Residence Rules Involving U.S. Possessions; Correction, 75882-75883 [E6-21566]
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Federal Register / Vol. 71, No. 243 / Tuesday, December 19, 2006 / Rules and Regulations
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368(a)(1)(D) and 354(b)(1)(B) is met, under
paragraph (l)(2)(iii) of this section, D’s
ownership of a de minimis amount of stock
of S is disregarded and the transaction is
treated as if there is complete shareholder
identity and proportionality of ownership in
T and S. Because there is complete
shareholder identity and proportionality of
ownership in T and S, under paragraph
(l)(2)(i) of this section, the requirements of
sections 368(a)(1)(D) and 354(b)(1)(B) are
treated as satisfied notwithstanding the fact
that no S stock is issued. Pursuant to
paragraph (l)(2)(i) of this section, S will be
deemed to issue a nominal share of S stock
to T in addition to the $100x of cash actually
exchanged for the T assets, T will be deemed
to distribute all such consideration to A, B,
and C, and the nominal S stock will be
deemed transferred among the S shareholders
to the extent necessary to reflect their actual
ownership of S. The transaction qualifies as
a reorganization described in section
368(a)(1)(D).
Example 5. The facts are the same as in
Example 4 except that A, B, and C own 34%,
33%, and 33%, respectively, of the common
stock of T and S. D owns preferred stock in
S described in section 1504(a)(4). For
purposes of determining whether the
distribution requirement of sections
368(a)(1)(D) and 354(b)(1)(B) is met, under
paragraph (l)(2)(iii) of this section, D’s
ownership of S stock described in section
1504(a)(4) is ignored and the transaction is
treated as if there is complete shareholder
identity and proportionality of ownership in
T and S. Because there is complete
shareholder identity and proportionality of
ownership in T and S, under paragraph
(l)(2)(i) of this section, the requirements of
sections 368(a)(1)(D) and 354(b)(1)(B) are
treated as satisfied notwithstanding the fact
that no S stock is issued. Pursuant to
paragraph (l)(2)(i) of this section, S will be
deemed to issue a nominal share of S stock
to T in addition to the $100x of cash actually
exchanged for the T assets, and T will be
deemed to distribute all such consideration
to A, B, and C. The transaction qualifies as
a reorganization described in section
368(a)(1)(D).
Example 6. A and B each own 50% of the
stock of T. The T stock has a fair market
value of $100x. B and C own 90% and 10%,
respectively, of the stock of S. T sells all of
its assets to S in exchange for $100x of cash
and immediately liquidates. Because
complete shareholder identity and
proportionality of ownership in T and S does
not exist, paragraph (l)(2)(i) of this section
does not apply. The requirements of sections
368(a)(1)(D) and 354(b)(1)(B) are not satisfied,
and the transaction does not qualify as a
reorganization described in section
368(a)(1)(D).
(4) Effective date—(i) In general. This
section applies to transactions occurring
on or after March 19, 2007, except that
they do not apply to any transaction
occurring pursuant to a written
agreement which is binding before
December 19, 2006, and at all times
thereafter. A taxpayer may apply the
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14:56 Dec 18, 2006
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provisions of these temporary
regulations to transactions occurring
before March 19, 2007. However, the
transferor corporation, the transferee
corporation, any direct or indirect
transferee of transferred basis property
from either of the foregoing, and any
shareholder of the transferor or
transferee corporation may not apply
the provisions of these temporary
regulations unless all such taxpayers
apply the provisions of the temporary
regulations.
(ii) Expiration. This section expires on
or before December 18, 2009.
Mark E. Matthews,
Deputy Commissioner for Services and
Enforcement.
Approved: December 6, 2006.
Eric Solomon,
Acting Deputy Assistant Secretary of the
Treasury, (Tax Policy).
[FR Doc. E6–21565 Filed 12–18–06; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9297]
RIN 1545–BG02
Residence Rules Involving U.S.
Possessions; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to final regulations.
AGENCY:
SUMMARY: This document contains
corrections to final regulations that were
published in the Federal Register on
Tuesday, November 14, 2006 (71 FR
66232) relating to rules for determining
bona fide residency in the following
U.S. territories: American Samoa, Guam,
the Northern Mariana Islands, Puerto
Rico, and the United States Virgin
Islands.
These corrections are effective
November 14, 2006.
DATES:
FOR FURTHER INFORMATION CONTACT:
David Varley, (202) 435–5262 (not a tollfree number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9297) that
are the subject of these corrections are
under section 937 of the Internal
Revenue Code.
