82 FR 5476 - Rules Regarding Inversions and Related Transactions; Notice of Proposed Rulemaking by Cross-Reference to Temporary Regulations
DEPARTMENT OF THE TREASURY
Internal Revenue Service Federal Register Volume 82, Issue 11 (January 18, 2017)
Internal Revenue Service
Federal Register Volume 82, Issue 11 (January 18, 2017)
| Page Range | 5476-5477 | |
| FR Document | 2017-00637 |
[Federal Register Volume 82, Number 11 (Wednesday, January 18, 2017)] [Proposed Rules] [Pages 5476-5477] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-00637] ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [REG-135734-14] RIN 1545-BM45 Rules Regarding Inversions and Related Transactions; Notice of Proposed Rulemaking by Cross-Reference to Temporary Regulations AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed rulemaking by cross-reference to temporary regulations. ----------------------------------------------------------------------- SUMMARY: In the Rules and Regulations section of this issue of the Federal Register, the Department of the Treasury (Treasury Department) and the IRS are amending portions of temporary regulations that address certain transactions that are structured to avoid the purposes of section 7874 of the Internal Revenue Code (Code). The temporary regulations affect certain domestic corporations and domestic partnerships whose assets are directly or indirectly acquired by a foreign corporation and certain persons related to such domestic corporations and domestic partnerships. The text of the temporary regulations in the Rules and Regulations section of this issue of the Federal Register also serves as the text of these proposed regulations. DATES: Written or electronic comments and requests for a public hearing must be received by April 18, 2017. ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-135734-14), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20224. Submissions [[Page 5477]] may be hand-delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-135734-14), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC 20224, or sent electronically via the Federal eRulemaking Portal at http://www.regulations.gov (IRS REG-135734-14). FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Joshua G. Rabon (202) 317-6937; concerning submissions of comments or requests for a public hearing, Regina Johnson, (202) 317-5177 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Background The temporary regulations in the Rules and Regulations section of this issue of the Federal Register amend portions of the regulations under section 7874 of the Code concerning the de minimis exceptions to the general rules of Sec. Sec. 1.7874-7T (disregard of certain stock attributable to passive assets) and 1.7874-10T (disregard of certain distributions). The text of those temporary regulations also serves as the text of the proposed regulations herein. The preamble to those temporary regulations, which is also the preamble to certain final regulations under section 7874, explains the temporary regulations, the corresponding proposed regulations, and the final regulations. Special Analyses Certain IRS regulations, including these, are exempt from the requirements of Executive Order 12866, as supplemented and reaffirmed by Executive Order 13563. Therefore, a regulatory assessment is not required. 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), this notice of proposed rulemaking has been submitted to the Chief Counsel of 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 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 will be scheduled if requested in writing by any person that timely submits electronic or written 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 proposed regulations is Joshua G. Rabon of the Office of Associate 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 is amended by adding entries to read in part as follows: Authority: 26 U.S.C. 7805 * * * Section 1.7874-7 also issued under 26 U.S.C. 7874(c)(6) and 7874(g). * * * * * Section 1.7874-10 also issued under 26 U.S.C. 7874(c)(4) and 7874(g). * * * * * 0 Par. 2. Section 1.7874-7 is added to read as follows. Sec. 1.7874-7 Disregard of certain stock attributable to passive assets. (a) through (c)(1) [Reserved] (2) [The text of proposed Sec. 1.7874-7(c)(2) is the same as the text of Sec. 1.7874-7T(c)(2) as revised elsewhere in this issue of the Federal Register.] (d) through (g) [Reserved] (h) [The text of proposed Sec. 1.7874-7(h) is the same as the text of Sec. 1.7874-7T(h) as revised elsewhere in this issue of the Federal Register.] 0 Par. 3. Section 1.7874-10 is added to read as follows: Sec. 1.7874-10 Disregard of certain distributions. (a) through (d)(1) [Reserved] (2) [The text of proposed Sec. 1.7874-10(d)(2) is the same as the text of Sec. 1.7874-10T(d)(2) as revised elsewhere in this issue of the Federal Register.] (e) through (h) [Reserved] (i) [The text of proposed Sec. 1.7874-10(i) is the same as the text of Sec. 1.7874-10T(i) as revised elsewhere in this issue of the Federal Register.] John Dalrymple, Deputy Commissioner for Services and Enforcement. [FR Doc. 2017-00637 Filed 1-13-17; 4:15 pm] BILLING CODE 4830-01-P
![5476 Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules
Nominations must include the DEPARTMENT OF THE TREASURY List of Subjects in 26 CFR Part 1
following information about each Income taxes, Reporting and
nominee: Internal Revenue Service
recordkeeping requirements.
