81 FR 5966 - Allocation of Creditable Foreign Taxes
DEPARTMENT OF THE TREASURY
Internal Revenue Service Federal Register Volume 81, Issue 23 (February 4, 2016)
Internal Revenue Service
Federal Register Volume 81, Issue 23 (February 4, 2016)
| Page Range | 5966-5967 | |
| FR Document | 2016-01948 |
[Federal Register Volume 81, Number 23 (Thursday, February 4, 2016)] [Proposed Rules] [Pages 5966-5967] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-01948] [[Page 5966]] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [REG-100861-15] RIN 1545-BM56 Allocation of Creditable Foreign Taxes AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed rulemaking by cross-reference to temporary regulations. ----------------------------------------------------------------------- SUMMARY: In the Rules and Regulations section in this issue of the Federal Register, the IRS is issuing temporary regulations that provide guidance relating to the allocation by a partnership of foreign income taxes. Those temporary regulations are necessary to improve the operation of an existing safe harbor rule that is used for determining whether allocations of creditable foreign tax expenditures are deemed to be in accordance with the partners' interests in the partnership. The text of those temporary regulations published 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 May 4, 2016. ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-100861-15), Room 5205, Internal Revenue Service, P.O. 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- 100861-15), Courier's desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC 20224, or sent electronically, via the Federal eRulemaking Portal at www.regulations.gov (IRS REG-100861-15). FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Suzanne M. Walsh, (202) 317-4908; concerning submissions of comments, Oluwafunmilayo Taylor, (202) 317-5179 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Background and Explanation of Provisions 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 guidance relating to the allocation by a partnership of foreign income taxes. The text of those regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the temporary regulations and these proposed regulations. The regulations affect partnerships and their partners. 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 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 Requests for 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 ADDRESSES. 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 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 author of these regulations is Suzanne M. Walsh of the Office of Associate Chief Counsel (International). However, other personnel from the IRS and the Treasury Department 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 * * * 0 Par. 2. Section 1.704-1 is amended as follows: 0 1. In paragraph (b)(0): 0 i. Add an entry for Sec. 1.704-1(b)(1)(ii)(b)(1). 0 ii. Revise the entries for (b)(4)(viii)(c)(1) through (4) and (b)(4)(viii)(d)(1). 0 2. Revise paragraphs (b)(1)(ii)(b)(1), (b)(1)(ii)(b)(3)(B), (b)(4)(viii)(a)(1), (b)(4)(viii)(c)(1), (b)(4)(viii)(c)(2)(ii) and (iii), (b)(4)(viii)(c)(3) and (4), (b)(4)(viii)(d)(1), and Example 25 of paragraph (b)(5). 