80_FR_68457 80 FR 68244 - Determination of Distributive Share When Partner's Interest Changes; Correction

80 FR 68244 - Determination of Distributive Share When Partner's Interest Changes; Correction

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 80, Issue 213 (November 4, 2015)

Page Range68244-68245
FR Document2015-28014

This document contains corrections to final regulations (TD 9728) that were published in the Federal Register on Monday, August 3, 2015 (80 FR 45865). The final regulations regarding the determination of a partner's distributive share of partnership items of income, gain, loss, deduction, and credit when a partner's interest varies during a partnership taxable year.

Federal Register, Volume 80 Issue 213 (Wednesday, November 4, 2015) 
[Federal Register Volume 80, Number 213 (Wednesday, November 4, 2015)]
[Rules and Regulations]
[Pages 68244-68245]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-28014]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 9728]
RIN 1545-BD71


Determination of Distributive Share When Partner's Interest 
Changes; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations; correction.

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SUMMARY: This document contains corrections to final regulations (TD 
9728) that were published in the Federal Register on Monday, August 3, 
2015 (80 FR 45865). The final regulations regarding the determination 
of a partner's distributive share of partnership items of income, gain, 
loss, deduction, and credit when a partner's interest varies during a 
partnership taxable year.

DATES: This correction is effective November 4, 2015 and applicable 
August 3, 2015.

FOR FURTHER INFORMATION CONTACT: Benjamin H. Weaver of the Office of 
Associate Chief Counsel (Passthroughs and Special Industries at (202) 
317-6850 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9728) that are the subject of this 
correction are under section 706 of the Internal Revenue Code.

[[Page 68245]]

Need for Correction

    As published, the final regulations (TD 9728) contain errors that 
may prove to be misleading and are in need of clarification.

Correction of Publication

    Accordingly, the final regulations (TD 9728), that are subject to 
FR Doc. 2015-18816, are corrected as follows:
    1. On page 45866, in the preamble, third column, last sentence of 
first full paragraph, the language ``rules, including section 706(d)(2) 
and section 706(d)(3).'' is corrected to read ``rules, including 
section 704(c), Sec.  1.704-3(a)(6) (reverse section 704(c)), section 
706(d)(2), and section 706(d)(3).''
    2. On page 45868, in the preamble, first column, fourth line from 
the bottom of the column, the language ``interim closings of its books 
except at'' is corrected to read ``interim closing of its books except 
at''.
    3. On page 45871, in the preamble, second column, third line from 
the bottom of the column, under paragraph heading ``v. Deemed Timing of 
Variations,'' the language ``taxable year was deemed to close at the'' 
is corrected to read ``taxable year was deemed to occur at the''.
    4. On page 45873, in the preamble, third column, eighth line from 
the bottom of the column, the language ``taxable as of which the 
recipients of a'' is corrected to read ``taxable year as of which the 
recipients of a''.
    5. On page 45874, second column, eight lines from the bottom of the 
column, the following sentence is added to the end of the paragraph: 
``These final regulations do not override the application of section 
704(c), including reverse section 704(c), and therefore the final 
regulations provide that the rules of section 706 do not apply in 
making allocations of book items upon a partnership revaluation.''
    6. On page 45876, in the preamble, second column, under paragraph 
heading ``Effective/Applicability Dates'', fifth line of the first 
paragraph, the language ``of a special rule applicable to Sec.  1.704-
'' is corrected to read ``of a special rule applicable to Sec.  1.706-
''.
    7. On page 45876, in the preamble, second column, under paragraph 
heading ``Effective/Applicability Dates'', third line of the second 
paragraph, the language ``regulations apply to the partnership'' is 
corrected to read ``regulations apply to partnership''.
    8. On page 45876, in the preamble, third column, fourth line from 
the top of the column, the language ``that was formed prior to April 
19, 2009.'' is corrected to read ``that was formed prior to April 14, 
2009.''
    9. On page 45877, first column, under paragraph heading ``List of 
Subjects,'' the fourth line, the language ``26 CFR part 2'' is 
corrected to read ``26 CFR part 602''.
    10. On page 45883, third column, the first line of the signature 
block, the language ``Karen L. Schiller,'' is corrected to read ``Karen 
M. Schiller,''.