(1) A letter from the Tribe supporting
26 CFR Part 1 Partial Withdrawal of a Notice of
the nomination of the individual to Proposed Rulemaking
serve as a Tribal representative for the [REG–135734–14]
Committee and a statement on whether Accordingly, under the authority of
RIN 1545–BM45
the nominee is only representing one 26 U.S.C. 7805, §§ 1.7874–7(c)(2) and
Tribe’s views, or whether the Rules Regarding Inversions and (h) and 1.7874–10(d)(2) and (i) of the
expectation is that the nominee Related Transactions; Partial notice of proposed rulemaking (REG–
represents a specific group of Tribes. Withdrawal of Notice of Proposed 135734–14) published in the Federal
Also include the Tribal interest(s) to be Rulemaking Register on April 8, 2016 (81 FR 20588)
are withdrawn.
represented by the nominee (see Section AGENCY: Internal Revenue Service (IRS),
IV, Part F of Federal Register notice of Treasury. John Dalrymple,
intent at 80 FR 69161); ACTION: Partial withdrawal of notice of
Deputy Commissioner for Services and
(2) A resume reflecting the nominee’s Enforcement.
proposed rulemaking.
qualifications and experience in Indian [FR Doc. 2017–00636 Filed 1–13–17; 4:15 pm]
education; resume to include the SUMMARY: This document withdraws BILLING CODE 4830–01–P
nominee’s name, Tribal affiliation, job portions of a notice of proposed
title, major job duties, employer, rulemaking (REG–135734–14) published
on April 8, 2016, in the Federal Register DEPARTMENT OF THE TREASURY
business address, business telephone,
(81 FR 20588). The withdrawn portions
and fax numbers (and business email Internal Revenue Service
relate to exceptions to general rules
address, if applicable); and
addressing certain transactions that are
(3) A brief description of how the structured to avoid the purposes of 26 CFR Part 1
nominee will represent Tribal views, section 7874 of the Internal Revenue [REG–135734–14]
communicate with Tribal constituents, Code (Code).
RIN 1545–BM45
and have a clear means to reach DATES: Portions of the proposed rules
agreement on behalf of the Tribe(s) they published on April 8, 2016, in the Rules Regarding Inversions and
are representing. Federal Register (81 FR 20588) are Related Transactions; Notice of
We will consider only comments and withdrawn as of January 18, 2017. Proposed Rulemaking by Cross-
nominations that we receive by the FOR FURTHER INFORMATION CONTACT: Reference to Temporary Regulations
close of business Eastern Standard Time Joshua G. Rabon, (202) 317–6937.
AGENCY: Internal Revenue Service (IRS),
on the date listed in the DATES section, SUPPLEMENTARY INFORMATION:
Treasury.
at the location indicated in the Background ACTION: Notice of proposed rulemaking
ADDRESSES section. Comments received
On April 8, 2016, the Department of by cross-reference to temporary
will be available for inspection at the
the Treasury (Treasury Department) and regulations.
address listed above from 8 a.m. to 4
p.m., Monday through Friday, except the IRS published in the Federal
Register (81 FR 20588) proposed SUMMARY: In the Rules and Regulations
Federal holidays. Before including your section of this issue of the Federal
regulations (REG–135734–14), including
address, phone number, email address Register, the Department of the Treasury
in §§ 1.7874–7 and 1.7874–10, that
or other personal identifying (Treasury Department) and the IRS are
address certain transactions that are
information in your comment, please structured to avoid the purposes of amending portions of temporary
note that your entire comment— section 7874 of the Code. The regulations that address certain
including your personal identifying regulations were proposed by cross- transactions that are structured to avoid
information—may be made publicly reference to temporary regulations (TD the purposes of section 7874 of the
available at any time. While you can ask 9761) in the same issue of the Federal Internal Revenue Code (Code). The
us in your comments to withhold your Register (81 FR 20858). In the Rules and temporary regulations affect certain
personal identifying information from Regulations section of this issue of the domestic corporations and domestic
public review, we cannot guarantee that Federal Register, the Treasury partnerships whose assets are directly or
we will be able to do so. Department and the IRS are amending indirectly acquired by a foreign
certain aspects of the temporary corporation and certain persons related
Dated: January 11, 2017. to such domestic corporations and
Lawrence S. Roberts,
regulations in §§ 1.7874–7T and 1.7874–
10T. Accordingly, the Treasury domestic partnerships. The text of the
Principal Deputy Assistant Secretary—Indian Department and the IRS are issuing a temporary regulations in the Rules and
Affairs.
