80 FR 33451 - Partnership Transactions Involving Equity Interests of a Partner
DEPARTMENT OF THE TREASURY
Internal Revenue Service Federal Register Volume 80, Issue 113 (June 12, 2015)
Internal Revenue Service
Federal Register Volume 80, Issue 113 (June 12, 2015)
| Page Range | 33451-33452 | |
| FR Document | 2015-14403 |
[Federal Register Volume 80, Number 113 (Friday, June 12, 2015)] [Proposed Rules] [Pages 33451-33452] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-14403] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [REG-149518-03] RIN 1545-BM34 Partnership Transactions Involving Equity Interests of a Partner AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Withdrawal of notice of proposed rulemaking and notice of proposed rulemaking by cross-reference to temporary regulations. ----------------------------------------------------------------------- SUMMARY: In the Rules and Regulations section of this issue of the Federal Register, the IRS and the Treasury Department are issuing temporary regulations that prevent a corporate partner from using a partnership to avoid corporate level gain required to be recognized. These regulations affect partnerships and their partners. The text of the temporary regulations in this issue of the Federal Register also serves as the text of these proposed regulations. DATES: Comments and requests for a public hearing must be received by September 10, 2015. ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-149518-03), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, [[Page 33452]] 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- 149518-03), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC, or sent electronically, via the Federal eRulemaking Portal at http://www.regulations.gov (IRS REG-149518-03). FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Kevin I. Babitz, (202) 317-6852; concerning submission of comments or to request a public hearing, Oluwafunmilayo Taylor at (202) 317-6901. SUPPLEMENTARY INFORMATION: Background and Explanation of Provisions 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 337(d). The temporary regulations set forth rules for applying section 337(d) to partnerships and S corporations. The text of the temporary regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the temporary regulations and these proposed regulations. Special Analyses It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in Executive Order 12866, as supplemented by Executive Order 13563. Therefore, a regulatory assessment is not required. These proposed regulations do not impose a collection of information on small entities. Further, pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it is hereby certified that these proposed regulations would not have a significant economic impact on a substantial number of small entities. This certification is based on the fact that these proposed regulations would primarily affect sophisticated ownership structures with interlocking ownership of corporations, partnerships and corporate stock. Additionally, these proposed regulations contain a number of de minimis provisions that render the regulations inapplicable to most small businesses. Accordingly, a regulatory flexibility analysis is not required. 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 its 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 comments that are submitted timely to the IRS as prescribed in this preamble under the ADDRESSES heading. 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 or electronic 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 authors of these regulations are Joseph R. Worst and Kevin I. Babitz, Office of the Associate Chief Counsel (Passthroughs and Special Industries). However, other personnel from the IRS and the Treasury Department participated in their development. Withdrawal of Notice of Proposed Rulemaking Accordingly, under the authority of 26 U.S.C. 7805, the notice of proposed rulemaking (PS-91-90; REG-208989-90) that was published in the Federal Register on December 15, 1992 (57 FR 59324), is withdrawn. List of Subjects in 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. Proposed Amendment to the Regulations Accordingly, 26 CFR part 1 is proposed to be amended as follows: PART I--INCOME TAXES 0 Paragraph 1. The authority citation for part 1 is amended by adding an entry in numerical order to read in part as follows: Authority: 26 U.S.C. 7805 * * * Section 1.337(d)-3 also issued under 26 U.S.C. 337(d). * * * 0 Par. 2. Section 1.337(d)-3 is added to read as follows: Sec. 1.337(d)-3 Gain recognition upon certain partnership transactions involving a partner's stock. [The text of proposed Sec. 1.337(d)-3 is the same as the text of Sec. 1.337(d)-3T(a) through (i) published elsewhere in this issue of the Federal Register]. 0 Par. 3. Section 1.732-1 is amended by revising paragraphs (c)(1) and (c)(5)(ii) to read as follows: Sec. 1.732-1 Basis of distributed property other than money. * * * * * (c)(1) [The text of proposed Sec. 1.732-1(c)(1) is the same as the text of Sec. 1.732-1T(c)(1) published elsewhere in this issue of the Federal Register]. * * * * * (5) * * * (ii) [The text of proposed Sec. 1.732-1(c)(5)(ii) is the same as the text of Sec. 1.732-1T(c)(5)(ii) published elsewhere in this issue of the Federal Register]. * * * * * John Dalrymple, Deputy Commissioner for Services and Enforcement. [FR Doc. 2015-14403 Filed 6-11-15; 8:45 am] BILLING CODE 4830-01-P
