Requirements for Taxpayers Filing Form 5472; Correction, 36995-36996 [2011-15943]
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Federal Register / Vol. 76, No. 122 / Friday, June 24, 2011 / Rules and Regulations
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of section 954(d)(3)) (related person
transferee) in one or more exchanges
pursuant to which the related person
transferee’s adjusted basis in such
specified United States property is
determined, in whole or in part, by
reference to the controlled foreign
corporation’s adjusted basis in such
specified United States property, then,
solely for purposes of applying section
956 following such exchange, the
controlled foreign corporation’s
adjusted basis in any United States
property received in the exchange (or
exchanges) shall be no less than the
aggregate adjusted basis of the specified
United States property as determined
under paragraph (e)(6)(iii) of this
section, and the related person
transferee’s adjusted basis in such
specified United States property shall be
no less than the adjusted basis of such
specified United States property in the
hands of the controlled foreign
corporation as determined under
paragraph (e)(6)(iii) of this section. This
paragraph (e)(6)(v) shall also apply in
the case of one or more successive
transfers of the specified United States
property by a related person transferee
to one or more persons related to the
controlled foreign corporation (within
the meaning of section 954(d)(3)). This
paragraph (e)(6)(v) shall apply
regardless of whether a subsequent
transfer was part of a plan (or series of
related transactions) that includes the
controlled foreign corporation’s
acquisition of the specified United
States property.
(vi) Examples. The rules of this
paragraph (e)(6) are illustrated by the
following examples:
Example 1. (i) Facts. USP, a domestic
corporation, is the common parent of an
affiliated group that joins in the filing of a
consolidated return. USP owns 100 percent
of the stock of US1 and US2, both domestic
corporations and members of the USP
consolidated group. US1 owns 100 percent of
the stock of CFC, a controlled foreign
corporation. US2 issues $100x of its stock to
CFC in exchange for $10x of CFC stock and
$90x cash. US2’s transfer of its stock to CFC
is described in section 351, US2 recognizes
no gain in the exchange under section
1032(a), and CFC’s basis in the US2 stock
acquired in the exchange is determined
under section 362(a).
(ii) Analysis. The US2 stock acquired by
CFC in the exchange constitutes specified
United States property under paragraph
(e)(6)(ii) of this section because CFC acquires
the US2 stock from US2, the issuing
corporation. Therefore, because CFC’s
adjusted basis in the US2 stock is determined
under section 362(a), then for purposes of
applying section 956, CFC’s adjusted basis in
the US2 stock shall, under paragraph
(e)(6)(iii) of this section, be no less than $90x,
the fair market value of the property
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exchanged by CFC for the US2 stock (the
$10x of CFC stock issued in the exchange
does not constitute property for purposes of
paragraph (e)(6)(iii) of this section). Pursuant
to paragraph (e)(6)(iv) of this section, for
purposes of § 1.956–2(d)(1)(i)(a) CFC shall be
treated as acquiring its adjusted basis of no
less than $90x in the US2 stock at the time
of its transfer of property to US2 in exchange
for the US2 stock. The result would be the
same if, instead of CFC transferring $90x of
cash to US2 in the exchange, CFC assumes
a $90x liability of US2.
Example 2. (i) Facts. USP, a domestic
corporation, owns 100 percent of the stock of
USS, a domestic corporation. USP also owns
100 percent of the stock of CFC, a controlled
foreign corporation. USP’s adjusted basis in
its USS stock equals the fair market value of
the USS stock, or $100x. USP transfers its
USS stock to CFC in exchange for $100x of
CFC stock. USP’s transfer of its USS stock to
CFC is described in section 351, USP
recognizes no gain in the exchange under
section 351(a), and CFC’s adjusted basis in
the USS stock acquired in the exchange,
determined under section 362(a), equals
$100x.
(ii) Analysis. The USS stock acquired by
CFC in the exchange does not constitute
specified United States property under
paragraph (e)(6)(ii) of this section because
CFC acquires the USS stock from USP.
Therefore, CFC’s adjusted basis in the USS
stock, for purposes of section 956, is not
determined under this paragraph (e)(6).
Instead, CFC’s adjusted basis in the USS
stock is determined under the general rule of
section 956(a) and under paragraphs (e)(1)
through (4) of this section. As determined
under section 362(a), CFC’s adjusted basis in
the USS stock is $100x.
Example 3. (i) Facts. USP, a domestic
corporation, owns 100 percent of the stock of
CFC1, a controlled foreign corporation. CFC1
holds specified United States property
(within the meaning of paragraph (e)(6)(ii) of
this section) with an adjusted basis of $30x
for purposes of applying section 956 that was
determined under paragraph (e)(6)(iii) of this
section. CFC1 owns 100 percent of the stock
of CFC2, a controlled foreign corporation.
