80 FR 56415 - Dividend Equivalents From Sources Within the United States

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 80, Issue 181 (September 18, 2015)

Page Range		56415-56416
FR Document		2015-21753

DATES: Written or electronic comments must be received by December 17, 2015. Outlines of topics to be discussed at the public hearing scheduled for January 15, 2016, at 10 a.m. must be received by December 17, 2015.

Federal Register, Volume 80 Issue 181 (Friday, September 18, 2015)

[Federal Register Volume 80, Number 181 (Friday, September 18, 2015)]
[Proposed Rules]
[Pages 56415-56416]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-21753]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-127895-14]
RIN 1545-BM33


Dividend Equivalents From Sources Within the United States

AGENCY: Internal Revenue Service (IRS), Treasury.

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

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SUMMARY: 

DATES: Written or electronic comments must be received by December 17, 
2015. Outlines of topics to be discussed at the public hearing 
scheduled for January 15, 2016, at 10 a.m. must be received by December 
17, 2015.

ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-127895-14), Room 5203, 
Internal Revenue Service, PO 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-
127895-14), Courier's desk, Internal Revenue Service, 1111 Constitution 
Avenue NW., Washington, DC 20044, or sent electronically, via the 
Federal eRulemaking Portal at www.regulations.gov (IRS REG-127895-14). 
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, D. Peter 
Merkel or Karen Walny at (202) 317-6938; concerning submissions of 
comments, the hearing, and/or to be placed on the building access list 
to attend the hearing Oluwfunmilayo Taylor at (202) 317-6901 (not toll-
free numbers).

SUPPLEMENTARY INFORMATION: 

Background and Explanation of Provisions

    Final and temporary regulations in the Rules and Regulations 
section of this issue of the Federal Register contain amendments to the 
Income Tax Regulations (26 CFR part 1) which provide rules for 
determining when a payment made pursuant to certain financial products 
will be treated as a dividend equivalent for purposes of section 
871(m). These proposed regulations provide guidance relating to the 
substantial equivalence test, which

[[Page 56416]]

is used to determine whether a complex contract is a section 871(m) 
transaction. These proposed regulations also provide guidance to 
qualified derivatives dealers. The text of those temporary regulations 
also serves as the text of these proposed regulations. The preamble to 
the final and temporary regulations explains the temporary regulations 
and these proposed regulations. The regulations affect nonresident 
alien individuals, foreign corporations, and withholding agents.

Special Analyses

    Certain IRS regulations, including this one, are exempt from the 
requirements of Executive Order 12866, as supplemented and reaffirmed 
by Executive Order 13563. Therefore, a regulatory impact assessment is 
not required. It has also 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), 
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 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 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 has been scheduled for January 15, 2016, beginning 
at 10 a.m. in the Auditorium of the Internal Revenue Building, 1111 
Constitution Avenue NW., Washington, DC. Due to building security 
procedures, visitors must enter at the Constitution Avenue entrance. In 
addition, all visitors must present photo identification to enter the 
building. Because of access restrictions, visitors will not be admitted 
beyond the immediate entrance more than 30 minutes before the hearing 
starts. For information about having your name placed on the building 
access list to attend the hearing, see the FOR FURTHER INFORMATION 
CONTACT section of this preamble.
    The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who 
wish to present oral comments at the hearing must submit an outline of 
the topics to be discussed and the time to be devoted to each topic by 
December 17, 2015. Submit a signed paper or electronic copy of the 
outline as prescribed in this preamble under the ADDRESSES heading. A 
period of 10 minutes will be allotted to each person for making 
comments. An agenda showing the scheduling of the speakers will be 
prepared after the deadline for receiving outlines has passed. Copies 
of the agenda will be available free of charge at the hearing.

