81 FR 76496 - Credit for Increasing Research Activities; Correction
DEPARTMENT OF THE TREASURY
Internal Revenue Service Federal Register Volume 81, Issue 213 (November 3, 2016)
Internal Revenue Service
Federal Register Volume 81, Issue 213 (November 3, 2016)
| Page Range | 76496-76497 | |
| FR Document | 2016-26522 |
[Federal Register Volume 81, Number 213 (Thursday, November 3, 2016)] [Rules and Regulations] [Pages 76496-76497] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-26522] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9786] RIN 1545-BC70 Credit for Increasing Research Activities; Correction AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendment. ----------------------------------------------------------------------- SUMMARY: This document contains corrections to final regulations (TD 9786) that were published in the Federal Register on Tuesday, October 4, 2016 (81 FR 68299). The final regulations provided guidance regarding the application of the credit for increasing research activities. DATES: This correction is effective November 3, 2016 and is applicable on or after October 4, 2016. FOR FURTHER INFORMATION CONTACT: Martha Garcia or Jennifer Records of the Office of Associate Chief Counsel (Passthroughs and Special Industries) at (202) 317-6853 (not a toll-free number). SUPPLEMENTARY INFORMATION: Background The final regulations (TD 9786) that are the subject of this correction are under section 41 of the Internal Revenue Code. Need for Correction As published, the final regulations (TD 9786) contain errors that may prove to be misleading and are in need of clarification. List of Subjects in 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. Correction of Publication Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments: 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 1.41-4(c)(6)(viii) is amended by: 0 a. Revising the fifth sentence of Example 14 paragraph (ii). 0 b. Revising the fifth sentence of Example 17 paragraph (i). The revisions read as follows: Sec. 1.41-4 Qualified research for expenditures paid or incurred in taxable years ending on or after December 31, 2003. * * * * * (c) * * * (6) * * * (viii) * * * Example 14. * * * (ii) * * * If X's research activities related to the development or improvement of Subset B constitute qualified research under section 41(d), without regard to section 41(d)(4)(E), and the allocable expenditures are qualified research expenditures under section 41(b), X may include $6,250 (25% x $25,000) of the software research expenditures of Subset B in computing the amount of X's credit, pursuant to paragraph (c)(6)(vi)(C) of this section. * * * * * Example 17. * * * (i) * * * The ability to use the idle employees' computers would save X significant costs because X would not have [[Page 76497]] to buy new hardware to expand the computing power. * * * * * * * * Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration). [FR Doc. 2016-26522 Filed 10-31-16; 4:15 pm] BILLING CODE 4830-01-P
![76496 Federal Register / Vol. 81, No. 213 / Thursday, November 3, 2016 / Rules and Regulations
the meaning of section 654 of the Consumer Financial Protection and (Passthroughs and Special Industries) at
Treasury and General Government Access. * * * (202) 317–6853 (not a toll-free number).
Appropriations Act, 1999, Public Law * * * * * SUPPLEMENTARY INFORMATION:
105–277, 112 Stat. 2681 (1998).
PART 790—DESCRIPTION OF NCUA; Background
List of Subjects
REQUESTS FOR AGENCY ACTION
12 CFR Part 708a The final regulations (TD 9786) that
■ 5. The authority citation for part 790 are the subject of this correction are
Credit unions, Charter conversions.
continues to read as follows: under section 41 of the Internal Revenue
12 CFR Part 708b Authority: 12 U.S.C. 1766, 1789, 1795f. Code.
Credit unions, Mergers of credit ■ 6. Revise paragraphs (b)(15)(i) Need for Correction
unions. introductory text and (b)(15)(ii) of
§ 790.2 to read as follows: As published, the final regulations
12 CFR Part 790
(TD 9786) contain errors that may prove
Organization and functions § 790.2 Central and field office to be misleading and are in need of
(Government agencies). organization. clarification.
By the National Credit Union * * * * *
Administration Board, on October 27, 2016. List of Subjects in 26 CFR Part 1
(b) * * *
Gerard Poliquin, (15) Office of Consumer Financial Income taxes, Reporting and
Secretary of the Board. Protection and Access. (i) The Office of recordkeeping requirements.
For the reasons discussed above, the Consumer Financial Protection and
Access contains four divisions: Correction of Publication
National Credit Union Administration
amends 12 CFR parts 708a, 708b, and * * * * * Accordingly, 26 CFR part 1 is
790 as follows: (ii) The Office provides consumer corrected by making the following
services, including consumer education correcting amendments:
PART 708a—BANK CONVERSIONS and complaint resolution; establishes,
AND MERGERS consolidates, and coordinates consumer PART 1—INCOME TAXES
financial protections within the agency;
■ 1. The authority citation for part 708a acts as the central liaison on consumer
continues to read as follows: ■ Paragraph 1. The authority citation
financial protection with other federal for part 1 continues to read in part as
Authority: 12 U.S.C. 1766, 1785(b), and agencies; and nationalizes field of follows:
1785(c). membership processing and chartering
activities. Authority: 26 U.S.C. 7805 * * *
■ 2. Revise the first sentence of the
definition of ‘‘Regional Director’’ in * * * * * ■ Par. 2. Section 1.41–4(c)(6)(viii) is
§ 708a.101 to read as follows: [FR Doc. 2016–26495 Filed 11–2–16; 8:45 am] amended by:
BILLING CODE 7535–01–P
§ 708a.101 Definitions. ■ a. Revising the fifth sentence of
* * * * * Example 14 paragraph (ii).