0 3. Add Examples 36 and 37 to paragraph (b)(5). The revisions read as follows: Sec. 1.704-1 Partner's distributive share. * * * * * (b) * * * (0) [The text of the proposed amendments to Sec. 1.704-1(b)(0) is the same as the text of Sec. 1.704-1T(b)(0) published elsewhere in this issue of the Federal Register.] (1) * * * (ii) * * * (b) Rules relating to foreign tax expenditures. (1) [The text of the proposed amendments to Sec. 1.704-1(b)(1)(ii)(b)(1) is the same as the text of Sec. 1.704-1T(b)(1)(ii)(b)(1) published elsewhere in this issue of the Federal Register.] * * * * * (3) * * * (B) [The text of the proposed amendments to Sec. 1.704- 1(b)(1)(ii)(b)(3)(B) is the same as the text of Sec. 1.704- 1T(b)(1)(ii)(b)(3)(B) published elsewhere in this issue of the Federal Register.] * * * * * (4) * * * (viii) * * * (a) * * * (1) [The text of the proposed amendments to Sec. 1.704- 1(b)(4)(viii)(a)(1) is the same as the text of Sec. 1.704- 1T(b)(4)(viii)(a)(1) published elsewhere in this issue of the Federal Register.] * * * * * (c) Income to which CFTEs relate. (1) [The text of the proposed amendments to Sec. 1.704-1(b)(4)(viii)(c)(1) is the same as the text of Sec. 1.704-1T(b)(4)(viii)(c)(1) published elsewhere in this issue of the Federal Register.] (2) * * * (ii) [The text of the proposed amendments to Sec. 1.704- [[Page 5967]] 1(b)(4)(viii)(c)(2)(ii) is the same as the text of Sec. 1.704- 1T(b)(4)(viii)(c)(2)(ii) published elsewhere in this issue of the Federal Register.] (iii) [The text of the proposed amendments to Sec. 1.704- 1(b)(4)(viii)(c)(2)(iii) is the same as the text of Sec. 1.704- 1T(b)(4)(viii)(c)(2)(iii) published elsewhere in this issue of the Federal Register.] (3) [The text of the proposed amendments to Sec. 1.704- 1(b)(4)(viii)(c)(3) is the same as the text of Sec. 1.704- 1T(b)(4)(viii)(c)(3) published elsewhere in this issue of the Federal Register.] (4) [The text of the proposed amendments to Sec. 1.704- 1(b)(4)(viii)(c)(4) is the same as the text of Sec. 1.704- 1T(b)(4)(viii)(c)(4) published elsewhere in this issue of the Federal Register.] * * * * * (d) Allocation and apportionment of CFTEs to CFTE categories. (1) [The text of the proposed amendments to Sec. 1.704-1(b)(4)(viii)(d)(1) is the same as the text of Sec. 1.704-1T(b)(4)(viii)(d)(1) published elsewhere in this issue of the Federal Register.] * * * * * (5) * * * Example 25. [The text of the proposed amendments to Sec. 1.704- 1(b)(5) Example 24 is the same as the text of Sec. 1.704-1T(b)(5) Example 25 published elsewhere in this issue of the Federal Register.] * * * * * Example 36. [The text of the proposed amendments to Sec. 1.704-1(b)(5) Example 36 is the same as the text of Sec. 1.704- 1T(b)(5) Example 36 published elsewhere in this issue of the Federal Register.] Example 37. [The text of the proposed amendments to Sec. 1.704- 1(b)(5) Example 37 is the same as the text of Sec. 1.704-1T(b)(5) Example 37 published elsewhere in this issue of the Federal Register.] * * * * * John Dalrymple, Deputy Commissioner for Services and Enforcement. [FR Doc. 2016-01948 Filed 2-3-16; 8:45 am] BILLING CODE 4830-01-P
![5966 Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Proposed Rules
DEPARTMENT OF THE TREASURY income taxes. The text of those PART 1—INCOME TAXES
regulations also serves as the text of
Internal Revenue Service these proposed regulations. The ■ Paragraph 1. The authority citation for
preamble to the temporary regulations part 1 continues to read in part as
26 CFR Part 1 explains the temporary regulations and follows:
[REG–100861–15] these proposed regulations. The Authority: 26 U.S.C. 7805 * * *
regulations affect partnerships and their ■ Par. 2. Section 1.704–1 is amended as
RIN 1545–BM56 partners. follows:
Allocation of Creditable Foreign Taxes Special Analyses ■ 1. In paragraph (b)(0):
■ i. Add an entry for § 1.704–
AGENCY: Internal Revenue Service (IRS), Certain IRS regulations, including this 1(b)(1)(ii)(b)(1).
