80_FR_32103 80 FR 31995 - Reporting for Premium; Basis Reporting by Securities Brokers and Basis Determination for Debt Instruments and Options; Correction

80 FR 31995 - Reporting for Premium; Basis Reporting by Securities Brokers and Basis Determination for Debt Instruments and Options; Correction

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 80, Issue 108 (June 5, 2015)

Page Range31995-31996
FR Document2015-13796

This document contains amendments to temporary regulations relating to information reporting by brokers for transfers of debt instruments. The amendments change the applicability date of the temporary regulations for reporting certain information on a transfer statement from June 30, 2015, to January 1, 2016. The amendments to the temporary regulations will provide guidance to brokers and their customers.

Federal Register, Volume 80 Issue 108 (Friday, June 5, 2015) 
[Federal Register Volume 80, Number 108 (Friday, June 5, 2015)]
[Rules and Regulations]
[Pages 31995-31996]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-13796]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9713]
RIN 1545-BL46; RIN 1545-BM60


Reporting for Premium; Basis Reporting by Securities Brokers and 
Basis Determination for Debt Instruments and Options; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Temporary regulations; correcting amendments.

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SUMMARY: This document contains amendments to temporary regulations 
relating to information reporting by brokers for transfers of debt 
instruments. The amendments change the applicability date of the 
temporary regulations for reporting certain information on a transfer 
statement from June 30, 2015, to January 1, 2016. The amendments to the 
temporary regulations will provide guidance to brokers and their 
customers.

DATES: Effective Date: These amendments are effective on June 5, 2015.
    Applicability Date: For the date of applicability, see Sec.  
1.6045A-1T(f), as corrected.

FOR FURTHER INFORMATION CONTACT: Pamela Lew at (202) 317-7053 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The temporary regulations that are the subject of these amendments 
are under section 6045A of the Internal Revenue Code. The temporary 
regulations (TD 9713) were published in the Federal Register on Friday, 
March 13, 2015 (80 FR 13233).

Need for Amendments

    Under Sec.  1.6045A-1, a broker is required to provide certain 
information relating to a transfer of a debt instrument that is a 
covered security on a transfer statement. Section 1.6045A-1T(f) 
requires a broker to provide certain additional information on the 
transfer statement. Section 1.6045A-1T(f) applies to a transfer that 
occurs on or after June 30, 2015. After the publication of the 
temporary regulations, the Treasury Department and the IRS received 
comments requesting that the applicability date of the regulations be 
delayed until January 1, 2016. In response to these comments, this 
document amends the applicability

[[Page 31996]]

date to make the regulations apply to transfers that occur on or after 
January 1, 2016.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Amendments to the Regulations

    Accordingly, 26 CFR part 1 is corrected by making the following 
correcting amendments:

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 * * *


0
Par. 2. Section 1.6045A-1T is amended by:
0
1. Revising the second sentence in paragraph (f).
0
2. Adding a sentence at the end of paragraph (f).
    The revision and addition read as follows:


Sec.  1.6045A-1T  Statements of information required in connection with 
transfers of securities (temporary).

* * * * *
    (f) * * * This paragraph (f) applies to a transfer that occurs on 
or after January 1, 2016. A broker, however, may rely on this paragraph 
(f) for a transfer of a covered security that occurs on or after June 
30, 2015, and before January 1, 2016.
* * * * *

Martin V. Franks,
Branch Chief, Publications & Regulations Branch, Legal Processing 
Division, Associate Chief Counsel (Procedure & Administration).
[FR Doc. 2015-13796 Filed 6-4-15; 8:45 am]
 BILLING CODE 4830-01-P

