81_FR_81215 81 FR 80993 - Liabilities Recognized as Recourse Partnership Liabilities Under Section 752; Correction

81 FR 80993 - Liabilities Recognized as Recourse Partnership Liabilities Under Section 752; Correction

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 81, Issue 222 (November 17, 2016)

Page Range80993-80994
FR Document2016-27517

This document contains corrections to final and temporary regulations (TD 9788) that were published in the Federal Register on Wednesday, October 5, 2016 (81 FR 69282). The final and temporary regulations provide rules concerning how liabilities are allocated for purposes of section 707 of the Internal Revenue Code and when certain obligations are recognized for purposes of determining whether a liability is a recourse partnership liability under section 752.

Federal Register, Volume 81 Issue 222 (Thursday, November 17, 2016) 
[Federal Register Volume 81, Number 222 (Thursday, November 17, 2016)]
[Rules and Regulations]
[Pages 80993-80994]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-27517]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9788]
RIN 1545-BM84


Liabilities Recognized as Recourse Partnership Liabilities Under 
Section 752; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final and temporary 
regulations (TD 9788) that were published in the Federal Register on 
Wednesday, October 5, 2016 (81 FR 69282). The final and temporary 
regulations provide rules concerning how liabilities are allocated for 
purposes of section 707 of the Internal Revenue Code and when certain 
obligations are recognized for purposes of determining whether a 
liability is a recourse partnership liability under section 752.

DATES: This correction is effective November 17, 2016 and is applicable 
on and after January 3, 2017.

FOR FURTHER INFORMATION CONTACT: Caroline E. Hay or Deane M. Burke 
(202) 317-5279 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final and temporary regulations (TD 9788) that are the subject 
of this correction are under sections 707 and 752 of the Internal 
Revenue Code.

Need for Correction

    As published, the final and temporary regulations (TD 9788) 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:

[[Page 80994]]

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 * * *
    Section 1.707-5T also issued under 26 U.S.C. 707(a)(2)(B).


0
Par. 2. Section 1.707-5T is amended by revising paragraph (a)(2)(i); 
and paragraph (f) Example 7 (i) is amended by revising the second to 
last sentence. The revisions read as follows:


Sec.  1.707-5T  Disguised sales of property to partnership; special 
rules relating to liabilities (temporary).

    (a) * * *
    (2) * * *
    (i) In general. For purposes of Sec.  1.707-5, a partner's share of 
a liability of a partnership, as defined in Sec.  1.752-1(a) (whether a 
recourse liability or a nonrecourse liability) is determined by 
applying the same percentage used to determine the partner's share of 
the excess nonrecourse liability under Sec.  1.752-3(a)(3) (as limited 
in its application to this paragraph (a)(2)), but such share shall not 
exceed the partner's share of the partnership liability under section 
752 and applicable regulations (as limited in the application of Sec.  
1.752-3(a)(3) to this paragraph (a)(2)).
* * * * *
    (f) * * *

    Example 7. * * *
    (i) * * * For disguised sale purposes, assume that G's and H's 
share of liability 1 is $2,000 each in accordance with paragraph 
(a)(2) of this section (which determines a partner's share of a 
liability using the percentage under Sec.  1.752-3(a)(3), but not 
exceeding the partner's share of the liability under section 752 and 
applicable regulations). * * *
* * * * *


Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2016-27517 Filed 11-16-16; 8:45 am]
BILLING CODE 4830-01-P

