Fees, 64905-64906 [E8-26063]
Download as PDF
<![CDATA[
Federal Register / Vol. 73, No. 212 / Friday, October 31, 2008 / Proposed Rules
27, 2009. A period of 10 minutes will
be allotted to each person for making
comments. An agenda showing the
schedule of speakers will be prepared
after the deadline for receiving outlines
has passed. Copies of the agenda will be
available free of charge at the hearing.
Drafting Information
The principal author of these
regulations is Megan A. Stoner of the
Office of the Associate Chief Counsel
(Passthroughs and Special Industries).
However, other personnel from the IRS
and the Treasury Department
participated in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Proposed Amendment to the
Regulations
Accordingly, 26 CFR part 1 is
proposed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.108–8 is added to
read as follows:
ebenthall on PROD1PC60 with PROPOSALS
§ 1.108–8 Indebtedness satisfied by
partnership interest.
(a) In general. For purposes of
determining income of a debtor from
discharge of indebtedness (COD
income), if a debtor partnership
transfers a capital or profits interest in
the partnership to a creditor in
satisfaction of its recourse or
nonrecourse indebtedness (a debt-forequity exchange), the partnership is
treated as having satisfied the
indebtedness with an amount of money
equal to the fair market value of the
partnership interest.
(b) Determination of fair market
value—(1) In general. For purposes of
paragraph (a) of this section, the fair
market value of a partnership interest
transferred by a debtor partnership to a
creditor in satisfaction of the debtor
partnership’s indebtedness (debt-forequity interest) is the liquidation value
of the debt-for-equity interest, where
liquidation value equals the amount of
cash that the creditor would receive
with respect to the debt-for-equity
interest if, immediately after the
transfer, the partnership sold all of its
assets (including goodwill, going
concern value, and any other intangibles
associated with the partnership’s
operations) for cash equal to the fair
VerDate Aug<31>2005
13:45 Oct 30, 2008
Jkt 217001
market value of those assets and then
liquidated, if—
(i) The debtor partnership determines
and maintains the capital accounts of its
partners in accordance with the capital
accounting rules of § 1.704–1(b)(2)(iv);
(ii) The creditor, debtor partnership,
and its partners treat the fair market
value of the indebtedness as being equal
to the liquidation value of the debt-forequity interest for purposes of
determining the tax consequences of the
debt-for-equity exchange;
(iii) The debt-for-equity exchange is
an arm’s-length transaction; and
(iv) Subsequent to the debt-for-equity
exchange, neither the partnership
redeems nor any person related to the
partnership purchases the debt-forequity interest as part of a plan at the
time of the debt-for-equity exchange
which has as a principal purpose the
avoidance of COD income by the
partnership.
(2) Exception. If the requirements in
paragraph (b)(1) of this section are not
satisfied, all the facts and circumstances
will be considered in determining the
fair market value of a debt-for-equity
interest for purposes of paragraph (a) of
this section.
(c) Example. The following example
illustrates the provisions of this section:
Example. (i) AB partnership has $1,000 of
outstanding indebtedness owed to C. In an
arm’s-length transaction, C agrees to cancel
the $1,000 indebtedness in exchange (debtfor-equity exchange) for an interest (debt-forequity interest) in AB. AB’s partnership
agreement provides that its partners’ capital
accounts will be determined and maintained
in accordance with the capital accounting
rules in § 1.704–1(b)(2)(iv). The fair market
value of the $1,000 indebtedness is $700 at
the time of the debt-for-equity exchange.
Under § 1.704–1(b)(2)(iv)(b), C’s capital
account is increased by $700 as a result of
the debt-for-equity exchange. This amount
equals the liquidation value of C’s debt-forequity interest, which is the amount of cash
that C would receive with respect to that
interest if AB partnership sold all of its assets
for cash equal to the fair market value of
those assets and then liquidated. C, AB
partnership, and its partners treat the fair
market value of the indebtedness as being
equal to the liquidation value of C’s debt-forequity interest ($700) for purposes of
determining the tax consequences of the
debt-for-equity exchange. Subsequent to the
debt-for-equity exchange, neither AB
partnership redeems nor any person related
to AB partnership purchases C’s debt-forequity interest as part of a plan at the time
of the debt-for-equity exchange which has as
a principal purpose the avoidance of COD
income by AB partnership.
