Definition of Solid Waste Disposal Facilities for Tax-Exempt Bond Purposes; Correction, 55255-55256 [2011-22738]
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Federal Register / Vol. 76, No. 173 / Wednesday, September 7, 2011 / Rules and Regulations
Under the Act, all funds (other than
money market funds),170 whether openend or closed-end, must calculate their
NAVs by using the market values of
their portfolio securities when market
quotations for those securities are
‘‘readily available.’’ 171 When market
quotations for a fund’s portfolio
securities or other assets are not readily
available, the fund must calculate its
NAV by using the fair value of those
securities or assets, as determined in
good faith by the fund’s board of
directors.172
There is no single methodology for
determining the fair value of a security
or other asset because fair value
depends upon the facts and
circumstances of each situation.173 As a
general principle, however, the fair
value of a security or other asset held by
a fund would be the amount that the
fund might reasonably expect to receive
for the security or other asset upon its
current sale.174 When determining the
fair value of a security or other asset
held by a fund, all indications of value
that are available must be taken into
account.175
jlentini on DSK4TPTVN1PROD with RULES
B. Application of the Valuation
Requirements to a Fund’s Use of
Derivatives
For many derivatives that are
securities, such as exchange-traded
options, market quotations typically are
readily available. As a result, a fund
generally must use market values to
value such derivatives. For many other
derivatives, however, market quotations
are not readily available, and a fund that
holds such derivatives is required to
value those derivatives at their fair
values as determined by the fund’s
board of directors.
Valuation of some derivatives may
present special challenges for funds.
Some derivatives may have customized
170 Money market funds that comply with the
provisions of rule 2a–7 under the Act [17 CFR
270.2a–7], however, may value their portfolio
securities on the basis of amortized cost. In
addition, under certain circumstances, open-end
funds may value certain of their portfolio securities
on the basis of amortized cost. See Valuation of
Debt Instruments by Money Market Funds and
Certain Other Open-End Investment Companies,
Investment Company Act Release No. 9786 (May
31, 1977) [42 FR 28999 (June 7, 1977)], available at
https://www.sec.gov/rules/interp/1977/ic-9786.pdf.
171 Section 2(a)(41)(B) of the Act. See also ASR
118 and ASR 113, supra note 14. ‘‘Readily
available’’ refers to public market quotations that
are current, i.e., ‘‘[r]eadily available market
quotations refers to reports of current public
quotations for securities similar in all respects to
the securities in question.’’ ASR 113, supra note 14,
at 2.
172 ASR 113, supra note 14.
173 ASR 118, supra note 14.
174 ASR 113 and ASR 118, supra note 14.
175 ASR 118, supra note 14.
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16:02 Sep 06, 2011
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terms, including contractual restrictions
on their transferability. Some
derivatives also may restrict a fund’s
ability to close out the contract or to
enter into an offsetting transaction. For
some derivatives, there may be no
quotations available from independent
sources, and for some derivatives the
fund’s counterparty may be the only
available source of pricing information.
C. Request for Comment
The Commission requests comment
on funds’ valuation of derivatives,
including the following questions:
• How do funds determine the fair
values of derivatives that they hold? To
what extent do valuation determinations
depend upon the type of derivative,
reference asset, trading venue, and other
factors?
• How do funds, when fair valuing
derivatives, assess the accuracy and
reliability of pricing information that is
obtained from their counterparties or
from other sources?
• How do funds take into account,
when valuing derivatives, contractual
restrictions on transferability, and
restrictions on their ability to close out
the transactions or to enter into
offsetting transactions?
• Some derivatives held by funds
may have negative values due to, among
other things, changes in the value of the
reference assets underlying the
derivatives. Do funds calculate the
values of such derivatives in the same
manner as they value derivatives that
have positive values? If not, why not?
• Should the Commission issue
guidance on the fair valuation of
derivatives under the Investment
Company Act? If so, what issues should
be addressed by that guidance?
• Are there special considerations
that need to be taken into consideration
for smaller funds? How might taking
such considerations into account impact
investor protection?
VII. General Request for Comment
In addition to the specific issues
highlighted for comment, the
Commission invites members of the
public to address any other matters that
they believe are relevant to the use of
derivatives by funds.
Dated: August 31, 2011.
By the Commission.
Elizabeth M. Murphy,
Secretary.
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9546]
RIN 1545–BD04
Definition of Solid Waste Disposal
Facilities for Tax-Exempt Bond
Purposes; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendment.
