82_FR_6380 82 FR 6368 - Transfers of Certain Property by U.S. Persons to Partnerships With Related Foreign Partners

82 FR 6368 - Transfers of Certain Property by U.S. Persons to Partnerships With Related Foreign Partners

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 82, Issue 12 (January 19, 2017)

Page Range6368-6370
FR Document2017-01048

In the Rules and Regulations section of this issue of the Federal Register, temporary regulations are being issued under sections 197, 704, 721(c), and 6038B of the Internal Revenue Code (Code) that address transfers of appreciated property by U.S. persons to partnerships with foreign partners related to the transferor. The temporary regulations affect U.S. partners in domestic or foreign partnerships. The text of the temporary regulations also serves as the text of these proposed regulations.

Federal Register, Volume 82 Issue 12 (Thursday, January 19, 2017) 
[Federal Register Volume 82, Number 12 (Thursday, January 19, 2017)]
[Proposed Rules]
[Pages 6368-6370]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-01048]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-127203-15]
RIN 1545-BN81


Transfers of Certain Property by U.S. Persons to Partnerships 
With Related Foreign Partners

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulation.

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, temporary regulations are being issued under sections 
197, 704, 721(c), and 6038B of the Internal Revenue Code (Code) that 
address transfers of appreciated property by U.S. persons to 
partnerships with foreign partners related to the transferor. The 
temporary regulations affect U.S. partners in domestic or foreign 
partnerships. The text of the temporary regulations also serves as the 
text of these proposed regulations.

[[Page 6369]]


DATES: Written or electronic comments and requests for a public hearing 
must be received by April 19, 2017.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-127203-15), Internal 
Revenue Service, Room 5203, 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-
127203-15), 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-
127203-15).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Ryan A. Bowen, (202) 317-6937; concerning submissions of comments or 
requests for a public hearing, Regina Johnson, (202) 317-6901 (not 
toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Background

    The temporary regulations in the Rules and Regulations section of 
this issue of the Federal Register contain regulations under sections 
197, 704, 721(c), and 6038B of the Code. The temporary regulations 
contain rules described in Notice 2015-54, 2015-34 I.R.B. 210, and 
override nonrecognition of gain under section 721(a) for transfers of 
property to a partnership with related foreign partners and with 
substantial related-party ownership unless certain requirements are 
satisfied. The text of the temporary regulations also serves as the 
text of these proposed regulations. The preamble to the temporary 
regulations explains the temporary regulations and the corresponding 
proposed regulations.

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 impact assessment is 
not required. It is hereby certified that the collection of information 
contained in this regulation will not have a significant economic 
impact on a substantial number of small entities. Accordingly, a 
regulatory flexibility analysis is not required. This conclusion is 
based on the fact that the proposed regulations include a $1,000,000 de 
minimis exception for certain transfers, and tangible property with 
built-in gain that does not exceed $20,000 is excluded from the 
application of the regulations. In addition, the regulations only apply 
when a U.S. transferor contributes property to a partnership with a 
related foreign partner, and persons related to the U.S. transferor own 
80 percent or more of the interests in the partnership. Accordingly, 
the Treasury Department and the IRS expect that these regulations 
primarily will affect large domestic corporations. Pursuant to section 
7805(f), this notice of proposed rulemaking has 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 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 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 Ryan A. 
Bowen, 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 1.721(c)-1 also issued under 26 U.S.C. 721(c).
    Section 1.721(c)-2 also issued under 26 U.S.C. 721(c).
    Section 1.721(c)-3 also issued under 26 U.S.C. 721(c).
    Section 1.721(c)-4 also issued under 26 U.S.C. 721(c).
    Section 1.721(c)-5 also issued under 26 U.S.C. 721(c).
    Section 1.721(c)-6 also issued under 26 U.S.C. 721(c).
    Section 1.721(c)-7 also issued under 26 U.S.C. 721(c).
* * * * *
0
Par. 2. Section 1.197-2 is amended by adding paragraphs (h)(12)(vii)(C) 
and (l)(5) to read as follows:


Sec.  1.197-2  Amortization of goodwill and certain other intangibles.