Regional Director means either the ■ b. Revising the fifth sentence of
DEPARTMENT OF THE TREASURY
director for the NCUA Regional Office Example 17 paragraph (i).
for the region where a natural person Internal Revenue Service The revisions read as follows:
credit union’s main office is located or
the director of the NCUA’s Office of 26 CFR Part 1 § 1.41–4 Qualified research for
Consumer Financial Protection and expenditures paid or incurred in taxable
Access. * * * [TD 9786] years ending on or after December 31, 2003.
* * * * * RIN 1545–BC70 * * * * *
PART 708b—MERGERS OF Credit for Increasing Research (c) * * *
FEDERALLY-INSURED CREDIT Activities; Correction (6) * * *
UNIONS; VOLUNTARY TERMINATION (viii) * * *
OR CONVERSION OF INSURED AGENCY: Internal Revenue Service (IRS),
STATUS Treasury. Example 14. * * *
ACTION: Correcting amendment. (ii) * * * If X’s research activities related
■ 3. The authority citation for part 708b to the development or improvement of
continues to read as follows: SUMMARY: This document contains Subset B constitute qualified research under
corrections to final regulations (TD section 41(d), without regard to section
Authority: 12 U.S.C. 1752(7), 1766, 1785,
1786, and 1789. 9786) that were published in the 41(d)(4)(E), and the allocable expenditures
Federal Register on Tuesday, October 4, are qualified research expenditures under
■ 4. Revise the first sentence of the 2016 (81 FR 68299). The final section 41(b), X may include $6,250 (25% ×
definition of ‘‘Regional Director’’ in regulations provided guidance regarding $25,000) of the software research
§ 708b.2 to read as follows: the application of the credit for expenditures of Subset B in computing the
increasing research activities. amount of X’s credit, pursuant to paragraph
mstockstill on DSK3G9T082PROD with RULES
§ 708b.2 Definitions.
DATES: This correction is effective (c)(6)(vi)(C) of this section.
* * * * *
Regional Director means either the November 3, 2016 and is applicable on * * * * *
director for the NCUA Regional Office or after October 4, 2016. Example 17. * * *
for the region where a natural person FOR FURTHER INFORMATION CONTACT: (i) * * * The ability to use the idle
credit union’s main office is located or Martha Garcia or Jennifer Records of the employees’ computers would save X
the director of the NCUA’s Office of Office of Associate Chief Counsel significant costs because X would not have
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![Federal Register / Vol. 81, No. 213 / Thursday, November 3, 2016 / Rules and Regulations 76497
to buy new hardware to expand the Background temporary regulations. This preamble
computing power. * * * does not discuss the formal written
On September 2, 2015, the
* * * * * Department of the Treasury (Treasury comments concerning other rules in the
Department) and the IRS published final 1988 proposed regulations, which are
Martin V. Franks,
and temporary regulations under beyond the scope of these final
Chief, Publications and Regulations Branch, regulations. The other portions of the
Legal Processing Division, Associate Chief sections 954 and 956 (TD 9733) (the
2015 temporary regulations) in the 1988 proposed regulations remain in
Counsel, (Procedure and Administration).
Federal Register (80 FR 52976, as proposed form, except to the extent
[FR Doc. 2016–26522 Filed 10–31–16; 4:15 pm]
corrected at 80 FR 66415 and 80 FR withdrawn in the partial withdrawal of
BILLING CODE 4830–01–P
66416). On the same date, the Treasury the notice of proposed rulemaking
Department and the IRS published a published in the Proposed Rules section
notice of proposed rulemaking (REG– of this issue of the Federal Register
DEPARTMENT OF THE TREASURY (REG–122387–16).
155164–09) (the 2015 proposed
Internal Revenue Service The Treasury Department and the IRS
regulations) in the Federal Register (80
published Revenue Ruling 90–112
FR 53058, as corrected at 80 FR 66485)
(1990–2 CB 186) (see
26 CFR Part 1 cross-referencing the temporary
§ 601.601(d)(2)(ii)(b)), on December 31,
regulations and proposing additional
[TD 9792] 1990, before promulgating the rule in
regulations under section 956 regarding
RIN 1545–BJ48 § 1.956–2(a)(3) that, prior to
the treatment as United States property
modification by this document,
of property held by a CFC in connection addressed the application of section 956
United States Property Held by with certain transactions involving
Controlled Foreign Corporations in when a CFC is a partner in a partnership
partnerships. No public hearing was that holds property that would be
Transactions Involving Partnerships; requested or held. Formal written
Rents and Royalties Derived in the United States property if owned directly
comments were received with respect to by the CFC. This Treasury decision
Active Conduct of a Trade or Business the 2015 proposed regulations under withdraws Revenue Ruling 90–112.
