Indirect Stock Transfers and Coordination Rule Exceptions; Transfers of Stock or Securities in Outbound Asset Reorganizations, 17066-17067 [2013-05702]
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17066
Federal Register / Vol. 78, No. 53 / Tuesday, March 19, 2013 / Proposed Rules
Robert B. Williams, Jr., (202) 622–3860;
concerning submissions of comments or
requests for a public hearing,
Oluwafunmilayo Taylor, (202) 622–7180
(not toll-free numbers).
SUPPLEMENTARY INFORMATION:
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–132702–10]
RIN 1545–BJ74
Indirect Stock Transfers and
Coordination Rule Exceptions;
Transfers of Stock or Securities in
Outbound Asset Reorganizations
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
by cross-reference to temporary
regulations.
AGENCY:
In the Rules and Regulations
section of this issue of the Federal
Register, the IRS and the Treasury
Department are issuing temporary
regulations that eliminate one of two
exceptions to the coordination rule
between asset transfers and indirect
stock transfers for certain outbound
asset reorganizations. The temporary
regulations also modify the exception to
the coordination rule for certain
outbound exchanges so that it is
consistent with the remaining asset
reorganization exception. In addition,
the regulations modify, in various
contexts, procedures for obtaining
reasonable cause relief. Finally, the
temporary regulations implement
certain changes with respect to transfers
of stock or securities by a domestic
corporation to a foreign corporation in
a section 361 exchange. The regulations
primarily affect domestic corporations
that transfer property to foreign
corporations in certain outbound
nonrecognition exchanges. The text of
the temporary regulations published in
this issue of the Federal Register also
serves as the text of these proposed
regulations.
DATES: Comments and requests for a
public hearing must be received by June
17, 2013.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG–132702–10), room
5205, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions
may be hand-delivered Monday through
Friday between the hours of 8 a.m. and
4 p.m. to CC:PA:LPD:PR (REG–132702–
10), Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue NW.,
Washington, DC, or sent electronically
via the Federal eRulemaking Portal at
http://www.regulations.gov (IRS REG–
132702–10).
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
tkelley on DSK3SPTVN1PROD with PROPOSALS2
SUMMARY:
VerDate Mar<15>2010
18:03 Mar 18, 2013
Jkt 229001
Background and Explanation of
Provisions
Temporary regulations in the Rules
and Regulations section of this issue of
the Federal Register amend the Income
Tax Regulations (26 CFR part 1) under
section 367 of the Internal Revenue
Code (Code). The text of those
regulations also serves as the text of
these proposed regulations. The
preamble to the temporary regulations
explains the amendments.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a
significant regulatory action as defined
in Executive Order 12866. Therefore, a
regulatory assessment is not required. It
is hereby certified that the collections of
information contained in these
regulations will not have a significant
economic impact on a substantial
number of small entities. Accordingly, a
regulatory flexibility analysis is not
required. These regulations primarily
will affect United States persons that are
large corporations engaged in corporate
transactions among their controlled
corporations. Thus, the number of
affected small entities—in whichever of
the three categories defined in the
Regulatory Flexibility Act (small
businesses, small organizations, and
small governmental jurisdictions)—will
not be substantial. The IRS and the
Treasury Department estimate that small
organizations and small governmental
jurisdictions are likely to be affected
only insofar as they transfer the stock of
a controlled corporation to a related
corporation. While a certain number of
small entities may engage in such
transactions, the IRS and the Treasury
Department do not anticipate the
number to be substantial. Pursuant to
section 7805(f) of the Code, this
regulation has been submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business.
Comments and Requests for a Public
Hearing
Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
comments that are submitted timely to
the IRS as prescribed in this preamble
under ‘‘Addresses’’ heading. The IRS
and the Treasury Department request
comments on all aspects of the proposed
PO 00000
Frm 00001
Fmt 4701
Sfmt 4702
rules. All comments will be available at
www.regulations.gov or upon request. A
public hearing will be scheduled if
requested in writing by any person that
timely submits written comments. If a
public hearing is scheduled, notice of
the date, time, and place for the public
hearing will be published in the Federal
Register.
Drafting Information
The principal author of these
regulations is Robert B. Williams, Jr. of
the Office of Associate Chief Counsel
(International). However, other
personnel from the IRS and the Treasury
Department participated in their
development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
proposed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read as follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.367(a)–3 is amended
by:
■ 1. Revising paragraphs (d)(2)(vi)(B)
and (d)(3) Examples 6B, 6C, and 9.
■ 2. Revising paragraph (e).
■ 3. Adding paragraphs (g)(1)(vii)(A)
and (g)(1)(ix) .
