Section 482: Methods To Determine Taxable Income in Connection With a Cost Sharing Arrangement, 236-238 [E8-30712]
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236
Proposed Rules
Federal Register
Vol. 74, No. 2
Monday, January 5, 2009
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[REG–144615–02]
RIN 1545–BI47
Section 482: Methods To Determine
Taxable Income in Connection With a
Cost Sharing Arrangement
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
by cross-reference to temporary
regulations, notice of proposed
rulemaking, and notice of public
hearing.
SUMMARY: In the Rules and Regulations
section of this issue of the Federal
Register, the IRS is issuing temporary
regulations that provide further
guidance and clarification regarding
methods under section 482 to determine
taxable income in connection with a
cost sharing arrangement in order to
address issues that have arisen in
administering the current regulations.
These temporary regulations potentially
affect controlled taxpayers within the
meaning of section 482 that enter into
cost sharing arrangements as defined
therein. The text of those temporary
regulations also serves as the text of
these proposed regulations. This
document also provides notice of a
public hearing on those proposed
regulations.
DATES: Written or electronic comments
must be received by April 6, 2009.
Outline of topics to be discussed at the
public hearing scheduled for April 21,
2009 must be received by April 6, 2009.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–144615–02), Room
5203, Internal Revenue Service, PO Box
7604, Ben Franklin Station, Washington,
DC 20044. Submissions may be handdelivered Monday through Friday
between the hours of 8 a.m. and 4 p.m.
to CC:PA:LPD:PR (REG–144615–02),
VerDate Aug<31>2005
13:23 Jan 02, 2009
Jkt 217001
Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue,
NW., Washington DC, or sent
electronically, via the Federal
eRulemaking Portal at https://
www.regulations.gov (IRS REG–144615–
02).
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Kenneth P. Christman, (202) 435–5265;
concerning submissions of comments,
the hearing, and/or to be placed on the
building access list to attend the
hearings, Oluwafunmilayo Taylor, (202)
622–7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information
contained in this notice of proposed
rulemaking have been submitted to the
Office of Management and Budget.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid control number
assigned by the Office of Management
and Budget.
The collection of information
requirements are in proposed § 1.482–
7(b)(2) and (k). Responses to the
collections of information are required
by the IRS to monitor compliance of
controlled taxpayers with the provisions
applicable to cost sharing arrangements.
Estimated total annual reporting and/
or recordkeeping burden: 9350 hours.
Estimated average annual burden
hours per respondent and/or
recordkeeper: 18.7 hours.
Estimated number of respondents
and/or recordkeepers: 500.
Estimated frequency of responses: On
Occasion and Annually.
Comments on the collection of
information should be sent to the Office
of Management and Budget, Attn: Desk
Officer for the Department of the
Treasury, Office of Information and
Regulatory Affairs, Washington, DC
20503, with copies to the Internal
Revenue Service, Attn: IRS Reports
Clearance Officer,
SE:W:CAR:MP:T:T:SP, Washington, DC
20224. Comments on the collection of
information should be received by
March 6, 2009.
Comments are specifically requested
concerning:
Whether the proposed collection of
information is necessary for the proper
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performance of the functions of the IRS,
including whether the information will
have practical utility; The accuracy of
the estimated burden associated with
the proposed collection of information
(see above); How the burden of
complying with the proposed collection
of information may be minimized,
including through the application of
automated collection techniques or
other forms of information-technology;
and Estimates of capital or start-up costs
and costs of operation, maintenance,
and purchase of services to provide
information.
Books or records relating to a
collection of information must be
retained as long as their contents may
become material in the administration
of any internal revenue law. Generally,
tax returns and tax return information
are confidential, as required by 26
U.S.C. 6103.
Background and Explanation of
Provisions
Temporary regulations In the Rules
and Regulations section of this issue of
the Federal Register amend the Income
Tax Regulations (26 CFR part 1) relating
to section 482. The temporary
regulations provide guidance regarding
methods under section 482 to determine
taxable income in connection with a
cost sharing arrangement. These
temporary regulations potentially affect
controlled taxpayers within the meaning
of section 482 that enter into cost
sharing arrangements as defined therein.