AGENCY: Internal Revenue Service (IRS), section 956 and are available at
Treasury. www.regulations.gov or upon request. Summary of Comments and
No comments were received with Explanation of Revisions
ACTION: Final regulations and removal of
temporary regulations. respect to the 2015 proposed regulations Section 956 determines the amount
under section 954. This Treasury that a United States shareholder (as
SUMMARY: This document contains final decision adopts the 2015 proposed defined in section 951(b)) of a CFC must
regulations that provide rules regarding regulations, with the changes described include in gross income with respect to
the treatment as United States property in the Summary of Comments and the CFC under section 951(a)(1)(B). This
of property held by a controlled foreign Explanation of Revisions section of this amount is determined, in part, based on
corporation (CFC) in connection with preamble, as final regulations and the average of the amounts of United
certain transactions involving removes the corresponding temporary States property held, directly or
partnerships. In addition, the final regulations. No changes are made to the indirectly, by the CFC at the close of
regulations provide rules for regulations under section 954. each quarter during its taxable year. For
determining whether a CFC is Additionally, on June 14, 1988, the this purpose, in general, the amount
considered to derive rents and royalties Treasury Department and the IRS taken into account with respect to any
in the active conduct of a trade or published temporary regulations under United States property is the adjusted
business for purposes of determining sections 304, 864, and 956 (TD 8209) in basis of the property, reduced by any
foreign personal holding company the Federal Register (53 FR 22163), liability to which the property is
income (FPHCI), as well as rules for which included guidance under section subject. See section 956(a) and § 1.956–
determining whether a CFC holds 956(c)(3) treating as United States 1(e). Section 956(e) grants the Secretary
United States property as a result of property certain trade or service authority to prescribe such regulations
certain related party factoring receivables acquired by a CFC from a as may be necessary to carry out the
transactions. This document finalizes related United States person in certain purposes of section 956, including
proposed regulations, and withdraws factoring transactions (the 1988 regulations to prevent the avoidance of
temporary regulations, published on temporary regulations). On the same section 956 through reorganizations or
September 2, 2015. It also finalizes date, the Treasury Department and the otherwise.
proposed regulations, and withdraws IRS published a notice of proposed These final regulations retain the
temporary regulations, published on rulemaking (INTL–49–86, subsequently basic approach and structure of the 2015
June 14, 1988. The final regulations converted to REG–209001–86) (the 1988 proposed regulations and the portion of
affect United States shareholders of proposed regulations) in the Federal the 1988 proposed regulations that
CFCs. Register (53 FR 22186) cross-referencing relates to § 1.956–3, with certain
the 1988 temporary regulations. revisions, as discussed in this Summary
DATES:
Although formal written comments of Comments and Explanation of
Effective Date: These regulations are were received on the 1988 proposed
effective on November 3, 2016. Revisions.
regulations, none relate to the specific
Applicability Dates: For dates of issues addressed in these final 1. Changes to § 1.956–1 To Conform to
applicability, see §§ 1.954–2(i), 1.956–
mstockstill on DSK3G9T082PROD with RULES
regulations. This Treasury decision the Current Statute
1(g), 1.956–2(h), 1.956–3(d), and 1.956– adopts § 1.956–3 of the 1988 proposed These final regulations take into
4(f). regulations without substantive change account certain statutory changes in
FOR FURTHER INFORMATION CONTACT: Rose as a final regulation (together with the section 13232(a) of the Revenue
E. Jenkins, (202) 317–6934 (not a toll- 2015 proposed regulations adopted as Reconciliation Act of 1993 (Pub. L. 103–
free number). final regulations, these final regulations) 66, 107 Stat. 312) (the 1993 Act)
SUPPLEMENTARY INFORMATION: and removes the corresponding regarding the methodology for
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Document Created: 2016-11-03 03:24:03
Document Modified: 2016-11-03 03:24:03
| 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 | Rules and Regulations | |
| Action | Correcting amendment. | |
| Dates | This correction is effective November 3, 2016 and is applicable on or after October 4, 2016. | |
| Contact | Martha Garcia or Jennifer Records of the Office of Associate Chief Counsel (Passthroughs and Special Industries) at (202) 317-6853 (not a toll-free number). | |
| FR Citation | 81 FR 76496 | |
| RIN Number | 1545-BC70 | |
| CFR Associated | Income Taxes and Reporting and Recordkeeping Requirements |
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