Stock Transfer Rules: Carryover of Earnings and Taxes; Correction, 70875-70876 [E6-20728]

Download as PDF Federal Register / Vol. 71, No. 235 / Thursday, December 7, 2006 / Rules and Regulations document, the March 29, 2005, IFR is of a type that does not individually or cumulatively have a significant effect on the human environment. Therefore, neither an environmental assessment nor an environmental impact statement is required. VI. Opportunity for Public Comment Under 5 U.S.C. 553(b)(B) and 21 CFR 10.40(e), FDA found in the March 29, 2005, IFR that providing for notice and public comment before the establishment of these fees, and for revising the basis on which these fees are calculated, is contrary to the public interest (70 FR 15755 at 15756). FDA continues to find it necessary to implement the amended fee increase as soon as possible to preserve adequate funds for the program. The agency believes, however, that it is appropriate to invite and consider additional public comments on these requirements. Any comments already received by FDA on the March 29, 2005, IFR do not need to be resubmitted to the agency. The agency is considering them at this time and will address them at a later date. Interested persons may submit to the Division of Dockets Management (see ADDRESSES) written or electronic comments regarding this document. Submit a single copy of electronic comments or two paper copies of any mailed comments, except that individuals may submit one paper copy. Comments are to be identified with the docket number found in brackets in the heading of this document. Received comments may be seen in the Division of Dockets Management between 9 a.m. and 4 p.m., Monday through Friday. List of Subjects in 21 CFR Part 80 Color additives, Cosmetics, Drugs, Reporting and recordkeeping requirements. (2) Over 100 pounds but not over 1,000 pounds—$35 plus $0.06 for each pound over 100 pounds. * * * * * Dated: November 29, 2006. Jeffrey Shuren, Assistant Commissioner for Policy. [FR Doc. E6–20800 Filed 12–6–06; 8:45 am] BILLING CODE 4160–01–S PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 continues to read, in part, as follows: n Authority: 26 U.S.C. 7805 * * * Par. 2. Section 1.41–6 is amended by revising paragraph (j)(2), last sentence to read as follows: n § 1.41–6 DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 70875 Aggregation of expenditures. (j) * * * (2) * * * For taxable years ending on or after May 24, 2005, and before November 9, 2006, see § 1.41–6T(d) as contained in 26 CFR part 1, revised April 1, 2006. Par. 3. Section 1.41–8 is amended by revising paragraph (b)(5), last sentence to read as follows: n [TD 9296] RIN 1545–BD60 Credit for Increasing Research Activities; Correction AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendments. SUMMARY: This document contains corrections to final regulations (TD 9296) that were published in the Federal Register on Thursday, November 9, 2006 (71 FR 65722) relating to the computation and allocation of the credit for increasing research activities for members of a controlled group of corporations or a group of trades or businesses under common control. DATES: This correction is effective November 9, 2006. FOR FURTHER INFORMATION CONTACT: Nicole R. Cimino (202) 622–3120 (not a toll-free number). SUPPLEMENTARY INFORMATION: § 1.41–8 Special rules for taxable years ending on or after November 9, 2006. (b) * * * (5) * * * For taxable years ending on or after May 24, 2005, and before November 9, 2006, see § 1.41–8T(b)(5) as contained in 26 CFR part 1, revised April 1, 2006. LaNita Van Dyke, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). [FR Doc. E6–20732 Filed 12–6–06; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9273] RIN 1545–AX65 Therefore, under the Federal Food, Drug, and Cosmetic Act and under authority delegated to the Commissioner of Food and Drugs, 21 CFR part 80 is amended as follows: Background Stock Transfer Rules: Carryover of Earnings and Taxes; Correction The final regulations that are the subject of this correction are under section 41 of the Internal Revenue Code. AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendments. PART 80—COLOR ADDITIVE CERTIFICATION As published, final regulations (TD 9296) contain errors that may prove to be misleading and are in need of clarification. n 1. The authority citation for 21 CFR part 80 continues to read as follows: n Authority: 21 U.S.C. 371, 379e. 2. Section 80.10 is amended by revising paragraph (b) (2) to read as follows: sroberts on PROD1PC70 with RULES n § 80.10 * Fees for certification services. * * (b) * * * VerDate Aug<31>2005 * * 20:43 Dec 06, 2006 Jkt 211001 Need for Correction 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 amendments: n PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 SUMMARY: This document contains correction to final regulations (TD 9273) that were published in the Federal Register on Tuesday, August 8, 2006 (71 FR 44887) addressing the carryover of certain tax attributes, such as earnings and profits and foreign income tax accounts, when two corporations combine in a corporate reorganization or liquidation that is described in both section 367(b) and section 381 of the Internal Revenue Code. DATES: The correction is effective August 8, 2006. E:\FR\FM\07DER1.SGM 07DER1 70876 Federal Register / Vol. 71, No. 235 / Thursday, December 7, 2006 / Rules and Regulations (f) * * * (1) * * * (iii) * * * Correction of Publication FOR FURTHER INFORMATION CONTACT: Jeffrey L. Parry, (202) 622–3850 (not a toll-free number). Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments: n SUPPLEMENTARY INFORMATION: Background PART 1—INCOME TAXES The final regulations that are the subject of this correction are under sections 367(b) and 381 of the Internal Revenue Code. n Need for Correction Paragraph 1. The authority citation for part 1 continues to read, in part, as follows: Authority: 26 U.S.C. 7805 * * * Par. 7. Section 1.367(b)–7(f)(1)(iii) Example 1 (iii) is amended by revising the last sentence of paragraph (A) and paragraph (B) to read as follows: n As published, final regulations (TD 9273) contain 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. § 1.367(b)–7 Carryover of earnings and profits and foreign income taxes in certain foreign-to-foreign non-recognition transactions. * * * * * Example 1 * * * (A) * * * The 100u offset under section 952(c)(1)(B) does not result in a reduction of the hovering deficit for purposes of section 316 or section 902. (B) Foreign surviving corporation A’s 100u of subpart F income not included in income by USP will accumulate and be added to its post-1986 undistributed earnings as of the beginning of 2009. This 100u of posttransaction earnings will be offset by the (100u) hovering deficit. Because the amount of earnings offset by the hovering deficit is 100% of the total amount of the hovering deficit, all $25 of the related taxes are added to the post-1986 foreign income taxes pool as well. Accordingly, foreign surviving corporation A has the following post-1986 undistributed earnings and post-1986 foreign income taxes on January 1, 2009: Earnings & profits Foreign taxes Separate category Positive E&P Hovering deficit Foreign taxes available Foreign taxes associated with hovering deficit General ............................................................................................................................ 0u (0u) $45 $0 * * * * * LaNita Van Dyke, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). [FR Doc. E6–20728 Filed 12–6–06; 8:45 am] BILLING CODE 4830–01–P FOR FURTHER INFORMATION CONTACT: Concerning §§ 1.199–2T(e)(2) and 1.199–8T(i)(5), Paul Handleman or Lauren Ross Taylor, (202) 622–3040; concerning §§ 1.199–3T(i)(7) and (8), and 1.199–5T, Martin Schaffer, (202) 622–3080; and concerning §§ 1.199– 7T(b)(4) and 1.199–8T(i)(6), Ken Cohen, (202) 622–7790 (not toll-free numbers). DEPARTMENT OF THE TREASURY SUPPLEMENTARY INFORMATION: Internal Revenue Service Background The final and temporary regulations that are the subject of this correction are under section 199 of the Internal Revenue Code. 26 CFR Part 1 [TD 9293] RIN 1545–BF88 Need for Correction TIPRA Amendments to Section 199; Correction sroberts on PROD1PC70 with RULES AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendments. SUMMARY: This document contains corrections to final and temporary regulations (TD 9293) that were published in the Federal Register on Thursday, October 19, 2006 (71 FR 61662) concerning the amendments made by the Tax Increase Prevention and Reconciliation Act of 2005 to section 199 of the Internal Revenue Code. DATES: This correction is effective October 19, 2006. VerDate Aug<31>2005 20:43 Dec 06, 2006 Jkt 211001 As published, final and temporary regulations (TD 9293) contain 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 amendments: n Paragraph 1. The authority citation for part 1 is amended by adding entries PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 Authority: 26 U.S.C. 7805 * * * Section 1.199–5T also issued under 26 U.S.C. 199(d). * * * Section 1.199–7T also issued under 26 U.S.C. 199(d). * * * Par. 4. Section 1.199–2T(e)(2) is amended by revising the eleventh sentence of Example 2 paragraph (i) and the seventh sentence of Example 5 paragraph (iv) to read as follows: n § 1.199–2T Wage limitation (temporary). Example 2. * * * (i) * * * For Y’s taxable year ending April 30, 2011, the total square footage of Y’s headquarters is 8,000 square feet, of which 2,000 square feet is set aside for domestic production activities. * * * Example 5. * * * (iv) * * * The EAG’s tentative section 199 deduction is $360,000 (.09 × (lesser of combined QPAI of $4,000,000 (B’s QPAI of $4,000,000 + S’s QPAI of $0) or combined taxable income of $4,200,000 (B’s taxable income of $4,000,000 + S’s taxable income of $200,000))) subject to the W–2 wage limitation of $50,000 (50% × ($100,000 (B’s W–2 wages) + $0 (S’s W–2 wages))). * * * Par. 8. Section 1.199–5T is amended by revising sentences eight through ten of paragraph (e)(4)(ii)(A) and revising paragraph (g) to read as follows: n PART 1—INCOME TAXES n in numerical order to read in part as follows: E:\FR\FM\07DER1.SGM 07DER1

