Application of Section 367 to a Section 351 Exchange Resulting From a Transaction Described in Section 304(a)(1); Treatment of Gain Recognized Under Section 301(c)(3) for Purposes of Section 1248, 6840-6841 [E9-2836]

Download as PDF dwashington3 on PROD1PC60 with PROPOSALS 6840 Federal Register / Vol. 74, No. 27 / Wednesday, February 11, 2009 / Proposed Rules of Staff, entitled ‘‘Regulatory Review,’’ published in the Federal Register on January 26, 2009 (74 FR 4435), HUD is seeking public comment on a contemplated delay of 60 days in the effective date of the rule entitled ‘‘Refinement of Income and Rent Determination Requirements in Public and Assisted Housing Programs’’ published in the Federal Register on January 27, 2009 (74 FR 4832). This final rule revises HUD’s public and assisted housing program regulations to implement the upfront income verification process for program participants and to require the use of HUD’s Enterprise Income Verification (EIV) system by public housing agencies and owners and management agents. HUD is considering a temporary 60-day delay in the effective date to allow HUD officials the opportunity for further review and consideration of new regulations, consistent with the Chief of Staff memorandum of January 20, 2009. In addition, HUD takes this opportunity to address questions received subsequent to publication of the January 27, 2009, final rule pertaining to the provisions requiring the use of Social Security Numbers for determining program eligibility. HUD wishes to clarify that these requirements are not intended to apply to individuals, in mixed families, who do not contend eligible immigration status under HUD’s noncitizens regulations, nor does it interfere with existing requirements relative to proration of assistance or screening for such families, or authorize their eviction or denial of admission on the basis of the new requirements pertaining to obtaining social security numbers. HUD solicits comments specifically on the contemplated delay in effective date, but also generally on the rule entitled ‘‘Refinement of Income and Rent Determination Requirements in Public and Assisted Housing Programs.’’ DATES: Comments must be received on or before March 13, 2009. ADDRESSES: Interested persons are invited to submit comments. There are two methods for submitting public comments. All submissions must refer to the above docket number and title. 1. Submission of Comments by Mail. Comments may be submitted by mail to the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 Seventh Street, SW., Room 10276, Washington, DC 20410–0500. 2. Electronic Submission of Comments. Interested persons may submit comments electronically through the Federal eRulemaking Portal at VerDate Nov<24>2008 13:29 Feb 10, 2009 Jkt 217001 www.regulations.gov. HUD strongly encourages commenters to submit comments electronically. Electronic submission of comments allows the commenter maximum time to prepare and submit a comment, ensures timely receipt by HUD, and enables HUD to make them immediately available to the public. Comments submitted electronically through the www.regulations.gov Web site can be viewed by other commenters and interested members of the public. Commenters should follow the instructions provided on that site to submit comments electronically. Dated: February 6, 2009. Paula O. Blunt, General Deputy Assistant Secretary for Public and Indian Housing. [FR Doc. E9–3004 Filed 2–9–09; 4:15 pm] Note: To receive consideration as public comments, comments must be submitted through one of the two methods specified above. Again, all submissions must refer to the docket number and title of the rule. Application of Section 367 to a Section 351 Exchange Resulting From a Transaction Described in Section 304(a)(1); Treatment of Gain Recognized Under Section 301(c)(3) for Purposes of Section 1248 No Facsimile Comments. Facsimile (FAX) comments are not acceptable. Public Inspection of Public Comments. All properly submitted comments and communications submitted to HUD will be available for public inspection and copying between 8 a.m. and 5 p.m. weekdays at the above address. Due to security measures at the HUD Headquarters building, an appointment to review the public comments must be scheduled in advance by calling the Regulations Division at 202–708–3055 (this is not a toll-free number). Individuals with speech or hearing impairments may access this number via TTY by calling the Federal Information Relay Service at 800–877–8339. Copies of all comments submitted are available for inspection and downloading at www.regulations.gov. FOR FURTHER INFORMATION CONTACT: For Office of Public and Indian Housing programs, contact Nicole Faison, Director of the Office of Public Housing Programs, Department of Housing and Urban Development, 451 Seventh Street, SW., Room 4226, Washington, DC 20410, telephone number 202–708– 0744. For Office of Housing Programs, contact Gail Williamson, Director of the Housing Assistance Policy Division, Department of Housing and Urban Development, 451 Seventh Street, SW., Room 6138, Washington, DC 20410, telephone number 202–402–2473. (These are not toll-free numbers.) Persons with hearing or speech impairments may access these numbers through TTY by calling the toll-free Federal Information Relay Service at 800–877–8339. PO 00000 Frm 00006 Fmt 4702 Sfmt 4702 BILLING CODE 4210–67–P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [REG–147636–08] RIN 1545–BI41 AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed rulemaking by cross-reference to temporary regulations. SUMMARY: In the Rules and Regulations section of this issue of the Federal Register, the IRS and Treasury Department are issuing temporary regulations under sections 304 and 1248 of the Internal Revenue Code (Code). The temporary regulations provide rules under section 367(a) and (b) that apply to certain transfers of stock by a United States person to a foreign corporation described in section 304(a)(1). The temporary regulations under section 1248(a) provide that, for purposes of section 1248(a), gain recognized by a shareholder under section 301(c)(3) in connection with the receipt of a distribution of property from a foreign corporation with respect to its stock shall be treated as gain from the sale or exchange of the stock of such foreign corporation. The temporary regulations affect certain shareholders that transfer stock in a corporation to a foreign corporation in a transaction to which section 304(a)(1) applies, or that receive a distribution from a foreign corporation described in section 301(c)(3). The text of the temporary regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the temporary regulations and these proposed regulations. DATES: Written or electronic comments and requests for a public hearing must be received by May 12, 2009. ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG–147636–08), room 5205, Internal Revenue Service, P.O. E:\FR\FM\11FEP1.SGM 11FEP1 Federal Register / Vol. 74, No. 27 / Wednesday, February 11, 2009 / Proposed Rules 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–147636– 08), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC, or sent electronically via the Federal eRulemaking Portal at http:// www.regulations.gov (IRS REG–147636– 08). FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Sean W. Mullaney, (202) 622–3860; concerning submissions of comments or requests for a public hearing, Richard.A.Hurst@irscounsel.treas.gov; at (202) 622–7180 (not toll-free numbers). SUPPLEMENTARY INFORMATION: 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 sections 304 and 1248 of the Code. The text of those regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the temporary regulations and these proposed regulations. dwashington3 on PROD1PC60 with PROPOSALS 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. These regulations are necessary to ensure that the appropriate amount of income (dividend income, capital gain or both) is recognized currently in the transactions described in the explanation of provisions section in this preamble. Accordingly, good cause is found for dispensing with notice and public comment pursuant to 5 U.S.C. 553(b) and (c) and with a delayed effective date pursuant to 5 U.S.C. 553(d). For applicability of the Regulatory Flexibility Act, see the crossreferenced notice of proposed rulemaking published elsewhere in this Federal Register. Pursuant to section 7805(f) of the Code, these regulations have been submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business. Comments and Requests for a Public Hearing Comments are also requested regarding whether IRS and Treasury VerDate Nov<24>2008 13:29 Feb 10, 2009 Jkt 217001 Department should exercise the regulatory authority under section 304(b)(6) to permit an increase to the basis of the transferred stock in a section 304(a)(1) transaction to the extent the distribution in redemption of the shares deemed issued by the acquiring corporation is treated as a dividend from the earnings and profits of the issuing corporation. Before these proposed regulations are adopted as final regulations, consideration will be 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 Treasury Department specifically request comments on the clarity of the proposed rules and how they can be made easier to understand. All comments will be available for public inspection and copying. A public hearing will be scheduled if requested in writing by any person that timely submits written comments. If a public hearing is scheduled, notice of the date, time, and place for the public hearing will be published in the Federal Register. Drafting Information The principal author of these proposed regulations is Sean W. Mullaney of the Office of Associate Chief Counsel (International). However, other personnel from the IRS and the Treasury Department participated in their development. 6841 § 1.367(b)–4 Acquisition of foreign corporate stock or assets by a foreign corporation in certain nonrecognition transactions. * * * * * (e) [The text of proposed § 1.367(b)– 4(e) is the same as the text of § 1.367(b)– 4T(e) published elsewhere in this issue of the Federal Register]. (f) [The text of proposed § 1.367(b)– 4(f) is the same as the text of § 1.367(b)– 4T(f) published elsewhere in this issue of the Federal Register]. (g) [The text of proposed § 1.367(b)– 4(g) is the same as the text of § 1.367(b)– 4T(g) published elsewhere in this issue of the Federal Register]. Par. 4. Section 1.1248–1 is amended by revising paragraphs (b) and (g) to read as follows: § 1.1248–1 Treatment of gain from certain sales or exchanges of stock in certain foreign corporations. * * * * * (b) [The text of proposed § 1.1248– 1(b) is the same as the text of § 1.1248– 1T(b) published elsewhere in this issue of the Federal Register]. * * * * * (g) [The text of proposed § 1.1248–1(g) is the same as the text of § 1.1248–1T(g) published elsewhere in this issue of the Federal Register]. Linda M. Kroening, Acting Deputy Commissioner for Services and Enforcement. [FR Doc. E9–2836 Filed 2–10–09; 8:45 am] List of Subjects in 26 CFR Part 1 BILLING CODE 4830–01–P Income taxes, Reporting and recordkeeping requirements. DEPARTMENT OF THE TREASURY Proposed Amendments to the Regulations Internal Revenue Service Accordingly, 26 CFR part 1 is proposed to be amended as follows: 26 CFR Part 1 PART 1—INCOME TAXES RIN 1545–BF27 Paragraph 1. The authority citation for part 1 is amended by adding an entry to read as follows: Section 108(e)(8) Application to Partnerships; Hearing Cancellation Authority: 26 U.S.C. 7805 * * * Section 1.367(a)–9 also issued under 26 U.S.C. 367(a) and (b). * * * Par. 2. Section 1.367(a)–9 is added to read as follows: § 1.367(a)–9 Treatment of deemed section 351 exchanges pursuant to section 304(a)(1). [The text of proposed § 1.367(a)–9 is the same as the text of § 1.367(a)–9T published elsewhere in this issue of the Federal Register]. Par. 3. Section 1.367(b)–4 is amended by revising paragraphs (e), (f) and (g) to read as follows: PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 [REG–164370–05] AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Cancellation of notice of public hearing on proposed rulemaking. SUMMARY: This document cancels a public hearing on proposed rulemaking relating to the application of section 108(e)(8) of the Internal Revenue Code to partnerships and their partners. DATES: The public hearing, originally scheduled for February 19, 2009, at 10 a.m., is cancelled. FOR FURTHER INFORMATION CONTACT: Richard A. Hurst of the Publications and Regulations Branch, Legal Processing E:\FR\FM\11FEP1.SGM 11FEP1