Federal Register / Vol. 80, No. 108 / Friday, June 5, 2015 / Rules and Regulations 31995 § 559.4 [Amended] ■ a. In paragraph (a)(1)(ii), remove the DEPARTMENT OF THE TREASURY ■ 31. In the last sentence of § 559.4, add word ‘‘provides’’ and add in its place a comma after the word ‘‘standards’’. the phrase, ‘‘is served with’’. Internal Revenue Service ■ b. In paragraph (a)(5), remove the § 559.5 [Amended] 26 CFR Part 1 phrase ‘‘having been’’. ■ 32. In the section heading to § 559.5, [TD 9713] ■ c. In paragraph (a)(10), remove remove the phrase ‘‘Does a tribe need to’’ and add in its place the phrase ‘‘558.2’’ and add in its place ‘‘556.5’’ RIN 1545–BL46; RIN 1545–BM60 ‘‘Must a tribe’’. and remove ‘‘558.5’’ and add in its place ‘‘558.4’’. Reporting for Premium; Basis PART 571—MONITORING AND Reporting by Securities Brokers and ■ d. In paragraph (c)(3), remove INVESTIGATIONS Basis Determination for Debt ‘‘subchapter H’’ and add in its place Instruments and Options; Correction ‘‘part 584 or part 585’’. ■ 33. The authority citation for part 571 AGENCY: Internal Revenue Service (IRS), continues to read as follows: PART 575—CIVIL FINES Treasury. Authority: 25 U.S.C. 2706(b), 2710(b)(2)(C), ACTION: Temporary regulations; 2715, 2716. ■ 41. The authority citation for part 575 correcting amendments. ■ 34. Revise the last sentence of § 571.3 continues to read as follows: to read as follows: SUMMARY: This document contains Authority: 25 U.S.C. 2705(a), 2706, 2713, amendments to temporary regulations § 571.3 Confidentiality. 2715. relating to information reporting by * * * The confidentiality of brokers for transfers of debt instruments. § 575.6 [Amended] documents submitted in a multiple- The amendments change the party proceeding is addressed in § 584.9 ■ 42. In § 575.6, remove ‘‘part 577’’ applicability date of the temporary of this chapter. everywhere it appears and add in its regulations for reporting certain place ‘‘part 584 or part 585’’. information on a transfer statement from § 571.4 [Amended] June 30, 2015, to January 1, 2016. The ■ 35. In § 571.4: § 575.9 [Redesignated as § 575.7] amendments to the temporary ■ a. In the first sentence, remove the regulations will provide guidance to word ‘‘NIGC’’ and add in its place the ■ 43. Redesignate § 575.9 as § 575.7, and brokers and their customers. word ‘‘Commission’’. in newly redesignated § 575.7(a), DATES: Effective Date: These ■ b. Add the phrase ‘‘or resolution’’ after remove ‘‘part 577’’ and add in its place amendments are effective on June 5, the word ‘‘ordinance’’. ‘‘part 584 or part 585’’. 2015. § 571.11 [Amended] Applicability Date: For the date of PART 580—COMPLIANCE RULES OF applicability, see § 1.6045A–1T(f), as ■ 36. In § 571.11(a), remove the phrase GENERAL APPLICATION IN APPEAL corrected. ‘‘part 577’’ and add in its place the PROCEEDINGS BEFORE THE phrase ‘‘part 584’’. COMMISSION FOR FURTHER INFORMATION CONTACT: Pamela Lew at (202) 317–7053 (not a PART 573—COMPLIANCE AND toll-free number). ■ 44. The authority citation for part 580 ENFORCEMENT continues to read as follows: SUPPLEMENTARY INFORMATION: ■ 37. The authority citation for part 573 Authority: 25 U.S.C. 2706, 2713, 2715. Background continues to read as follows: The temporary regulations that are the § 580.6 [Amended] Authority: 25 U.S.C. 2706(b)(10), 2713; subject of these amendments are under E.O. 13175, 65 FR 67249, 3 CFR, 2000 Comp., ■ 45. In the last sentence of § 580.6, section 6045A of the Internal Revenue p.304. remove the phrase ‘‘in the computation’’ Code. The temporary regulations (TD and add in its place the phrase ‘‘from 9713) were published in the Federal § 573.1 [Amended] the computation’’. Register on Friday, March 13, 2015 (80 ■ 38. In the last sentence in § 573.1, FR 13233). remove the word ‘‘notice’’ and add in its § 580.12 [Amended] place the word ‘‘notices’’. Need for Amendments ■ 39. Revise the first sentence of ■ 46. In the first sentence of § 580.12, Under § 1.6045A–1, a broker is § 573.2(a) to read as follows: remove the acronym ‘‘NIGC’’ and add in required to provide certain information its place the word ‘‘Commission’’. relating to a transfer of a debt § 573.2 When may a letter of concern be instrument that is a covered security on issued? Dated: May 28, 2015. a transfer statement. Section 1.6045A– (a) Prior to the Chair taking an Jonodev O. Chaudhuri, 1T(f) requires a broker to provide certain enforcement action, a letter of concern Chairman. additional information on the transfer may be provided by NIGC staff, Daniel J. Little, statement. Section 1.6045A–1T(f) detailing concerns regarding compliance Associate Commissioner. applies to a transfer that occurs on or with the Act, this chapter, or any tribal [FR Doc. 2015–13645 Filed 6–4–15; 8:45 am] after June 30, 2015. After the mstockstill on DSK4VPTVN1PROD with RULES ordinance or resolution approved by the publication of the temporary BILLING CODE 7565–01–P Chair under part 522 of this chapter. regulations, the Treasury Department * * * and the IRS received comments * * * * * requesting that the applicability date of the regulations be delayed until January § 573.4 [Amended] 1, 2016. In response to these comments, ■ 40. In § 573.4: this document amends the applicability VerDate Sep<11>2014 17:17 Jun 04, 2015 Jkt 235001 PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 E:\FR\FM\05JNR1.SGM 05JNR1

