80_FR_56596 80 FR 56415 - Dividend Equivalents From Sources Within the United States

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 Range56415-56416
FR Document2015-21753

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.

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

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
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking by cross-reference to temporary regulations and notice of public hearing.
DatesWritten 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.
ContactConcerning 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 Citation80 FR 56415 
RIN Number1545-BM33
CFR AssociatedIncome Taxes and Reporting and Recordkeeping Requirements

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