Treasury. one, are exempt from the requirements ■ ii. Revise the entries for
ACTION: Notice of proposed rulemaking of Executive Order 12866, as (b)(4)(viii)(c)(1) through (4) and
by cross-reference to temporary supplemented and reaffirmed by (b)(4)(viii)(d)(1).
regulations. Executive Order 13563. Therefore, a ■ 2. Revise paragraphs (b)(1)(ii)(b)(1),
regulatory assessment is not required. It (b)(1)(ii)(b)(3)(B), (b)(4)(viii)(a)(1),
SUMMARY: In the Rules and Regulations has also been determined that section (b)(4)(viii)(c)(1), (b)(4)(viii)(c)(2)(ii) and
section in this issue of the Federal 553(b) of the Administrative Procedure (iii), (b)(4)(viii)(c)(3) and (4),
Register, the IRS is issuing temporary Act (5 U.S.C. chapter 5) does not apply (b)(4)(viii)(d)(1), and Example 25 of
regulations that provide guidance to these regulations, and because the paragraph (b)(5).
relating to the allocation by a regulations do not impose a collection ■ 3. Add Examples 36 and 37 to
partnership of foreign income taxes. of information on small entities, the paragraph (b)(5).
Those temporary regulations are Regulatory Flexibility Act (5 U.S.C. The revisions read as follows:
necessary to improve the operation of an chapter 6) does not apply. Pursuant to
existing safe harbor rule that is used for § 1.704–1 Partner’s distributive share.
section 7805(f), these regulations have
determining whether allocations of * * * * *
been submitted to the Chief Counsel for (b) * * *
creditable foreign tax expenditures are Advocacy of the Small Business
deemed to be in accordance with the (0) [The text of the proposed
Administration for comment on its amendments to § 1.704–1(b)(0) is the
partners’ interests in the partnership. impact on small business.
The text of those temporary regulations same as the text of § 1.704–1T(b)(0)
published in this issue of the Federal Comments and Requests for Public published elsewhere in this issue of the
Register also serves as the text of these Hearing Federal Register.]
proposed regulations. (1) * * *
Before these proposed regulations are (ii) * * *
DATES: Comments and requests for a (b) Rules relating to foreign tax
adopted as final regulations,
public hearing must be received by May expenditures. (1) [The text of the
consideration will be given to any
4, 2016. proposed amendments to § 1.704–
comments that are submitted timely to
ADDRESSES: Send submissions to the IRS as prescribed in this preamble 1(b)(1)(ii)(b)(1) is the same as the text of
CC:PA:LPD:PR (REG–100861–15), Room under ADDRESSES. The Treasury § 1.704–1T(b)(1)(ii)(b)(1) published
5205, Internal Revenue Service, P.O. Department and the IRS request elsewhere in this issue of the Federal
Box 7604, Ben Franklin Station, comments on all aspects of the proposed Register.]
Washington, DC 20044. Submissions rules. All comments will be available at * * * * *
may be hand delivered Monday through www.regulations.gov or upon request. A (3) * * *
Friday between the hours of 8 a.m. and public hearing will be scheduled if (B) [The text of the proposed
4 p.m. to CC:PA:LPD:PR (REG–100861– requested in writing by any person that amendments to § 1.704–
15), Courier’s desk, Internal Revenue timely submits comments. If a public 1(b)(1)(ii)(b)(3)(B) is the same as the text
Service, 1111 Constitution Avenue NW., hearing is scheduled, notice of the date, of § 1.704–1T(b)(1)(ii)(b)(3)(B) published
Washington, DC 20224, or sent time, and place for the public hearing elsewhere in this issue of the Federal
electronically, via the Federal will be published in the Federal Register.]
eRulemaking Portal at Register. * * * * *
www.regulations.gov (IRS REG–100861– (4) * * *
15). Drafting Information (viii) * * *
FOR FURTHER INFORMATION CONTACT: (a) * * *
The principal author of these
Concerning the regulations, Suzanne M. (1) [The text of the proposed
regulations is Suzanne M. Walsh of the
Walsh, (202) 317–4908; concerning amendments to § 1.704–
Office of Associate Chief Counsel
submissions of comments, 1(b)(4)(viii)(a)(1) is the same as the text
(International). However, other
Oluwafunmilayo Taylor, (202) 317–5179 of § 1.704–1T(b)(4)(viii)(a)(1) published
personnel from the IRS and the Treasury
(not toll-free numbers). elsewhere in this issue of the Federal
Department participated in their
SUPPLEMENTARY INFORMATION: Register.]
development.