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2015-28014 Filed 11-3-15; 8:45 am]
 BILLING CODE 4830-01-P

68244 Federal Register / Vol. 80, No. 213 / Wednesday, November 4, 2015 / Rules and Regulations subject to the rules of this section. In proration period begins immediately $15,000 of gross ordinary income, incurred addition, the rules of this section do not after the close of the prior proration $9,000 of gross ordinary deductions, and apply in making allocation of book period and ends at the time of the next sustained $3,000 of capital loss between items pursuant to § 1.704–1(b)(2)(iv)(e), variation for which the partnership August 1, 2017, and December 31, 2017. None of PRS’s items are extraordinary items (f), or (s). In all cases, all partnership selects the proration method. However, within the meaning of paragraph (e)(2) of this items for each taxable year must be each proration period shall end no later section. Capital is a material income- allocated among the partners, and no than the close of the segment. producing factor for PRS. For 2017, PRS partnership items may be duplicated, * * * * * determines the distributive shares of A, B, C, regardless of the particular provision of (4) D, and E as follows: section 706 (or other Code section) Example. At the beginning of 2017, PRS, a * * * * * which applies, and regardless of the calendar year partnership, has three equal (g) * * * For purposes of the method or convention adopted by the partners, A, B, and C. On April 16, 2017, A partnership. immediately preceding sentence, an sells 50% of its interest in PRS to new (3) * * * partner D. On August 6, 2017, B sells 50% existing publicly traded partnership is a (viii) Eighth, determine the of its interest in PRS to new partner E. During partnership described in section 7704(b) partnership’s proration periods, which 2015, PRS earned $75,000 of ordinary that was formed prior to April 14, 2009. are specific portions of a segment income, incurred $33,000 of ordinary * * * created by a variation for which the deductions, earned $12,000 of capital gain in the ordinary course of its business, and § 1.706–4 [Amended] partnership chooses to apply the sustained $9,000 of capital loss in the proration method. The first proration ■ Par. 7. For each entry in § 1.706–4 in ordinary course of its business. Within that period in each segment begins at the year, PRS earned $60,000 of ordinary income, the ‘‘Section’’ column, remove the beginning of the segment, and ends at incurred $24,000 of ordinary deductions, language in ‘‘Remove’’ column from the first time of the first variation within earned $12,000 of capital gain, and sustained wherever it appears in the Example and the segment for which the partnership $6,000 of capital loss between January 1, add in its place the language in the selects the proration method. The next 2017, and July 31, 2017, and PRS earned ‘‘Add’’ column as set forth below: Section Remove Add Paragraph (a)(4) Example. (iii) ........................................................................................... 2015. 2017. Paragraph (a)(4) Example. (iv) ........................................................................................... 2015. 2017. Paragraph (a)(4) Example. (v) ............................................................................................ 2015. 2017. Paragraph (a)(4) Example. (vi) ........................................................................................... 2015. 2017. Paragraph (a)(4) Example. (vii) .......................................................................................... 2015. 2017. Paragraph (a)(4) Example. (viii) ......................................................................................... 2015. 2017. Paragraph (c)(4) Example. 1 .............................................................................................. 2015. 2016. Paragraph (c)(4) Example. 1 .............................................................................................. February 28, 2015. February 29, 2016. Paragraph (c)(4) Example. 2 .............................................................................................. 2015. 2016. Paragraph (d)(2) Example. (i) ............................................................................................. 2015. 2016. Paragraph (d)(2) Example. (ii) ............................................................................................ 2015. 2016. Paragraph (d)(2) Example. (iii) ........................................................................................... 2015. 2016. Paragraph (d)(2) Example. (iv) ........................................................................................... 2015. 2016. Paragraph (e)(4) Example. 1 .............................................................................................. 2015. 2016. Paragraph (e)(4) Example. 2 .............................................................................................. 2015. 2016. Paragraph (e)(4) Example. 3 .............................................................................................. 2015. 2016. Paragraph (e)(4) Example. 4 .............................................................................................. 2015. 2016. Paragraph (e)(4) Example. 5 .............................................................................................. 2015. 2016. Paragraph (e)(4) Example. 6 .............................................................................................. item. items. Martin V. Franks, DEPARTMENT OF THE TREASURY regulations regarding the determination Chief, Publications and Regulations Branch, of a partner’s distributive share of Legal Processing Division, Associate Chief Internal Revenue Service partnership items of income, gain, loss, Counsel (Procedure and Administration). deduction, and credit when a partner’s [FR Doc. 2015–28015 Filed 11–3–15; 8:45 am] 26 CFR Parts 1 and 602 interest varies during a partnership BILLING CODE 4830–01–P taxable year. [TD 9728] DATES: This correction is effective RIN 1545–BD71 November 4, 2015 and applicable August 3, 2015. Determination of Distributive Share FOR FURTHER INFORMATION CONTACT: When Partner’s Interest Changes; Benjamin H. Weaver of the Office of Correction Associate Chief Counsel (Passthroughs AGENCY: Internal Revenue Service (IRS), and Special Industries at (202) 317– Treasury. 6850 (not a toll-free number). rmajette on DSK7SPTVN1PROD with RULES ACTION: Final regulations; correction. SUPPLEMENTARY INFORMATION: SUMMARY: This document contains Background corrections to final regulations (TD The final regulations (TD 9728) that 9728) that were published in the are the subject of this correction are Federal Register on Monday, August 3, under section 706 of the Internal 2015 (80 FR 45865). The final Revenue Code. VerDate Sep<11>2014 13:40 Nov 03, 2015 Jkt 238001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\04NOR1.SGM 04NOR1