CFC1 transfers the specified United States
property to CFC2 in an exchange described
in section 351. CFC2’s adjusted basis in the
specified United States property is
determined under section 362(a).
(ii) Analysis. In the section 351 exchange,
CFC1 transferred specified United States
property to CFC2 with an adjusted basis that
was determined under paragraph (e)(6)(iii) of
this section. Further, CFC2’s adjusted basis in
the specified United States property is
determined under section 362(a) by
reference, in whole or in part, to CFC1’s
adjusted basis in such property. Therefore,
for purposes of applying section 956,
pursuant to paragraph (e)(6)(v) of this section
CFC2’s adjusted basis in the specified United
States property shall be no less than $30x.
Paragraph (e)(6)(v) of this section would also
apply if CFC2 subsequently transfers the
specified United States property to another
person related to CFC1 (within the meaning
of section 954(d)(3)) if such related person’s
adjusted basis in the specified United States
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36995
property is determined by reference, in
whole or in part, to CFC2’s adjusted basis in
such property. See also § 1.956–1T(b)(4) if
one of the principal purposes of CFC1’s
transfer of property to CFC2 was the
avoidance of the application of section 956
with respect to CFC1.
(vii) Effective/applicability dates. This
paragraph (e)(6) applies to property
acquired in exchanges occurring on or
after June 24, 2011. For transactions that
occur prior to June 24, 2011, see
§ 1.956–1T(e)(6) as contained in 26 CFR
Part 1 revised as of April 1, 2011.
Par. 3. Section 1.956–1T is amended
by removing paragraph (e)(6) and
revising paragraph (f) to read as follows:
■
§ 1.956–1T Shareholder’s pro rata share of
a controlled foreign corporation’s increase
in earnings invested in United States
property (temporary).
*
*
*
*
*
(f) Effective/applicability date.
Paragraph (e)(5) of this section applies
to investments made on or after June 14,
1988.
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
Approved: June 11, 2011.
Emily S. Mahon,
Acting Assistant Secretary of the Treasury
(Tax Policy).
[FR Doc. 2011–15741 Filed 6–23–11; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9529]
RIN 1545–BK01
Requirements for Taxpayers Filing
Form 5472; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendment.
AGENCY:
This document contains
correcting amendments to temporary
regulations (TD 9529) that were
published in the Federal Register on
Friday, June 10, 2011 (76 FR 33997)
removing the duplicate filing
requirement for Form 5472,
‘‘Information Return of a 25% ForeignOwned U.S. corporation or a Foreign
Corporation Engaged in a U.S. Trade or
Business.’’
DATES: This correction is effective on
June 24, 2011, and is applicable on June
10, 2011.
SUMMARY:
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36996
Federal Register / Vol. 76, No. 122 / Friday, June 24, 2011 / Rules and Regulations
FOR FURTHER INFORMATION CONTACT:
DEPARTMENT OF THE TREASURY
Gregory A. Spring, (202) 435–5265 (not
a toll-free number).
Internal Revenue Service
SUPPLEMENTARY INFORMATION:
26 CFR Part 1
Background
[TD 9529]
The temporary regulations that are the
subject of this correction are under
section 6038A of the Internal Revenue
Code.
RIN 1545–BK01
As published, temporary regulations
(TD 9529) 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:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
Par. 2. Section 1.6038A–1T is
amended by adding paragraph (o) to
read as follows:
■
§ 1.6038A–1T General requirements and
definitions (temporary).
*
*
*
*
*
(o) Expiration date. The applicability
of this section expires on June 10, 2014.
*
*
*
*
*
Par. 3. Section 1.6038A–2T is
amended by adding paragraph (i) to read
as follows:
■
Requirement of return
*
*
*
*
(i) Expiration date. The applicability
of this section expires on June 10, 2014.
*
*
*
*
*
jlentini on DSK4TPTVN1PROD with RULES
*
LaNita Van Dyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. 2011–15943 Filed 6–23–11; 8:45 am]
BILLING CODE 4830–01–P
16:28 Jun 23, 2011
Jkt 223001
This document contains
corrections to temporary regulations (TD
9529) that were published in the
Federal Register on Friday, June 10,
2011 (76 FR 33997) removing the
duplicate filing requirement for Form
5472, ‘‘Information Return of a 25%
Foreign-Owned U.S. corporation or a
Foreign Corporation Engaged in a U.S.
Trade or Business.’’
DATES: This correction is effective on
June 24, 2011, and is applicable on June
10, 2011.