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
Background and Explanation of * * * * *
List of Subjects in 26 CFR Part 1 (c) Income to which CFTEs relate. (1)
Provisions
[The text of the proposed amendments
Temporary regulations in the Rules Income taxes, Reporting and to § 1.704–1(b)(4)(viii)(c)(1) is the same
and Regulations section of this issue of recordkeeping requirements. as the text of § 1.704–1T(b)(4)(viii)(c)(1)
the Federal Register contain Proposed Amendments to the published elsewhere in this issue of the
amendments to the Income Tax Regulations Federal Register.]
Regulations (26 CFR part 1) which (2) * * *
provide guidance relating to the Accordingly, 26 CFR part 1 is (ii) [The text of the proposed
allocation by a partnership of foreign proposed to be amended as follows: amendments to § 1.704–
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![Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Proposed Rules 5967
1(b)(4)(viii)(c)(2)(ii) is the same as the DEPARTMENT OF HOMELAND II. Background, Purpose, and Legal
text of § 1.704–1T(b)(4)(viii)(c)(2)(ii) SECURITY Basis
published elsewhere in this issue of the On December 7, 2015, Powerboat P1–
Federal Register.] Coast Guard
USA, LLC notified the Coast Guard that
(iii) [The text of the proposed it will be conducting a series of high
33 CFR Part 100
amendments to § 1.704– speed boat races in the Atlantic Ocean,
1(b)(4)(viii)(c)(2)(iii) is the same as the offshore from Daytona Beach, FL from
[Docket Number USCG–2015–1108] April 22 through 24, 2016. The COTP
text of § 1.704–1T(b)(4)(viii)(c)(2)(iii)
published elsewhere in this issue of the Jacksonville has determined that the
Federal Register.] RIN 1625–AA08 potential hazards associated with the
high speed boat races necessitate the
(3) [The text of the proposed Special Local Regulation, Daytona establishment of a special local
amendments to § 1.704– Beach Grand Prix of the Seas; Atlantic regulation.
1(b)(4)(viii)(c)(3) is the same as the text Ocean, Daytona Beach, FL The purpose of this rulemaking is to
of § 1.704–1T(b)(4)(viii)(c)(3) published ensure the safety of life on the navigable
elsewhere in this issue of the Federal AGENCY: Coast Guard, DHS.
waters of the United States by
Register.] ACTION: Notice of proposed rulemaking. prohibiting all vessels and persons not
(4) [The text of the proposed SUMMARY: The Coast Guard proposes to participating in the event from entering
amendments to § 1.704– establish a special local regulation on the regulated area. The Coast Guard
1(b)(4)(viii)(c)(4) is the same as the text the waters of the Atlantic Ocean east of proposes this rulemaking under
of § 1.704–1T(b)(4)(viii)(c)(4) published Daytona Beach, Florida during the authority in 33 U.S.C. 1233.
elsewhere in this issue of the Federal Daytona Beach Grand Prix of the Seas, III. Discussion of Proposed Rule
Register.] a series of high-speed personal
watercraft boat races. This action is The COTP proposes to establish a
* * * * * special local regulation for the Daytona
necessary to provide for the safety of life
(d) Allocation and apportionment of Beach Grand Prix of the Seas, a series
on the navigable waters surrounding the
CFTEs to CFTE categories. (1) [The text event. This special local regulation will of high-speed personal watercraft boat
of the proposed amendments to § 1.704– be enforced daily 8 a.m. to 5 p.m., from races. The regulated area includes the
1(b)(4)(viii)(d)(1) is the same as the text April 22 through April 24, 2016. This waters of the Atlantic Ocean offshore
of § 1.704–1T(b)(4)(viii)(d)(1) published proposed rulemaking would prohibit from Daytona Beach, Florida and will be
elsewhere in this issue of the Federal persons and vessels from being in the enforced daily 8 a.m. to 5 p.m., from
Register.] regulated area unless authorized by the April 22 through April 24, 2016.
