Income Taxes; Transfers of Property by U.S. Persons to Foreign Corporations, 14479 [E9-7203]
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Federal Register / Vol. 74, No. 60 / Tuesday, March 31, 2009 / Rules and Regulations
CFR Correction
In Title 26 of the Code of Federal
Regulations, Part 1 (§§ 1.908 to 1.1000),
revised as of April 1, 2008, in
§ 1.924(c)–1, make the following
corrections:
1. On pages 62 and 63, remove
paragraphs (d) introductory text, (d)(1)
through (7), and (2) following (d)(7);
2. Reinstate paragraphs (d)(1) and (2)
to read as set forth below; and
3. On page 64, in the last sentence of
paragraph (d)(6), insert the word ‘‘in’’
before the words ‘‘§ 1.415(c)–2(b) and
(c)’’.
§ 1.924(c)–1 Requirement that a FSC be
managed outside the United States.
tjames on PRODPC61 with RULES
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(d) Disbursement of dividends, legal
and accounting fees, and salaries of
officers and directors out of the
principal bank account of the FSC—(1)
In general. All dividends, legal fees,
accounting fees, salaries of officers of
the FSC, and salaries or fees paid to
members of the board of directors of the
FSC that are disbursed during the
taxable year must be disbursed out of
bank account(s) of the FSC maintained
outside the United States. Such an
account is treated as the principal bank
account of the FSC for purposes of
section 924(c). Dividends, however, may
be netted against amounts owed to the
FSC (e.g., commissions) by a related
supplier through book entries. If the
FSC regularly disburses its legal or
accounting fees, salaries of officers, and
salaries or fees of directors out of its
principal bank account, the occasional,
inadvertent payment by mistake of fact
or law of such amounts out of another
bank account will not be considered a
disbursement by the FSC if, upon
determination that such payment was
made from another account,
reimbursement to such other account is
made from the principal bank account
of the FSC within a reasonable period
from the date of the determination.
Disbursement out of the principal bank
account of the FSC may be made by
transferring funds from the principal
bank account to a U.S. account of the
FSC provided that (i) the payment of the
dividends, salaries or fees to the
recipients is made within 12 months of
the transfer, (ii) the purpose of the
expenditures is designated and, (iii) the
payment of the dividends, salaries or
fees is actually made out of the same
U.S. account that received the
disbursement from the principal bank
account.
(2) Reimbursement. Legal or
accounting fees, salaries of officers, and
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14:33 Mar 30, 2009
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salaries or fees of directors that are paid
by a related person wholly or partially
on behalf of a FSC must be reimbursed
by the FSC. The amounts paid by the
related person are not considered
disbursed by the FSC until the related
person is reimbursed by the FSC. The
related person must be reimbursed no
later than the last date prescribed for
filing the FSC’s tax return (including
extensions) for the taxable year to which
the reimbursement relates. Any
reimbursement for amounts paid on
behalf of the FSC must be disbursed out
of the FSC’s principal bank account
(and not netted against any obligation
owed by the related person to the FSC),
as set forth in paragraph (c) of this
section. To determine the amounts paid
on behalf of the FSC, the FSC may rely
upon a written statement or invoice
furnished to it by the related person
which shows the following:
(i) The actual fees charged for
performing the legal or accounting
services for the FSC or, if such fees
cannot be ascertained by the related
person, a good faith estimate thereof,
and the actual salaries or fees paid for
services as officers and directors of the
FSC, and
(ii) The person who performed or
provided the services.
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[FR Doc. E9–7205 Filed 3–30–09; 8:45 am]
BILLING CODE 1505–01–D
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
Income Taxes; Transfers of Property
by U.S. Persons to Foreign
Corporations
CFR Correction
In Title 26 of the Code of Federal
Regulations, Part 1 (§§ 1.301 to 1.400),
revised as of April 1, 2008, on page 306,
in § 1.367(a)–6T, in paragraph
(e)(5)(ii)(B), reinstate the remainder of
the first sentence, following the word
‘‘some’’, to read as follows: ‘‘. . . portion
of which was recaptured on the
disposition, of the recaptured portions
of those overall foreign losses after
multiplication by the following
fraction:’’.
[FR Doc. E9–7203 Filed 3–30–09; 8:45 am]
BILLING CODE 1505–01–D
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade
Bureau
27 CFR Parts 40, 41, 44, 46, and 71
[Docket No. TTB–2009–0001; T.D. TTB–75;
Re: Notice No. 93]
RIN 1513–AB70
Increase in Tax Rates on Tobacco
Products and Cigarette Papers and
Tubes; Floor Stocks Tax on Certain
Tobacco Products, Cigarette Papers,
and Cigarette Tubes; and Changes to
Basis for Denial, Suspension, or
Revocation of Permits (2009R–118P)
AGENCY: Alcohol and Tobacco Tax and
Trade Bureau, Treasury.
ACTION:
Temporary Rule.
SUMMARY: The Alcohol and Tobacco Tax
and Trade Bureau is amending its
regulations to implement certain
provisions of the Children’s Health
Insurance Program Reauthorization Act
of 2009 (the Act). This final rule amends
existing regulations to reflect increases
in the Federal excise tax rates on
tobacco products and cigarette papers
and tubes, revises existing floor stocks
tax regulations to reflect the scope of the
floor stocks tax provisions of the Act,
and revises existing regulations to
include the new statutory criteria for
denial, suspension, or revocation of
tobacco permits. We also are soliciting
comments from all interested parties on
these amendments through a notice of
proposed rulemaking published
elsewhere in this issue of the Federal
Register.
DATES: Effective date: March 31, 2009.
Applicability dates: The amendments in
27 CFR 40.21, 40.23, 40.25, 40.25a,
40.351, 40.352, 41.30 through 41.35,
46.75, and 46.191 through 46.274, are
applicable April 1, 2009. The
amendments in 27 CFR 40.74, 40.332,
41.198, 44.92, 44.162, 71.46, and 71.46b
were applicable on February 4, 2009.
FOR FURTHER INFORMATION CONTACT: For
questions concerning floor stocks tax,
contact the National Revenue Center,
Alcohol and Tobacco Tax and Trade
Bureau (FloorStocksTax@ttb.gov, 513–
684–3334 or 1–877–TTB–FAQS (1–877–
882–3277)); for other questions
concerning this document, contact Amy
Greenberg, Regulations and Rulings
Division, Alcohol and Tobacco Tax and
Trade Bureau (202–927–8210).
SUPPLEMENTARY INFORMATION:
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[Federal Register Volume 74, Number 60 (Tuesday, March 31, 2009)]
[Rules and Regulations]
[Page 14479]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-7203]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
Income Taxes; Transfers of Property by U.S. Persons to Foreign
Corporations
CFR Correction
In Title 26 of the Code of Federal Regulations, Part 1 (Sec. Sec.
1.301 to 1.400), revised as of April 1, 2008, on page 306, in Sec.
1.367(a)-6T, in paragraph (e)(5)(ii)(B), reinstate the remainder of the
first sentence, following the word ``some'', to read as follows: ``. .
. portion of which was recaptured on the disposition, of the recaptured
portions of those overall foreign losses after multiplication by the
following fraction:''.
[FR Doc. E9-7203 Filed 3-30-09; 8:45 am]
BILLING CODE 1505-01-D