The text of those temporary regulations
also serves as the text of these proposed
regulations. The preamble to the
temporary regulations explains the
amendments.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a
significant regulatory action as defined
in Executive Order 12866. Therefore, a
regulatory assessment is not required. It
has been determined also that section
553(b) of the Administrative Procedure
Act (5 U.S.C. chapter 5) does not apply
to these regulations. It is hereby
certified that the collections of
information in these regulations will not
have a significant economic impact on
a substantial number of small entities.
This certification is based on the fact
that this rule applies to U.S. businesses
and foreign affiliates that enter into cost
sharing agreements. Few small entities
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05JAP1
Federal Register / Vol. 74, No. 2 / Monday, January 5, 2009 / Proposed Rules
are expected to enter into cost sharing
agreements, as defined by these
regulations. Accordingly, a Regulatory
Flexibility Analysis under the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) is not required. Pursuant to
section 7805(f), this notice of proposed
rulemaking will be submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business.
List of Subjects
Comments and Public Hearing
Proposed Amendment to the
Regulations
Before these proposed regulations are
adopted as final regulations,
consideration will given to any written
comments (a signed original and eight
(8) copies) or electronic comments that
are submitted timely to the IRS. The IRS
and the Treasury Department
specifically request comments on the
clarity of the proposed rule and how it
may be made easier to understand. All
comments will be available for public
inspection and copying.
A public hearing has been scheduled
for April 21, 2009, beginning at 10 a.m.,
in the IRS Auditorium, Internal Revenue
Building, 1111 Constitution Avenue,
NW., Washington, DC. Due to building
security procedures, visitors must enter
at the Constitution Avenue entrance. In
addition, all visitors must present photo
identification to enter the building.
Because of access restrictions, visitors
will not be admitted beyond the
immediate entrance area more than 30
minutes before the hearing starts. For
information about having your name
placed on the building access list to
attend the hearing, see the FOR FURTHER
INFORMATION CONTACT section of this
preamble.
The rules of 26 CFR 601.601(a)(93)
apply to the hearing. Persons who wish
to present oral comments at the hearing
must submit written comments by April
6, 2009 and an outline of the topics to
be discussed and the time to be devoted
to each topic (signed original and eight
(8) copies) by April 6, 2009. A period of
10 minutes will be allotted to each
person for making comments. An
agenda showing the schedule of the
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.
Accordingly, 26 CFR parts 1 and 301
are proposed to be amended as follows:
Drafting Information
The principal author of these
proposed regulations is Kenneth P.
Christman of the Office of Chief Counsel
(International). However, other
personnel from the Treasury
Department and the IRS participated in
their development.
VerDate Aug<31>2005
13:23 Jan 02, 2009
Jkt 217001
237
26 CFR Part 1
(2) Election to apply paragraph (b) of
this section to earlier taxable years.
Income taxes, Reporting and
recordkeeping requirements.
§ 1.482–4 Methods to determine taxable
income in connection with a transfer of
intangible property.
26 CFR Part 301
*
Employment taxes, Estate taxes,
Excise taxes, Gift taxes, Income taxes,
Penalties, Reporting and recordkeeping
requirements.
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 1.367(a)–1 is revised to
read as follows:
§ 1.367(a)–1 Transfers to foreign
corporations subject to section 367(a): In
general.
(a) through (d)(2) [Reserved].
(3) Transfer. For purposes of section
367 and regulations thereunder, the
term transfer means any transaction that
constitutes a transfer for purposes of
section 332, 351, 354, 355, 356, or 361,
as applicable. A person’s entering into
a cost sharing arrangement under
§ 1.482–7 or acquiring rights to
intangible property under such an
arrangement shall not be considered a
transfer of property described in section
367(a)(1). See § 1.6038B–1T(b)(4) for the
date on which the transfer is considered
to be made.
(d)(4) through (g) [Reserved].
Par. 3. Section 1.482–0 is amended by
revising the entries for §§ 1.482–
1(b)(2)(iii), 1.482–2(e) and (f), 1.482–4(g)
and (h), 1.482–7, and 1.482–9 to read as
follows:
§ 1.482–0 Outline of regulations under
section 482.
*
*
*
*
*
§ 1.482–1 Allocation of income and
deductions among taxpayers.
*
*
*
*
*
(b) * * *
(2) * * *
(iii) Coordination of methods
applicable to certain intangible
development arrangements.