Federal Register / Vol. 80, No. 213 / Wednesday, November 4, 2015 / Rules and Regulations 68245 Need for Correction 9. On page 45877, first column, under ADDRESSES: You may submit comments As published, the final regulations paragraph heading ‘‘List of Subjects,’’ by one of the following methods: (TD 9728) contain errors that may prove the fourth line, the language ‘‘26 CFR • Electronically: Go to the Federal to be misleading and are in need of part 2’’ is corrected to read ‘‘26 CFR part eRulemaking Portal: http:// clarification. 602’’. www.regulations.gov and search for 10. On page 45883, third column, the FWS–R7–SM–2015–0156, which is the Correction of Publication first line of the signature block, the docket number for this rulemaking. Accordingly, the final regulations (TD language ‘‘Karen L. Schiller,’’ is • By hard copy: U.S. mail or hand- 9728), that are subject to FR Doc. 2015– corrected to read ‘‘Karen M. Schiller,’’. delivery to: USFWS, Office of 18816, are corrected as follows: Subsistence Management, 1011 East Martin V. Franks, 1. On page 45866, in the preamble, Tudor Road, MS 121, Attn: Theo third column, last sentence of first full Chief, Publications and Regulations Branch, Matuskowitz, Anchorage, AK 99503– Legal Processing Division, Associate Chief 6199 paragraph, the language ‘‘rules, Counsel (Procedure and Administration). including section 706(d)(2) and section FOR FURTHER INFORMATION CONTACT: [FR Doc. 2015–28014 Filed 11–3–15; 8:45 am] 706(d)(3).’’ is corrected to read ‘‘rules, Chair, Federal Subsistence Board, c/o BILLING CODE 4830–01–P including section 704(c), § 1.704–3(a)(6) U.S. Fish and Wildlife Service, (reverse section 704(c)), section Attention: Eugene R. Peltola, Jr., Office 706(d)(2), and section 706(d)(3).’’ of Subsistence Management; (907) 786– 2. On page 45868, in the preamble, DEPARTMENT OF AGRICULTURE 3888 or subsistence@fws.gov. For first column, fourth line from the questions specific to National Forest bottom of the column, the language Forest Service System lands, contact Thomas Whitford, ‘‘interim closings of its books except at’’ Regional Subsistence Program Leader, is corrected to read ‘‘interim closing of 36 CFR Part 242 USDA, Forest Service, Alaska Region; its books except at’’. DEPARTMENT OF THE INTERIOR (907) 743–9461 or twhitford@fs.fed.us. 3. On page 45871, in the preamble, second column, third line from the SUPPLEMENTARY INFORMATION: bottom of the column, under paragraph Fish and Wildlife Service Background heading ‘‘v. Deemed Timing of Variations,’’ the language ‘‘taxable year 50 CFR Part 100 Under Title VIII of the Alaska was deemed to close at the’’ is corrected National Interest Lands Conservation to read ‘‘taxable year was deemed to [Docket No. FWS–R7–SM–2015–0156; Act (ANILCA) (16 U.S.C. 3111–3126), occur at the’’. FXRS12610700000–156–FF07J00000; the Secretary of the Interior and the FBMS#4500086366] Secretary of Agriculture (Secretaries) 4. On page 45873, in the preamble, third column, eighth line from the RIN 1018–BA82 jointly implement the Federal bottom of the column, the language Subsistence Management Program ‘‘taxable as of which the recipients of a’’ Subsistence Management Regulations (Program). This program provides a is corrected to read ‘‘taxable year as of for Public Lands in Alaska; Rural preference for take of fish and wildlife which the recipients of a’’. Determinations, Nonrural List resources for subsistence uses on 5. On page 45874, second column, Federal public lands and waters in eight lines from the bottom of the AGENCY: Forest Service, Agriculture; Alaska. Only residents of areas column, the following sentence is added Fish and Wildlife Service, Interior. identified as rural