The revisions and additions read as
follows:
■
§ 1.367(a)–3 Treatment of transfers of
stock or securities to foreign corporations.
*
*
*
*
*
(d) * * *
(2) * * *
(vi) * * *
(B) [The text of proposed § 1.367(a)–
3(d)(2)(vi)(B) is the same as the text of
§ 1.367(a)–3T(d)(2)(vi)(B) published
elsewhere in this issue of the Federal
Register].
*
*
*
*
*
(3) * * *
Example 6B. [The text of proposed
§ 1.367(a)–3(d)(3) Example 6B is the same as
the text of § 1.367(a)–3T(d)(3) Example 6B
published elsewhere in this issue of the
Federal Register].
Example 6C. [The text of proposed
§ 1.367(a)–3(d)(3) Example 6C is the same as
the text of § 1.367(a)–3T(d)(3) Example 6C
published elsewhere in this issue of the
Federal Register].
*
*
*
*
*
Example 9. [The text of proposed
§ 1.367(a)–3(d)(3) Example 9 is the same as
the text of § 1.367(a)–3T(d)(3) Example 9
E:\FR\FM\19MRP2.SGM
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Federal Register / Vol. 78, No. 53 / Tuesday, March 19, 2013 / Proposed Rules
17067
published elsewhere in this issue of the
Federal Register].
§ 1.367(a)–6 Transfer of foreign branch
with previously deducted losses.
§ 1.1248(f)–3 Reasonable cause and
effective/applicability dates.
*
*
(a) [The text of proposed § 1.1248(f)–
3 is the same as the text of proposed
§ 1.1248(f)–3T published elsewhere in
this issue of the Federal Register].
*
*
*
*
*
■ Par. 6. Section 1.6038B–1 is amended
by revising paragraph (f)(3) to read as
follows:
tkelley on DSK3SPTVN1PROD with PROPOSALS2
*
*
*
*
(e) [The text of proposed § 1.367(a)–
3(e) is the same as the text of § 1.367(a)–
3T(e) published elsewhere in this issue
of the Federal Register].
*
*
*
*
*
(g) * * *
(1) * * *
(vii)(A) [The text of proposed
§ 1.367(a)–3(a)(1)(vii)(A) is the same as
the text of § 1.367(a)–3T(g)(1)(vii)(A)
published elsewhere in this issue of the
Federal Register].
*
*
*
*
*
(ix) [The text of proposed § 1.367(a)–
3(g)(1)(ix) is the same as the text of
§ 1.367(a)–3T(g)(1)(ix) published
elsewhere in this issue of the Federal
Register].
*
*
*
*
*
■ Par. 3. Section 1.367(a)–6 is amended
by adding a sentence to paragraph (e)(4)
to read as follows:
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18:03 Mar 18, 2013
Jkt 229001
*
*
*
*
(e) * * *
(4) * * * [The text of the final
sentence of proposed § 1.367(a)–6(e)(4)
is the same as the text of the final
sentence of § 1.367(a)–6T(e)(4)
published elsewhere in this issue of the
Federal Register].
■ Par. 4. Section 1.367(a)–7 is amended
by revising paragraph (e)(2) to read as
follows:
§ 1.367(a)–7 Outbound transfers of
property described in section 361(a) or (b).
*
*
*
*
*
(e) * * *
(2) [The text of proposed § 1.367(a)–
7(e)(2) is the same as the text of
§ 1.367(a)–7T(e)(2) published elsewhere
in this issue of the Federal Register].
*
*
*
*
*
■ Par. 5. Section 1.1248(f)–3 is amended
by revising paragraph (a) to read as
follows:
PO 00000
Frm 00002
Fmt 4701
Sfmt 9990
§ 1.6038B–1 Reporting of certain transfers
to foreign corporations.
*
*
*
*
*
(f) * * *
(3) [The text of proposed § 1.6038B–
1(f)(3) is the same as the text of
§ 1.6038B–1T(f)(3) published elsewhere
in this issue of the Federal Register].
*
*
*
*
*
Steven T. Miller,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2013–05702 Filed 3–18–13; 8:45 am]
BILLING CODE 4830–01–P
E:\FR\FM\19MRP2.SGM
19MRP2
Agencies
[Federal Register Volume 78, Number 53 (Tuesday, March 19, 2013)]
[Proposed Rules]
[Pages 17066-17067]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-05702]
Federal Register / Vol. 78, No. 53 / Tuesday, March 19, 2013 /
Proposed Rules
[[Page 17066]]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-132702-10]
RIN 1545-BJ74
Indirect Stock Transfers and Coordination Rule Exceptions;
Transfers of Stock or Securities in Outbound Asset Reorganizations
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations.