* * * * *
    (h) * * *
    (12) * * *
    (vii) * * *
    (C) [The text of proposed Sec.  1.197-2(h)(12)(vii)(C) is the same 
as the text of Sec.  1.197-2T(h)(12)(vii)(C) published elsewhere in 
this issue of the Federal Register].
* * * * *
    (l) * * *
    (5) [The text of proposed Sec.  1.197-2(l)(5) is the same as the 
text of Sec.  1.197-2T(l)(5) published elsewhere in this issue of the 
Federal Register].
* * * * *
0
Par. 3. Section 1.704-1 is amended by adding paragraph (b)(2)(iv)(f)(6) 
following the undesignated paragraph at the end of paragraph 
(b)(2)(iv)(f)(5) and adding paragraph (f) to read as follows:


Sec.  1.704-1  Partner's distributive share.

* * * * *
    (b) * * *
    (2) * * *
    (iv) * * *
    (f) * * *
    (6) [The text of proposed Sec.  1.704-1(b)(2)(iv)(f)(6) is the same 
as the text of Sec.  1.704-1T(b)(2)(iv)(f)(6) published elsewhere in 
this issue of the Federal Register].
* * * * *
    (f) [The text of proposed Sec.  1.704-1(f) is the same as the text 
of Sec.  1.704-1T(f) published elsewhere in this issue of the Federal 
Register].
* * * * *
0
Par. 4. Section 1.704-3 is amended by adding paragraphs (a)(13), 
(d)(5)(iii), and (g) to read as follows:


Sec.  1.704-3  Contributed property.

    (a) * * *
    (13) [The text of proposed Sec.  1.704-3(a)(13) is the same as the 
text of Sec.  1.704-3T(a)(13) published elsewhere in this issue of the 
Federal Register].
* * * * *
    (d) * * *
    (5) * * *
    (iii) [The text of proposed Sec.  1.704-3(d)(5)(iii) is the same as 
the text of Sec.  1.704-3T(d)(5)(iii) published

[[Page 6370]]

elsewhere in this issue of the Federal Register].
* * * * *
    (g) [The text of proposed Sec.  1.704-3(g) is the same as the text 
of Sec.  1.704-3T(g) published elsewhere in this issue of the Federal 
Register].
0
Par. 5. Section 1.721(c)-1 is added to read as follows:


Sec.  1.721(c)-1  Overview, definitions, and rules of general 
application.

    [The text of proposed Sec.  1.721(c)-1 is the same as the text of 
Sec.  1.721(c)-1T published elsewhere in this issue of the Federal 
Register].
0
Par. 6. Section 1.721(c)-2 is added to read as follows:


Sec.  1.721(c)-2  Recognition of gain on certain contributions of 
property to partnerships with related foreign partners.

    [The text of proposed Sec.  1.721(c)-2 is the same as the text of 
Sec.  1.721(c)-2T published elsewhere in this issue of the Federal 
Register].
0
Par. 7. Section 1.721(c)-3 is added to read as follows:


Sec.  1.721(c)-3  Gain deferral method.

    [The text of proposed Sec.  1.721(c)-3 is the same as the text of 
Sec.  1.721(c)-3T published elsewhere in this issue of the Federal 
Register].
0
Par. 8. Section 1.721(c)-4 is added to read as follows:


Sec.  1.721(c)-4  Acceleration events.

    [The text of proposed Sec.  1.721(c)-4 is the same as the text of 
Sec.  1.721(c)-4T published elsewhere in this issue of the Federal 
Register].
0
Par. 9. Section 1.721(c)-5 is added to read as follows:


Sec.  1.721(c)-5  Acceleration event exceptions.

    [The text of proposed Sec.  1.721(c)-5 is the same as the text of 
Sec.  1.721(c)-5T published elsewhere in this issue of the Federal 
Register].
0
Par. 10. Section 1.721(c)-6 is added to read as follows:


Sec.  1.721(c)-6  Procedural and reporting requirements.

    [The text of proposed Sec.  1.721(c)-6 is the same as the text of 
Sec.  1.721(c)-6T published elsewhere in this issue of the Federal 
Register].
0
Par. 11. Section 1.721(c)-7 is added to read as follows:


Sec.  1.721(c)-7  Examples.