Agencies

[Federal Register Volume 74, Number 27 (Wednesday, February 11, 2009)]
[Proposed Rules]
[Pages 6840-6841]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2836]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-147636-08]
RIN 1545-BI41


Application of Section 367 to a Section 351 Exchange Resulting 
From a Transaction Described in Section 304(a)(1); Treatment of Gain 
Recognized Under Section 301(c)(3) for Purposes of Section 1248

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

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

SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS and Treasury Department are issuing temporary 
regulations under sections 304 and 1248 of the Internal Revenue Code 
(Code). The temporary regulations provide rules under section 367(a) 
and (b) that apply to certain transfers of stock by a United States 
person to a foreign corporation described in section 304(a)(1). The 
temporary regulations under section 1248(a) provide that, for purposes 
of section 1248(a), gain recognized by a shareholder under section 
301(c)(3) in connection with the receipt of a distribution of property 
from a foreign corporation with respect to its stock shall be treated 
as gain from the sale or exchange of the stock of such foreign 
corporation. The temporary regulations affect certain shareholders that 
transfer stock in a corporation to a foreign corporation in a 
transaction to which section 304(a)(1) applies, or that receive a 
distribution from a foreign corporation described in section 301(c)(3). 
The text of the temporary regulations also serves as the text of these 
proposed regulations. The preamble to the temporary regulations 
explains the temporary regulations and these proposed regulations.

DATES: Written or electronic comments and requests for a public hearing 
must be received by May 12, 2009.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-147636-08), room 
5205, Internal Revenue Service, P.O.

