[Federal Register Volume 79, Number 109 (Friday, June 6, 2014)]
[Rules and Regulations]
[Pages 32644-32645]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-13255]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9667]
RIN 1545-BK00


Requirements for Taxpayers Filing Form 5472

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations and removal of temporary regulations.

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SUMMARY: This document contains final regulations on Form 5472, 
``Information Return of a 25% Foreign-Owned U.S. Corporation or a 
Foreign Corporation Engaged in a U.S. Trade or Business.'' The final 
regulations affect certain 25-percent foreign-owned domestic 
corporations and certain foreign corporations that are engaged in a 
trade or business in the United States that are required to file Form 
5472. Contemporaneously, new proposed regulations are being issued that 
would remove a current provision for timely filing of Form 5472 
separately from an income tax return that is untimely filed. As a 
result, the proposed regulations would require Form 5472 to be filed in 
all cases only with the filer's income tax return for the taxable year 
by the due date (including extensions) of that return.

DATES: Effective Date: These regulations are effective on June 6, 2014.
    Applicability Date: For dates of applicability, see Sec. Sec.  
1.6038A-1(n) and 1.6038A-2(h).

FOR FURTHER INFORMATION CONTACT: Anand Desai, (202) 317-6939 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    On June 10, 2011, the IRS and the Treasury Department published 
temporary regulations and a notice of proposed rulemaking by cross-
reference to the temporary regulations in the Federal Register (76 FR 
33997, TD 9529, 2011-30 IRB 57; REG-101352-11, 76 FR 34019) (2011 
regulations) under sections 6038A and 6038C of the Internal Revenue 
Code (Code). The 2011 regulations amended final regulations under Sec.  
1.6038A-2 to provide that duplicate filing of Form 5472 generally would 
no longer be required regardless of whether the filer files a paper or 
an electronic income tax return. As a result, the regulations' only 
remaining provision for filing a Form 5472 separately from the filer's 
income tax return applies to cases in which the filer's income tax 
return is not timely filed.
    No comments were received on the 2011 regulations, and no public 
hearing was requested or held. Accordingly, this Treasury decision 
adopts the 2011 regulations without substantive change as final 
regulations and removes the corresponding temporary regulations.
    However, contemporaneous with these final regulations, the IRS and 
the Treasury Department are proposing the removal of Sec.  1.6038A-
2(e), which provides for a filer to timely file a Form 5472 separately 
from the filer's income tax return if the income tax return is untimely 
filed. As a result, the proposed regulations would require that Form 
5472 be filed in all cases only with the filer's income tax return for 
the taxable year by the due date (including extensions) of that return. 
For further information, see the proposed regulations set forth in the 
Proposed Rules section in this issue of the Federal Register.

Special Analyses

    It has been determined that this final regulation is not a 
significant regulatory action as defined in Executive Order 12866, as 
supplemented by Executive Order 13653. Therefore, a regulatory 
assessment is not required. It has also been determined that section 
553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does 
not apply to these regulations, and because the regulation does 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) of the Code, the notice of proposed rulemaking 
preceding this regulation was submitted to the Chief Counsel for 
Advocacy of the Small Business Administration for comment on its impact 
on small business.

Drafting Information

    The principal author of these regulations is Anand Desai, Office of 
Associate Chief Counsel (International). However, other personnel from 
the IRS and the Treasury Department participated in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Amendments to the Regulations

    Accordingly, 26 CFR part 1 is amended as follows:

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 1.6038A-1 is amended by revising paragraph (n)(2) to 
read as follows:


Sec.  1.6038A-1  General requirements and definitions.

* * * * *
    (n) * * *
    (2) Section 1.6038A-2. Section 1.6038A-2 (relating to the 
requirement to file Form 5472) generally applies for taxable years 
beginning after July 10, 1989. However, Sec.  1.6038A-2 as it applies 
to reporting corporations whose sole trade or business in the United 
States is a banking, financing, or similar business as defined in Sec.  
1.864-4(c)(5)(i) applies for taxable years beginning after December 10, 
1990. Section 1.6038A-2(d) and (e) apply for taxable years ending on or 
after June 10, 2011. For taxable years ending before June 10, 2011, see 
Sec.  1.6038A-2(d) and (e) as contained in 26 CFR part 1 revised as of 
April 1, 2011.
* * * * *


Sec.  1.6038A-1T  [Removed]

0
Par. 3. Section 1.6038A-1T is removed.

[[Page 32645]]


0
Par. 4. Section 1.6038A-2 is amended by revising paragraphs (d) and (e) 
to read as follows:


Sec.  1.6038A-2  Requirement of return.

* * * * *
    (d) Time for filing returns. A Form 5472 required under this 
section must be filed with the reporting corporation's income tax 
return for the taxable year by the due date (including extensions) of 
that return.
    (e) Untimely filed return. If the reporting corporation's income 
tax return is untimely filed, Form 5472 nonetheless must be timely 
filed. When the reporting corporation's income tax return is ultimately 
filed, a copy of Form 5472 must be attached.
* * * * *


Sec.  1.6038A-2T  [Removed]

0
Par. 5. Section 1.6038A-2T is removed.

John Dalrymple,
Deputy Commissioner for Services and Enforcement.
    Approved: May 21, 2014.
Mark J. Mazur,
Assistant Secretary for the Treasury (Tax Policy).
[FR Doc. 2014-13255 Filed 6-5-14; 8:45 am]
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