§ 1.482–2 Determination of taxable income
in specific situations.
*
*
*
*
*
(e) Cost sharing arrangement.
(f) Effective/applicability date.
(1) In general.
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*
*
*
*
(g) Coordination with rules governing
cost sharing arrangements.
(h) Effective/applicability date.
(1) In general.
(2) Election to apply regulation to
earlier taxable years.
*
*
*
*
*
§ 1.482–7 Methods to determine taxable
income in connection with a cost sharing
arrangement.
[The text of the proposed entries for
§ 1.482–7 is the same as the entries for
§ 1.482–7T in § 1.482–0T published
elsewhere in this issue of the Federal
Register].
*
*
*
*
*
§ 1.482–9 Methods to determine taxable
income in connection with a controlled
services transaction.
*
*
*
*
*
(a) through (m)(2) [Reserved]
(3) [The text of the proposed entry for
§ 1.482–9(m)(3) is the same as the entry
for § 1.482–9T(m)(3) in § 1.482–0T
published elsewhere in this issue of the
Federal Register].
(m)(4) through (n)(3) [Reserved]
Par. 4. Section 1.482–1 is amended
by:
1. Revising paragraph (b)(2)(i) and the
last sentence of paragraph (j)(6)(i).
2. Adding a new paragraph (b)(2)(iii).
The addition and revisions read as
follows:
§ 1.482–1 Allocation of income and
deductions among taxpayers.
*
*
*
*
*
(b) * * *
(2) * * *
(i) [The text of the proposed
amendment to § 1.482–1(b)(2)(i) is the
same as the text of § 1.482–1T(b)(2)(i)
published elsewhere in this issue of the
Federal Register].
*
*
*
*
*
(iii) [The text of the proposed § 1.482–
1(b)(2)(iii) is the same as the text of
§ 1.482–1T(b)(2)(iii) published
elsewhere in this issue of the Federal
Register].
*
*
*
*
*
(j) * * *
(6) * * *
(i) * * * . [The text of the proposed
amendment to § 1.482–1(j)(6)(i) is the
same as the text of the amendment to
§ 1.482–1T(j)(6)(i) published elsewhere
in this issue of the Federal Register].
Par. 5. Section 1.482–2 is amended as
follows:
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Federal Register / Vol. 74, No. 2 / Monday, January 5, 2009 / Proposed Rules
1. Paragraph (e) is redesignated as
paragraph (f) and newly-designated
paragraphs (f)(1) and (f)(2) are revised.
2. New paragraph (e) is added.
The addition and revision reads as
follows:
§ 1.482–2 Determination of taxable income
in specific situations.
*
*
*
*
*
(e) [The text of proposed § 1.482–2(e)
is the same as the text of § 1.482–2T(e)
published elsewhere in this issue of the
Federal Register].
(f) * * * (1) [The text of the proposed
amendment to § 1.482–2(f)(1) is the
same as the text of § 1.482–2T(f)(1)
published elsewhere in this issue of the
Federal Register].
(2) [The text of the proposed
amendment to § 1.482–2(f)(2) is the
same as the text of § 1.482–2T(f)(2)
published elsewhere in this issue of the
Federal Register].
*
*
*
*
*
Par. 6. Section 1.482–4 is amended as
follows:
1. Paragraph (f)(3)(i)(B) is revised.
2. Paragraph (f)(7) is removed.
3. New paragraphs (g) and (h) are
added.
The additions and revision reads as
follows:
§ 1.482–4 Methods to determine taxable
income in connection with a transfer of
intangible property.
*
*
*
*
*
(f) * * *
(3) * * *
(i) * * *
(B) [The text of the proposed
amendment to § 1.482–4(f)(3)(i)(B) is the
same as the text of § 1.482–4T(f)(3)(i)(B)
published elsewhere in this issue of the
Federal Register].
*
*
*
*
*
(g) [The text of proposed § 1.482–4(g)
is the same as the text of § 1.482–4T(g)
published elsewhere in this issue of the
Federal Register].
(h) [The text of proposed § 1.482–4(h)
is the same as the text of § 1.482–4T(h)
published elsewhere in this issue of the
Federal Register].
Par. 7. Section 1.482–7 is revised to
read as follows:
§ 1.482–7 Methods to determine taxable
income in connection with a cost sharing
arrangement.