(ii) Because the requirements in paragraph
(b)(1) of this section are satisfied, the fair
market value of C’s debt-for-equity interest in
AB partnership for purposes of determining
AB partnership’s COD income is the
PO 00000
Frm 00017
Fmt 4702
Sfmt 4702
64905
liquidation value of C’s debt-for-equity
interest, or $700. Accordingly, AB
partnership is treated as satisfying the $1,000
indebtedness with $700 under section
108(e)(8).
(d) Effective/applicability date. This
section applies to debt-for-equity
exchanges occurring on or after the date
that these regulations are published as
final regulations in the Federal Register.
Par. 3. Section 1.721–1 is amended by
adding paragraph (d) to read as follows:
§ 1.721–1 Nonrecognition of gain or loss
on contribution.
*
*
*
*
*
(d) Debt-for-equity exchange—(1) In
general. Except as otherwise provided
in section 721 and the regulations under
section 721, and notwithstanding
§ 1.108–8(a), section 721 applies to a
contribution of a partnership’s recourse
or nonrecourse indebtedness by a
creditor to the debtor partnership in
exchange for a capital or profits interest
in the partnership.
(2) Exception. Section 721 does not
apply to the transfer of a partnership
interest to a creditor in satisfaction of a
partnership’s recourse or nonrecourse
indebtedness for unpaid rent, royalties,
or interest on indebtedness (including
accrued original issue discount). For
rules applicable to a determination of
whether a partnership interest
transferred to a creditor is treated as
payment of interest or accrued original
issue discount, see §§ 1.446–2(e) and
1.1275–2(a), respectively.
(3) Effective/applicability date. This
paragraph (d) applies to debt-for-equity
exchanges occurring on or after the date
that these regulations are published as
final regulations in the Federal Register.
Linda E. Stiff,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. E8–25851 Filed 10–30–08; 8:45 am]
BILLING CODE 4830–01–P
LIBRARY OF CONGRESS
Copyright Office
37 CFR Part 201
[Docket No. RM 2008–9]
Fees
Copyright Office, Library of
Congress.
ACTION: Extension of time to file
comments.
AGENCY:
SUMMARY: The Copyright Office is
extending the time in which comments
may be filed in response to its notice of
E:\FR\FM\31OCP1.SGM
31OCP1
64906
Federal Register / Vol. 73, No. 212 / Friday, October 31, 2008 / Proposed Rules
proposed rulemaking regarding new fees
for registration of claims, special
services and Licensing Division
services, and new statutory fees and fees
for certain other services that the Office
is proposing to submit to Congress.
Comments should be in writing
and received on or before November 24,
2008.
DATES:
If hand delivered by a
private party, an original and ten copies
of any comment should be brought to
Room LM–401 of the James Madison
Memorial Building between 8:30 a.m.
and 5:00 p.m. and the envelope should
be addressed as follows: Office of the
General Counsel, U.S. Copyright Office,
James Madison Memorial Building,
Room LM–401, 101 Independence
Avenue, SE., Washington, DC 20559–
6000. If hand delivered by a commercial
courier, an original and ten copies of
any comment must be delivered to the
Congressional Courier Acceptance Site
located at Second and D Streets, NE.,
Washington, DC, between 8:30 a.m. and
4:00 p.m. The envelope should be
addressed as follows: Office of the
ebenthall on PROD1PC60 with PROPOSALS
ADDRESSES:
VerDate Aug<31>2005
13:45 Oct 30, 2008
Jkt 217001
General Counsel, U.S. Copyright Office,
LM 401, James Madison Building, 101
Independence Avenue, SE.,
Washington, DC. Please note that CCAS
will not accept delivery by means of
overnight delivery services such as
Federal Express, United Parcel Service
or DHL. If sent by mail (including
overnight delivery using U.S. Postal
Service Express Mail), an original and
five copies should be addressed to U.S.
Copyright Office, Copyright GC/I&R,
P.O. Box 70400, Washington, DC 20024.
FOR FURTHER INFORMATION CONTACT:
Tanya M Sandros, General Counsel, or
Kent Dunlap, Principal Legal Advisor
for the General Counsel, Telephone:
(202) 707–8380. Telefax: (202) 707–
8366.