Drafting Information

    The principal authors of these regulations are D. Peter Merkel and 
Karen Walny of the Office of Chief Counsel (International). However, 
other personnel from the Treasury Department and the IRS 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 * * *
    Sec.  1.871-15 also issued under 26 U.S.C. 871(m). * * *

0
Par. 2. Section 1.871-15 is amended by revising paragraph (c)(2)(vi) 
and paragraph (h) to read as follows:


Sec.  1.871-15  Treatment of dividend equivalents.

* * * * *
    (c) * * *
    (2) * * *
    (iv) [The text of the proposed amendments to Sec.  1.871-
15(c)(2)(iv) is the same as the text of Sec.  1.871-15T(c)(2)(iv) 
published elsewhere in this issue of the Federal Register.]
* * * * *
    (h) [The text of the proposed amendments to Sec.  1.871-15(h) is 
the same as the text of Sec.  1.871-15T(h) published elsewhere in this 
issue of the Federal Register.]
* * * * *
    (q) [The text of the proposed amendments to Sec.  1.871-15(q) is 
the same as the text of Sec.  1.871-15T(q) published elsewhere in this 
issue of the Federal Register.]
0
Par. 3. Section 1.1441-1 is amended by revising paragraph (e)(3)(vii) 
and paragraph (e)(6) to read as follows:


Sec.  1.1441-1  Requirement for the deduction and withholding of tax on 
payments to foreign persons.

* * * * *
    (e) * * *
    (3) * * *
    (ii) * * *
    (E) [The text of the proposed amendments to Sec.  1.1441-
1(e)(3)(ii)(E) is the same as the text of Sec.  1.1441-1T(e)(3)(ii)(E) 
published elsewhere in this issue of the Federal Register.]
* * * * *
    (5) [The text of the proposed amendments to Sec.  1.1441-1(e)(5) is 
the same as the text of Sec.  1.1441-1T(e)(5) published elsewhere in 
this issue of the Federal Register.]
    (6) [The text of the proposed amendments to Sec.  1.1441-1(e)(6) is 
the same as the text of Sec.  1.1441-1T(e)(6) published elsewhere in 
this issue of the Federal Register.]

John Dalrymple,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2015-21753 Filed 9-17-15; 8:45 am]
BILLING CODE 4830-01-P

Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 56415

(a) Comments Due Date (j) Other FAA AD Provisions DEPARTMENT OF THE TREASURY
We must receive comments by November The following provisions also apply to this
2, 2015. AD: Internal Revenue Service
(b) Affected ADs (1) Alternative Methods of Compliance
(AMOCs): The Manager, International 26 CFR Part 1
None.
Branch, ANM–116, Transport Airplane [REG–127895–14]
(c) Applicability Directorate, FAA, has the authority to
This AD applies to Fokker Services B.V. approve AMOCs for this AD, if requested RIN 1545–BM33
Model F.27 Mark 200, 300, 400, 500, 600, and using the procedures found in 14 CFR 39.19.
700 airplanes, certificated in any category, all In accordance with 14 CFR 39.19, send your Dividend Equivalents From Sources
serial numbers. request to your principal inspector or local Within the United States
Flight Standards District Office, as
(d) Subject AGENCY: Internal Revenue Service (IRS),
appropriate. If sending information directly
Air Transport Association (ATA) of Treasury.
to the International Branch, send it to ATTN:
America Code 28, Fuel. Tom Rodriguez, Aerospace Engineer, ACTION: Notice of proposed rulemaking
(e) Reason International Branch, ANM–116, Transport by cross-reference to temporary
Airplane Directorate, FAA, 1601 Lind regulations and notice of public hearing.
This AD was prompted by a design review
conducted by Fokker Services B.V. that Avenue SW., Renton, WA 98057–3356;
SUMMARY:
indicated no controlled bonding provisions telephone 425–227–1137; fax 425 227–1149
were present on many critical locations Information may be emailed to: 9-ANM-116- DATES: Written or electronic comments
outside the fuel tank or connected to the fuel AMOC-REQUESTS@faa.gov. Before using must be received by December 17, 2015.
tank wall. We are issuing this AD to prevent any approved AMOC, notify your appropriate Outlines of topics to be discussed at the
an ignition source in the fuel tank vapor principal inspector, or lacking a principal public hearing scheduled for January 15,
space, which could result in a fuel tank inspector, the manager of the local flight 2016, at 10 a.m. must be received by
explosion and consequent loss of the standards district office/certificate holding December 17, 2015.
airplane. district office. The AMOC approval letter ADDRESSES: Send submissions to
(f) Compliance must specifically reference this AD. CC:PA:LPD:PR (REG–127895–14), Room
Comply with this AD within the (2) Contacting the Manufacturer: For any 5203, Internal Revenue Service, PO Box
compliance times specified, unless already requirement in this AD to obtain corrective 7604, Ben Franklin Station, Washington,
done. actions from a manufacturer, the action must DC 20044. Submissions may be hand
be accomplished using a method approved delivered Monday through Friday
(g) Installation by the Manager, International Branch, ANM– between the hours of 8 a.m. and 4 p.m.
Within 24 months after the effective date 116, Transport Airplane Directorate, FAA; or to CC:PA:LPD:PR (REG–127895–14),
of this AD, install additional bonding the European Aviation Safety Agency Courier’s desk, Internal Revenue
provisions, in accordance with the (EASA); or Fokker B.V. Service’s EASA
Accomplishment Instructions of Fokker F27 Service, 1111 Constitution Avenue NW.,
Design Organization Approval (DOA). If Washington, DC 20044, or sent
Proforma Service Bulletin SBF27–28–072,
approved by the DOA, the approval must electronically, via the Federal
Revision 1, dated March 6, 2014, including
Fokker F27 Service Bulletin Appendix include the DOA-authorized signature. eRulemaking Portal at
SBF27–28–072/APP01, including List of (k) Related Information www.regulations.gov (IRS REG–127895–
Drawings/Part Lists, dated July 17, 2014. 14). The public hearing will be held in
(1) Refer to Mandatory Continuing
(h) Maintenance or Inspection Program the IRS Auditorium, Internal Revenue
Airworthiness Information (MCAI) EASA
Revision Building, 1111 Constitution Avenue
Airworthiness Directive 2014–0100, dated
At the later of the times specified in April 30, 2014, for related information. This
NW., Washington, DC.
paragraph (h)(1) and (h)(2) of this AD: Revise MCAI may be found in the AD docket on the FOR FURTHER INFORMATION CONTACT:
the airplane maintenance or inspection Internet at http://www.regulations.gov by Concerning the regulations, D. Peter
program, as applicable, by incorporating the searching for and locating Docket No. FAA– Merkel or Karen Walny at (202) 317–
fuel airworthiness limitations items and 2015–3633. 6938; concerning submissions of
critical design configuration control comments, the hearing, and/or to be
(2) For service information identified in
limitations as identified in Fokker Manual
this AD, contact Fokker Services B.V., placed on the building access list to
Change Notification—Maintenance
Documentation (MCNM) F27–027 dated Technical Services Dept., P.O. Box 1357, attend the hearing Oluwfunmilayo
September 9, 2014. 2130 EL Hoofddorp, the Netherlands; Taylor at (202) 317–6901 (not toll-free
(1) Before further flight after accomplishing telephone +31 (0)88–6280–350; fax +31 numbers).
the installation required by paragraph (g) of (0)88–6280–111; email technicalservices@ SUPPLEMENTARY INFORMATION:
this AD, fokker.com; Internet http://
(2) Within 30 days after the effective date www.myfokkerfleet.com. You may view this Background and Explanation of
of this AD. service information at the FAA, Transport Provisions
(i) No Alternative Actions, Intervals, and/or Airplane Directorate, 1601 Lind Avenue SW., Final and temporary regulations in
Critical Design Configuration Control Renton, WA. For information on the the Rules and Regulations section of this
Limitations (CDCCLs) availability of this material at the FAA, call issue of the Federal Register contain
After the maintenance or inspection 425–227–1221. amendments to the Income Tax
program, as applicable, has been revised as
tkelley on DSK3SPTVN1PROD with PROPOSALS

