83_FR_50452 83 FR 50258 - Section 707 Regarding Disguised Sales, Generally; Correction

83 FR 50258 - Section 707 Regarding Disguised Sales, Generally; Correction

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 83, Issue 194 (October 5, 2018)

Page Range50258-50259
FR Document2018-21673

This document contains corrections to final regulations (TD 9787) that were published in the Federal Register on Wednesday, October 5, 2016. The final regulations are under sections 707 and 752 of the Internal Revenue Code.

Federal Register, Volume 83 Issue 194 (Friday, October 5, 2018) 
[Federal Register Volume 83, Number 194 (Friday, October 5, 2018)]
[Rules and Regulations]
[Pages 50258-50259]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21673]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9787]
RIN 1545-BK29


Section 707 Regarding Disguised Sales, Generally; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final regulations (TD 
9787) that were published in the Federal Register on Wednesday, October 
5, 2016. The final regulations are under sections 707 and 752 of the 
Internal Revenue Code.

DATES: This correction is effective October 5, 2018 and is applicable 
on and after October 5, 2016.

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

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9787), published October 5, 2016 (81 FR 
69291), 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 regulations (TD 9787) contain an error 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.

[[Page 50259]]

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 * * *


Sec.  1.707-9  [Amended]

0
Par. 2. Section 1.707-9 is amended by revising the second sentence in 
paragraph (a)(1) to read as follows:


Sec.  1.707-9  Effective dates and transitional rules.

    (a) * * *
    (1) * * * For any transaction with respect to which all transfers 
that are part of a sale of an item of property occur after April 24, 
1991, and any of such transfers occurs before October 5, 2016, 
Sec. Sec.  1.707-3 through 1.707-6 as contained in 26 CFR part 1 
revised as of April 1, 2016, apply.
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2018-21673 Filed 10-4-18; 8:45 am]
BILLING CODE 4830-01-P

50258 Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Rules and Regulations As described in 24 CFR 570.712(b), the availability of CDBG funds to repay This document establishes a rate that HUD’s credit subsidy calculation is the guaranteed loans cannot be assumed does not constitute a development based on the amount required to reduce in the development of the credit subsidy decision that affects the physical the credit subsidy cost to the Federal cost estimate (see 80 FR 67629, condition of specific project areas or Government associated with making a November 3, 2015). Thus, the estimate building sites. Accordingly, under 24 Section 108 loan guarantee to the must incorporate the risk that CFR 50.19(c)(6), this document is amount established by applicable alternative sources are used to repay the categorically excluded from appropriation acts. As a result, HUD’s guaranteed loan in lieu of CDBG funds, environmental review under the credit subsidy cost calculations and that those sources may be National Environmental Policy Act of incorporated assumptions based on: (1) insufficient. Based on the rate that 1969 (42 U.S.C. 4321). Data on default frequency for municipal CDBG funds are used annually for Dated: September 14, 2018. debt where such debt is comparable to repayment of loan guarantees, HUD’s Neal Rackleff, loans in the Section 108 loan portfolio; calculation of the credit subsidy cost (2) data on recovery rates on collateral Assistant Secretary for Community Planning must acknowledge the possibility of and Development. security for comparable municipal debt; future defaults if those CDBG funds [FR Doc. 2018–21686 Filed 10–4–18; 8:45 am] (3) the expected composition of the were not available. The fee of 2.23 Section 108 portfolio by end users of the percent of the principal amount of the BILLING CODE 4210–67–P guaranteed loan funds (e.g., third-party loan will offset the expected cost to the borrowers and public entities); and (4) Federal Government due to default, other factors that HUD determined were financing costs, and other relevant relevant to this calculation (e.g., DEPARTMENT OF THE TREASURY factors. To arrive at this measure, HUD assumptions as to loan disbursement analyzed data on comparable municipal Internal Revenue Service and repayment patterns). debt over an extended