notice of proposed rulemaking in the Regulations section of this issue of the
[FR Doc. 2017–01061 Filed 1–17–17; 8:45 am] Proposed Rules section of this issue of Federal Register also serves as the text
BILLING CODE 4337–15–P the Federal Register that proposes rules of these proposed regulations.
mstockstill on DSK3G9T082PROD with PROPOSALS
in §§ 1.7874–7 and 1.7874–10 by cross- DATES: Written or electronic comments
reference to the amended temporary and requests for a public hearing must
regulations. This document withdraws be received by April 18, 2017.
the previously proposed regulations that ADDRESSES: Send submissions to:
are replaced by the notice of proposed CC:PA:LPD:PR (REG–135734–14), Room
rulemaking in the Proposed Rules 5203, Internal Revenue Service, P.O.
section of this issue of the Federal Box 7604, Ben Franklin Station,
Register. Washington, DC 20224. Submissions
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![Federal Register / Vol. 82, No. 11 / Wednesday, January 18, 2017 / Proposed Rules 5477
may be hand-delivered Monday through available at www.regulations.gov or 10T(i) as revised elsewhere in this issue
Friday between the hours of 8 a.m. and upon request. A public hearing will be of the Federal Register.]
4 p.m. to CC:PA:LPD:PR (REG–135734– scheduled if requested in writing by any
John Dalrymple,
14), Courier’s Desk, Internal Revenue person that timely submits electronic or
Service, 1111 Constitution Avenue NW., written comments. If a public hearing is Deputy Commissioner for Services and
Enforcement.
Washington, DC 20224, or sent scheduled, notice of the date, time, and
[FR Doc. 2017–00637 Filed 1–13–17; 4:15 pm]
electronically via the Federal place for the public hearing will be
eRulemaking Portal at http:// published in the Federal Register. BILLING CODE 4830–01–P
www.regulations.gov (IRS REG–135734–
Drafting Information
14).
DEPARTMENT OF THE TREASURY
FOR FURTHER INFORMATION CONTACT: The principal author of these
Concerning the proposed regulations, proposed regulations is Joshua G. Rabon Internal Revenue Service
Joshua G. Rabon (202) 317–6937; of the Office of Associate Chief Counsel
concerning submissions of comments or (International). However, other 26 CFR Part 1
requests for a public hearing, Regina personnel from the Treasury
Johnson, (202) 317–5177 (not toll-free Department and the IRS participated in [REG–131643–15]
numbers). their development. RIN–1545–BN05
SUPPLEMENTARY INFORMATION: List of Subjects in 26 CFR Part 1
Definitions of Qualified Matching
Background Income taxes, Reporting and Contributions and Qualified
The temporary regulations in the recordkeeping requirements. Nonelective Contributions
Rules and Regulations section of this Proposed Amendments to the AGENCY: Internal Revenue Service (IRS),
issue of the Federal Register amend Regulations Treasury.
portions of the regulations under section ACTION: Notice of proposed rulemaking.
7874 of the Code concerning the de Accordingly, 26 CFR part 1 is
minimis exceptions to the general rules proposed to be amended as follows: SUMMARY: This document contains
of §§ 1.7874–7T (disregard of certain proposed amendments to the definitions
PART 1—INCOME TAXES
stock attributable to passive assets) and of qualified matching contributions
1.7874–10T (disregard of certain (QMACs) and qualified nonelective
■ Paragraph 1. The authority citation
distributions). The text of those contributions (QNECs) under
for part 1 is amended by adding entries
temporary regulations also serves as the regulations relating to certain qualified
to read in part as follows:
text of the proposed regulations herein. retirement plans that contain cash or
The preamble to those temporary Authority: 26 U.S.C. 7805 * * * deferred arrangements under section
regulations, which is also the preamble Section 1.7874–7 also issued under 26
U.S.C. 7874(c)(6) and 7874(g).