Need for Correction
As published, the final regulations
(TD 9297) contain errors that may be
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misleading and are in need of
clarification.
Correction of Publication
Accordingly, the final regulations (TD
9297) that were the subject of FR Doc.
E6–19135 are corrected as follows:
1. On page 66232, column 2, in the
preamble, under the ‘‘Title Headings’’,
the language [TD[9297]]’’ is corrected to
read ‘‘[TD 9297].’’
2. On page 66232, column 2, in the
preamble, under the paragraph heading,
‘‘Background’’, first paragraph of the
column, lines 1 through 5 from the
bottom of the paragraph, the language
‘‘section 937(a) dealing with
determining residency in a territory,
adopting with amendments the
proposed regulations (specifically,
§ 1.937–1 and 1.881–5T(f)(4))’’ is
corrected to read ‘‘section 937(a)
concerning the determination of
residency in a territory and adopting
with amendments the proposed
regulations (specifically, §§ 1.937–1 and
1.881–5(f)(4)).’’
3. On page 66232, column 3, in the
preamble, under the paragraph heading,
‘‘Background’’, second paragraph of the
column, line 8 from the bottom of the
paragraph, the language ‘‘relevant
territory for the purposes of the’’ is
corrected to read ‘‘relevant territory for
purposes of the’’.
4. On page 66232, column 3, in the
preamble, under the paragraph heading,
‘‘Background’’, third paragraph of the
column, line 10 from the bottom of the
paragraph, the language ‘‘presence test
of section 7701(b) on the’’ is corrected
to read ‘‘presence test of section 7701(b)
to determine bona fide residency in a
territory on the’’.
5. On page 66233, column 1, in the
preamble, under the paragraph heading,
‘‘Explanation of Provisions’’, first
paragraph of the column, lines 12 and
13, the language, ‘‘for business pursuits,
have concluded nonetheless that such a
rule would be’’ is corrected to read ‘‘for
business pursuits but have concluded
that such a rule would be’’.
6. On page 66233, column 1, in the
preamble, under the paragraph heading,
‘‘Explanation of Provisions’’, first
paragraph, line 4 from the bottom of the
paragraph, the language ‘‘the final
regulations, provide sufficient’’ is
corrected to read ‘‘these final
regulations, provide sufficient’’.
7. On page 66233, column 1, in the
preamble, under the paragraph heading,
‘‘Explanation of Provisions’’, second
paragraph, lines 15 through 19 from the
bottom of the paragraph, the language
‘‘States, even though the individual is
not present in the United States, and
will treat such days as days of presence
E:\FR\FM\19DER1.SGM
19DER1
Federal Register / Vol. 71, No. 243 / Tuesday, December 19, 2006 / Rules and Regulations
in the relevant territory. In addition, the
regulations provide for relief in case’’ is
corrected to read ‘‘States, even if the
individual is physically present in the
United States, and will treat such days
as days of presence in the relevant
territory. In addition, the regulations
provide for similar relief in case’’.
8. On page 66233, column 2, in the
preamble, under the paragraph heading,
‘‘Explanation of Provisions’’, third
paragraph of the column, lines 8 and 9,
the language ‘‘accommodate the realities
of business cycles and life in the
territories. The IRS’’ is corrected to read
‘‘accommodate the reality that business
cycles and life in the territories may
require more time away from the
territories in some years than in others.
The IRS’’.
La Nita VanDyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Office of Associate
Chief Counsel (Procedure and
Administration).
[FR Doc. E6–21566 Filed 12–18–06; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF AGRICULTURE
Forest Service
36 CFR Part 242
DEPARTMENT OF THE INTERIOR
Fish and Wildlife Service
50 CFR Part 100
Subsistence Management Regulations
for Public Lands in Alaska, Subpart D;
Seasonal Adjustments—Tustumena
Lake
Forest Service, USDA; Fish
and Wildlife Service, Interior.
ACTION: Seasonal adjustment.
cprice-sewell on PROD1PC66 with RULES
AGENCIES:
SUMMARY: This provides notice of the
Federal Subsistence Board’s action to
provide winter subsistence harvest
opportunities for lake trout, Dolly
Varden, and rainbow trout in
Tustumena Lake. The fishing
opportunity in Tustumena Lake
provides an exception to the
Subsistence Management Regulations
for Public Lands in Alaska, published in
the Federal Register on March 29, 2006.
