Extended Carryback of Losses to or From a Consolidated Group; Correction, 44901 [2010-18677]

Download as PDF Federal Register / Vol. 75, No. 146 / Friday, July 30, 2010 / Rules and Regulations has until June 1 of that year to comply with the requirements of this section. * * * * * [FR Doc. 2010–18312 Filed 7–29–10; 8:45 am] BILLING CODE 6717–01–P 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 1.1502–21T(b)(3)(v) is amended by revising paragraphs (B), (C)(1), (C)(2), the last sentence of paragraph (E) Example 1(i), the fourth sentence of paragraph (E) Example 1(iii) and the fourth sentence of paragraph (E) Example 2(ii) to read as follows: ■ DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9490] RIN 1545–BJ12 § 1.1502–21T (temporary). Extended Carryback of Losses to or From a Consolidated Group; Correction * Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendment. AGENCY: This document contains corrections to final and temporary regulations (TD 9490) that were published in the Federal Register on Wednesday, June 23, 2010 (75 FR 35643) affecting corporations filing consolidated returns under section 1502. These regulations contain rules regarding the implementation of section 172(b)(1)(H) within a consolidated group and also permit certain acquiring consolidated groups to elect to waive all or a portion of the pre-acquisition carryback period pursuant to section 172(b)(1)(H) for specific losses attributable to certain acquired members. DATES: This correction is effective on July 30, 2010, and is applicable on June 23, 2010. FOR FURTHER INFORMATION CONTACT: Grid Glyer, (202) 622–7930 (not a toll-free number). SUPPLEMENTARY INFORMATION: SUMMARY: Background The final and temporary regulations (TD 9490) that are the subject of this document are under section 1502 of the Internal Revenue Code. jlentini on DSKJ8SOYB1PROD with RULES Need for Correction As published, the final and temporary regulations (TD 9490) contain errors that may prove to be misleading and are in need of clarification. List of Subjects 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 correcting amendments: ■ VerDate Mar<15>2010 16:17 Jul 29, 2010 Jkt 220001 Net operating losses * * * * (B) Taxpayer’s taxable income. For purposes of computing the limitation under section 172(b)(1)(H)(iv) on a FiveYear Carryback to any consolidated return year from any consolidated return year or separate return year, taxpayer’s taxable income as used in section 172(b)(1)(H)(iv)(I) means consolidated taxable income (CTI) in the consolidated return year that is the fifth taxable year preceding the year of the loss. For purposes of the preceding sentence, CTI is computed without regard to any CNOL deduction attributable to the particular Five-Year Carryback or any NOL from any member’s taxable year ending on the same date as the taxable year in which the Five-Year Carryback arises, or any taxable year thereafter. (C) Limitation on Five-Year Carrybacks to a consolidated group—(1) Annual limitation. The aggregate amount of Five-Year Carrybacks from years ending on the same date (Testing Date) to any consolidated return year may not exceed the excess of 50 percent of the CTI for that year over the total of Five-Year Carrybacks to that consolidated return year from years ending before the Testing Date (Annual Limitation). For purposes of the preceding sentence, CTI is computed without regard to— (i) Any CNOL deduction attributable to Five-Year Carrybacks to such year; or (ii) Any NOL from any member’s taxable year ending on the Testing Date or any taxable year thereafter. (2) Pro rata absorption of limited and non-limited losses. Any Five-Year Carryback, and other net operating losses, from years ending on the same date that are available to offset CTI in the same year are absorbed on a pro rata basis. See § 1.1502–21(b)(1). * * * * * (E) * * * Example 1. * * * (i) * * * There are no other NOL carrybacks into the X Group’s 2004 consolidated taxable year. * PO 00000 * Frm 00021 * * Fmt 4700 * Sfmt 4700 44901 (iii) * * * The Annual Limitation on FiveYear Carrybacks will be $250 ($500 × 50 percent), with CTI determined without taking into account the portion of P’s 2008 CNOL carried back to the X Group’s 2004 consolidated return year or the X Group’s 2008 CNOL, which arises from a taxable year ending on the same date as the Five-Year Carryback. * * * Example 2. * * * (ii) * * * Because S is making the sole Five-Year Carryback to the X Group’s 2004 consolidated return year, S will make a FiveYear Carryback of the full $400. * * * * * * * * LaNita Van Dyke, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). [FR Doc. 2010–18677 Filed 7–29–10; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Parts 1 and 602 [TD 9495] RIN 1545–BC61 Qualified Zone Academy Bonds; Obligations of States and Political Subdivisions Internal Revenue Service (IRS), Treasury. ACTION: Final regulations and removal of temporary regulations. AGENCY: This document removes the temporary regulations and provides final regulations that provide guidance to state and local governments that issue qualified zone academy bonds and to banks, insurance companies, and other taxpayers that hold those bonds on the program requirements for qualified zone academy bonds. The final regulations implement the amendments to section 1397E (discussed in this preamble) and provide guidance on the maximum term, permissible use of proceeds, and remedial actions for qualified zone academy bonds. DATES: Effective Date: These regulations are effective on July 30, 2010. Applicability Date: For dates of applicability, see § 1.1397E–1(m) of these regulations. FOR FURTHER INFORMATION CONTACT: Zoran Stojanovic, (202) 622–3980 (not a toll-free number). SUPPLEMENTARY INFORMATION: SUMMARY: Paperwork Reduction Act The collection of information contained in these final regulations has E:\FR\FM\30JYR1.SGM 30JYR1