[The text of the proposed § 1.482–7 is
the same as the text of § 1.482–7T(a)
through (m) published elsewhere in this
issue of the Federal Register].
Par. 8. Section 1.482–8 is amended by
revising paragraph (b) Examples 13, 14,
15, 16, 17 and 18 to read as follows:
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13:23 Jan 02, 2009
Jkt 217001
§ 1.482–8
rule.
Examples of the best method
*
*
*
*
*
(b) * * *
Examples 13 through 18. [The text of
the proposed § 1.482–8(b) Examples 13
through 18 is the same as the text of
§ 1.482–8T(b) Examples 13 through 18
published elsewhere in this issue of the
Federal Register].
*
*
*
*
*
Par. 9. Section 1.482–9 is added to
read as follows:
§ 1.482–9 Methods to determine taxable
income in connection with a controlled
services transaction.
(a) through (m)(2) [Reserved].
(3) [The text of the proposed
amendment to § 1.482–9(m)(3) is the
same as the text of § 1.482–9T(m)(3)
published elsewhere in this issue of the
Federal Register].
(m)(4) through (n)(3) [Reserved].
L E. Stiff,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. E8–30712 Filed 12–31–08; 11:15
am]
BILLING CODE 4830–01–P
used by insurance agents, and others to
calculate appropriate flood insurance
premium rates for new buildings and
the contents in those buildings.
DATES: Comments are to be submitted
on or before April 6, 2009.
ADDRESSES: The corresponding
preliminary Flood Insurance Rate Map
(FIRM) for the proposed BFEs for each
community are available for inspection
at the community’s map repository. The
respective addresses are listed in the
table below.
You may submit comments, identified
by Docket No. FEMA–B–1028, to
William R. Blanton, Jr., Chief,
Engineering Management Branch,
Mitigation Directorate, Federal
Emergency Management Agency, 500 C
Street, SW., Washington, DC 20472,
(202) 646–3151, or (e-mail)
bill.blanton@dhs.gov.
FOR FURTHER INFORMATION CONTACT:
William R. Blanton, Jr., Chief,
Engineering Management Branch,
Mitigation Directorate, Federal
Emergency Management Agency, 500 C
Street, SW., Washington, DC 20472,
(202) 646–3151 or (e-mail)
bill.blanton@dhs.gov.
The
Federal Emergency Management Agency
(FEMA) proposes to make
determinations of BFEs and modified
BFEs for each community listed below,
in accordance with section 110 of the
Flood Disaster Protection Act of 1973,
42 U.S.C. 4104, and 44 CFR 67.4(a).
These proposed BFEs and modified
BFEs, together with the floodplain
management criteria required by 44 CFR
60.3, are the minimum that are required.
They should not be construed to mean
that the community must change any
existing ordinances that are more
stringent in their floodplain
management requirements. The
community may at any time enact
stricter requirements of its own, or
pursuant to policies established by other
Federal, State, or regional entities.
These proposed elevations are used to
meet the floodplain management
requirements of the NFIP and are also
used to calculate the appropriate flood
insurance premium rates for new
buildings built after these elevations are
made final, and for the contents in these
buildings.
Comments on any aspect of the Flood
Insurance Study and FIRM, other than
the proposed BFEs, will be considered.
A letter acknowledging receipt of any
comments will not be sent.
Administrative Procedure Act
Statement. This matter is not a
rulemaking governed by the
SUPPLEMENTARY INFORMATION:
DEPARTMENT OF HOMELAND
SECURITY
Federal Emergency Management
Agency
44 CFR Part 67
[Docket ID FEMA–2008–0020; Internal
Agency Docket No. FEMA–B–1028]
Proposed Flood Elevation
Determinations
AGENCY: Federal Emergency
Management Agency, DHS.
ACTION: Proposed rule.
SUMMARY: Comments are requested on
the proposed Base (1 percent annualchance) Flood Elevations (BFEs) and
proposed BFE modifications for the
communities listed in the table below.