Those regulations established seasons,
harvest limits, methods, and means
relating to the taking of fish and
shellfish for subsistence uses during the
2006 regulatory year.
DATES: This Board action is effective
November 17, 2006, through March 31,
2007.
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14:56 Dec 18, 2006
Jkt 211001
FOR FURTHER INFORMATION CONTACT:
Peter J. Probasco, Office of Subsistence
Management, U.S. Fish and Wildlife
Service, telephone (907) 786–3888. For
questions specific to National Forest
System lands, contact Steve Kessler,
Subsistence Program Manager, USDA—
Forest Service, Alaska Region,
telephone (907) 786–3592.
SUPPLEMENTARY INFORMATION:
Background
Title VIII of the Alaska National
Interest Lands Conservation Act
(ANILCA) (16 U.S.C. 3111–3126)
requires that the Secretary of the Interior
and the Secretary of Agriculture
(Secretaries) implement a joint program
to grant a preference for subsistence
uses of fish and wildlife resources on
public lands in Alaska, unless the State
of Alaska enacts and implements laws
of general applicability that are
consistent with ANILCA and that
provide for the subsistence definition,
preference, and participation specified
in Sections 803, 804, and 805 of
ANILCA. In December 1989, the Alaska
Supreme Court ruled that the rural
preference in the State subsistence
statute violated the Alaska Constitution
and, therefore, negated State compliance
with ANILCA.
The Department of the Interior and
the Department of Agriculture
(Departments) assumed, on July 1, 1990,
responsibility for implementation of
title VIII of ANILCA on public lands.
The Departments administer title VIII
through regulations at title 50, part 100
and title 36, part 242 of the Code of
Federal Regulations (CFR). Consistent
with subparts A, B, and C of these
regulations, as revised January 8, 1999
(64 FR 1276), the Departments
established a Federal Subsistence Board
to administer the Federal Subsistence
Management Program. The Board’s
composition includes a Chair appointed
by the Secretary of the Interior with
concurrence of the Secretary of
Agriculture; the Alaska Regional
Director, U.S. Fish and Wildlife Service;
the Alaska Regional Director, National
Park Service; the Alaska State Director,
Bureau of Land Management; the Alaska
Regional Director, Bureau of Indian
Affairs; and the Alaska Regional
Forester, USDA Forest Service. Through
the Board, these agencies participate in
the development of regulations for
subparts A, B, and C, which establish
the program structure and determine
which Alaska residents are eligible to
take specific species for subsistence
uses, and the annual subpart D
regulations, which establish seasons,
harvest limits, and methods and means
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75883
for subsistence take of species in
specific areas. Subpart D regulations for
the 2006 fishing seasons, harvest limits,
and methods and means were published
on March 29, 2006 (71 FR 15569).
Because this action relates to public
lands managed by an agency or agencies
in both the Departments of Agriculture
and the Interior, identical closures and
adjustments would apply to 36 CFR part
242 and 50 CFR part 100.
The Alaska Department of Fish and
Game (ADF&G), under the direction of
the Alaska Board of Fisheries (BOF),
manages sport, commercial, personal
use, and State subsistence harvest on all
lands and waters throughout Alaska.
However, on Federal lands and waters,
the Federal Subsistence Board
implements a subsistence priority for
rural residents as provided by title VIII
of ANILCA. In providing this priority,
the Board may, when necessary,
preempt State harvest regulations for
fish or wildlife on Federal lands and
waters.
Current Management Actions
These actions are authorized and in
accordance with 50 CFR 100.19(d–e)
and 36 CFR 242.19(d–e).
Tustumena Lake
The Ninilchik Traditional Council
requested a special winter subsistence
fishery through the ice in Tustumena
Lake. The Southcentral Alaska Regional
Advisory Council recommended
adopting this seasonal adjustment with
minor modifications during their fall
2006 meeting. The Board met in public
work session on November 16–17, 2006,
during which it took up and approved
this request with modifications. The
resulting seasonal adjustment will
expire March 31, 2007.
The season adjustment provides for
the take of fish in Tustumena Lake using
a single gillnet not to exceed 10 fathoms
fished under the ice or jigging gear used
through the ice, under authority of a
Federal subsistence fishing permit. The
total annual harvest quota for this
fishery is 200 lake trout, 200 rainbow
trout, and 500 Dolly Varden. Gillnets are
not allowed within 1⁄4 mile of any
tributary or outlet stream of Tustumena
Lake. All harvests must be reported to
the Federal fisheries manager within 72
hours upon leaving the fishing location.
