Section 482; Methods To Determine Taxable Income in Connection With a Cost Sharing Arrangement; Correction, 3605-3606 [2012-894]
Download as PDF
<![CDATA[
Federal Register / Vol. 77, No. 16 / Wednesday, January 25, 2012 / Rules and Regulations
Lender Insurance program approval.
The decision will be communicated to
the mortgagee in writing, will be
deemed a final agency action, and,
pursuant to section 256(d) of the
National Housing Act (12 U.S.C. 1715z–
21(d)), is not subject to judicial review.
(3) Lender Insurance authority is
automatically terminated for a
mortgagee whose nationwide Direct
Endorsement approval under
§ 203.3(d)(2) is terminated, without
imposing any further requirement on
the mortgagee to comply with this
paragraph.
(4) Any termination instituted under
this section is distinct from withdrawal
of mortgagee approval by the Mortgagee
Review Board under 24 CFR part 25.
(e) Reinstatement. A mortgagee whose
Lender Insurance authority is
terminated under this section may apply
for reinstatement if the Lender
Insurance authority for the mortgagee
has been terminated for at least 6
months. In addition to addressing the
criteria for Lender Insurance approval
specified in paragraphs (a) and (b) of
this section, the application for
reinstatement must be accompanied by
a corrective action plan addressing the
issues resulting in the termination of the
mortgagee’s Lender Insurance authority,
along with evidence that the mortgagee
has implemented the corrective action
plan. HUD may grant the mortgagee’s
application for reinstatement if the
mortgagee’s application is complete and
HUD determines that the underlying
causes for the termination have been
satisfactorily remedied.
■ 3. In § 203.255, revise paragraph (f)(1),
remove paragraph (f)(4), and add
paragraph (g) to read as follows:
§ 203.255
Insurance of mortgage.
sroberts on DSK4TPTVN1PROD with RULES
*
*
*
*
*
(f) Lender Insurance. (1) Preinsurance review. For applications for
insurance involving mortgages
originated under the Lender Insurance
program under § 203.6, the mortgagee is
responsible for performing a preinsurance review that would otherwise
be performed by HUD under
§ 203.255(c) on the documents that
would otherwise be submitted to HUD
under § 203.255(b). The mortgagee’s
staff that performs the pre-insurance
review must not be the same staff that
originated the mortgage or underwrote
the mortgage for insurance.
*
*
*
*
*
(g) Indemnification. (1) General. By
insuring the mortgage, a Lender
Insurance mortgagee agrees to
indemnify HUD, in accordance with this
paragraph.
VerDate Mar<15>2010
21:03 Jan 24, 2012
Jkt 226001
(2) Definition of origination. For
purposes of indemnification under this
paragraph, the term ‘‘origination’’ means
the process of creating a mortgage,
starting with the taking of the initial
application, continuing with the
processing and underwriting, and
ending with the mortgagee endorsing
the mortgage note for FHA insurance.
(3) Serious and material violation.
The mortgagee shall indemnify HUD for
an FHA insurance claim paid within 5
years of mortgage insurance
endorsement, if the mortgagee knew or
should have known of a serious and
material violation of FHA origination
requirements, such that the mortgage
loan should not have been approved
and endorsed by the mortgagee and
irrespective of whether the violation
caused the mortgage default. Such a
serious and material violation of FHA
requirements in the origination of the
mortgage may occur if the mortgagee
failed to, among other actions:
(i) Verify the creditworthiness,
income, and/or employment of the
mortgagor in accordance with FHA
requirements;
(ii) Verify the assets brought by the
mortgagor for payment of the required
down payment and/or closing costs in
accordance with FHA requirements; or
(iii) Address property deficiencies
identified in the appraisal affecting the
health and safety of the occupants or the
structural integrity of the property in
accordance with FHA requirements, or
(iv) Ensure that the appraisal of the
property serving as security for the
mortgage loan satisfies FHA appraisal
requirements, in accordance with
§ 203.5(e).
(4) Fraud or misrepresentation. The
mortgagee shall indemnify HUD for an
insurance claim if the mortgagee knew
or should have known that fraud or
misrepresentation was involved in
connection with the origination of the
mortgage, regardless of whether the
fraud or misrepresentation caused the
mortgage default and regardless of when
an insurance claim is filed.
(5) Demand for indemnification. The
demand for indemnification will be
made by either the Secretary or the
Mortgagee Review Board. Under
indemnification, the Lender Insurance
mortgagee agrees to either abstain from
filing an insurance claim, or reimburse
FHA if a subsequent holder of the
mortgage files an insurance claim and
FHA suffers a financial loss.
PO 00000
Frm 00047
Fmt 4700
Sfmt 4700
3605
Dated: January 18, 2012.