On
October 14, 2008, the Copyright Office
published a notice of proposed
rulemaking to inform the public that the
Copyright Office of the Library of
Congress is considering adoption of new
fees for registration of claims, special
services and Licensing Division
services, and that the Office intends to
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00018
Fmt 4702
Sfmt 4702
submit a schedule of proposed new
statutory fees and fees for certain other
services to Congress. (73 FR 60658
October 14, 2008)
The NPRM contained three charts
which included a comparison of
existing fees and the proposed new fees.
Due to a printing problem, a substantial
portion of the text was missing from the
charts entitled ‘‘Special services’’ and
‘‘Licensing Division services,’’ and a
correction document was issued by the
Federal Register on October 23, 2008.
(73 FR 63111) The Office is now
extending the comment deadline to
provide a 30 day period to consider all
the fees, including those published for
the first time in the correction.
The cost study which provides the
basis for the proposed fee changes is
posted on the Office’s website at: https://
www.copyright.gov/reports/
fees2008.pdf.
Dated: October 28, 2008.
Tanya Sandros,
General Counsel.
[FR Doc. E8–26063 Filed 10–30–08; 8:45 am]
BILLING CODE 1410–30–S
E:\FR\FM\31OCP1.SGM
31OCP1
]]>Agencies
[Federal Register Volume 73, Number 212 (Friday, October 31, 2008)]
[Proposed Rules]
[Pages 64905-64906]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-26063]
=======================================================================
-----------------------------------------------------------------------
LIBRARY OF CONGRESS
Copyright Office
37 CFR Part 201
[Docket No. RM 2008-9]
Fees
AGENCY: Copyright Office, Library of Congress.
ACTION: Extension of time to file comments.
-----------------------------------------------------------------------
SUMMARY: The Copyright Office is extending the time in which comments
may be filed in response to its notice of
[[Page 64906]]
proposed rulemaking regarding new fees for registration of claims,
special services and Licensing Division services, and new statutory
fees and fees for certain other services that the Office is proposing
to submit to Congress.
DATES: Comments should be in writing and received on or before November
24, 2008.
ADDRESSES: If hand delivered by a private party, an original and ten
copies of any comment should be brought to Room LM-401 of the James
Madison Memorial Building between 8:30 a.m. and 5:00 p.m. and the
envelope should be addressed as follows: Office of the General Counsel,
U.S. Copyright Office, James Madison Memorial Building, Room LM-401,
101 Independence Avenue, SE., Washington, DC 20559-6000. If hand
delivered by a commercial courier, an original and ten copies of any
comment must be delivered to the Congressional Courier Acceptance Site
located at Second and D Streets, NE., Washington, DC, between 8:30 a.m.
and 4:00 p.m. The envelope should be addressed as follows: Office of
the General Counsel, U.S. Copyright Office, LM 401, James Madison
Building, 101 Independence Avenue, SE., Washington, DC. Please note
that CCAS will not accept delivery by means of overnight delivery
services such as Federal Express, United Parcel Service or DHL. If sent
by mail (including overnight delivery using U.S. Postal Service Express
Mail), an original and five copies should be addressed to U.S.
Copyright Office, Copyright GC/I&R, P.O. Box 70400, Washington, DC
20024.
FOR FURTHER INFORMATION CONTACT: Tanya M Sandros, General Counsel, or
Kent Dunlap, Principal Legal Advisor for the General Counsel,
Telephone: (202) 707-8380. Telefax: (202) 707-8366.
SUPPLEMENTARY INFORMATION: On October 14, 2008, the Copyright Office
published a notice of proposed rulemaking to inform the public that the
Copyright Office of the Library of Congress is considering adoption of
new fees for registration of claims, special services and Licensing
Division services, and that the Office intends to submit a schedule of
proposed new statutory fees and fees for certain other services to
Congress. (73 FR 60658 October 14, 2008)
The NPRM contained three charts which included a comparison of
existing fees and the proposed new fees. Due to a printing problem, a
substantial portion of the text was missing from the charts entitled
``Special services'' and ``Licensing Division services,'' and a
correction document was issued by the Federal Register on October 23,
2008. (73 FR 63111) The Office is now extending the comment deadline to
provide a 30 day period to consider all the fees, including those
published for the first time in the correction.
The cost study which provides the basis for the proposed fee
changes is posted on the Office's website at: https://www.copyright.gov/
reports/fees2008.pdf.
Dated: October 28, 2008.
Tanya Sandros,
General Counsel.
[FR Doc. E8-26063 Filed 10-30-08; 8:45 am]
BILLING CODE 1410-30-S