period. The Taking these factors into estimated rate is based on the default consideration, HUD determined that the 26 CFR Part 1 and recovery rates for general purpose fee for disbursements made under loan municipal debt and industrial guarantee commitments awarded in FY [TD 9787] development bonds. The cumulative 2019 will be 2.23 percent, which will be default rates on industrial development applied only at the time of loan bonds were higher than the default rates RIN 1545–BK29 disbursements. Note that future on general purpose municipal debt documents may provide for a during the period from which the data Section 707 Regarding Disguised combination of upfront and periodic were taken. These two subsectors of Sales, Generally; Correction fees for loan guarantee commitments municipal debt were chosen because awarded in future fiscal years but, if so, AGENCY: Internal Revenue Service (IRS), their purposes and loan terms most Treasury. will provide the public an opportunity closely resemble those of Section 108 to comment if appropriate under 24 CFR ACTION: Correcting amendment. guaranteed loans. 570.712(b)(2). The expected cost of a Section 108 In this regard, Section 108 guaranteed SUMMARY: This document contains loan guarantee is difficult to estimate loans can be broken down into two corrections to final regulations (TD using historical program data because categories: (1) Loans that finance public 9787) that were published in the there have been no defaults in the infrastructure and activities to support Federal Register on Wednesday, history of the program that required subsidized housing (other than October 5, 2016. The final regulations HUD to invoke its full faith and credit financing new construction) and (2) are under sections 707 and 752 of the guarantee or use the credit subsidy other development projects (e.g., retail, Internal Revenue Code. reserved each year for future losses.2 commercial, industrial). The 2.23 DATES: This correction is effective This is due to a variety of factors, percent fee was derived by weighting October 5, 2018 and is applicable on including the availability of Community the default and recovery data for general and after October 5, 2016. Development Block Grant (CDBG) funds purpose municipal debt and the data for industrial development bonds according FOR FURTHER INFORMATION CONTACT: as security for HUD’s guarantee as provided in 24 CFR 570.705(b). As to the expected composition of the Deane M. Burke or Caroline E. Hay at authorized by Section 108 of the Section 108 portfolio by corresponding (202) 317–5279 (not a toll-free number). Housing and Community Development project type. Based on the dollar amount SUPPLEMENTARY INFORMATION: Act of 1974, as amended (42 U.S.C. of Section 108 loan guarantee Background 5308), borrowers may make payments commitments awarded from FY 2013 on Section 108 loans using CDBG grant through FY 2017, HUD expects that 35 The final regulations (TD 9787), funds. Borrowers may also make Section percent of the Section 108 portfolio will published October 5, 2016 (81 FR 108 loan payments from other be similar to general purpose municipal 69291), that are the subject of this anticipated sources but continue to have debt and 65 percent of the portfolio will correction are under sections 707 and CDBG funds available should they be similar to industrial development 752 of the Internal Revenue Code. encounter shortfalls in the anticipated bonds. In setting the fee at 2.23 percent Need for Correction repayment source. Despite the of the principal amount of the program’s history of no defaults, Federal guaranteed loan, HUD expects that the As published, the final regulations amount generated will fully offset the (TD 9787) contain an error that may daltland on DSKBBV9HB2PROD with RULES credit budgeting principles require that cost to the Federal Government prove to be misleading and are in need 2 U.S. Department of Housing and Urban associated with making guarantee of clarification. Development, Study of HUD’s Section 108 Loan commitments awarded in FY 2019. Note Guarantee Program, (prepared by Econometrica, Inc. List of Subjects in 26 CFR Part 1 and The Urban Institute), September 2012, at pages that the FY 2019 fee represents a 0.135 73–74. This fact has not changed since the issuance percent decrease from the FY 2018 fee Income taxes, Reporting and of this report. of 2.365 percent. recordkeeping requirements. VerDate Sep<11>2014 16:12 Oct 04, 2018 Jkt 247001 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\05OCR1.SGM 05OCR1