* * * * * Captain of the Port (COTP) Jacksonville Approximately 90 high-speed personal
or a designated representative. We watercraft are anticipated to participate
(5) * * * in the races. The regulated area would
invite your comments on this proposed
Example 25. [The text of the proposed rulemaking. encompass an approximated offshore
amendments to § 1.704–1(b)(5) Example area that is 1,350 yards wide that
DATES: Comments and related material
24 is the same as the text of § 1.704– extends from 600 yards south of the
must be received by the Coast Guard on Daytona Beach pier to 1,900 yards north
1T(b)(5) Example 25 published or before March 7, 2016.
elsewhere in this issue of the Federal of the pier. No vessel or person would
Register.] ADDRESSES: You may submit comments be permitted to enter the regulated area
identified by docket number USCG– without obtaining permission from the
* * * * * COTP or a designated representative.
2015–1108 using the Federal
Example 36. [The text of the proposed
eRulemaking Portal at http:// The regulatory text we are proposing
amendments to § 1.704–1(b)(5) Example 36 is
www.regulations.gov. See the ‘‘Public appears at the end of this document.
the same as the text of § 1.704–1T(b)(5)
Participation and Request for
Example 36 published elsewhere in this IV. Regulatory Analyses
issue of the Federal Register.]
Comments’’ portion of the
SUPPLEMENTARY INFORMATION section for We developed this proposed rule after
Example 37. [The text of the proposed
further instructions on submitting considering numerous statutes and
amendments to § 1.704–1(b)(5) Example 37 is
comments. Executive orders (E.O.s) related to
the same as the text of § 1.704–1T(b)(5)
rulemaking. Below, we summarize our
Example 37 published elsewhere in this FOR FURTHER INFORMATION CONTACT: If
analyses based on a number of these
issue of the Federal Register.] you have questions about this proposed
statutes and E.O.s, and we discuss First
* * * * * rulemaking, call or email Lieutenant
Amendment rights of protestors.
Allan Storm, Sector Jacksonville,
John Dalrymple, Waterways Management Division, U.S. A. Regulatory Planning and Review
Deputy Commissioner for Services and Coast Guard; telephone (904) 564–7563, E.O.s 12866 and 13563 direct agencies
Enforcement. email Allan.H.Storm@uscg.mil. to assess the costs and benefits of
[FR Doc. 2016–01948 Filed 2–3–16; 8:45 am] SUPPLEMENTARY INFORMATION: available regulatory alternatives and, if
asabaliauskas on DSK5VPTVN1PROD with PROPOSALS
BILLING CODE 4830–01–P
I. Table of Abbreviations regulation is necessary, to select
regulatory approaches that maximize
CFR Code of Federal Regulations net benefits. E.O. 13563 emphasizes the
DHS Department of Homeland Security importance of quantifying both costs
E.O. Executive order
FR Federal Register
and benefits, of reducing costs, of
NPRM Notice of proposed rulemaking harmonizing rules, and of promoting
Pub. L. Public Law flexibility. This NPRM has not been
§ Section designated a ‘‘significant regulatory
U.S.C. United States Code action,’’ under E.O. 12866. Accordingly,
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Document Created: 2016-02-04 00:31:38
Document Modified: 2016-02-04 00:31:38
| 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. | |
| Dates | Comments and requests for a public hearing must be received by May 4, 2016. | |
| Contact | Concerning the regulations, Suzanne M. Walsh, (202) 317-4908; concerning submissions of comments, Oluwafunmilayo Taylor, (202) 317-5179 (not toll-free numbers). | |
| FR Citation | 81 FR 5966 | |
| RIN Number | 1545-BM56 | |
| CFR Associated | Income Taxes and Reporting and Recordkeeping Requirements |
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