![Federal Register / Vol. 80, No. 113 / Friday, June 12, 2015 / Proposed Rules 33451
large components and material stored in however, the petitioner states that the http://www.regulations.gov, by
robust structures be expanded to NRC should provide licensees and the searching on Docket ID NRC–2015–
include waste materials. One of the public with greater regulatory certainty 0094, which is the Docket ID for the
commenters suggested the inclusion of by clarifying the provision in the potential future rulemaking. In addition,
a dose rate criterion in the exemption. regulations. the Federal rulemaking Web site allows
The NRC considered the public NRC Response to Issue 2: The NRC you to receive alerts when changes or
comments in its analysis of the petition. will consider Issue 2 in the rulemaking additions occur in a docket folder. To
process. The petitioner raises regulatory subscribe to alerts: (1) Navigate to the
III. NRC Analysis
stability and predictability concerns docket folder (NRC–2015–0094); (2)
This section presents the three issues with respect to the language of the click the ‘‘Sign up for Email Alerts’’
raised by the petitioner followed by the exemption provision. The NRC notes link; and (3) enter your email address
NRC’s analysis of the issues. that the guidance in NUREG–2155 does and select how frequently you would
Issue 1: Revise the Exemption in 10 CFR clarify the intent of the exemption like to receive emails (daily, weekly, or
37.11(b) provision; however, the NRC agrees that monthly). The NRC also tracks all PRMs
the regulatory language should be clear. and rulemaking actions on its Web site
The petitioner requests that 10 CFR
Issue 3: Add an Exemption To Address at http://www.nrc.gov/reading-rm/doc-
37.11(b) be amended to allow for
Large Components and Storage in collections/rulemaking-ruleforum/
byproduct material kept within any area
Robust Structures petitions-by-year.html and on the
for which 10 CFR part 73 requires
Federal rulemaking Web site, http://
access control to be exempted from 10 The petitioner requests that 10 CFR www.regulations.gov.
CFR part 37 requirements regardless of 37.11 be revised to include a new
whether the byproduct material paragraph (d) that would address large Dated at Rockville, Maryland, this 2nd day
‘‘activities’’ are specifically ‘‘included components and storage of radioactive June, 2015.
in’’ a 10 CFR part 73 security plan. The material in robust structures. The For the Nuclear Regulatory Commission.
petitioner states that the exemption petitioner states that the exemption in Michael R. Johnson,
should recognize the extent to which 10 CFR 37.11(c) only addresses waste Acting Executive Director for Operations.
the physical protection requirements in material, and therefore, large [FR Doc. 2015–14422 Filed 6–11–15; 8:45 am]
10 CFR part 73 meet or exceed the components and non-waste material BILLING CODE 7590–01–P
requirements of 10 CFR part 37, so there stored in robust structures that present
is no need for any additional security a similar or lower risk for theft or
measures or documentation in the 10 diversion are not exempt from the 10 DEPARTMENT OF THE TREASURY
CFR part 73 security plan. The CFR part 37 requirements. The
petitioner asserts that 10 CFR part 37 petitioner notes that as part of the 10 Internal Revenue Service
currently imposes undue burden on CFR part 37 implementation process,
licensees that should be alleviated the NRC recognized this material as low 26 CFR Part 1
through a rulemaking. risk and issued EGM–14–001 to address
NRC Response to Issue 1: The NRC [REG–149518–03]
large components and storage of
will consider Issue 1 in the rulemaking material in robust structures. The RIN 1545–BM34
process. The NRC agrees that the petitioner states that a rulemaking to
language in 10 CFR 37.11(b) and the codify the EGM’s rationale would Partnership Transactions Involving
accompanying guidance in NUREG– recognize the practicalities militating Equity Interests of a Partner
2155, ‘‘Implementation Guidance for 10 against theft or diversion and would AGENCY: Internal Revenue Service (IRS),
CFR part 37 Physical Protection of avoid the long-term use of enforcement Treasury.
