Revised Regulations Concerning Disclosure of Relative Values of Optional Forms of Benefit; Correction, 26687 [06-4271]

Download as PDF Federal Register / Vol. 71, No. 88 / Monday, May 8, 2006 / Rules and Regulations code_of_federal_regulations/ ibr_locations.html. is corrected to read ‘‘75% survivor annuity, and the joint and’’. Issued in Renton, Washington, on April 28, 2006. Ali Bahrami, Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. 06–4232 Filed 5–5–06; 8:45 am] Guy R. Traynor, Chief, Publications and Regulations Branch, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration). [FR Doc. 06–4271 Filed 5–5–06; 8:45 am] BILLING CODE 4910–13–P BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY DEPARTMENT OF THE TREASURY Internal Revenue Service Internal Revenue Service 26 CFR Part 1 26 CFR Part 1 [TD 9261] [TD 9256] RIN 1545–BF32 RIN 1545–BD97 Intercompany Transactions; Manufacturer Incentive Payments Revised Regulations Concerning Disclosure of Relative Values of Optional Forms of Benefit; Correction AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correction to final regulations. SUMMARY: This document contains final regulations under section 1502 of the Internal Revenue Code. Example 13 of the intercompany transaction regulations illustrates the treatment of manufacturer incentive payments. Because a premise underlying the example is under reconsideration, these final regulations remove and reserve this example. The regulations will affect corporations filing consolidated returns. DATES: Effective Date: These regulations are effective May 8, 2006. FOR FURTHER INFORMATION CONTACT: Frances Kelly, (202) 622–7770 (not a toll-free number). SUPPLEMENTARY INFORMATION: AGENCY: SUMMARY: This document contains a correction to final regulations that were published in the Federal Register on Friday, March 24, 2006 (71 FR 14798) concerning content requirements applicable to explanations of qualified joint and survivor annuities and qualified preretirement survivor annuities payable under certain retirement plans. DATES: This correction is effective March 24, 2006. FOR FURTHER INFORMATION CONTACT: Bruce Perlin or Linda Marshall at (202) 622–6090 (not a toll-free number). SUPPLEMENTARY INFORMATION: Background The final regulations (TD 9256) that are the subject of this correction are under section 417 of the Internal Revenue Code. Need for Correction As published, (TD 9256) contains an error that may prove to be misleading and is in need of clarification. wwhite on PROD1PC61 with RULES Correction of Publication Accordingly, the final regulations (TD 9256), which was the subject of FR Doc. 06–2844, is corrected as follows: On page 14801, in the preamble, column 3, under the paragraph heading, ‘‘Explanation of Provisions’’, first paragraph of the column, line 2 from the bottom of the paragraph, the language ‘‘75% survivor annuity, and joint and’’ VerDate Aug<31>2005 16:53 May 05, 2006 Jkt 208001 Internal Revenue Service (IRS), Treasury. ACTION: Final regulations. Background Section 1.1502–13 of the consolidated return regulations provides rules for taking into account items of income, gain, deduction, and loss of members from intercompany transactions. In particular, § 1.1502–13(c)(7)(ii), Example 13 illustrates how the matching rule of the intercompany transaction regulations treats a transaction involving manufacturer incentive payments. On August 13, 2004, the IRS and Treasury Department published a notice of proposed rulemaking (REG–131264–04) in the Federal Register (69 FR 50112) proposing regulations to address additional transactions involving manufacturer incentive payments and to clarify the proper treatment of such incentive payments under the intercompany transaction regulations. On April 25, 2005, the IRS and Treasury Department published Rev. PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 26687 Rul. 2005–28 (2005–19 IRB 997), which suspends, in part, Rev. Rul. 76–96 (1976–1 CB 23). Rev. Rul. 2005–28 states that the IRS will not apply, and taxpayers may not rely upon, the conclusion reached in Rev. Rul. 76–96 that certain rebates made by a manufacturer to retail customers are ordinary and necessary business expenses deductible under section 162, pending the IRS’s reconsideration of the issue and publication of subsequent guidance. Explanation of Provisions The manufacturer incentive payment transaction described in § 1.1502– 13(c)(7)(ii), Example 13 relies, in part, upon the premise that the manufacturer incentive payment is an ordinary and necessary business expense deductible under section 162. To the extent that this premise is correct, this example illustrates the proper application of the intercompany transaction regulations. However, because Rev. Rul. 2005–28 suspends Rev. Rul. 76–96, in pertinent part, these final regulations remove § 1.1502–13(c)(7)(ii), Example 13 pending further guidance on the section 162 issue considered in Rev. Rul. 76–96. Special Analyses It has been determined that this Treasury decision is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It is hereby certified that these regulations will not have a significant economic impact on a substantial number of small entities. These final regulations do not alter substantive provisions of the intercompany transaction regulations. They merely remove an example which may be misleading and cause confusion for taxpayers. Accordingly, good cause is found for dispensing with prior notice and comment pursuant to 5 U.S.C. 553(b), and for dispensing with a delayed effective date pursuant to 5 U.S.C. 553(d). Because no notice of proposed rulemaking is required, the provisions of the Regulatory Flexibility Act (5 U.S.C. chapter 6) do not apply. Pursuant to section 7805(f) of the Internal Revenue Code, this regulation was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comments on its impact on small business. Drafting Information The principal author of these regulations is Frances Kelly of the Office of the Associate Chief Counsel (Corporate). However, other personnel from the IRS and Treasury Department participated in their development. E:\FR\FM\08MYR1.SGM 08MYR1

Agencies

[Federal Register Volume 71, Number 88 (Monday, May 8, 2006)]
[Rules and Regulations]
[Page 26687]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-4271]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9256]
RIN 1545-BD97


Revised Regulations Concerning Disclosure of Relative Values of 
Optional Forms of Benefit; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

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SUMMARY: This document contains a correction to final regulations that 
were published in the Federal Register on Friday, March 24, 2006 (71 FR 
14798) concerning content requirements applicable to explanations of 
qualified joint and survivor annuities and qualified preretirement 
survivor annuities payable under certain retirement plans.

DATES: This correction is effective March 24, 2006.

FOR FURTHER INFORMATION CONTACT: Bruce Perlin or Linda Marshall at 
(202) 622-6090 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9256) that are the subject of this 
correction are under section 417 of the Internal Revenue Code.

Need for Correction

    As published, (TD 9256) contains an error that may prove to be 
misleading and is in need of clarification.

Correction of Publication

    Accordingly, the final regulations (TD 9256), which was the subject 
of FR Doc. 06-2844, is corrected as follows:
    On page 14801, in the preamble, column 3, under the paragraph 
heading, ``Explanation of Provisions'', first paragraph of the column, 
line 2 from the bottom of the paragraph, the language ``75% survivor 
annuity, and joint and'' is corrected to read ``75% survivor annuity, 
and the joint and''.

Guy R. Traynor,
Chief, Publications and Regulations Branch, Publications and 
Regulations Branch, Legal Processing Division, Associate Chief Counsel, 
(Procedure and Administration).
[FR Doc. 06-4271 Filed 5-5-06; 8:45 am]
BILLING CODE 4830-01-P

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