    [The text of proposed Sec.  1.721(c)-7 is the same as the text of 
Sec.  1.721(c)-7T published elsewhere in this issue of the Federal 
Register].
0
Par. 12. Section 1.6038B-2 is amended by:
0
1. Revising paragraph (a)(3).
0
2. Adding paragraphs (a)(1)(iii), (c)(8), and (c)(9).
0
3. Revising paragraph (h)(3).
0
4. Adding paragraphs (j)(4) and (j)(5).


Sec.  1.6038B-2  Reporting of certain transfers to foreign 
partnerships.

    (a) * * *
    (1) * * *
    (iii) [The text of proposed Sec.  1.6038B-2(a)(1)(iii) is the same 
as the text of Sec.  1.6038B-2T(a)(1)(iii) published elsewhere in this 
issue of the Federal Register].
* * * * *
    (3) [The text of proposed Sec.  1.6038B-2(a)(3) is the same as the 
text of Sec.  1.6038B-2T(a)(3) published elsewhere in this issue of the 
Federal Register].
* * * * *
    (c) * * *
    (8) [The text of proposed Sec.  1.6038B-2(c)(8) is the same as the 
text of Sec.  1.6038B-2T(c)(8) published elsewhere in this issue of the 
Federal Register].
    (9) [The text of proposed Sec.  1.6038B-2(c)(9) is the same as the 
text of Sec.  1.6038B-2T(c)(9) published elsewhere in this issue of the 
Federal Register].
* * * * *
    (h) * * *
    (3) [The text of proposed Sec.  1.6038B-2(h)(3) is the same as the 
text of Sec.  1.6038B-2T(h)(3) published elsewhere in this issue of the 
Federal Register].
* * * * *
    (j) * * *
    (4) [The text of proposed Sec.  1.6038B-2(j)(4) is the same as the 
text of Sec.  1.6038B-2T(j)(4) published elsewhere in this issue of the 
Federal Register].
    (5) [The text of proposed Sec.  1.6038B-2(j)(5) is the same as the 
text of Sec.  1.6038B-2T(j)(5) published elsewhere in this issue of the 
Federal Register].

John Dalrymple,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2017-01048 Filed 1-18-17; 8:45 am]
 BILLING CODE 4830-01-P