The purpose of this notice is to seek
general information and comment
regarding the proposed regulatory flood
elevations for the reach described by the
downstream and upstream locations in
the table below. The BFEs and modified
BFEs are a part of the floodplain
management measures that the
community is required either to adopt
or show evidence of having in effect in
order to qualify or remain qualified for
participation in the National Flood
Insurance Program (NFIP). In addition,
these elevations, once finalized, will be
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]]>Agencies
[Federal Register Volume 74, Number 2 (Monday, January 5, 2009)]
[Proposed Rules]
[Pages 236-238]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-30712]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 74, No. 2 / Monday, January 5, 2009 /
Proposed Rules
[[Page 236]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[REG-144615-02]
RIN 1545-BI47
Section 482: Methods To Determine Taxable Income in Connection
With a Cost Sharing Arrangement
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations, notice of proposed rulemaking, and notice of public
hearing.
-----------------------------------------------------------------------
SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS is issuing temporary regulations that provide
further guidance and clarification regarding methods under section 482
to determine taxable income in connection with a cost sharing
arrangement in order to address issues that have arisen in
administering the current regulations. These temporary regulations
potentially affect controlled taxpayers within the meaning of section
482 that enter into cost sharing arrangements as defined therein. The
text of those temporary regulations also serves as the text of these
proposed regulations. This document also provides notice of a public
hearing on those proposed regulations.
DATES: Written or electronic comments must be received by April 6,
2009. Outline of topics to be discussed at the public hearing scheduled
for April 21, 2009 must be received by April 6, 2009.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-144615-02), Room
5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
144615-02), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington DC, or sent electronically, via the Federal
eRulemaking Portal at https://www.regulations.gov (IRS REG-144615-02).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Kenneth P. Christman, (202) 435-5265; concerning submissions of
comments, the hearing, and/or to be placed on the building access list
to attend the hearings, Oluwafunmilayo Taylor, (202) 622-7180 (not
toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information contained in this notice of proposed
rulemaking have been submitted to the Office of Management and Budget.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid control number assigned by the Office of
Management and Budget.
The collection of information requirements are in proposed Sec.
1.482-7(b)(2) and (k). Responses to the collections of information are
required by the IRS to monitor compliance of controlled taxpayers with
the provisions applicable to cost sharing arrangements.
Estimated total annual reporting and/or recordkeeping burden: 9350
hours.
Estimated average annual burden hours per respondent and/or
recordkeeper: 18.7 hours.
Estimated number of respondents and/or recordkeepers: 500.
Estimated frequency of responses: On Occasion and Annually.
Comments on the collection of information should be sent to the
Office of Management and Budget, Attn: Desk Officer for the Department
of the Treasury, Office of Information and Regulatory Affairs,
Washington, DC 20503, with copies to the Internal Revenue Service,
Attn: IRS Reports Clearance Officer, SE:W:CAR:MP:T:T:SP, Washington, DC
20224. Comments on the collection of information should be received by
March 6, 2009.
Comments are specifically requested concerning:
Whether the proposed collection of information is necessary for the
proper performance of the functions of the IRS, including whether the
information will have practical utility; The accuracy of the estimated
burden associated with the proposed collection of information (see
above); How the burden of complying with the proposed collection of
information may be minimized, including through the application of
automated collection techniques or other forms of information-
technology; and Estimates of capital or start-up costs and costs of
operation, maintenance, and purchase of services to provide
information.
Books or records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and
tax return information are confidential, as required by 26 U.S.C. 6103.
Background and Explanation of Provisions
Temporary regulations In the Rules and Regulations section of this
issue of the Federal Register amend the Income Tax Regulations (26 CFR
part 1) relating to section 482. The temporary regulations provide
guidance regarding methods under section 482 to determine taxable
income in connection with a cost sharing arrangement. These temporary
regulations potentially affect controlled taxpayers within the meaning
of section 482 that enter into cost sharing arrangements as defined
therein. The text of those temporary regulations also serves as the
text of these proposed regulations. The preamble to the temporary
regulations explains the amendments.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
12866. Therefore, a regulatory assessment is not required. It has been
determined also that section 553(b) of the Administrative Procedure Act
(5 U.S.C. chapter 5) does not apply to these regulations. It is hereby
certified that the collections of information in these regulations will
not have a significant economic impact on a substantial number of small
entities. This certification is based on the fact that this rule
applies to U.S. businesses and foreign affiliates that enter into cost
sharing agreements. Few small entities
[[Page 237]]
are expected to enter into cost sharing agreements, as defined by these
regulations. Accordingly, a Regulatory Flexibility Analysis under the
Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required.