AGENCY:
This document contains
corrections to final regulations (TD
9546) that were published in the
Federal Register on Friday, August 19,
2011, on the definition of solid waste
disposal facilities for purposes of the
rules applicable to tax-exempt bonds
issued by State and local governments.
These regulations provide guidance to
State and local governments that issue
tax-exempt bonds to finance solid waste
disposal facilities and to taxpayers that
use those facilities.
DATES: This correction is effective on
September 7, 2011 and is applicable
beginning October 18, 2011.
FOR FURTHER INFORMATION CONTACT:
Timothy Jones, (202) 622–3980 (not a
toll free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
The final regulations that are the
subject of this document are under
section 142 of the Internal Revenue
Code.
Need for Correction
As published August 19, 2011 (76 FR
51879), the final regulations (TD 9546)
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:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.142(a)(6)–1 is
amended by revising paragraph (c)(2)(v),
and the first sentence of paragraph (h),
Example 9 (ii) to read as follows:
■
[FR Doc. 2011–22724 Filed 9–6–11; 8:45 am]
BILLING CODE 8011–01–P
55255
E:\FR\FM\07SER1.SGM
07SER1
55256
Federal Register / Vol. 76, No. 173 / Wednesday, September 7, 2011 / Rules and Regulations
§ 1.142(a)(6)–1 Exempt facility bonds:
solid waste disposal facilities.
under section 142 of the Internal
Revenue Code.
*
*
*
*
*
(c) * * *
(2) * * *
(v) Radioactive material. Solid waste
excludes any radioactive material
subject to regulation under the Nuclear
Regulatory Act (10 CFR 1.1 et seq.), as
in effect on the issue date of the bonds.
*
*
*
*
*
(h) * * *
Example 9 * * *
(ii) The facts are the same as in paragraph
(i) of this Example 9, except that the stripped
bark represents only 55 percent by weight
and volume of the materials that are
transported by the conveyor belt. * * *
*
*
*
*
*
LaNita VanDyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, (Procedure and Administration).
[FR Doc. 2011–22738 Filed 9–6–11; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Need for Correction
As published August 19, 2001 (76 FR
51879), the final regulations (TD 9546)
contain errors that may prove to be
misleading and are in need of
clarification.
Correction of Publication
DEPARTMENT OF THE TREASURY
Background
This document contains amendments
to 26 CFR part 301 under section 6707A
of the Code. On September 11, 2008,
temporary regulations (TD 9425)
relating to the penalty under section
6707A for the failure to include on any
return or statement any information
required to be disclosed under section
6011 with respect to a reportable
transaction were published in the
Federal Register (73 FR 52784). A
notice of proposed rulemaking (REG–
160868–04) cross-referencing the
temporary regulations was published in
the Federal Register on the same day
(73 FR 52805). No public hearing was
requested or held. One written comment
responding to the notice of proposed
rulemaking was received from the
public. This comment was considered
and is available for public inspection at
https://www.regulations.gov or upon
request. Upon due consideration, the
proposed regulations are adopted as
amended by this Treasury decision, and
the corresponding temporary
regulations are removed. The revisions
are discussed in this preamble.
Internal Revenue Service
Summary of Comments and
Explanation of Revisions
Accordingly, the final regulations (TD
9546), that are the subject of FR Doc.
2011–21154, are corrected as follows:
1. On page 51879, column 3, in the
preamble, under the paragraph heading
‘‘Explanation of Provisions’’, line 11
from the bottom of the second
paragraph, the language ‘‘‘‘that has no
market or other value at the place where
the property is located’’’’ is corrected to
read ‘‘that has no market or other value
at the place where the property is
located’’.
2. On page 51880, column 2, in the
preamble, under the paragraph heading
‘‘Explanation of Provisions’’, line 8 of
the column, the language ‘‘Regulations
but recommended removing’’ is
corrected to read ‘‘Regulations, but
recommended removing’’.
LaNita VanDyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, (Procedure and Administration).
26 CFR Part 1
[TD 9546]
RIN 1545–BD04
[FR Doc. 2011–22739 Filed 9–6–11; 8:45 am]
Definition of Solid Waste Disposal
Facilities for Tax-Exempt Bond
Purposes; Correction
BILLING CODE 4830–01–P
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to final regulations.
AGENCY:
This document contains
corrections to final regulations (TD
9546) that were published in the
Federal Register on Friday, August 19,
2011, on the definition of solid waste
disposal facilities for purposes of the
rules applicable to tax-exempt bonds
issued by State and local governments.