Carole J. Galante,
Acting Assistant Secretary for Housing,
Federal Housing Commissioner.
[FR Doc. 2012–1508 Filed 1–24–12; 8:45 am]
BILLING CODE 4210–67–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9568]
RIN 1545–BI47
Section 482; Methods To Determine
Taxable Income in Connection With a
Cost Sharing Arrangement; Correction
Internal Revenue Service (IRS).
Final rule; correction.
AGENCY:
ACTION:
This document contains
corrections to final regulations (TD
9568), which were published in the
Federal Register on Thursday,
December 22, 2011 (76 FR 80082),
Relating to section 482 and methods to
determine taxable income in connection
with a cost sharing arrangement.
DATES: Effective January 25, 2012, and
applicable beginning December 22,
2011.
FOR FURTHER INFORMATION CONTACT:
Joseph L. Tobin at (202) 435–5265 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
The final regulations that are the
subject of these corrections are under
section 482 of the Internal Revenue
Code.
Need for Correction
As published, final regulations (TD
9568), contains errors which may prove
to be misleading and are in need of
clarification.
Correction of Publication
Accordingly, the publication of the
final regulations, (TD 9568), which were
the subject of FR Doc. 2011–32458, is
corrected as follows:
1. On page 80082, column one, in the
preamble, under the caption DATES,
lines 4 and 5, the language ‘‘1.482–8(c),
1.482–9(n), and 1.301–7701–1(f)’’ is
corrected to read as ‘‘1.482–8(c), 1.482–
9(n), and 301.7701–1(f).’’
2. On page 80082, column one, in the
preamble, under the caption, Paperwork
Reduction Act, line one, the language
‘‘The collection of information’’ is
corrected to read ‘‘The collections of
information’’.
E:\FR\FM\25JAR1.SGM
25JAR1
3606
Federal Register / Vol. 77, No. 16 / Wednesday, January 25, 2012 / Rules and Regulations
3. On page 80086, column three, in
the preamble, paragraph d. introductory
text, the language ‘‘Contractual CWI
Provisions—§ 1.482–1(d)(3)(ii)(C),
Examples 3 through 7’’ is corrected to
read ‘‘Contractual CWI Provisions—
§ 1.482–7(h)(2)(iii)(C), Examples 3
through 7.’’.
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 * * *
PART 1—[CORRECTED]
Guy R. Traynor,
Federal Register Liaison, Legal Processing
Division, Publication and Regulations
Branch, Procedure and Administration.
■
[FR Doc. 2012–894 Filed 1–24–12; 8:45 am]
§ 1.482–1 Allocation of income and
deductions among taxpayers.
Par. 2. Section 1.482–1 is amended by
revising the first and second sentences
of paragraph (b)(2)(i) to read as follows:
BILLING CODE 4830–01–P
*
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9568]
RIN 1545–BI47
Section 482; Methods To Determine
Taxable Income in Connection With a
Cost Sharing Arrangement; Correction
Internal Revenue Service (IRS).
Correcting amendment.
AGENCY:
ACTION:
This document contains
corrections to final regulations (TD
9568), which were published in the
Federal Register on Thursday,
December 22, 2011 (76 FR 80082),
Relating to section 482 and methods to
determine taxable income in connection
with a cost sharing arrangement.
DATES: Effective January 25, 2012, and
applicable beginning December 22,
2011.
SUMMARY:
FOR FURTHER INFORMATION CONTACT:
Joseph L. Tobin at (202) 435–5265 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the
subject of these corrections are under
section 482 of the Internal Revenue
Code.
Need for Correction
sroberts on DSK4TPTVN1PROD with RULES
As published, final regulations (TD
9568), contains errors which 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.
Accordingly, 26 CFR Parts 1 and 301
are corrected by making the following
correcting amendments:
VerDate Mar<15>2010
21:03 Jan 24, 2012
Jkt 226001
*
*
*
*
(b) * * *
(2) * * *
(i) Methods. Sections 1.482–2 through
1.482–7 and 1.482–9 provide specific
methods to be used to evaluate whether
transactions between or among members
of the controlled group satisfy the arm’s
length standard, and if they do not, to
determine the arm’s length result. This
section provides general principles
applicable in determining arm’s length
results of such controlled transactions,
but do not provide methods, for which
reference must be made to those other
sections in accordance with paragraphs
(b)(2)(ii) and (iii) of this section. * * *
*
*
*
*
*
Par. 3. Section 1.482–7 is amended
by:
■ 1. Revising the fourth sentence of
paragraph (c)(3).
■ 2. Revising the fifth sentence of
paragraph (g)(2)(v)(C), Example,
paragraph (i).
■ 3. Revising the first sentence of
paragraph (g)(2)(v)(C), Example,
paragraph (ii).
■ 4. Revising paragraph (k)(2)(ii)(3).
