Computer Software Under Section 199(c)(5)(B); Correction, 38262 [E6-10245]
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38262
Federal Register / Vol. 71, No. 129 / Thursday, July 6, 2006 / Rules and Regulations
revised as of April 1, 2006, on page 10,
§ 1.301–1 is corrected by adding
paragraph (g) to read as follows:
§ 1.301–1 Rules applicable with respect to
distributions of money and other property.
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(g) Reduction for liabilities—(1)
General rule. For the purpose of section
301, no reduction shall be made for the
amount of any liability, unless the
liability is assumed by the shareholder
within the meaning of section 357(d).
(2) No reduction below zero. Any
reduction pursuant to paragraph (g)(1)
of this section shall not cause the
amount of the distribution to be reduced
below zero.
(3) Effective dates—(i) In general. This
paragraph (g) applies to distributions
occurring after January 4, 2001.
(ii) Retroactive application. This
paragraph (g) also applies to
distributions made on or before January
4, 2001, if the distribution is made as
part of a transaction described in, or
substantially similar to, the transaction
in Notice 99-59 (1999-2 C.B. 761),
including transactions designed to
reduce gain (see § 601.601(d)(2) of this
chapter). For rules for distributions on
or before January 4, 2001 (other than
distributions on or before that date to
which this paragraph (g) applies), see
rules in effect on January 4, 2001 (see
§ 1.301-1(g) as contained in 26 CFR part
1 revised April 1, 2001).
[FR Doc. 06–55522 Filed 7–5–06; 8:45 am]
BILLING CODE 1505–01–D
26 CFR Part 1
[TD 9262]
RIN 1545–BF57
Computer Software Under Section
199(c)(5)(B); Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendments.
AGENCY:
wwhite on PROD1PC61 with RULES
Need for Correction
As published, the correction notice
(TD 9262) contains errors 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.
Correction of Publication
Accordingly, 26 CFR part 1 is
corrected by making the following
correcting amendments:
I
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
I
Authority: 26 U.S.C. 7805 * * *
§ 1.199–3T
[Corrected]
Par. 2. Section 1.199–3T is amended
by revising paragraphs (i)(6)(iii)
introductory text and Example 5 to read
as follows:
I
SUMMARY: This document contains a
correction to temporary regulations (TD
9262) that were published in the
Federal Register on Thursday, June 1,
2006 (71 FR 31074) concerning the
application of section 199 of the Internal
Revenue Code, which provides a
deduction for income attributable to
domestic production activities, to
certain transactions involving computer
software.
DATES: These corrections are effective
June 1, 2006.
Jkt 208001
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(i) * * *
(6) * * *
(iii) Exceptions. Notwithstanding
paragraph (i)(6)(ii) of this section, if a
taxpayer derives gross receipts from
providing to customers computer
software MPGE in whole or in
significant part by the taxpayer within
the United States for the customers’
direct use while connected to the
Internet (online software), then such
gross receipts will be treated as being
derived from the lease, rental, license,
sale, exchange, or other disposition of
computer software only if—
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well as from the sale to customers of P’s
substantially identical tax preparation
computer software that customers have
downloaded from the Internet. Under
paragraph (i)(6)(iii)(B) of this section, O’s
gross receipts derived from providing its tax
preparation computer software to customers
over the Internet will be treated as derived
from the lease, rental, license, sale, exchange,
or other disposition of computer software
and are DPGR (assuming all the other
requirements of § 1.199–3 are met).
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§ 1.199–8T
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[Corrected]
Par. 3. Section 1.199–8T is amended
by revising paragraph (i)(4) to read as
follows:
I
§ 1.199–8T
Other rules (temporary).
(i) * * *
(4) Computer software. Section 1.199–
3T(i)(6)(ii) through (v) are applicable for
taxable years beginning on or after June
1, 2006. Taxpayers may apply these
temporary regulations to taxable years
beginning after December 31, 2004, and
before June 1, 2006. The applicability of
§ 1.199–3T(i)(6)(ii) through (v) expires
on or before May 22, 2009.
Guy R. Traynor,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. E6–10245 Filed 7–5–06; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
*
Internal Revenue Service
16:26 Jul 05, 2006
Background
The correction notice that is the
subject of this document is under
section 199 of the Internal Revenue
Code.
§ 1.199–3T Domestic production gross
receipts (temporary).