Agencies

[Federal Register Volume 75, Number 146 (Friday, July 30, 2010)]
[Rules and Regulations]
[Page 44901]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-18677]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9490]
RIN 1545-BJ12


Extended Carryback of Losses to or From a Consolidated Group; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final and temporary 
regulations (TD 9490) that were published in the Federal Register on 
Wednesday, June 23, 2010 (75 FR 35643) affecting corporations filing 
consolidated returns under section 1502. These regulations contain 
rules regarding the implementation of section 172(b)(1)(H) within a 
consolidated group and also permit certain acquiring consolidated 
groups to elect to waive all or a portion of the pre-acquisition 
carryback period pursuant to section 172(b)(1)(H) for specific losses 
attributable to certain acquired members.

DATES: This correction is effective on July 30, 2010, and is applicable 
on June 23, 2010.

FOR FURTHER INFORMATION CONTACT: Grid Glyer, (202) 622-7930 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final and temporary regulations (TD 9490) that are the subject 
of this document are under section 1502 of the Internal Revenue Code.

Need for Correction

    As published, the final and temporary regulations (TD 9490) contain 
errors that may prove to be misleading and are in need of 
clarification.

List of Subjects 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 
correcting 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 1.1502-21T(b)(3)(v) is amended by revising paragraphs 
(B), (C)(1), (C)(2), the last sentence of paragraph (E) Example 1(i), 
the fourth sentence of paragraph (E) Example 1(iii) and the fourth 
sentence of paragraph (E) Example 2(ii) to read as follows:


Sec.  1.1502-21T  Net operating losses (temporary).

* * * * *
    (B) Taxpayer's taxable income. For purposes of computing the 
limitation under section 172(b)(1)(H)(iv) on a Five-Year Carryback to 
any consolidated return year from any consolidated return year or 
separate return year, taxpayer's taxable income as used in section 
172(b)(1)(H)(iv)(I) means consolidated taxable income (CTI) in the 
consolidated return year that is the fifth taxable year preceding the 
year of the loss. For purposes of the preceding sentence, CTI is 
computed without regard to any CNOL deduction attributable to the 
particular Five-Year Carryback or any NOL from any member's taxable 
year ending on the same date as the taxable year in which the Five-Year 
Carryback arises, or any taxable year thereafter.
    (C) Limitation on Five-Year Carrybacks to a consolidated group--(1) 
Annual limitation. The aggregate amount of Five-Year Carrybacks from 
years ending on the same date (Testing Date) to any consolidated return 
year may not exceed the excess of 50 percent of the CTI for that year 
over the total of Five-Year Carrybacks to that consolidated return year 
from years ending before the Testing Date (Annual Limitation). For 
purposes of the preceding sentence, CTI is computed without regard to--
    (i) Any CNOL deduction attributable to Five-Year Carrybacks to such 
year; or
    (ii) Any NOL from any member's taxable year ending on the Testing 
Date or any taxable year thereafter.
    (2) Pro rata absorption of limited and non-limited losses. Any 
Five-Year Carryback, and other net operating losses, from years ending 
on the same date that are available to offset CTI in the same year are 
absorbed on a pro rata basis. See Sec.  1.1502-21(b)(1).
* * * * *
    (E) * * *
    Example 1.  * * * (i) * * * There are no other NOL carrybacks 
into the X Group's 2004 consolidated taxable year.
* * * * *
    (iii) * * * The Annual Limitation on Five-Year Carrybacks will 
be $250 ($500 x 50 percent), with CTI determined without taking into 
account the portion of P's 2008 CNOL carried back to the X Group's 
2004 consolidated return year or the X Group's 2008 CNOL, which 
arises from a taxable year ending on the same date as the Five-Year 
Carryback. * * *

    Example 2.  * * *
    (ii) * * * Because S is making the sole Five-Year Carryback to 
the X Group's 2004 consolidated return year, S will make a Five-Year 
Carryback of the full $400. * * *
* * * * *

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2010-18677 Filed 7-29-10; 8:45 am]
BILLING CODE 4830-01-P