Federal Register / Vol. 81, No. 222 / Thursday, November 17, 2016 / Rules and Regulations 80993 Loan programs—Indians, Reporting and PART 1005—LOAN GUARANTEES Dated: November 4, 2016. recordkeeping requirements. FOR INDIAN HOUSING Lourdes Castro Ramirez, Accordingly, for the reasons stated in Principal Deputy Assistant Secretary for the preamble, HUD amends 24 CFR ■ 7. The authority citation for part 1005 Public and Indian Housing. parts 5, 1000, 1003, 1005, 1006, and continues to read as follows: Nani A. Coloretti, 1007, as follows: Deputy Secretary. Authority: 12 U.S.C. 1715z–13a; 15 U.S.C. 1639c; 42 U.S.C. 3535(d). [FR Doc. 2016–27196 Filed 11–16–16; 8:45 am] PART 5—GENERAL HUD PROGRAM BILLING CODE 4210–67–P REQUIREMENTS; WAIVERS ■ 8. Add § 1005.115 to read as follows: ■ 1. The authority citation for part 5 § 1005.115 Equal Access. continues to read as follows: DEPARTMENT OF THE TREASURY The equal access to HUD-assisted or Authority: 42 U.S.C. 1437a, 1437c, 1437d, 1437f, 1437n, 3535(d), Sec. 327, Pub. L. 109– -insured housing requirements in 24 Internal Revenue Service 115, 119 Stat. 2936, and Sec. 607, Pub. L. CFR 5.105(a)(2) apply to this part. 109–162, 119 Stat. 3051. 26 CFR Part 1 ■ 2. In § 5.105, revise paragraph (a)(2) to PART 1006—NATIVE HAWAIIAN [TD 9788] read as follows: HOUSING BLOCK GRANT PROGRAM RIN 1545–BM84 § 5.105 Other Federal requirements. ■ 9. The authority citation for part 1006 * * * * * continues to read as follows: Liabilities Recognized as Recourse (a) * * * Partnership Liabilities Under Section Authority: 25 U.S.C. 4221 et seq.; 42 U.S.C. 752; Correction (2) Equal access to HUD-assisted or 3535(d). -insured housing. A determination of AGENCY: Internal Revenue Service (IRS), eligibility for housing that is assisted by ■ 10. In § 1006.355, revise the Treasury. HUD or subject to a mortgage insured by introductory paragraph and add ACTION: Correcting amendment. HUD shall be made in accordance with paragraph (d) to read as follows: the eligibility requirements provided for SUMMARY: This document contains such program by HUD, and such § 1006.355 Nondiscrimination corrections to final and temporary housing shall be made available without requirements. regulations (TD 9788) that were regard to actual or perceived sexual Program eligibility under the Act and published in the Federal Register on orientation, gender identity, or marital this part may be restricted to Native Wednesday, October 5, 2016 (81 FR status. Hawaiians. Subject to the preceding 69282). The final and temporary * * * * * sentence, no person may be regulations provide rules concerning discriminated against on the basis of how liabilities are allocated for PART 1000—NATIVE AMERICAN race, color, national origin, religion, sex, purposes of section 707 of the Internal HOUSING ACTIVITIES familial status, or disability, or excluded Revenue Code and when certain from program eligibility because of obligations are recognized for purposes ■ 3. The authority citation for part 1000 actual or perceived sexual orientation, of determining whether a liability is a continues to read as follows: gender identity, or marital status. The recourse partnership liability under Authority: 25 U.S.C. 4101 et seq.; 42 U.S.C. following nondiscrimination section 752. 3535(d). requirements are applicable to the use of DATES: This correction is effective ■ 4. In § 1000.12, add paragraph (e) to NHHBG funds: November 17, 2016 and is applicable on read as follows: and after January 3, 2017. * * * * * § 1000.12 What nondiscrimination FOR FURTHER INFORMATION CONTACT: (d) The equal access to HUD-assisted requirements are applicable? or -insured housing requirements in 24 Caroline E. Hay or Deane M. Burke (202) * * * * * CFR 5.105(a)(2). 317–5279 (not a toll-free number). (e) The equal access to HUD-assisted SUPPLEMENTARY INFORMATION: or -insured housing requirements in 24 PART 1007—SECTION 184A LOAN CFR 5.105(a)(2). Background GUARANTEES FOR NATIVE HAWAIIAN HOUSING The final and temporary regulations PART 1003—COMMUNITY (TD 9788) that are the subject of this DEVELOPMENT BLOCK GRANTS FOR correction are under sections 707 and ■ 11. The authority citation for part INDIAN TRIBES AND ALASKA NATIVE 752 of the Internal Revenue Code. 1007 continues to read as follows: VILLAGES Authority: 12 U.S.C. 1715z–13b; 15 U.S.C. Need for Correction ■ 5. The authority citation for part 1003 1639c; 42 U.S.C. 3535(d). As published, the final and temporary continues to read as follows: regulations (TD 9788) contain errors that ■ 12. Amend § 1007.45 by revising the Authority: 42 U.S.C. 3535(d) and 5301 et section heading, redesignating the may prove to be misleading and are in seq. need of clarification. undesignated paragraph as paragraph ■ 6. In § 1003.601, add paragraph (c) to (a), and adding paragraph (b) to read as List of Subjects in 26 CFR Part 1 read as follows: mstockstill on DSK3G9T082PROD with RULES follows: Income taxes, Reporting and § 1003.601 Nondiscrimination. recordkeeping requirements. § 1007.45 Nondiscrimination. * * * * * (c) A grantee shall comply with the * * * * * Correction of Publication equal access to HUD-assisted or -insured (b) The equal access to HUD-assisted Accordingly, 26 CFR part 1 is housing requirements in 24 CFR or -insured housing requirements in 24 corrected by making the following 5.105(a)(2). CFR 5.105(a)(2) apply to this part. correcting amendments: VerDate Sep<11>2014 17:03 Nov 16, 2016 Jkt 241001 PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 E:\FR\FM\17NOR1.SGM 17NOR1