401(k) or that provide for matching
to certain final regulations under section contributions or employee contributions
7874, explains the temporary * * * * * under section 401(m). Under these
regulations, the corresponding proposed Section 1.7874–10 also issued under 26
U.S.C. 7874(c)(4) and 7874(g).
regulations, employer contributions to a
regulations, and the final regulations. plan would be able to qualify as QMACs
* * * * * or QNECs if they satisfy applicable
Special Analyses
■ Par. 2. Section 1.7874–7 is added to nonforfeitability and distribution
Certain IRS regulations, including read as follows. requirements at the time they are
these, are exempt from the requirements allocated to participants’ accounts, but
of Executive Order 12866, as § 1.7874–7 Disregard of certain stock
attributable to passive assets. need not meet these requirements when
supplemented and reaffirmed by they are contributed to the plan. These
Executive Order 13563. Therefore, a (a) through (c)(1) [Reserved] regulations would affect participants in,
regulatory assessment is not required. (2) [The text of proposed § 1.7874– beneficiaries of, employers maintaining,
Because the regulations do not impose 7(c)(2) is the same as the text of and administrators of tax-qualified
a collection of information on small § 1.7874–7T(c)(2) as revised elsewhere plans that contain cash or deferred
entities, the Regulatory Flexibility Act in this issue of the Federal Register.] arrangements or provide for matching
(5 U.S.C. chapter 6) does not apply. (d) through (g) [Reserved] contributions or employee
Pursuant to section 7805(f), this notice (h) [The text of proposed § 1.7874– contributions.
of proposed rulemaking has been 7(h) is the same as the text of § 1.7874–
submitted to the Chief Counsel of DATES: Comments and requests for a
7T(h) as revised elsewhere in this issue public hearing must be received by
Advocacy of the Small Business of the Federal Register.]
Administration for comment on its April 18, 2017.
■ Par. 3. Section 1.7874–10 is added to ADDRESSES: Send submissions to
impact on small business.
read as follows: CC:PA:LPD:PR (REG–131643–15) Room
Comments and Requests for Public 5203, Internal Revenue Service, P.O.
Hearing § 1.7874–10 Disregard of certain
distributions. Box 7604, Ben Franklin Station,
Before these proposed regulations are Washington, DC 20044. Submissions
mstockstill on DSK3G9T082PROD with PROPOSALS
adopted as final regulations, (a) through (d)(1) [Reserved] may be hand-delivered Monday through
consideration will be given to any (2) [The text of proposed § 1.7874– Friday between the hours of 8 a.m. and
comments that are submitted timely to 10(d)(2) is the same as the text of 4 p.m. to CC:PA:LPD:PR (REG–131643–
the IRS as prescribed in this preamble § 1.7874–10T(d)(2) as revised elsewhere 15), Courier’s Desk, Internal Revenue
under the ‘‘Addresses’’ heading. The in this issue of the Federal Register.] Service, 1111 Constitution Avenue NW.,
Treasury Department and the IRS (e) through (h) [Reserved] Washington, DC 20224, or sent
request comments on all aspects of the (i) [The text of proposed § 1.7874– electronically via the Federal
proposed rules. All comments will be 10(i) is the same as the text of § 1.7874– eRulemaking Portal at
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Document Created: 2018-02-01 15:19:51
Document Modified: 2018-02-01 15:19:51
| 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 | Written or electronic comments and requests for a public hearing must be received by April 18, 2017. | |
| Contact | Concerning the proposed regulations, Joshua G. Rabon (202) 317-6937; concerning submissions of comments or requests for a public hearing, Regina Johnson, (202) 317-5177 (not toll-free numbers). | |
| FR Citation | 82 FR 5476 | |
| RIN Number | 1545-BM45 | |
| CFR Associated | Income Taxes and Reporting and Recordkeeping Requirements |
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