These regulations provide guidance to
State and local governments that issue
tax-exempt bonds to finance solid waste
disposal facilities and to taxpayers that
use those facilities.
DATES: This correction is effective
September 7, 2011 and is applicable
beginning October 18, 2011.
FOR FURTHER INFORMATION CONTACT:
Timothy Jones, (202) 622–3980 (not a
toll free number).
SUPPLEMENTARY INFORMATION:
jlentini on DSK4TPTVN1PROD with RULES
SUMMARY:
Background
The final regulations (TD 9546) that
are the subject of this correction are
VerDate Mar<15>2010
16:57 Sep 06, 2011
Jkt 223001
the Small Business Jobs Act of 2010 that
revise the penalty calculation.
DATES: Effective Date: These regulations
are effective on September 7, 2011.
Applicability Date: For dates of
applicability, see § 301.6707A–1(f).
FOR FURTHER INFORMATION CONTACT:
Spence Hanemann, (202) 622–4940 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
26 CFR Part 301
[TD 9550]
RIN 1545–BF61
Section 6707A and the Failure To
Include on Any Return or Statement
Any Information Required To Be
Disclosed Under Section 6011 With
Respect to a Reportable Transaction
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations and removal of
temporary regulations.
AGENCY:
This document contains final
regulations that provide guidance
regarding section 6707A of the Internal
Revenue Code (Code) with respect to the
penalties applicable to the failure to
include on any return or statement any
information required to be disclosed
under section 6011 with respect to a
reportable transaction. These final
regulations reflect amendments under
SUMMARY:
PO 00000
Frm 00044
Fmt 4700
Sfmt 4700
1. 2010 Amendments to Section 6707A
On September 27, 2010, the President
signed into law the Small Business Jobs
Act of 2010, Public Law 111–240 (124
Stat. 2504), section 2041 of which
amended section 6707A of the Code.
The amendments revise the amount of
the penalty to make the penalty
proportionate to the decrease in tax
shown on the return as a result of the
reportable transaction (or which would
have resulted from the reportable
transaction if it were respected for
Federal tax purposes). The amendments
also establish maximum and minimum
penalty amounts. The amended penalty
calculation was made retroactive to
penalties assessed after December 31,
2006. To account for the change in the
law, these final regulations conform to
the statutory language of section 6707A,
as amended. These changes are reflected
in §§ 301.6707A–1(a) and 301.6707A–
1(e). These final regulations follow the
amended statutory language regarding
E:\FR\FM\07SER1.SGM
07SER1
]]>Agencies
[Federal Register Volume 76, Number 173 (Wednesday, September 7, 2011)]
[Rules and Regulations]
[Pages 55255-55256]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-22738]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9546]
RIN 1545-BD04
Definition of Solid Waste Disposal Facilities for Tax-Exempt Bond
Purposes; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendment.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to final regulations (TD
9546) that were published in the Federal Register on Friday, August 19,
2011, on the definition of solid waste disposal facilities for purposes
of the rules applicable to tax-exempt bonds issued by State and local
governments. These regulations provide guidance to State and local
governments that issue tax-exempt bonds to finance solid waste disposal
facilities and to taxpayers that use those facilities.
DATES: This correction is effective on September 7, 2011 and is
applicable beginning October 18, 2011.
FOR FURTHER INFORMATION CONTACT: Timothy Jones, (202) 622-3980 (not a
toll free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the subject of this document are
under section 142 of the Internal Revenue Code.
Need for Correction
As published August 19, 2011 (76 FR 51879), the final regulations
(TD 9546) 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 1.142(a)(6)-1 is amended by revising paragraph
(c)(2)(v), and the first sentence of paragraph (h), Example 9 (ii) to
read as follows:
[[Page 55256]]
Sec. 1.142(a)(6)-1 Exempt facility bonds: solid waste disposal
facilities.
* * * * *
(c) * * *
(2) * * *
(v) Radioactive material. Solid waste excludes any radioactive
material subject to regulation under the Nuclear Regulatory Act (10 CFR
1.1 et seq.), as in effect on the issue date of the bonds.
* * * * *
(h) * * *
Example 9 * * *
(ii) The facts are the same as in paragraph (i) of this Example
9, except that the stripped bark represents only 55 percent by
weight and volume of the materials that are transported by the
conveyor belt. * * *
* * * * *
LaNita VanDyke,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2011-22738 Filed 9-6-11; 8:45 am]
BILLING CODE 4830-01-P