FOR FURTHER INFORMATION CONTACT:
Gregory A. Spring, (202) 435–5265 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
The temporary regulations that are the
subject of this correction are under
section 6038A of the Internal Revenue
Code.
Authority: 26 U.S.C. 7805 * * *
VerDate Mar<15>2010
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to temporary
regulations.
AGENCY:
Need for Correction
§ 1.6038A–2T
(temporary).
Requirements for Taxpayers Filing
Form 5472; Correction
Need for Correction
As published, temporary regulations
(TD 9529) contain errors that may prove
to be misleading and are in need of
clarification.
Correction of Publication
Accordingly, the publication of the
temporary regulations (TD 9529) which
were the subject of FR Doc. 2011–14468
is corrected as follows:
1. On page 33998, column 3, in the
preamble, under the paragraph heading
‘‘Special Analyses’’, the last paragraph
of the column, first and second lines,
the language ‘‘It has been determined
that this temporary regulation is not a
significant’’ is corrected to read ‘‘It has
been determined that these temporary
regulations are not a significant’’.
2. On page 33999, column 1, in the
preamble, under the paragraph heading
‘‘Special Analyses’’, the first paragraph
of the column, third and fourth lines,
the language ‘‘section 7805(f) of the
Code, this regulation has been
submitted to the’’ is corrected to read
‘‘section 7805(f) of the Code, these
regulations have been submitted to the’’.
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3. On page 33999, column 1, in the
preamble, under the paragraph heading
‘‘Drafting Information’’, sixth line of the
paragraph, the language ‘‘Department
participated in its’’ is corrected to read
‘‘Department participated in their’’.
LaNita Van Dyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. 2011–15946 Filed 6–23–11; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 54
[TD 9531]
RIN 1545–BH88
Extension of Time for Filing Returns
Internal Revenue Service (IRS),
Treasury.
ACTION: Final and removal temporary
regulations
AGENCY:
This document contains final
regulations relating to the automatic
extensions of time to file returns for
partnership, trust, and estate taxpayers,
and automatic extensions of time for
filing returns for pension excise taxes.
The objective of these final regulations
is to reduce overall taxpayer burden by
providing an extension period that
strikes the most reasonable balance for
these pass-through entities and the large
number of taxpayers who require
information from these entities for
completion of their income tax returns.
DATES: Effective Date: These regulations
are effective on June 24, 2011.
Applicability Date: For dates of
applicability of these regulations, see
§§ 1.6081–2(h), 1.6081–6(g), and
54.6081–1(f).
FOR FURTHER INFORMATION CONTACT:
Jason Bremer, (202) 622–4910 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
This document contains amendments
to 26 CFR parts 1 and 54 under section
6081 of the Internal Revenue Code
(Code). On November 8, 2005, the
Treasury Department and the IRS
published a notice of proposed
rulemaking (REG–144898–04) by crossreference to temporary regulations (TD
9229) in the Federal Register (70 FR
67356, 70 FR 67397) relating to the
simplification of procedures for
obtaining automatic extensions of time
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]]>Agencies
[Federal Register Volume 76, Number 122 (Friday, June 24, 2011)]
[Rules and Regulations]
[Pages 36995-36996]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-15943]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9529]
RIN 1545-BK01
Requirements for Taxpayers Filing Form 5472; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendment.
-----------------------------------------------------------------------
SUMMARY: This document contains correcting amendments to temporary
regulations (TD 9529) that were published in the Federal Register on
Friday, June 10, 2011 (76 FR 33997) removing the duplicate filing
requirement for Form 5472, ``Information Return of a 25% Foreign-Owned
U.S. corporation or a Foreign Corporation Engaged in a U.S. Trade or
Business.''
DATES: This correction is effective on June 24, 2011, and is applicable
on June 10, 2011.
[[Page 36996]]
FOR FURTHER INFORMATION CONTACT: Gregory A. Spring, (202) 435-5265 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The temporary regulations that are the subject of this correction
are under section 6038A of the Internal Revenue Code.
Need for Correction
As published, temporary regulations (TD 9529) 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:
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 1.6038A-1T is amended by adding paragraph (o) to read
as follows:
Sec. 1.6038A-1T General requirements and definitions (temporary).
* * * * *
(o) Expiration date. The applicability of this section expires on
June 10, 2014.
* * * * *
0
Par. 3. Section 1.6038A-2T is amended by adding paragraph (i) to read
as follows:
Sec. 1.6038A-2T Requirement of return (temporary).
* * * * *
(i) Expiration date. The applicability of this section expires on
June 10, 2014.
* * * * *
LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2011-15943 Filed 6-23-11; 8:45 am]
BILLING CODE 4830-01-P