6368 Federal Register / Vol. 82, No. 12 / Thursday, January 19, 2017 / Proposed Rules submission. You should submit two At the public hearing on November 9 FDA is harmonizing the comment copies total. One copy will include the and 10, 2016, a number of speakers periods for the notification of public information you claim to be confidential presented legal views regarding the hearing and the two draft guidances, as with a heading or cover note that states application of First Amendment all three documents relate to the ‘‘THIS DOCUMENT CONTAINS principles to firm communications overarching topic of firm CONFIDENTIAL INFORMATION.’’ The regarding unapproved uses of approved communications regarding medical Agency will review this copy, including or cleared medical products. Some products, and interested persons may the claimed confidential information, in expressed the view that FDA had not wish to review all the documents before its consideration of comments. The sufficiently discussed the First submitting comments to any of the second copy, which will have the Amendment in the notification of public relevant dockets. FDA is requesting claimed confidential information hearing. In response to these comments, comments on both draft guidances by redacted/blacked out, will be available FDA is now placing the Memorandum April 19, 2017. for public viewing and posted on in the docket for the public hearing to To allow interested parties an https://www.regulations.gov. Submit provide additional background on the opportunity to review the Memorandum both copies to the Division of Dockets issues it is considering as part of its and the two draft guidances, FDA is Management. If you do not wish your review of its rules and policies relating reopening the comment period for the name and contact information to be to firm communications regarding notification of public hearing for an made publicly available, you can unapproved uses of approved or cleared additional 90 days, until April 19, 2017. provide this information on the cover medical products, including a The Agency believes reopening the sheet and not in the body of your discussion of First Amendment comment period for an additional 90 comments and you must identify this considerations. In the notification of days for the notification of public information as ‘‘confidential.’’ Any public hearing, FDA requested hearing will allow adequate time for information marked as ‘‘confidential’’ comments on a number of specific interested persons to submit comments will not be disclosed except in issues and questions identified without significantly delaying Agency accordance with 21 CFR 10.20 and other throughout the document. The decision making and policy applicable disclosure law. For more Memorandum is intended to help development on these important issues. information about FDA’s posting of advance the discussion of these topics, Dated: January 6, 2017. comments to public dockets, see 80 FR and FDA is seeking input on the Jeremy Sharp, 56469, September 18, 2015, or access information in the Memorandum as it Deputy Commissioner for Policy, Planning, the information at: http://www.fda.gov/ relates to these issues and questions in Legislation, and Analysis. regulatoryinformation/dockets/ the notification of public hearing. [FR Doc. 2017–01013 Filed 1–18–17; 8:45 am] default.htm. Furthermore, elsewhere in this issue Docket: For access to the docket to of the Federal Register, FDA is BILLING CODE 4164–01–P read background documents or the announcing the availability of a draft electronic and written/paper comments guidance for industry entitled ‘‘Drug received, go to https:// and Device Manufacturer DEPARTMENT OF THE TREASURY www.regulations.gov and insert the Communications With Payors, docket number, found in brackets in the Formulary Committees, and Similar Internal Revenue Service heading of this document, into the Entities—Questions and Answers,’’ ‘‘Search’’ box and follow the prompts which provides answers to common 26 CFR Part 1 and/or go to the Division of Dockets questions regarding the communication Management, 5630 Fishers Lane, Rm. of health care economic information [REG–127203–15] 1061, Rockville, MD 20852. about approved prescription drugs by FOR FURTHER INFORMATION CONTACT: medical product firms to payors, RIN 1545–BN81 Kristin Davis, Office of Policy, Food and formulary committees, or other similar Drug Administration, 10903 New entities. The draft guidance also Transfers of Certain Property by U.S. Hampshire Ave., Bldg. 32, Rm. 4252, provides answers to common questions Persons to Partnerships With Related Silver Spring, MD 20993, 301–796– related to firms’ communications about Foreign Partners 0418. investigational drugs and devices AGENCY: Internal Revenue Service (IRS), SUPPLEMENTARY INFORMATION: In the (investigational products) to payors Treasury. Federal Register of September 1, 2016 before FDA approval or clearance of ACTION: Notice of proposed rulemaking (81 FR 60299), FDA published a such products. by cross-reference to temporary notification of public hearing on firm Additionally, in this issue of the regulation. communications regarding unapproved Federal Register, FDA is announcing uses of approved or cleared medical the availability of a draft guidance for SUMMARY: In the Rules and Regulations products. FDA is currently engaged in a industry entitled ‘‘Medical Product section of this issue of the Federal comprehensive review of its regulations Communications That Are Consistent Register, temporary regulations are and policies governing firms’ With the FDA-Required Labeling— being issued under sections 197, 704, communications about unapproved uses Questions and Answers.’’ The guidance 721(c), and 6038B of the Internal asabaliauskas on DSK3SPTVN1PROD with PROPOSALS of approved or cleared medical provides information for medical Revenue Code (Code) that address products, and the comments on the product firms about how FDA evaluates transfers of appreciated property by U.S. notification of public hearing will their medical product communications, persons to partnerships with foreign inform FDA’s policy development in including their promotional materials, partners related to the transferor. The this area. that present information that is not temporary regulations affect U.S. Interested persons were originally contained in the FDA-required labeling partners in domestic or foreign given until January 9, 2017, to comment for the product but that may be partnerships. The text of the temporary on the topics discussed in the consistent with the FDA-required regulations also serves as the text of notification of public hearing. labeling for the product. these proposed regulations. VerDate Sep<11>2014 20:40 Jan 18, 2017 Jkt 241001 PO 00000 Frm 00030 Fmt 4702 Sfmt 4702 E:\FR\FM\19JAP1.SGM 19JAP1