Gill nets must be checked at least once
in every 48-hour period. Incidentally
caught fish may be retained and must be
recorded on the permit. When a harvest
quota for any of the three species is
reached, the gillnet fishery will be
closed.
This fishery, along with ongoing
existing fisheries, is within
E:\FR\FM\19DER1.SGM
19DER1
]]>Agencies
[Federal Register Volume 71, Number 243 (Tuesday, December 19, 2006)]
[Rules and Regulations]
[Pages 75882-75883]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21566]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9297]
RIN 1545-BG02
Residence Rules Involving U.S. Possessions; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correction to final regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to final regulations that
were published in the Federal Register on Tuesday, November 14, 2006
(71 FR 66232) relating to rules for determining bona fide residency in
the following U.S. territories: American Samoa, Guam, the Northern
Mariana Islands, Puerto Rico, and the United States Virgin Islands.
DATES: These corrections are effective November 14, 2006.
FOR FURTHER INFORMATION CONTACT: David Varley, (202) 435-5262 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9297) that are the subject of these
corrections are under section 937 of the Internal Revenue Code.
Need for Correction
As published, the final regulations (TD 9297) contain errors that
may be misleading and are in need of clarification.
Correction of Publication
Accordingly, the final regulations (TD 9297) that were the subject
of FR Doc. E6-19135 are corrected as follows:
1. On page 66232, column 2, in the preamble, under the ``Title
Headings'', the language [TD[9297]]'' is corrected to read ``[TD
9297].''
2. On page 66232, column 2, in the preamble, under the paragraph
heading, ``Background'', first paragraph of the column, lines 1 through
5 from the bottom of the paragraph, the language ``section 937(a)
dealing with determining residency in a territory, adopting with
amendments the proposed regulations (specifically, Sec. 1.937-1 and
1.881-5T(f)(4))'' is corrected to read ``section 937(a) concerning the
determination of residency in a territory and adopting with amendments
the proposed regulations (specifically, Sec. Sec. 1.937-1 and 1.881-
5(f)(4)).''
3. On page 66232, column 3, in the preamble, under the paragraph
heading, ``Background'', second paragraph of the column, line 8 from
the bottom of the paragraph, the language ``relevant territory for the
purposes of the'' is corrected to read ``relevant territory for
purposes of the''.
4. On page 66232, column 3, in the preamble, under the paragraph
heading, ``Background'', third paragraph of the column, line 10 from
the bottom of the paragraph, the language ``presence test of section
7701(b) on the'' is corrected to read ``presence test of section
7701(b) to determine bona fide residency in a territory on the''.
5. On page 66233, column 1, in the preamble, under the paragraph
heading, ``Explanation of Provisions'', first paragraph of the column,
lines 12 and 13, the language, ``for business pursuits, have concluded
nonetheless that such a rule would be'' is corrected to read ``for
business pursuits but have concluded that such a rule would be''.
6. On page 66233, column 1, in the preamble, under the paragraph
heading, ``Explanation of Provisions'', first paragraph, line 4 from
the bottom of the paragraph, the language ``the final regulations,
provide sufficient'' is corrected to read ``these final regulations,
provide sufficient''.
7. On page 66233, column 1, in the preamble, under the paragraph
heading, ``Explanation of Provisions'', second paragraph, lines 15
through 19 from the bottom of the paragraph, the language ``States,
even though the individual is not present in the United States, and
will treat such days as days of presence
[[Page 75883]]
in the relevant territory. In addition, the regulations provide for
relief in case'' is corrected to read ``States, even if the individual
is physically present in the United States, and will treat such days as
days of presence in the relevant territory. In addition, the
regulations provide for similar relief in case''.
8. On page 66233, column 2, in the preamble, under the paragraph
heading, ``Explanation of Provisions'', third paragraph of the column,
lines 8 and 9, the language ``accommodate the realities of business
cycles and life in the territories. The IRS'' is corrected to read
``accommodate the reality that business cycles and life in the
territories may require more time away from the territories in some
years than in others. The IRS''.
La Nita VanDyke,
Chief, Publications and Regulations Branch, Legal Processing Division,
Office of Associate Chief Counsel (Procedure and Administration).
[FR Doc. E6-21566 Filed 12-18-06; 8:45 am]
BILLING CODE 4830-01-P