Issued in Renton, Washington, on Regulations (26 CFR part 1) which
required by paragraph (h) of this AD, no September 11, 2015. provide rules for determining when a
alternative actions (e.g., inspections),
Michael Kaszycki, payment made pursuant to certain
intervals, and/or CDCCLs may be used unless
the actions, intervals, and/or CDCCLs are Acting Manager, Transport Airplane financial products will be treated as a
approved as an alternative method of Directorate, Aircraft Certification Service. dividend equivalent for purposes of
compliance in accordance with the [FR Doc. 2015–23408 Filed 9–17–15; 8:45 am]
section 871(m). These proposed
procedures specified in paragraph (j) of this regulations provide guidance relating to
BILLING CODE 4910–13–P
AD. the substantial equivalence test, which

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56416 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules

is used to determine whether a complex be discussed and the time to be devoted § 1.1441–1 Requirement for the deduction
contract is a section 871(m) transaction. to each topic by December 17, 2015. and withholding of tax on payments to
These proposed regulations also provide Submit a signed paper or electronic foreign persons.
guidance to qualified derivatives copy of the outline as prescribed in this * * * * *
dealers. The text of those temporary preamble under the ADDRESSES heading. (e) * * *
regulations also serves as the text of A period of 10 minutes will be allotted (3) * * *
these proposed regulations. The to each person for making comments. (ii) * * *
preamble to the final and temporary An agenda showing the scheduling of (E) [The text of the proposed
regulations explains the temporary the speakers will be prepared after the amendments to § 1.1441–1(e)(3)(ii)(E) is
regulations and these proposed deadline for receiving outlines has the same as the text of § 1.1441–
regulations. The regulations affect passed. Copies of the agenda will be 1T(e)(3)(ii)(E) published elsewhere in
nonresident alien individuals, foreign available free of charge at the hearing. this issue of the Federal Register.]
corporations, and withholding agents. * * * * *
Drafting Information
Special Analyses (5) [The text of the proposed
The principal authors of these amendments to § 1.1441–1(e)(5) is the
Certain IRS regulations, including this regulations are D. Peter Merkel and same as the text of § 1.1441–1T(e)(5)
one, are exempt from the requirements Karen Walny of the Office of Chief published elsewhere in this issue of the
of Executive Order 12866, as Counsel (International). However, other Federal Register.]
supplemented and reaffirmed by personnel from the Treasury (6) [The text of the proposed
Executive Order 13563. Therefore, a Department and the IRS participated in amendments to § 1.1441–1(e)(6) is the
regulatory impact assessment is not their development. same as the text of § 1.1441–1T(e)(6)
required. It has also been determined
List of Subjects in 26 CFR Part 1 published elsewhere in this issue of the
that section 553(b) of the Administrative
Federal Register.]
Procedure Act (5 U.S.C. chapter 5) does Income taxes, Reporting and
not apply to these regulations, and recordkeeping requirements. John Dalrymple,
because the regulations do not impose a Deputy Commissioner for Services and
collection of information on small Proposed Amendments to the Enforcement.
entities, the Regulatory Flexibility Act Regulations [FR Doc. 2015–21753 Filed 9–17–15; 8:45 am]
(5 U.S.C. chapter 6) does not apply. Accordingly, 26 CFR part 1 is BILLING CODE 4830–01–P
Pursuant to section 7805(f), these proposed to be amended as follows:
regulations have been submitted to the
Chief Counsel for Advocacy of the Small PART 1—INCOME TAXES DEPARTMENT OF LABOR
Business Administration for comment
on its impact on small business. ■ Paragraph 1. The authority citation Mine Safety and Health Administration
for part 1 continues to read in part as
Comments and Public Hearing
follows: 30 CFR Parts 7 and 75
Before these proposed regulations are Authority: 26 U.S.C. 7805 * * *
adopted as final regulations, § 1.871–15 also issued under 26 U.S.C. [Docket No. MSHA–2013–0033]
consideration will be given to any 871(m). * * * RIN 1219–AB79
comments that are submitted timely to
■ Par. 2. Section 1.871–15 is amended
the IRS as prescribed in this preamble Refuge Alternatives for Underground
by revising paragraph (c)(2)(vi) and
under the ADDRESSES heading. The Coal Mines
paragraph (h) to read as follows:
Treasury Department and the IRS
request comments on all aspects of the § 1.871–15 Treatment of dividend AGENCY: Mine Safety and Health
proposed rules. All comments will be equivalents. Administration, Labor.
available at www.regulations.gov or * * * * * ACTION: Notice of public meeting;
upon request. (c) * * * reopening of record.
A public hearing has been scheduled (2) * * *
for January 15, 2016, beginning at 10 SUMMARY: The Mine Safety and Health
(iv) [The text of the proposed
a.m. in the Auditorium of the Internal Administration (MSHA) will hold a
amendments to § 1.871–15(c)(2)(iv) is
Revenue Building, 1111 Constitution public meeting to gather information on
the same as the text of § 1.871–
Avenue NW., Washington, DC. Due to issues and options relevant to miners’
15T(c)(2)(iv) published elsewhere in
building security procedures, visitors escape and refuge. This meeting will
this issue of the Federal Register.]
must enter at the Constitution Avenue supplement the information already
entrance. In addition, all visitors must * * * * * received in response to the Agency’s
present photo identification to enter the (h) [The text of the proposed Request for Information on Refuge
building. Because of access restrictions, amendments to § 1.871–15(h) is the Alternatives for Underground Coal
visitors will not be admitted beyond the same as the text of § 1.871–15T(h) Mines. This meeting provides coal mine
immediate entrance more than 30 published elsewhere in this issue of the operators, coal miners, manufacturers,
minutes before the hearing starts. For Federal Register.] academia and other interested
information about having your name * * * * * stakeholders an opportunity to provide
(q) [The text of the proposed
tkelley on DSK3SPTVN1PROD with PROPOSALS