Agencies

[Federal Register Volume 71, Number 235 (Thursday, December 7, 2006)]
[Rules and Regulations]
[Pages 70875-70876]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-20728]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9273]
RIN 1545-AX65


Stock Transfer Rules: Carryover of Earnings and Taxes; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

-----------------------------------------------------------------------

SUMMARY: This document contains correction to final regulations (TD 
9273) that were published in the Federal Register on Tuesday, August 8, 
2006 (71 FR 44887) addressing the carryover of certain tax attributes, 
such as earnings and profits and foreign income tax accounts, when two 
corporations combine in a corporate reorganization or liquidation that 
is described in both section 367(b) and section 381 of the Internal 
Revenue Code.

DATES: The correction is effective August 8, 2006.

[[Page 70876]]


FOR FURTHER INFORMATION CONTACT: Jeffrey L. Parry, (202) 622-3850 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of this correction are 
under sections 367(b) and 381 of the Internal Revenue Code.

Need for Correction

    As published, final regulations (TD 9273) contain 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 * * *


0
Par. 7. Section 1.367(b)-7(f)(1)(iii)
    Example 1 (iii) is amended by revising the last sentence of 
paragraph (A) and paragraph (B) to read as follows:


Sec.  1.367(b)-7  Carryover of earnings and profits and foreign income 
taxes in certain foreign-to-foreign non-recognition transactions.

* * * * *
    (f) * * *
    (1) * * *
    (iii) * * *
    Example 1 * * *
    (A) * * * The 100u offset under section 952(c)(1)(B) does not 
result in a reduction of the hovering deficit for purposes of 
section 316 or section 902.
    (B) Foreign surviving corporation A's 100u of subpart F income 
not included in income by USP will accumulate and be added to its 
post-1986 undistributed earnings as of the beginning of 2009. This 
100u of post-transaction earnings will be offset by the (100u) 
hovering deficit. Because the amount of earnings offset by the 
hovering deficit is 100% of the total amount of the hovering 
deficit, all $25 of the related taxes are added to the post-1986 
foreign income taxes pool as well. Accordingly, foreign surviving 
corporation A has the following post-1986 undistributed earnings and 
post-1986 foreign income taxes on January 1, 2009:

----------------------------------------------------------------------------------------------------------------
                                                              Earnings & profits             Foreign taxes
                                                         -------------------------------------------------------
                                                                                                       Foreign
                                                                                                        taxes
                    Separate category                                     Hovering       Foreign     associated
                                                          Positive E&P     deficit        taxes         with
                                                                                        available     hovering
                                                                                                       deficit
----------------------------------------------------------------------------------------------------------------
General.................................................           0u          (0u)           $45            $0
----------------------------------------------------------------------------------------------------------------

* * * * *

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
 [FR Doc. E6-20728 Filed 12-6-06; 8:45 am]
BILLING CODE 4830-01-P
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