The revisions read as follows:
§ 1.482–7 Methods to determine taxable
income in connection with a cost sharing
arrangement.
*
*
*
*
*
(c) * * *
(3) * * * If the conduct is consistent
with different, economically equivalent
types of transactions then the controlled
participants may designate the PCT as
being any of such types of transactions.
* * *
*
*
*
*
*
(g) * * *
(2) * * *
(v) * * *
(C) * * *
Example. (i) * * * Specifically, the
Commissioner compares P’s anticipated posttax discounted present value of the financial
projections under the CSA (taking into
account S’s PCT payment of 5% of its sale
of product Y) with P’s anticipated post-tax
discounted present value of the financial
PO 00000
Frm 00048
Fmt 4700
Sfmt 4700
projections under a reasonably available
licensing alternative that consists of
developing intangible X on its own and then
licensing X to S or to an uncontrolled party
similar to S.
*
*
*
*
*
(ii) The Commissioner determines
that, as between the two scenarios, all
of the components of P’s anticipated
financial flows are identical, except for
the CST and PCT Payments under the
CSA, compared to the licensing
payments under the licensing
alternative. * * *
*
*
*
*
*
(3) * * *
(viii) * * *
Example 3. * * * FS determines that the
discount rate that would be applied to
determine the present value of income and
costs attributable to its participation in the
licensing alternative would be 12.5% as
compared to the 15% discount rate that
would be applicable in determining the
present value of the net income attributable
to its participation in the CSA (reflecting the
increased risk borne by FS in bearing a share
of the R & D costs in the cost sharing
alternative). * * *
*
*
*
*
*
(k) * * *
(2) * * *
(ii) * * *
(3) Any further development of
intangibles already developed under the
CSA or of specified applications of such
intangible which has been removed
from the IDA (see paragraphs (d)(1)(ii)
and (j)(1)(i) of this section for the
definitions of reasonably anticipated
cost shared intangible and cost shared
intangible) and the steps (including any
accounting classifications and
allocations) taken to implement such
removal;
*
*
*
*
*
Guy R. Traynor,
Federal Register Liaison, Legal Processing
Division, Publication & Regulation Branch
(Procedure and Administration).
[FR Doc. 2012–895 Filed 1–24–12; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue
30 CFR Part 1206
Product Valuation
CFR Correction
In Title 30 of the Code of Federal
Regulations, Part 700 to End, revised as
of July 1, 2011, ‘‘ONNR’’ is corrected to
read ‘‘ONRR’’, as set forth in the
following table:
■
E:\FR\FM\25JAR1.SGM
25JAR1
]]>Agencies
[Federal Register Volume 77, Number 16 (Wednesday, January 25, 2012)]
[Rules and Regulations]
[Pages 3605-3606]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-894]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9568]
RIN 1545-BI47
Section 482; Methods To Determine Taxable Income in Connection
With a Cost Sharing Arrangement; Correction
AGENCY: Internal Revenue Service (IRS).
ACTION: Final rule; correction.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to final regulations (TD
9568), which were published in the Federal Register on Thursday,
December 22, 2011 (76 FR 80082), Relating to section 482 and methods to
determine taxable income in connection with a cost sharing arrangement.
DATES: Effective January 25, 2012, and applicable beginning December
22, 2011.
FOR FURTHER INFORMATION CONTACT: Joseph L. Tobin at (202) 435-5265 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the subject of these corrections are
under section 482 of the Internal Revenue Code.
Need for Correction
As published, final regulations (TD 9568), contains errors which
may prove to be misleading and are in need of clarification.
Correction of Publication
Accordingly, the publication of the final regulations, (TD 9568),
which were the subject of FR Doc. 2011-32458, is corrected as follows:
1. On page 80082, column one, in the preamble, under the caption
DATES, lines 4 and 5, the language ``1.482-8(c), 1.482-9(n), and 1.301-
7701-1(f)'' is corrected to read as ``1.482-8(c), 1.482-9(n), and
301.7701-1(f).''
2. On page 80082, column one, in the preamble, under the caption,
Paperwork Reduction Act, line one, the language ``The collection of
information'' is corrected to read ``The collections of information''.
[[Page 3606]]
3. On page 80086, column three, in the preamble, paragraph d.
introductory text, the language ``Contractual CWI Provisions--Sec.
1.482-1(d)(3)(ii)(C), Examples 3 through 7'' is corrected to read
``Contractual CWI Provisions--Sec. 1.482-7(h)(2)(iii)(C), Examples 3
through 7.''.
Guy R. Traynor,
Federal Register Liaison, Legal Processing Division, Publication and
Regulations Branch, Procedure and Administration.
[FR Doc. 2012-894 Filed 1-24-12; 8:45 am]
BILLING CODE 4830-01-P