Federal Register / Vol. 83, No. 194 / Friday, October 5, 2018 / Rules and Regulations 50259 Correction of Publication will be used from 6 a.m. on September bridge so that vessel operators can Accordingly, 26 CFR part 1 is 17, 2018, to October 5, 2018. arrange their transits to minimize any corrected by making the following ADDRESSES: The docket for this impact caused by the temporary correcting amendments: deviation, USCG–2018–0919 is available deviation. at http://www.regulations.gov. Type the In accordance with 33 CFR 117.35(e), PART 1—INCOME TAXES docket number in the ‘‘SEARCH’’ box the drawbridges must return to their and click ‘‘SEARCH.’’ Click on Open regular operating schedule immediately ■ Paragraph 1. The authority citation Docket Folder on the line associated at the end of the effective period of this for part 1 continues to read in part as with this deviation. temporary deviation. This deviation follows: FOR FURTHER INFORMATION CONTACT: If from the operating regulations is Authority: 26 U.S.C. 7805 * * * you have questions on this temporary authorized under 33 CFR 117.35. deviation, call or email Mr. Steven Dated: October 1, 2018. § 1.707–9 [Amended] Fischer, Bridge Administrator, Steven M. Fischer, ■ Par. 2. Section 1.707–9 is amended by Thirteenth Coast Guard District; Bridge Administrator, Thirteenth Coast Guard revising the second sentence in telephone 206–220–7282, email d13-pf- District. paragraph (a)(1) to read as follows: d13bridges@uscg.mil. [FR Doc. 2018–21674 Filed 10–4–18; 8:45 am] SUPPLEMENTARY INFORMATION: King BILLING CODE 9110–04–P § 1.707–9 Effective dates and transitional rules. County, WA, owns the South Park (a) * * * Bridge that spans across the Duwamish (1) * * * For any transaction with Waterway at mile 3.8, at Seattle, WA. DEPARTMENT OF HOMELAND respect to which all transfers that are King County requested a temporary SECURITY part of a sale of an item of property deviation from the operating schedule, due to infrequent opening requests, Coast Guard occur after April 24, 1991, and any of such transfers occurs before October 5, while a rule change is being processed. This deviation will allow King County 33 CFR Part 117 2016, §§ 1.707–3 through 1.707–6 as contained in 26 CFR part 1 revised as of to operate without a drawtender during [Docket No. USCG–2018–0931] April 1, 2016, apply. evening hours until an opening request has been received. The South Park Drawbridge Operation Regulation; * * * * * Bridge operates in accordance with 33 Wicomico River, Salisbury, MD Martin V. Franks, CFR 117.1041(a)(2). This deviation authorizes the AGENCY: Coast Guard, DHS. Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief drawtender to open the South Park ACTION:Notice of deviation from Counsel (Procedure and Administration). Bridge after receiving a 12 hour notice drawbridge regulation. [FR Doc. 2018–21673 Filed 10–4–18; 8:45 am] from 11 p.m. to 7 a.m. including all SUMMARY: The Coast Guard has issued a BILLING CODE 4830–01–P Federal holidays, starting at 6 a.m. on temporary deviation from the operating September 17, 2018, through 7 a.m. on schedule that governs the Main Street January 17, 2019. Vessels engaged in Bridge across the Wicomico River DEPARTMENT OF HOMELAND sea-trials or waterway dredging (North Prong), mile 22.4, at Salisbury, SECURITY activities may request a standby MD. The deviation is necessary to drawtender to open the bridge, on accommodate the cleaning and painting Coast Guard demand, during sea-trials and/or of the bridge. This deviation allows the dredging operations, if at least a 24 hour bridge to remain in the closed-to- 33 CFR Part 117 notice is given to the drawtender. The navigation position and open on signal South Park Bridge provides a vertical if at least 24 hours notice is given. [Docket No. USCG–2018–0919] clearance approximately 20 feet above DATES: The deviation is effective from Drawbridge Operation Regulation; mean high water when in the closed-to- 6 a.m. on October 5, 2018, through 6 Duwamish Waterway, Seattle, WA navigation position. Vessels operating a.m. on December 31, 2018. on the Duwamish Waterway range from AGENCY: Coast Guard, DHS. small recreational vessels, sailboats, ADDRESSES: The docket for this ACTION:Notice of deviation from tribal fishing boats, large yachts and deviation, [USCG–2018–0931] is drawbridge regulation. commercial towing vessels. available at http://www.regulations.gov. Vessels able to pass through the South Type the docket number in the SUMMARY: The Coast Guard has issued a Park Bridge in the closed-to-navigation ‘‘SEARCH’’ box and click ‘‘SEARCH’’. temporary deviation from the operating position may do so at any time. The Click on Open Docket Folder on the line schedule that governs the South Park bridge will not be able to open for associated with this deviation. highway bridge (South Park Bridge), emergencies from 11 p.m. to 7 a.m. FOR FURTHER INFORMATION CONTACT: If across the Duwamish Waterway mile However, in the event of an emergency you have questions on this temporary 3.8, at Seattle, WA. The deviation requiring a bridge opening between 11 deviation, call or email Mr. Martin allows the bridge owner to remove the p.m. and 7 a.m., the Seattle Department Bridges, Bridge Administration Branch drawtender during the late evening and of Transportation has agreed that the Fifth District, Coast Guard, telephone early morning hours. This deviation bridge operator at the Fremont Bridge 757–398–6422, email Martin.A.Bridges@ authorizes the subject bridge to open across the Lake Washington Ship Canal uscg.mil. daltland on DSKBBV9HB2PROD with RULES during nighttime hours after receiving a will open the South Park Bridge within SUPPLEMENTARY INFORMATION: The 12 hour advance notice. 45 minutes from initial notification. The Maryland Department of Transportation DATES: This deviation is effective from Coast Guard will inform the users of the State Highway Administration, who without actual notice from October 5, waterway, through our Local and owns and operates the Main Street 2018 to 7 a.m. on January 17, 2019. For Broadcast Notices to Mariners, of the Bridge across the Wicomico River purposes of enforcement, actual notice change in operating schedule for the (North Prong), mile 22.4, at Salisbury, VerDate Sep<11>2014 16:12 Oct 04, 2018 Jkt 247001 PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 E:\FR\FM\05OCR1.SGM 05OCR1


Document Created: 2018-10-05 01:52:08
Document Modified: 2018-10-05 01:52:08
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 October 5, 2018 and is applicable on and after October 5, 2016.
ContactDeane M. Burke or Caroline E. Hay at (202) 317-5279 (not a toll-free number).
FR Citation83 FR 50258 
RIN Number1545-BK29
CFR AssociatedIncome Taxes and Reporting and Recordkeeping Requirements
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