DEPARTMENT OF THE TREASURY
VerDate Aug<31>2005
Paul
Handleman or Lauren RossTaylor, (202)
622–3040 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
Example 5. The facts are the same as in
Example 4, except that O does not sell the
tax preparation computer software to
customers affixed to a compact disc or by
download and O’s only method of providing
the tax preparation computer software to
customers is over the Internet. P, an
unrelated person, derives, on a regular and
ongoing basis in its business, gross receipts
from the sale to customers of P’s substantially
identical tax preparation computer software
that has been affixed to a compact disc as
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
26 CFR Part 301
[TD 9267]
RIN 1545–BE02
Disclosure of Return Information to the
Bureau of Economic Analysis
Internal Revenue Service (IRS),
Treasury.
ACTION: Temporary regulations.
AGENCY:
SUMMARY: This document contains
temporary regulations regarding
additional items of return information
disclosable to the Bureau of Economic
Analysis (Bureau) of the Department of
Commerce. The text of these temporary
regulations serves as the text of the
proposed regulations set forth in the
notice of proposed rulemaking on this
subject in the Proposed Rules section of
this issue of the Federal Register.
DATES: Effective Date: These temporary
regulations are effective July 6, 2006.
Applicability Date: For dates of
applicability, see § 301.6103(j)(1)–1T(f).
E:\FR\FM\06JYR1.SGM
06JYR1
]]>Agencies
[Federal Register Volume 71, Number 129 (Thursday, July 6, 2006)]
[Rules and Regulations]
[Page 38262]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-10245]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9262]
RIN 1545-BF57
Computer Software Under Section 199(c)(5)(B); Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendments.
-----------------------------------------------------------------------
SUMMARY: This document contains a correction to temporary regulations
(TD 9262) that were published in the Federal Register on Thursday, June
1, 2006 (71 FR 31074) concerning the application of section 199 of the
Internal Revenue Code, which provides a deduction for income
attributable to domestic production activities, to certain transactions
involving computer software.
DATES: These corrections are effective June 1, 2006.
FOR FURTHER INFORMATION CONTACT: Paul Handleman or Lauren RossTaylor,
(202) 622-3040 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The correction notice that is the subject of this document is under
section 199 of the Internal Revenue Code.
Need for Correction
As published, the correction notice (TD 9262) contains errors 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.
Correction of Publication
0
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. 1.199-3T [Corrected]
0
Par. 2. Section 1.199-3T is amended by revising paragraphs (i)(6)(iii)
introductory text and Example 5 to read as follows:
Sec. 1.199-3T Domestic production gross receipts (temporary).
* * * * *
(i) * * *
(6) * * *
(iii) Exceptions. Notwithstanding paragraph (i)(6)(ii) of this
section, if a taxpayer derives gross receipts from providing to
customers computer software MPGE in whole or in significant part by the
taxpayer within the United States for the customers' direct use while
connected to the Internet (online software), then such gross receipts
will be treated as being derived from the lease, rental, license, sale,
exchange, or other disposition of computer software only if--
* * * * *
Example 5. The facts are the same as in Example 4, except that O
does not sell the tax preparation computer software to customers
affixed to a compact disc or by download and O's only method of
providing the tax preparation computer software to customers is over
the Internet. P, an unrelated person, derives, on a regular and
ongoing basis in its business, gross receipts from the sale to
customers of P's substantially identical tax preparation computer
software that has been affixed to a compact disc as well as from the
sale to customers of P's substantially identical tax preparation
computer software that customers have downloaded from the Internet.
Under paragraph (i)(6)(iii)(B) of this section, O's gross receipts
derived from providing its tax preparation computer software to
customers over the Internet will be treated as derived from the
lease, rental, license, sale, exchange, or other disposition of
computer software and are DPGR (assuming all the other requirements
of Sec. 1.199-3 are met).
* * * * *
Sec. 1.199-8T [Corrected]
0
Par. 3. Section 1.199-8T is amended by revising paragraph (i)(4) to
read as follows:
Sec. 1.199-8T Other rules (temporary).
(i) * * *
(4) Computer software. Section 1.199-3T(i)(6)(ii) through (v) are
applicable for taxable years beginning on or after June 1, 2006.
Taxpayers may apply these temporary regulations to taxable years
beginning after December 31, 2004, and before June 1, 2006. The
applicability of Sec. 1.199-3T(i)(6)(ii) through (v) expires on or
before May 22, 2009.
Guy R. Traynor,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel (Procedure and Administration).
[FR Doc. E6-10245 Filed 7-5-06; 8:45 am]
BILLING CODE 4830-01-P
