Foreign Tax Credit: Notification of Foreign Tax Redeterminations; Correction, 71787 [E7-24674]
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Federal Register / Vol. 72, No. 243 / Wednesday, December 19, 2007 / Rules and Regulations
paragraph (d)(3)(iii) Example. (i), the
first sentence of paragraph (d)(3)(iii)
Example. (ii), and the third and last
sentences of paragraph (d)(3)(iii)
Example. (iii) as follows:
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9362]
§ 1.905–3T Adjustments to United States
tax liability and to the pools of post-1986
undistributed earnings and post-1986
foreign income taxes as a result of a foreign
tax redetermination (temporary).
RIN 1545–BG23
Foreign Tax Credit: Notification of
Foreign Tax Redeterminations;
Correction
*
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendments.
AGENCY:
SUMMARY: This document contains
corrections to temporary regulations (TD
9362) that were published in the
Federal Register on Wednesday,
November 7, 2007 (72 FR 62771)
relating to a United States taxpayer’s
obligation under section 905(c) of the
Internal Revenue Code to notify the IRS
of a foreign tax redetermination, which
is a change in the taxpayer’s foreign tax
liability that may affect the taxpayer’s
foreign tax credit and also relating to the
civil penalty under section 6689 for
failure to notify the IRS of a foreign tax
redetermination as required under
section 905(c).
DATES: The correction is effective
December 19, 2007.
FOR FURTHER INFORMATION CONTACT:
Teresa Burridge Hughes, (202) 622–3850
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The temporary regulations (TD 9362)
that are the subject of the correction are
under section 905(c) of the Internal
Revenue Code.
As published, temporary regulations
(TD 9362) contain errors that may prove
to be misleading and are in need of
clarification.
List of Subject 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:
I
mstockstill on PROD1PC66 with RULES
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 * * *
I Par. 2. Section 1.905–3T is amended
by revising the eighth sentence of
17:31 Dec 18, 2007
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*
Jkt 214001
*
*
*
*
*
Par. 3. Section 1.905–4T is amended
by revising the last sentence of
paragraph (b)(4) and the second
sentence of paragraph (f)(2)(ii) as
follows:
I
§ 1.905–4T Notification of foreign tax
redetermination (temporary).
*
*
*
*
(b) * * *
(4) * * * Because the date for
notifying the IRS of the foreign tax
redetermination under paragraph
(b)(1)(ii) of this section precedes the
date of the opening conference
concerning the examination of the
return for X’s 2008 taxable year,
paragraph (b)(3) of this section does not
apply, and X must notify the IRS of the
foreign tax redetermination by filing a
amended return, Form 1118, and the
statement required in paragraph (c) of
this section for the 2008 taxable year by
September 15, 2010.
*
*
*
*
*
(f) * * *
(2) * * *
(ii) * * * Such notification must be
filed no later than the due date (with
extensions) of the original return for the
taxpayer’s first taxable year following
Frm 00045
LaNita Van Dyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. E7–24674 Filed 12–18–07; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Example. * * *
(i) * * * In 2009, CFC paid its actual
foreign tax liability for 2008 of 80u. * * *
(ii) Result in 2009. If the 20u overaccrual
of tax for 2008 were taken into account in
2008, CFC’s general category post-1986
undistributed earnings would be 1,020u,
CFC’s general category post-1986 foreign
income taxes would be $280, and P would be
deemed to pay $27.45 of tax with respect to
the 2008 distribution of 100u (100u/1020u ×
$280 = $27.45). * * *
(iii) * * * As determined in 2011, CFC’s
post-1986 undistributed earnings for 2009 are
1350u (1,100u as revised for 2008, less 100u
distributed in 2008, plus 350u earned in
2009), and its post-1986 foreign income taxes
for 2009 are $281.82 ($200 as revised for
2008, less $18.18 deemed paid in 2008, plus
$100 accrued for 2009). As redetermined in
2011, P’s deemed paid credit with respect to
the 100u distribution from CFC in 2009 is
$20.88 (100u/1350u × $281.82).
PO 00000
the taxable year in which these
regulations are first applicable. * * *
Internal Revenue Service
*
Need for Correction
VerDate Aug<31>2005
*
*
(d) * * *
(3) * * *
(iii) * * *
71787
Fmt 4700
Sfmt 4700
26 CFR Part 1
[TD 9362]
RIN 1545–BG23
Foreign Tax Credit: Notification of
Foreign Tax Redeterminations;
Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to temporary
regulations.
AGENCY:
SUMMARY: This document contains a
correction to temporary regulations (TD
9362) that were published in the
Federal Register on Wednesday,
November 7, 2007 (72 FR 62771)
relating to a United States taxpayer’s
obligation under section 905(c) of the
Internal Revenue Code to notify the IRS
of a foreign tax redetermination, which
is a change in the taxpayer’s foreign tax
liability that may affect the taxpayer’s
foreign tax credit and also relating to the
civil penalty under section 6689 for
failure to notify the IRS of a foreign tax
redetermination as required under
section 905(c).