Federal Register / Vol. 82, No. 12 / Thursday, January 19, 2017 / Proposed Rules 6369 DATES: Written or electronic comments regulations. In addition, the regulations Section 1.721(c)–5 also issued under 26 and requests for a public hearing must only apply when a U.S. transferor U.S.C. 721(c). be received by April 19, 2017. contributes property to a partnership Section 1.721(c)–6 also issued under 26 with a related foreign partner, and U.S.C. 721(c). ADDRESSES: Send submissions to: Section 1.721(c)–7 also issued under 26 CC:PA:LPD:PR (REG–127203–15), persons related to the U.S. transferor U.S.C. 721(c). Internal Revenue Service, Room 5203, own 80 percent or more of the interests in the partnership. Accordingly, the * * * * * P.O. Box 7604, Ben Franklin Station, Treasury Department and the IRS expect ■ Par. 2. Section 1.197–2 is amended by Washington, DC 20044. Submissions that these regulations primarily will adding paragraphs (h)(12)(vii)(C) and may be hand-delivered Monday through affect large domestic corporations. (l)(5) to read as follows: Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG–127203– Pursuant to section 7805(f), this notice § 1.197–2 Amortization of goodwill and 15), Courier’s Desk, Internal Revenue of proposed rulemaking has been certain other intangibles. Service, 1111 Constitution Avenue NW., submitted to the Chief Counsel for * * * * * Washington, DC 20224, or sent Advocacy of the Small Business (h) * * * electronically via the Federal Administration for comment on its (12) * * * eRulemaking Portal at http:// impact on small business. (vii) * * * www.regulations.gov (IRS REG–127203– Comments and Requests for Public (C) [The text of proposed § 1.197– 15). Hearing 2(h)(12)(vii)(C) is the same as the text of FOR FURTHER INFORMATION CONTACT: § 1.197–2T(h)(12)(vii)(C) published Concerning the proposed regulations, Before these proposed regulations are elsewhere in this issue of the Federal Ryan A. Bowen, (202) 317–6937; adopted as final regulations, Register]. concerning submissions of comments or consideration will be given to any comments that are submitted timely to * * * * * requests for a public hearing, Regina (l) * * * Johnson, (202) 317–6901 (not toll-free the IRS as prescribed in this preamble under the ADDRESSES heading. The (5) [The text of proposed § 1.197– numbers). 2(l)(5) is the same as the text of § 1.197– Treasury Department and the IRS SUPPLEMENTARY INFORMATION: request comments on all aspects of the 2T(l)(5) published elsewhere in this Background proposed rules. All comments will be issue of the Federal Register]. available at www.regulations.gov or * * * * * The temporary regulations in the upon request. A public hearing will be ■ Par. 3. Section 1.704–1 is amended by Rules and Regulations section of this scheduled if requested in writing by any adding paragraph (b)(2)(iv)(f)(6) issue of the Federal Register contain person that timely submits written following the undesignated paragraph at regulations under sections 197, 704, comments. If a public hearing is the end of paragraph (b)(2)(iv)(f)(5) and 721(c), and 6038B of the Code. The scheduled, notice of the date, time, and adding paragraph (f) to read as follows: temporary regulations contain rules place for the public hearing will be described in Notice 2015–54, 2015–34 § 1.704–1 Partner’s distributive share. published in the Federal Register. I.R.B. 210, and override nonrecognition * * * * * of gain under section 721(a) for transfers Drafting Information (b) * * * of property to a partnership with related (2) * * * The principal author of these foreign partners and with substantial (iv) * * * proposed regulations is Ryan A. Bowen, related-party ownership unless certain (f) * * * Office of Associate Chief Counsel requirements are satisfied. The text of (6) [The text of proposed § 1.704– (International). However, other the temporary regulations also serves as 1(b)(2)(iv)(f)(6) is the same as the text of personnel from the Treasury the text of these proposed regulations. § 1.704–1T(b)(2)(iv)(f)(6) published Department and the IRS participated in The preamble to the temporary elsewhere in this issue of the Federal their development. regulations explains the temporary Register]. regulations and the corresponding List of Subjects in 26 CFR Part 1 * * * * * proposed regulations. Income taxes, Reporting and (f) [The text of proposed § 1.704–1(f) Special Analyses recordkeeping requirements. is the same as the text of § 1.704–1T(f) Certain IRS regulations, including this Proposed Amendments to the published elsewhere in this issue of the one, are exempt from the requirements Regulations Federal Register]. of Executive Order 12866, as * * * * * Accordingly, 26 CFR part 1 is supplemented and reaffirmed by ■ Par. 4. Section 1.704–3 is amended by proposed to be amended as follows: Executive Order 13563. Therefore, a adding paragraphs (a)(13), (d)(5)(iii), regulatory impact assessment is not PART 1—INCOME TAXES and (g) to read as follows: required. It is hereby certified that the § 1.704–3 Contributed property. collection of information contained in ■ Paragraph 1. The authority citation this regulation will not have a for part 1 is amended by adding entries (a) * * * significant economic impact on a to read in part as follows: (13) [The text of proposed § 1.704– asabaliauskas on DSK3SPTVN1PROD with PROPOSALS substantial number of small entities. 3(a)(13) is the same as the text of Authority: 26 U.S.C. 7805 * * * § 1.704–3T(a)(13) published elsewhere Accordingly, a regulatory flexibility analysis is not required. This conclusion Section 1.721(c)–1 also issued under 26 in this issue of the Federal Register]. is based on the fact that the proposed U.S.C. 721(c). * * * * * Section 1.721(c)–2 also issued under 26 regulations include a $1,000,000 de U.S.C. 721(c). (d) * * * minimis exception for certain transfers, Section 1.721(c)–3 also issued under 26 (5) * * * and tangible property with built-in gain U.S.C. 721(c). (iii) [The text of proposed § 1.704– that does not exceed $20,000 is Section 1.721(c)–4 also issued under 26 3(d)(5)(iii) is the same as the text of excluded from the application of the U.S.C. 721(c). § 1.704–3T(d)(5)(iii) published VerDate Sep<11>2014 20:40 Jan 18, 2017 Jkt 241001 PO 00000 Frm 00031 Fmt 4702 Sfmt 4702 E:\FR\FM\19JAP1.SGM 19JAP1