80994 Federal Register / Vol. 81, No. 222 / Thursday, November 17, 2016 / Rules and Regulations PART 1—INCOME TAXES DEPARTMENT OF THE TREASURY Regulations provide that for purposes of § 1.707–5, a partner’s share of a liability ■ Paragraph 1. The authority citation Internal Revenue Service of a partnership, as defined in § 1.752– for part 1 continues to read in part as 1(a) (whether a recourse liability or a follows: 26 CFR Part 1 nonrecourse liability) is determined by [TD 9788] applying the same percentage used to Authority: 26 U.S.C. 7805 * * * determine the partner’s share of the Section 1.707–5T also issued under 26 RIN 1545–BM84 excess nonrecourse liability under U.S.C. 707(a)(2)(B). § 1.752–3(a)(3) (as limited in its Liabilities Recognized as Recourse application to § 1.707–5T(a)(2)), but ■ Par. 2. Section 1.707–5T is amended Partnership Liabilities Under Section by revising paragraph (a)(2)(i); and such share shall not exceed the partner’s 752; Correction share of the partnership liability under paragraph (f) Example 7 (i) is amended AGENCY: Internal Revenue Service (IRS), section 752 and applicable regulations by revising the second to last sentence. Treasury. (as limited in the application of § 1.752– The revisions read as follows: ACTION: Final and temporary 3(a)(3) to § 1.707–5T(a)(2)).’’. § 1.707–5T Disguised sales of property to regulations; correction. Martin V. Franks, partnership; special rules relating to Chief, Publications and Regulations Branch, liabilities (temporary). SUMMARY: This document contains Legal Processing Division, Associate Chief corrections to final and temporary Counsel, (Procedure and Administration). (a) * * * regulations (TD 9788) that were [FR Doc. 2016–27516 Filed 11–16–16; 8:45 am] (2) * * * published in the Federal Register on BILLING CODE 4830–01–P (i) In general. For purposes of § 1.707– Wednesday, October 5, 2016 (81 FR 5, a partner’s share of a liability of a 69282). The final and temporary partnership, as defined in § 1.752–1(a) regulations provide rules concerning how liabilities are allocated for DEPARTMENT OF THE INTERIOR (whether a recourse liability or a nonrecourse liability) is determined by purposes of section 707 of the Internal Bureau of Safety and Environmental applying the same percentage used to Revenue Code and when certain Enforcement determine the partner’s share of the obligations are recognized for purposes of determining whether a liability is a excess nonrecourse liability under 30 CFR Part 250 recourse partnership liability under § 1.752–3(a)(3) (as limited in its [Docket ID: BSEE–2016–0010; 17XE1700DX section 752. application to this paragraph (a)(2)), but EEEE500000 EX1SF0000.DAQ000] DATES: This correction is effective such share shall not exceed the partner’s November 17, 2016 and is applicable on RIN 1014–AA30 share of the partnership liability under and after January 3, 2017. section 752 and applicable regulations Civil Penalty Inflation Adjustment (as limited in the application of § 1.752– FOR FURTHER INFORMATION CONTACT: 3(a)(3) to this paragraph (a)(2)). Caroline E. Hay or Deane M. Burke (202) AGENCY: Bureau of Safety and 317–5279 (not a toll-free