Pursuant to section 7805(f), this notice of proposed rulemaking will be
submitted to the Chief Counsel for Advocacy of the Small Business
Administration for comment on its impact on small business.
Comments and Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will given to any written comments (a signed original and
eight (8) copies) or electronic comments that are submitted timely to
the IRS. The IRS and the Treasury Department specifically request
comments on the clarity of the proposed rule and how it may be made
easier to understand. All comments will be available for public
inspection and copying.
A public hearing has been scheduled for April 21, 2009, beginning
at 10 a.m., in the IRS Auditorium, Internal Revenue Building, 1111
Constitution Avenue, NW., Washington, DC. Due to building security
procedures, visitors must enter at the Constitution Avenue entrance. In
addition, all visitors must present photo identification to enter the
building. Because of access restrictions, visitors will not be admitted
beyond the immediate entrance area more than 30 minutes before the
hearing starts. For information about having your name placed on the
building access list to attend the hearing, see the FOR FURTHER
INFORMATION CONTACT section of this preamble.
The rules of 26 CFR 601.601(a)(93) apply to the hearing. Persons
who wish to present oral comments at the hearing must submit written
comments by April 6, 2009 and an outline of the topics to be discussed
and the time to be devoted to each topic (signed original and eight (8)
copies) by April 6, 2009. A period of 10 minutes will be allotted to
each person for making comments. An agenda showing the schedule of the
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 proposed regulations is Kenneth P.
Christman of the Office of Chief Counsel (International). However,
other personnel from the Treasury Department and the IRS participated
in their development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
Proposed Amendment to the Regulations
Accordingly, 26 CFR parts 1 and 301 are 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 1.367(a)-1 is revised to read as follows:
Sec. 1.367(a)-1 Transfers to foreign corporations subject to section
367(a): In general.
(a) through (d)(2) [Reserved].
(3) Transfer. For purposes of section 367 and regulations
thereunder, the term transfer means any transaction that constitutes a
transfer for purposes of section 332, 351, 354, 355, 356, or 361, as
applicable. A person's entering into a cost sharing arrangement under
Sec. 1.482-7 or acquiring rights to intangible property under such an
arrangement shall not be considered a transfer of property described in
section 367(a)(1). See Sec. 1.6038B-1T(b)(4) for the date on which the
transfer is considered to be made.
(d)(4) through (g) [Reserved].
Par. 3. Section 1.482-0 is amended by revising the entries for
Sec. Sec. 1.482-1(b)(2)(iii), 1.482-2(e) and (f), 1.482-4(g) and (h),
1.482-7, and 1.482-9 to read as follows:
Sec. 1.482-0 Outline of regulations under section 482.
* * * * *
Sec. 1.482-1 Allocation of income and deductions among taxpayers.
* * * * *
(b) * * *
(2) * * *
(iii) Coordination of methods applicable to certain intangible
development arrangements.
Sec. 1.482-2 Determination of taxable income in specific situations.
* * * * *
(e) Cost sharing arrangement.
(f) Effective/applicability date.
(1) In general.
(2) Election to apply paragraph (b) of this section to earlier
taxable years.
Sec. 1.482-4 Methods to determine taxable income in connection with a
transfer of intangible property.
* * * * *
(g) Coordination with rules governing cost sharing arrangements.
(h) Effective/applicability date.
(1) In general.
(2) Election to apply regulation to earlier taxable years.
* * * * *
Sec. 1.482-7 Methods to determine taxable income in connection with a
cost sharing arrangement.
[The text of the proposed entries for Sec. 1.482-7 is the same as
the entries for Sec. 1.482-7T in Sec. 1.482-0T published elsewhere in
this issue of the Federal Register].
* * * * *
Sec. 1.482-9 Methods to determine taxable income in connection with a
controlled services transaction.
* * * * *
(a) through (m)(2) [Reserved]
(3) [The text of the proposed entry for Sec. 1.482-9(m)(3) is the
same as the entry for Sec. 1.482-9T(m)(3) in Sec. 1.482-0T published
elsewhere in this issue of the Federal Register].
(m)(4) through (n)(3) [Reserved]
Par. 4. Section 1.482-1 is amended by:
1. Revising paragraph (b)(2)(i) and the last sentence of paragraph
(j)(6)(i).