31996 Federal Register / Vol. 80, No. 108 / Friday, June 5, 2015 / Rules and Regulations date to make the regulations apply to regulations affect corporations whose the seller. This separate public group transfers that occur on or after January stock is or was acquired by the was treated as a new 5-percent 1, 2016. Department of the Treasury (Treasury) shareholder. However, this rule was pursuant to certain programs under the rendered inoperative by § 1.382–3(j)(13), List of Subjects in 26 CFR Part 1 Emergency Economic Stabilization Act part of a set of regulations published in Income taxes, Reporting and of 2008 (EESA). TD 9638 [78 FR 62418] on October 22, recordkeeping requirements. DATES: Effective Date: These regulations 2013. Under the new regulation, no new Amendments to the Regulations are effective on June 5, 2015. public group is created on the transfer Applicability Date: For dates of of stock to the public shareholders; Accordingly, 26 CFR part 1 is applicability, see § 1.382–3(j)(17). instead, the transferred stock is treated corrected by making the following FOR FURTHER INFORMATION CONTACT: as acquired proportionately by the correcting amendments: Stephen R. Cleary, (202) 317–5353 (not public groups existing at the time of the a toll-free number). transfer. PART 1—INCOME TAXES Notice 2010–2 (2010–2 IRB 251 SUPPLEMENTARY INFORMATION: (December 16, 2009)) (see ■ Paragraph 1. The authority citation Background and Explanation of § 601.601(d)(2)(ii)(b) of this chapter) for part 1 continues to read in part as Provisions provides guidance regarding the follows: Section 382 application of section 382 and other Authority: 26 U.S.C. 7805 * * * provisions of law to corporations whose Section 382 of the Code provides that instruments are acquired and disposed ■ Par. 2. Section 1.6045A–1T is the taxable income of a loss corporation amended by: of by the Treasury pursuant to EESA. for a year following an ownership Notice 2010–2 relates to instruments ■ 1. Revising the second sentence in change may be offset by pre-change acquired by Treasury pursuant to the paragraph (f). losses only to the extent of the section ■ 2. Adding a sentence at the end of following EESA programs: (i) The 382 limitation for such year. An paragraph (f). Capital Purchase Program for publicly- ownership change occurs with respect The revision and addition read as traded issuers; (ii) the Capital Purchase to a corporation if it is a loss corporation follows: Program for private issuers; (iii) the on a testing date and, immediately after Capital Purchase Program for S § 1.6045A–1T Statements of information the close of the testing date, the corporations; (iv) the Targeted required in connection with transfers of percentage of stock of the corporation Investment Program; (v) the Asset securities (temporary). owned by one or more 5-percent Guarantee Program; (vi) the * * * * * shareholders has increased by more Systemically Significant Failing (f) * * * This paragraph (f) applies to than 50 percentage points over the Institutions Program; (vii) the a transfer that occurs on or after January lowest percentage of stock of such Automotive Industry Financing 1, 2016. A broker, however, may rely on corporation owned by such Program; and (viii) the Capital this paragraph (f) for a transfer of a shareholders at any time during the Assistance Program for publicly-traded covered security that occurs on or after testing period. A testing date is any date issuers. (These programs are collectively June 30, 2015, and before January 1, on which occurs any change in the referred to as ‘‘Programs’’ in that Notice 2016. ownership of loss corporation stock that and in this preamble.) * * * * * affects the percentage of stock owned by Under Section III(G) of Notice 2010– any 5-percent shareholder (owner shift). 