[Federal Register Volume 81, Number 23 (Thursday, February 4, 2016)]
[Proposed Rules]
[Pages 5966-5967]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01948]
[[Page 5966]]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-100861-15]
RIN 1545-BM56
Allocation of Creditable Foreign Taxes
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations.
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SUMMARY: In the Rules and Regulations section in this issue of the
Federal Register, the IRS is issuing temporary regulations that provide
guidance relating to the allocation by a partnership of foreign income
taxes. Those temporary regulations are necessary to improve the
operation of an existing safe harbor rule that is used for determining
whether allocations of creditable foreign tax expenditures are deemed
to be in accordance with the partners' interests in the partnership.
The text of those temporary regulations published in this issue of the
Federal Register also serves as the text of these proposed regulations.
DATES: Comments and requests for a public hearing must be received by
May 4, 2016.
ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-100861-15), Room 5205,
Internal Revenue Service, 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-
100861-15), Courier's desk, Internal Revenue Service, 1111 Constitution
Avenue NW., Washington, DC 20224, or sent electronically, via the
Federal eRulemaking Portal at www.regulations.gov (IRS REG-100861-15).
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Suzanne M.
Walsh, (202) 317-4908; concerning submissions of comments,
Oluwafunmilayo Taylor, (202) 317-5179 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
Temporary regulations in the Rules and Regulations section of this
issue of the Federal Register contain amendments to the Income Tax
Regulations (26 CFR part 1) which provide guidance relating to the
allocation by a partnership of foreign income taxes. The text of those
regulations also serves as the text of these proposed regulations. The
preamble to the temporary regulations explains the temporary
regulations and these proposed regulations. The regulations affect
partnerships and their partners.
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 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 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),
these regulations have 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 ADDRESSES. 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 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 regulations is Suzanne M. Walsh of
the 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.
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 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.704-1 is amended as follows:
0
1. In paragraph (b)(0):
0
i. Add an entry for Sec. 1.704-1(b)(1)(ii)(b)(1).
0
ii. Revise the entries for (b)(4)(viii)(c)(1) through (4) and
(b)(4)(viii)(d)(1).
0
2. Revise paragraphs (b)(1)(ii)(b)(1), (b)(1)(ii)(b)(3)(B),
(b)(4)(viii)(a)(1), (b)(4)(viii)(c)(1), (b)(4)(viii)(c)(2)(ii) and
(iii), (b)(4)(viii)(c)(3) and (4), (b)(4)(viii)(d)(1), and Example 25
of paragraph (b)(5).
0
3. Add Examples 36 and 37 to paragraph (b)(5).
The revisions read as follows:
Sec. 1.704-1 Partner's distributive share.
* * * * *
(b) * * *
(0) [The text of the proposed amendments to Sec. 1.704-1(b)(0) is
the same as the text of Sec. 1.704-1T(b)(0) published elsewhere in
this issue of the Federal Register.]
(1) * * *
(ii) * * *
(b) Rules relating to foreign tax expenditures. (1) [The text of
the proposed amendments to Sec. 1.704-1(b)(1)(ii)(b)(1) is the same as
the text of Sec. 1.704-1T(b)(1)(ii)(b)(1) published elsewhere in this
issue of the Federal Register.]
* * * * *
(3) * * *
(B) [The text of the proposed amendments to Sec. 1.704-
1(b)(1)(ii)(b)(3)(B) is the same as the text of Sec. 1.704-
1T(b)(1)(ii)(b)(3)(B) published elsewhere in this issue of the Federal
Register.]
* * * * *
(4) * * *
(viii) * * *
(a) * * *
(1) [The text of the proposed amendments to Sec. 1.704-
1(b)(4)(viii)(a)(1) is the same as the text of Sec. 1.704-
1T(b)(4)(viii)(a)(1) published elsewhere in this issue of the Federal
Register.]
* * * * *
(c) Income to which CFTEs relate. (1) [The text of the proposed
amendments to Sec. 1.704-1(b)(4)(viii)(c)(1) is the same as the text
of Sec. 1.704-1T(b)(4)(viii)(c)(1) published elsewhere in this issue
of the Federal Register.]
(2) * * *
(ii) [The text of the proposed amendments to Sec. 1.704-
[[Page 5967]]
1(b)(4)(viii)(c)(2)(ii) is the same as the text of Sec. 1.704-
1T(b)(4)(viii)(c)(2)(ii) published elsewhere in this issue of the
Federal Register.]
(iii) [The text of the proposed amendments to Sec. 1.704-
1(b)(4)(viii)(c)(2)(iii) is the same as the text of Sec. 1.704-
1T(b)(4)(viii)(c)(2)(iii) published elsewhere in this issue of the
Federal Register.]
(3) [The text of the proposed amendments to Sec. 1.704-
1(b)(4)(viii)(c)(3) is the same as the text of Sec. 1.704-
1T(b)(4)(viii)(c)(3) published elsewhere in this issue of the Federal
Register.]
(4) [The text of the proposed amendments to Sec. 1.704-
1(b)(4)(viii)(c)(4) is the same as the text of Sec. 1.704-
1T(b)(4)(viii)(c)(4) published elsewhere in this issue of the Federal
Register.]
* * * * *
(d) Allocation and apportionment of CFTEs to CFTE categories. (1)
[The text of the proposed amendments to Sec. 1.704-1(b)(4)(viii)(d)(1)
is the same as the text of Sec. 1.704-1T(b)(4)(viii)(d)(1) published
elsewhere in this issue of the Federal Register.]
* * * * *
(5) * * *
Example 25. [The text of the proposed amendments to Sec. 1.704-
1(b)(5) Example 24 is the same as the text of Sec. 1.704-1T(b)(5)
Example 25 published elsewhere in this issue of the Federal Register.]
* * * * *
Example 36. [The text of the proposed amendments to Sec.
1.704-1(b)(5) Example 36 is the same as the text of Sec. 1.704-
1T(b)(5) Example 36 published elsewhere in this issue of the Federal
Register.]
Example 37. [The text of the proposed amendments to Sec. 1.704-
1(b)(5) Example 37 is the same as the text of Sec. 1.704-1T(b)(5)
Example 37 published elsewhere in this issue of the Federal
Register.]
* * * * *
John Dalrymple,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2016-01948 Filed 2-3-16; 8:45 am]
BILLING CODE 4830-01-P