Category I and Category 2 Quantities of discretion and case-by-case exemption ACTION: Withdrawal of notice of
Radioactive Material’’ (ADAMS in this area. The petitioner also states
Accession No. ML13053A061), could be proposed rulemaking and notice of
that definitions for ‘‘large component’’ proposed rulemaking by cross-reference
clarified as to what is being exempted and ‘‘robust structure’’ should be added
and what action, if any, a licensee with to temporary regulations.
to the regulations.
a 10 CFR part 73 security plan needs to NRC Response to Issue 3: The NRC SUMMARY: In the Rules and Regulations
take to use the exemption. The exact will consider Issue 3 in the rulemaking section of this issue of the Federal
wording of a revision to paragraph (b), process. The NRC has issued Register, the IRS and the Treasury
if any, and the associated implications enforcement guidance (EGM–14–001) to Department are issuing temporary
for the guidance document (NUREG– address large components and storage of regulations that prevent a corporate
2155), would be determined during the radioactive material in robust structures. partner from using a partnership to
rulemaking process. The EGM states that it will remain avoid corporate level gain required to be
Issue 2: Revise the Exemption in 10 CFR effective until the underlying technical recognized. These regulations affect
37.11(c) issue is dispositioned through partnerships and their partners. The text
rulemaking or other regulatory action. of the temporary regulations in this
The petitioner requests that 10 CFR
IV. Determination of Petition issue of the Federal Register also serves
37.11(c) be modified to remove any
as the text of these proposed
ambiguity as to what type of wastes the The NRC has reviewed the petition
srobinson on DSK5SPTVN1PROD with PROPOSALS
regulations.
exemption applies. The petitioner states and related public comments. Based on
that the language is difficult to its review, the NRC will consider the DATES: Comments and requests for a
understand and has prompted three issues raised in the petition in the public hearing must be received by
numerous inquiries and many rulemaking process. The docket for the September 10, 2015.
discussions among NRC and the nuclear petition, PRM–37–1, is closed. ADDRESSES: Send submissions to:
industry. The petitioner notes that the Further NRC action on the issues CC:PA:LPD:PR (REG–149518–03), Room
NRC’s guidance document, NUREG– raised in PRM–37–1 can be monitored 5203, Internal Revenue Service, P.O.
2155, does clarify the ambiguity; on the Federal rulemaking Web site, Box 7604, Ben Franklin Station,
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![33452 Federal Register / Vol. 80, No. 113 / Friday, June 12, 2015 / Proposed Rules
Washington, DC 20044. Submissions Comments and Requests for a Public ■ Par. 3. Section 1.732–1 is amended by
may be hand-delivered Monday through Hearing revising paragraphs (c)(1) and (c)(5)(ii)
Friday between the hours of 8 a.m. and to read as follows:
4 p.m. to CC:PA:LPD:PR (REG–149518– Before these proposed regulations are
03), Courier’s Desk, Internal Revenue adopted as final regulations, § 1.732–1 Basis of distributed property
Service, 1111 Constitution Avenue NW., consideration will be given to comments other than money.
Washington, DC, or sent electronically, that are submitted timely to the IRS as * * * * *
via the Federal eRulemaking Portal at prescribed in this preamble under the (c)(1) [The text of proposed § 1.732–
ADDRESSES heading. The Treasury 1(c)(1) is the same as the text of § 1.732–
http://www.regulations.gov (IRS REG–
149518–03). Department and the IRS request 1T(c)(1) published elsewhere in this
comments on all aspects of the proposed issue of the Federal Register].
FOR FURTHER INFORMATION CONTACT:
rules. All comments will be available at * * * * *
Concerning the proposed regulations, www.regulations.gov or upon request. A
Kevin I. Babitz, (202) 317–6852; (5) * * *
public hearing will be scheduled if (ii) [The text of proposed § 1.732–
concerning submission of comments or requested in writing by any person that
to request a public hearing, 1(c)(5)(ii) is the same as the text of
timely submits written or electronic § 1.732–1T(c)(5)(ii) published elsewhere
Oluwafunmilayo Taylor at (202) 317– comments. If a public hearing is
6901. in this issue of the Federal Register].
scheduled, notice of the date, time, and
SUPPLEMENTARY INFORMATION:
* * * * *
place for the public hearing will be
Background and Explanation of published in the Federal Register. John Dalrymple,
Provisions Drafting Information Deputy Commissioner for Services and
Enforcement.