2, a ‘‘Covered Instrument’’ is an Martin V. Franks, Pursuant to section 382(g)(4)(A), instrument that is acquired by Treasury Branch Chief, Publications & Regulations shareholders who own less than five in exchange for an instrument that was Branch, Legal Processing Division, Associate percent of a loss corporation are Chief Counsel (Procedure & Administration). issued to Treasury under the Programs, aggregated and treated as a single 5- or is acquired by Treasury in exchange [FR Doc. 2015–13796 Filed 6–4–15; 8:45 am] percent shareholder (a public group). In for another Covered Instrument. For BILLING CODE 4830–01–P addition, new public groups may be most purposes of that Notice, a Covered created as a result of certain transactions Instrument is treated as though it had under the segregation rules in the DEPARTMENT OF THE TREASURY been issued directly to Treasury under section 382 regulations. Any new public the Programs. group is tracked separately from, and in Section III(E) of Notice 2010–2 Internal Revenue Service addition to, the public group or groups provides the following rule to govern that existed previously and is treated as the sale by Treasury of stock of a 26 CFR Part 1 a new 5-percent shareholder that corporation to public shareholders: [TD 9721] increases its ownership interest in the loss corporation. Section 382 treatment of stock sold by RIN 1545–BM17 One particular segregation rule, which Treasury to public shareholders. If Treasury sells stock that was issued to it pursuant to was imposed by § 1.382–2T(j)(3)(i) of the Programs (either directly or upon the Segregation Rule Effective Date the Temporary Income Tax Regulations exercise of a warrant) and the sale creates a AGENCY: Internal Revenue Service (IRS), until it was superseded, required public group (‘‘New Public Group’’), the New Treasury. segregation when an individual or entity Public Group’s ownership in the issuing ACTION: Final regulations and removal of that owned five percent or more of the corporation shall not be considered to have mstockstill on DSK4VPTVN1PROD with RULES loss corporation transferred an interest increased solely as a result of such a sale. A temporary regulations. New Public Group’s ownership shall be in the loss corporation to public shareholders. After the sale, stock treated as having increased to the extent the SUMMARY: This document contains final New Public Group increases its ownership regulations under section 382 of the owned by a public group that existed pursuant to any transaction other than a sale Internal Revenue Code (Code) that immediately before the sale was treated of stock by Treasury, including pursuant to modify the effective date provision of separately from the stock owned by the a stock issuance described in § 1.382–3(j)(2) recently published regulations. These public group that acquired stock from or a redemption (see § 1.382–2T(j)(2)(iii)(C)). VerDate Sep<11>2014 17:17 Jun 04, 2015 Jkt 235001 PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 E:\FR\FM\05JNR1.SGM 05JNR1


Document Created: 2015-12-15 15:20:40
Document Modified: 2015-12-15 15:20:40
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionTemporary regulations; correcting amendments.
ContactPamela Lew at (202) 317-7053 (not a toll-free number).
FR Citation80 FR 31995 
RIN Number1545-BL46 and 1545-BM60
CFR AssociatedIncome Taxes and Reporting and Recordkeeping Requirements
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