal Register Volume 80, Issue 64 (April 3, 2015)

DEPARTMENT OF THE TREASURY
Internal Revenue Service