number). Environmental Enforcement, Interior. * * * * * SUPPLEMENTARY INFORMATION: ACTION: Final rule. (f) * * * Background SUMMARY: This final rule adjusts the Example 7. * * * (i) * * * For disguised sale purposes, The final and temporary regulations level of the civil monetary penalty assume that G’s and H’s share of liability 1 (TD 9788) that are the subject of this contained in the Bureau of Safety and is $2,000 each in accordance with paragraph correction are under sections 707 and Environmental Enforcement (BSEE) (a)(2) of this section (which determines a 752 of the Internal Revenue Code. regulations pursuant to the Outer partner’s share of a liability using the Continental Shelf Lands Act (OCSLA), Need for Correction percentage under § 1.752–3(a)(3), but not the Federal Civil Penalties Inflation exceeding the partner’s share of the liability As published, the final and temporary Adjustment Act Improvements Act of under section 752 and applicable regulations (TD 9788) contain errors that 2015, and Office of Management and regulations). * * * may prove to be misleading and are in Budget (OMB) guidance. need of clarification. DATES: Effective November 17, 2016. * * * * * Correction of Publication FOR FURTHER INFORMATION CONTACT: Martin V. Franks, Robert Fisher, Acting Chief Safety and Accordingly, the final and temporary Chief, Publications and Regulations Branch, regulations (TD 9788), that are the Enforcement Division, Bureau of Safety Legal Processing Division, Associate Chief subject of FR Doc. 2016–23388, are and Environmental Enforcement, (202) Counsel, (Procedure and Administration). 208–3955 or by email: regs@bsee.gov. corrected as follows: [FR Doc. 2016–27517 Filed 11–16–16; 8:45 am] SUPPLEMENTARY INFORMATION: On page 69284, in the preamble, first BILLING CODE 4830–01–P column, the last sentence from the I. Background bottom of the first full paragraph, II. Calculation of Adjustment ‘‘Therefore, the 707 Temporary III. Comments Received on the Interim Final Regulations provide that a partner’s Rule mstockstill on DSK3G9T082PROD with RULES share of a partnership liability for IV. Procedural Matters disguised sale purposes does not A. Regulatory Planning and Review (E.O. 12866 and 13563) include any amount of the liability for B. Regulatory Flexibility Act which another partner bears the EROL C. Small Business Regulatory Enforcement for the partnership liability under Fairness Act § 1.752–2.’’ is corrected to read D. Unfunded Mandates Reform Act ‘‘Therefore, the 707 Temporary E. Takings (E.O. 12630) VerDate Sep<11>2014 17:03 Nov 16, 2016 Jkt 241001 PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 E:\FR\FM\17NOR1.SGM 17NOR1


Document Created: 2016-11-17 03:00:24
Document Modified: 2016-11-17 03:00:24
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
ActionCorrecting amendment.
DatesThis correction is effective November 17, 2016 and is applicable on and after January 3, 2017.
ContactCaroline E. Hay or Deane M. Burke (202) 317-5279 (not a toll-free number).
FR Citation81 FR 80993 
RIN Number1545-BM84
CFR AssociatedIncome Taxes and Reporting and Recordkeeping Requirements
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