[[Page 6841]]

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-147636-08), Courier's Desk, Internal 
Revenue Service, 1111 Constitution Avenue, NW., Washington, DC, or sent 
electronically via the Federal eRulemaking Portal at http://
www.regulations.gov (IRS REG-147636-08).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Sean W. Mullaney, (202) 622-3860; concerning submissions of comments or 
requests for a public hearing, Richard.A.Hurst@irscounsel.treas.gov; at 
(202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

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 sections 304 and 1248 of the Code. The text of 
those regulations also serves as the text of these proposed 
regulations. The preamble to the temporary regulations explains the 
temporary regulations and these proposed regulations.

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. These 
regulations are necessary to ensure that the appropriate amount of 
income (dividend income, capital gain or both) is recognized currently 
in the transactions described in the explanation of provisions section 
in this preamble. Accordingly, good cause is found for dispensing with 
notice and public comment pursuant to 5 U.S.C. 553(b) and (c) and with 
a delayed effective date pursuant to 5 U.S.C. 553(d). For applicability 
of the Regulatory Flexibility Act, see the cross-referenced notice of 
proposed rulemaking published elsewhere in this Federal Register. 
Pursuant to section 7805(f) of the Code, these regulations have been 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small business.

Comments and Requests for a Public Hearing

    Comments are also requested regarding whether IRS and Treasury 
Department should exercise the regulatory authority under section 
304(b)(6) to permit an increase to the basis of the transferred stock 
in a section 304(a)(1) transaction to the extent the distribution in 
redemption of the shares deemed issued by the acquiring corporation is 
treated as a dividend from the earnings and profits of the issuing 
corporation.
    Before these proposed regulations are adopted as final regulations, 
consideration will be 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 Treasury Department specifically request 
comments on the clarity of the proposed rules and how they can be made 
easier to understand. All comments will be available for public 
inspection and copying. A public hearing will be scheduled if requested 
in writing by any person that timely submits written comments. If a 
public hearing is scheduled, notice of the date, time, and place for 
the public hearing will be published in the Federal Register.

Drafting Information

    The principal author of these proposed regulations is Sean W. 
Mullaney of the Office of Associate Chief Counsel (International). 
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 Amendments 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 is amended by adding 
an entry to read as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 1.367(a)-9 also issued under 26 U.S.C. 367(a) and (b). * 
* *

    Par. 2. Section 1.367(a)-9 is added to read as follows:


Sec.  1.367(a)-9  Treatment of deemed section 351 exchanges pursuant to 
section 304(a)(1).

    [The text of proposed Sec.  1.367(a)-9 is the same as the text of 
Sec.  1.367(a)-9T published elsewhere in this issue of the Federal 
Register].
    Par. 3. Section 1.367(b)-4 is amended by revising paragraphs (e), 
(f) and (g) to read as follows:


Sec.  1.367(b)-4  Acquisition of foreign corporate stock or assets by a 
foreign corporation in certain nonrecognition transactions.

* * * * *
    (e) [The text of proposed Sec.  1.367(b)-4(e) is the same as the 
text of Sec.  1.367(b)-4T(e) published elsewhere in this issue of the 
Federal Register].
    (f) [The text of proposed Sec.  1.367(b)-4(f) is the same as the 
text of Sec.  1.367(b)-4T(f) published elsewhere in this issue of the 
Federal Register].
    (g) [The text of proposed Sec.  1.367(b)-4(g) is the same as the 
text of Sec.  1.367(b)-4T(g) published elsewhere in this issue of the 
Federal Register].
    Par. 4. Section 1.1248-1 is amended by revising paragraphs (b) and 
(g) to read as follows:


Sec.  1.1248-1  Treatment of gain from certain sales or exchanges of 
stock in certain foreign corporations.

* * * * *
    (b) [The text of proposed Sec.  1.1248-1(b) is the same as the text 
of Sec.  1.1248-1T(b) published elsewhere in this issue of the Federal 
Register].
* * * * *
    (g) [The text of proposed Sec.  1.1248-1(g) is the same as the text 
of Sec.  1.1248-1T(g) published elsewhere in this issue of the Federal 
Register].

Linda M. Kroening,
Acting Deputy Commissioner for Services and Enforcement.
 [FR Doc. E9-2836 Filed 2-10-09; 8:45 am]
BILLING CODE 4830-01-P