are eligible to to the end of the paragraph: ‘‘These final ACTION: Direct final rule. participate in the Program on Federal regulations do not override the public lands in Alaska. Because this application of section 704(c), including SUMMARY: This rule revises the list of program is a joint effort between Interior reverse section 704(c), and therefore the nonrural areas in Alaska identified by and Agriculture, these regulations are final regulations provide that the rules the Federal Subsistence Board (Board). located in two titles of the Code of of section 706 do not apply in making Only residents of areas that are rural are Federal Regulations (CFR): Title 36, allocations of book items upon a eligible to participate in the Federal ‘‘Parks, Forests, and Public Property,’’ partnership revaluation.’’ Subsistence Management Program on and Title 50, ‘‘Wildlife and Fisheries,’’ 6. On page 45876, in the preamble, public lands in Alaska. Based on a at 36 CFR 242.1–242.28 and 50 CFR second column, under paragraph Secretarial review of the rural 100.1–100.28, respectively. heading ‘‘Effective/Applicability Dates’’, determination process, and the Consistent with these regulations, the fifth line of the first paragraph, the subsequent change in the regulations Secretaries established a Federal language ‘‘of a special rule applicable to governing this process, the Board is Subsistence Board (Board) comprising § 1.704–’’ is corrected to read ‘‘of a revising the current nonrural Federal officials and public members to special rule applicable to § 1.706–’’. determinations to the list that existed administer the Program. One of the 7. On page 45876, in the preamble, prior to 2007. Accordingly, the Board’s responsibilities is to determine second column, under paragraph community of Saxman and the area of which communities or areas of the State heading ‘‘Effective/Applicability Dates’’, Prudhoe Bay will be removed from the are rural or nonrural. The Secretaries third line of the second paragraph, the nonrural list. The following areas also divided Alaska into 10 subsistence language ‘‘regulations apply to the continue to be nonrural, but their resource regions, each of which is partnership’’ is corrected to read boundaries will return to their original represented by a Regional Advisory borders: the Kenai Area; the Wasilla/ Council (Council). The Council rmajette on DSK7SPTVN1PROD with RULES ‘‘regulations apply to partnership’’. 8. On page 45876, in the preamble, Palmer area; the Homer area; and the members represent varied geographical, third column, fourth line from the top Ketchikan area. cultural, and user interests within each of the column, the language ‘‘that was DATES: This rule is effective on region. The Councils provide a forum formed prior to April 19, 2009.’’ is December 21, 2015 unless we receive for rural residents with personal corrected to read ‘‘that was formed prior significant adverse comments on or knowledge of local conditions and to April 14, 2009.’’ before December 4, 2015. resource requirements to have a VerDate Sep<11>2014 13:40 Nov 03, 2015 Jkt 238001 PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\04NOR1.SGM 04NOR1


Document Created: 2018-03-01 11:28:00
Document Modified: 2018-03-01 11:28:00
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
ActionFinal regulations; correction.
DatesThis correction is effective November 4, 2015 and applicable August 3, 2015.
ContactBenjamin H. Weaver of the Office of Associate Chief Counsel (Passthroughs and Special Industries at (202) 317-6850 (not a toll-free number).
FR Citation80 FR 68244 
RIN Number1545-BD71
CFR Citation26 CFR 1
26 CFR 602
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