placed on the building access list to information concerning two critical
attend the hearing, see the FOR FURTHER amendments to § 1.871–15(q) is the issues: Impediments to the use of built-
INFORMATION CONTACT section of this same as the text of § 1.871–15T(q) in-place refuges and enhanced two-way
preamble. published elsewhere in this issue of the voice communication when using
The rules of 26 CFR 601.601(a)(3) Federal Register.] escape breathing devices. This meeting
apply to the hearing. Persons who wish ■ Par. 3. Section 1.1441–1 is amended also invites stakeholders to provide
to present oral comments at the hearing by revising paragraph (e)(3)(vii) and input on the current state of refuges in
must submit an outline of the topics to paragraph (e)(6) to read as follows: use and recent research and new

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Document Created: 2015-12-15 09:27:35
Document Modified: 2015-12-15 09:27:35

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		Written or electronic comments must be received by December 17, 2015. Outlines of topics to be discussed at the public hearing scheduled for January 15, 2016, at 10 a.m. must be received by December 17, 2015.
Contact		Concerning the regulations, D. Peter Merkel or Karen Walny at (202) 317-6938; concerning submissions of comments, the hearing, and/or to be placed on the building access list to attend the hearing Oluwfunmilayo Taylor at (202) 317-6901 (not toll- free numbers).
FR Citation		80 FR 56415
RIN Number		1545-BM33
CFR Associated		Income Taxes and Reporting and Recordkeeping Requirements

80 FR 56415 - Dividend Equivalents From Sources Within the United States

DEPARTMENT OF THE TREASURYInternal Revenue Service

Federal Register Volume 80, Issue 181 (September 18, 2015)

DEPARTMENT OF THE TREASURY
Internal Revenue Service