DATES: The correction is effective
December 19, 2007.
FOR FURTHER INFORMATION CONTACT:
Teresa Burridge Hughes, (202) 622–3850
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The temporary regulations (TD 9362)
that are the subject of the correction are
under section 905(c) of the Internal
Revenue Code.
Need for Correction
As published, temporary regulations
(TD 9362) contain an error that may
prove to be misleading and is in need
of clarification.
Correction of Publication
Accordingly, the publication of the
temporary regulations (TD 9362), which
were the subject of FR Doc. E7–21766,
is corrected as follows:
E:\FR\FM\19DER1.SGM
19DER1
]]>Agencies
[Federal Register Volume 72, Number 243 (Wednesday, December 19, 2007)]
[Rules and Regulations]
[Page 71787]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-24674]
[[Page 71787]]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9362]
RIN 1545-BG23
Foreign Tax Credit: Notification of Foreign Tax Redeterminations;
Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendments.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to temporary regulations
(TD 9362) that were published in the Federal Register on Wednesday,
November 7, 2007 (72 FR 62771) relating to a United States taxpayer's
obligation under section 905(c) of the Internal Revenue Code to notify
the IRS of a foreign tax redetermination, which is a change in the
taxpayer's foreign tax liability that may affect the taxpayer's foreign
tax credit and also relating to the civil penalty under section 6689
for failure to notify the IRS of a foreign tax redetermination as
required under section 905(c).
DATES: The correction is effective December 19, 2007.
FOR FURTHER INFORMATION CONTACT: Teresa Burridge Hughes, (202) 622-3850
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The temporary regulations (TD 9362) that are the subject of the
correction are under section 905(c) of the Internal Revenue Code.
Need for Correction
As published, temporary regulations (TD 9362) contain errors that
may prove to be misleading and are in need of clarification.
List of Subject 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
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. 2. Section 1.905-3T is amended by revising the eighth sentence of
paragraph (d)(3)(iii) Example. (i), the first sentence of paragraph
(d)(3)(iii) Example. (ii), and the third and last sentences of
paragraph (d)(3)(iii) Example. (iii) as follows:
Sec. 1.905-3T Adjustments to United States tax liability and to the
pools of post-1986 undistributed earnings and post-1986 foreign income
taxes as a result of a foreign tax redetermination (temporary).
* * * * *
(d) * * *
(3) * * *
(iii) * * *
Example. * * *
(i) * * * In 2009, CFC paid its actual foreign tax liability for
2008 of 80u. * * *
(ii) Result in 2009. If the 20u overaccrual of tax for 2008 were
taken into account in 2008, CFC's general category post-1986
undistributed earnings would be 1,020u, CFC's general category post-
1986 foreign income taxes would be $280, and P would be deemed to
pay $27.45 of tax with respect to the 2008 distribution of 100u
(100u/1020u x $280 = $27.45). * * *
(iii) * * * As determined in 2011, CFC's post-1986 undistributed
earnings for 2009 are 1350u (1,100u as revised for 2008, less 100u
distributed in 2008, plus 350u earned in 2009), and its post-1986
foreign income taxes for 2009 are $281.82 ($200 as revised for 2008,
less $18.18 deemed paid in 2008, plus $100 accrued for 2009). As
redetermined in 2011, P's deemed paid credit with respect to the
100u distribution from CFC in 2009 is $20.88 (100u/1350u x $281.82).
* * * * *
0
Par. 3. Section 1.905-4T is amended by revising the last sentence of
paragraph (b)(4) and the second sentence of paragraph (f)(2)(ii) as
follows:
Sec. 1.905-4T Notification of foreign tax redetermination
(temporary).
* * * * *
(b) * * *
(4) * * * Because the date for notifying the IRS of the foreign tax
redetermination under paragraph (b)(1)(ii) of this section precedes the
date of the opening conference concerning the examination of the return
for X's 2008 taxable year, paragraph (b)(3) of this section does not
apply, and X must notify the IRS of the foreign tax redetermination by
filing a amended return, Form 1118, and the statement required in
paragraph (c) of this section for the 2008 taxable year by September
15, 2010.
* * * * *
(f) * * *
(2) * * *
(ii) * * * Such notification must be filed no later than the due
date (with extensions) of the original return for the taxpayer's first
taxable year following the taxable year in which these regulations are
first applicable. * * *
LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel (Procedure and Administration).
[FR Doc. E7-24674 Filed 12-18-07; 8:45 am]
BILLING CODE 4830-01-P