Temporary regulations in the Rules The principal authors of these [FR Doc. 2015–14403 Filed 6–11–15; 8:45 am]
and Regulations section of this issue of regulations are Joseph R. Worst and BILLING CODE 4830–01–P
the Federal Register amend the Income Kevin I. Babitz, Office of the Associate
Tax Regulations (26 CFR part 1) relating Chief Counsel (Passthroughs and
to section 337(d). The temporary Special Industries). However, other DEPARTMENT OF THE TREASURY
regulations set forth rules for applying personnel from the IRS and the Treasury
section 337(d) to partnerships and S Department participated in their Internal Revenue Service
corporations. The text of the temporary development.
regulations also serves as the text of 26 CFR Part 1
these proposed regulations. The Withdrawal of Notice of Proposed
preamble to the temporary regulations Rulemaking [REG–138759–14]
explains the temporary regulations and Accordingly, under the authority of RIN 1545–BM48
these proposed regulations. 26 U.S.C. 7805, the notice of proposed
Aggregation of Basis for Partnership
Special Analyses rulemaking (PS–91–90; REG–208989–
Distributions Involving Equity Interests
It has been determined that this notice 90) that was published in the Federal
of a Partner
of proposed rulemaking is not a Register on December 15, 1992 (57 FR
significant regulatory action as defined 59324), is withdrawn. AGENCY: Internal Revenue Service (IRS),
in Executive Order 12866, as List of Subjects in 26 CFR Part 1 Treasury.
supplemented by Executive Order ACTION: Notice of proposed rulemaking.
13563. Therefore, a regulatory Income taxes, Reporting and
assessment is not required. These recordkeeping requirements. SUMMARY: This document contains
proposed regulations do not impose a proposed regulations that would allow
Proposed Amendment to the consolidated group members that are
collection of information on small Regulations
entities. Further, pursuant to the partners in the same partnership to
Regulatory Flexibility Act (5 U.S.C. Accordingly, 26 CFR part 1 is aggregate their bases in stock distributed
chapter 6), it is hereby certified that proposed to be amended as follows: by the partnership for the purpose of
these proposed regulations would not limiting the application of rules that
have a significant economic impact on PART I—INCOME TAXES might otherwise cause basis reduction
a substantial number of small entities. or gain recognition. The proposed
■ Paragraph 1. The authority citation regulations would also require certain
This certification is based on the fact
for part 1 is amended by adding an entry corporations that engage in gain
that these proposed regulations would
in numerical order to read in part as elimination transactions to reduce the
primarily affect sophisticated ownership
follows: basis of corporate assets or to recognize
structures with interlocking ownership
of corporations, partnerships and Authority: 26 U.S.C. 7805 * * * gain. The proposed regulations affect
corporate stock. Additionally, these Section 1.337(d)–3 also issued under 26 partnerships and their partners.
proposed regulations contain a number U.S.C. 337(d). * * * DATES: Comments and requests for a
of de minimis provisions that render the ■ Par. 2. Section 1.337(d)–3 is added to public hearing must be received by
regulations inapplicable to most small read as follows: September 10, 2015.
srobinson on DSK5SPTVN1PROD with PROPOSALS
businesses. Accordingly, a regulatory ADDRESSES: Send submissions to:
flexibility analysis is not required. § 1.337(d)–3 Gain recognition upon certain CC:PA:LPD:PR (REG–138759–14), Room
Pursuant to section 7805(f) of the partnership transactions involving a 5203, Internal Revenue Service, P.O.
Internal Revenue Code, these partner’s stock. Box 7604, Ben Franklin Station,
regulations have been submitted to the [The text of proposed § 1.337(d)–3 is Washington, DC 20044. Submissions
Chief Counsel for Advocacy of the Small the same as the text of § 1.337(d)–3T(a) may be hand-delivered Monday through
Business Administration for comment through (i) published elsewhere in this Friday between the hours of 8 a.m. and
on its impact on small business. issue of the Federal Register]. 4 p.m. to CC:PA:LPD:PR (REG–138759–
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Document Created: 2018-02-22 10:16:07
Document Modified: 2018-02-22 10:16:07
| 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 | Withdrawal of notice of proposed rulemaking and notice of proposed rulemaking by cross-reference to temporary regulations. | |
| Dates | Comments and requests for a public hearing must be received by September 10, 2015. | |
| Contact | Concerning the proposed regulations, Kevin I. Babitz, (202) 317-6852; concerning submission of comments or to request a public hearing, Oluwafunmilayo Taylor at (202) 317-6901. | |
| FR Citation | 80 FR 33451 | |
| RIN Number | 1545-BM34 | |
| CFR Associated | Income Taxes and Reporting and Recordkeeping Requirements |
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