6370 Federal Register / Vol. 82, No. 12 / Thursday, January 19, 2017 / Proposed Rules elsewhere in this issue of the Federal ■ 1. Revising paragraph (a)(3). SUMMARY: This document withdraws Register]. ■ 2. Adding paragraphs (a)(1)(iii), (c)(8), proposed regulations relating to the * * * * * and (c)(9). definition of an authorized placement ■ 3. Revising paragraph (h)(3). agency for purposes of a dependency (g) [The text of proposed § 1.704–3(g) ■ 4. Adding paragraphs (j)(4) and (j)(5). exemption for a child placed for is the same as the text of § 1.704–3T(g) published elsewhere in this issue of the § 1.6038B–2 Reporting of certain transfers adoption that were issued prior to the Federal Register]. to foreign partnerships. changes made to the law by the Working ■ Par. 5. Section 1.721(c)–1 is added to (a) * * * Families Tax Relief Act of 2004 read as follows: (1) * * * (WFTRA). This document contains (iii) [The text of proposed § 1.6038B– proposed regulations that reflect § 1.721(c)–1 Overview, definitions, and 2(a)(1)(iii) is the same as the text of changes made by WFTRA and by the rules of general application. § 1.6038B–2T(a)(1)(iii) published Fostering Connections to Success and [The text of proposed § 1.721(c)–1 is elsewhere in this issue of the Federal Increasing Adoptions Act of 2008 the same as the text of § 1.721(c)–1T Register]. (FCSIAA) relating to the dependency published elsewhere in this issue of the exemption. This document also contains * * * * * Federal Register]. (3) [The text of proposed § 1.6038B– proposed regulations that, to reflect ■ Par. 6. Section 1.721(c)–2 is added to current law, amend the regulations 2(a)(3) is the same as the text of read as follows: § 1.6038B–2T(a)(3) published elsewhere relating to the surviving spouse and § 1.721(c)–2 Recognition of gain on certain in this issue of the Federal Register]. head of household filing statuses, the contributions of property to partnerships * * * * * tax tables for individuals, the child and with related foreign partners. (c) * * * dependent care credit, the earned [The text of proposed § 1.721(c)–2 is (8) [The text of proposed § 1.6038B– income credit, the standard deduction, the same as the text of § 1.721(c)–2T 2(c)(8) is the same as the text of joint tax returns, and taxpayer published elsewhere in this issue of the § 1.6038B–2T(c)(8) published elsewhere identification numbers for children Federal Register]. in this issue of the Federal Register]. placed for adoption. These proposed ■ Par. 7. Section 1.721(c)–3 is added to (9) [The text of proposed § 1.6038B– regulations change the IRS’s position read as follows: 2(c)(9) is the same as the text of regarding the category of taxpayers § 1.6038B–2T(c)(9) published elsewhere permitted to claim the childless earned § 1.721(c)–3 Gain deferral method. in this issue of the Federal Register]. income credit. In determining a [The text of proposed § 1.721(c)–3 is * * * * * taxpayer’s eligibility to claim a the same as the text of § 1.721(c)–3T (h) * * * dependency exemption, these proposed published elsewhere in this issue of the (3) [The text of proposed § 1.6038B– regulations change the IRS’s position Federal Register]. 