2. Adding a new paragraph (b)(2)(iii).
The addition and revisions read as follows:
Sec. 1.482-1 Allocation of income and deductions among taxpayers.
* * * * *
(b) * * *
(2) * * *
(i) [The text of the proposed amendment to Sec. 1.482-1(b)(2)(i)
is the same as the text of Sec. 1.482-1T(b)(2)(i) published elsewhere
in this issue of the Federal Register].
* * * * *
(iii) [The text of the proposed Sec. 1.482-1(b)(2)(iii) is the
same as the text of Sec. 1.482-1T(b)(2)(iii) published elsewhere in
this issue of the Federal Register].
* * * * *
(j) * * *
(6) * * *
(i) * * * . [The text of the proposed amendment to Sec. 1.482-
1(j)(6)(i) is the same as the text of the amendment to Sec. 1.482-
1T(j)(6)(i) published elsewhere in this issue of the Federal Register].
Par. 5. Section 1.482-2 is amended as follows:
[[Page 238]]
1. Paragraph (e) is redesignated as paragraph (f) and newly-
designated paragraphs (f)(1) and (f)(2) are revised.
2. New paragraph (e) is added.
The addition and revision reads as follows:
Sec. 1.482-2 Determination of taxable income in specific situations.
* * * * *
(e) [The text of proposed Sec. 1.482-2(e) is the same as the text
of Sec. 1.482-2T(e) published elsewhere in this issue of the Federal
Register].
(f) * * * (1) [The text of the proposed amendment to Sec. 1.482-
2(f)(1) is the same as the text of Sec. 1.482-2T(f)(1) published
elsewhere in this issue of the Federal Register].
(2) [The text of the proposed amendment to Sec. 1.482-2(f)(2) is
the same as the text of Sec. 1.482-2T(f)(2) published elsewhere in
this issue of the Federal Register].
* * * * *
Par. 6. Section 1.482-4 is amended as follows:
1. Paragraph (f)(3)(i)(B) is revised.
2. Paragraph (f)(7) is removed.
3. New paragraphs (g) and (h) are added.
The additions and revision reads as follows:
Sec. 1.482-4 Methods to determine taxable income in connection with a
transfer of intangible property.
* * * * *
(f) * * *
(3) * * *
(i) * * *
(B) [The text of the proposed amendment to Sec. 1.482-
4(f)(3)(i)(B) is the same as the text of Sec. 1.482-4T(f)(3)(i)(B)
published elsewhere in this issue of the Federal Register].
* * * * *
(g) [The text of proposed Sec. 1.482-4(g) is the same as the text
of Sec. 1.482-4T(g) published elsewhere in this issue of the Federal
Register].
(h) [The text of proposed Sec. 1.482-4(h) is the same as the text
of Sec. 1.482-4T(h) published elsewhere in this issue of the Federal
Register].
Par. 7. Section 1.482-7 is revised to read as follows:
Sec. 1.482-7 Methods to determine taxable income in connection with a
cost sharing arrangement.
[The text of the proposed Sec. 1.482-7 is the same as the text of
Sec. 1.482-7T(a) through (m) published elsewhere in this issue of the
Federal Register].
Par. 8. Section 1.482-8 is amended by revising paragraph (b)
Examples 13, 14, 15, 16, 17 and 18 to read as follows:
Sec. 1.482-8 Examples of the best method rule.
* * * * *
(b) * * *
Examples 13 through 18. [The text of the proposed Sec. 1.482-8(b)
Examples 13 through 18 is the same as the text of Sec. 1.482-8T(b)
Examples 13 through 18 published elsewhere in this issue of the Federal
Register].
* * * * *
Par. 9. Section 1.482-9 is added to read as follows:
Sec. 1.482-9 Methods to determine taxable income in connection with a
controlled services transaction.
(a) through (m)(2) [Reserved].
(3) [The text of the proposed amendment to Sec. 1.482-9(m)(3) is
the same as the text of Sec. 1.482-9T(m)(3) published elsewhere in
this issue of the Federal Register].
(m)(4) through (n)(3) [Reserved].
L E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-30712 Filed 12-31-08; 11:15 am]
BILLING CODE 4830-01-P