2(h)(3) is the same as the text of regarding the adjusted gross income of ■ Par. 8. Section 1.721(c)–4 is added to § 1.6038B–2T(h)(3) published elsewhere a taxpayer filing a joint return for read as follows: in this issue of the Federal Register]. purposes of the tiebreaker rules and the * * * * * source of support of certain payments § 1.721(c)–4 Acceleration events. that originated as governmental (j) * * * [The text of proposed § 1.721(c)–4 is (4) [The text of proposed § 1.6038B– payments. These regulations provide the same as the text of § 1.721(c)–4T 2(j)(4) is the same as the text of guidance to individuals who may claim published elsewhere in this issue of the § 1.6038B–2T(j)(4) published elsewhere certain child-related tax benefits. Federal Register]. in this issue of the Federal Register]. ■ Par. 9. Section 1.721(c)–5 is added to DATES: Written or electronic comments (5) [The text of proposed § 1.6038B– read as follows: and requests for a public hearing must 2(j)(5) is the same as the text of be received by April 19, 2017. § 1.721(c)–5 Acceleration event § 1.6038B–2T(j)(5) published elsewhere exceptions. in this issue of the Federal Register]. ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG–137604–07), Room [The text of proposed § 1.721(c)–5 is John Dalrymple, 5203, Internal Revenue Service, P.O. the same as the text of § 1.721(c)–5T Deputy Commissioner for Services and Box 7604, Ben Franklin Station, published elsewhere in this issue of the Enforcement. Washington, DC 20044. Submissions Federal Register]. [FR Doc. 2017–01048 Filed 1–18–17; 8:45 am] may be hand-delivered Monday through ■ Par. 10. Section 1.721(c)–6 is added to BILLING CODE 4830–01–P Friday between the hours of 8 a.m. and read as follows: 4 p.m. to CC:PA:LPD:PR (REG–137604– § 1.721(c)–6 Procedural and reporting 07), Courier’s Desk, Internal Revenue DEPARTMENT OF THE TREASURY requirements. Service, 1111 Constitution Avenue NW., [The text of proposed § 1.721(c)–6 is Internal Revenue Service Washington, DC 20224, or sent the same as the text of § 1.721(c)–6T electronically via the Federal published elsewhere in this issue of the 26 CFR Parts 1 and 301 eRulemaking Portal at Federal Register]. www.regulations.gov (IRS REG–137604– [REG–137604–07] 07). ■ Par. 11. Section 1.721(c)–7 is added to asabaliauskas on DSK3SPTVN1PROD with PROPOSALS read as follows: RIN 1545–BI35 FOR FURTHER INFORMATION CONTACT: § 1.721(c)–7 Examples. Definition of Dependent Concerning the proposed regulations, Victoria J. Driscoll, (202) 317–4718; [The text of proposed § 1.721(c)–7 is AGENCY: Internal Revenue Service (IRS), concerning the submission of comments the same as the text of § 1.721(c)–7T Treasury. and requests for a public hearing, published elsewhere in this issue of the ACTION: Withdrawal of notice of Regina Johnson, (202) 317–6901 (not Federal Register]. proposed rulemaking and notice of toll-free calls). ■ Par. 12. Section 1.6038B–2 is proposed rulemaking. amended by: SUPPLEMENTARY INFORMATION: VerDate Sep<11>2014 20:40 Jan 18, 2017 Jkt 241001 PO 00000 Frm 00032 Fmt 4702 Sfmt 4702 E:\FR\FM\19JAP1.SGM 19JAP1


Document Created: 2018-02-01 15:15:50
Document Modified: 2018-02-01 15:15:50
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionNotice of proposed rulemaking by cross-reference to temporary regulation.
DatesWritten or electronic comments and requests for a public hearing must be received by April 19, 2017.
ContactConcerning the proposed regulations, Ryan A. Bowen, (202) 317-6937; concerning submissions of comments or requests for a public hearing, Regina Johnson, (202) 317-6901 (not toll-free numbers).
FR Citation82 FR 6368 
RIN Number1545-BN81
CFR AssociatedIncome Taxes and Reporting and Recordkeeping Requirements
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