-----------------------------------------------------------------------
SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS and the Treasury Department are issuing
temporary regulations that eliminate one of two exceptions to the
coordination rule between asset transfers and indirect stock transfers
for certain outbound asset reorganizations. The temporary regulations
also modify the exception to the coordination rule for certain outbound
exchanges so that it is consistent with the remaining asset
reorganization exception. In addition, the regulations modify, in
various contexts, procedures for obtaining reasonable cause relief.
Finally, the temporary regulations implement certain changes with
respect to transfers of stock or securities by a domestic corporation
to a foreign corporation in a section 361 exchange. The regulations
primarily affect domestic corporations that transfer property to
foreign corporations in certain outbound nonrecognition exchanges. The
text of the temporary regulations published in this issue of the
Federal Register also serves as the text of these proposed regulations.
DATES: Comments and requests for a public hearing must be received by
June 17, 2013.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-132702-10), room
5205, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
132702-10), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue NW., Washington, DC, or sent electronically via the Federal
eRulemaking Portal at http://www.regulations.gov (IRS REG-132702-10).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Robert B. Williams, Jr., (202) 622-3860; concerning submissions of
comments or requests for a public hearing, Oluwafunmilayo Taylor, (202)
622-7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
Temporary regulations in the Rules and Regulations section of this
issue of the Federal Register amend the Income Tax Regulations (26 CFR
part 1) under section 367 of the Internal Revenue Code (Code). The text
of those regulations also serves as the text of these proposed
regulations. The preamble to the temporary regulations explains the
amendments.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
12866. Therefore, a regulatory assessment is not required. It is hereby
certified that the collections of information contained in these
regulations will not have a significant economic impact on a
substantial number of small entities. Accordingly, a regulatory
flexibility analysis is not required. These regulations primarily will
affect United States persons that are large corporations engaged in
corporate transactions among their controlled corporations. Thus, the
number of affected small entities--in whichever of the three categories
defined in the Regulatory Flexibility Act (small businesses, small
organizations, and small governmental jurisdictions)--will not be
substantial. The IRS and the Treasury Department estimate that small
organizations and small governmental jurisdictions are likely to be
affected only insofar as they transfer the stock of a controlled
corporation to a related corporation. While a certain number of small
entities may engage in such transactions, the IRS and the Treasury
Department do not anticipate the number to be substantial. Pursuant to
section 7805(f) of the Code, this regulation has been submitted to the
Chief Counsel for Advocacy of the Small Business Administration for
comment on its impact on small business.
Comments and Requests for a Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any comments that are submitted timely
to the IRS as prescribed in this preamble under ``Addresses'' heading.
The IRS and the Treasury Department request comments on all aspects of
the proposed rules. All comments will be available at
www.regulations.gov or upon request. A public hearing will be scheduled
if requested in writing by any person that timely submits written
comments. If a public hearing is scheduled, notice of the date, time,
and place for the public hearing will be published in the Federal
Register.
Drafting Information
The principal author of these regulations is Robert B. Williams,
Jr. of the Office of Associate Chief Counsel (International). However,
other personnel from the IRS and the Treasury Department participated
in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 1 is proposed to be amended as follows:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 continues to read as
follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.367(a)-3 is amended by:
0
1. Revising paragraphs (d)(2)(vi)(B) and (d)(3) Examples 6B, 6C, and 9.
0
2. Revising paragraph (e).
0
3. Adding paragraphs (g)(1)(vii)(A) and (g)(1)(ix) .
The revisions and additions read as follows:
Sec. 1.367(a)-3 Treatment of transfers of stock or securities to
foreign corporations.
* * * * *
(d) * * *
(2) * * *
(vi) * * *
(B) [The text of proposed Sec. 1.367(a)-3(d)(2)(vi)(B) is the same
as the text of Sec. 1.367(a)-3T(d)(2)(vi)(B) published elsewhere in
this issue of the Federal Register].
* * * * *
(3) * * *
Example 6B. [The text of proposed Sec. 1.367(a)-3(d)(3)
Example 6B is the same as the text of Sec. 1.367(a)-3T(d)(3)
Example 6B published elsewhere in this issue of the Federal
Register].
Example 6C. [The text of proposed Sec. 1.367(a)-3(d)(3) Example
6C is the same as the text of Sec. 1.367(a)-3T(d)(3) Example 6C
published elsewhere in this issue of the Federal Register].
* * * * *
Example 9. [The text of proposed Sec. 1.367(a)-3(d)(3) Example
9 is the same as the text of Sec. 1.367(a)-3T(d)(3) Example 9
[[Page 17067]]
published elsewhere in this issue of the Federal Register].
* * * * *
(e) [The text of proposed Sec. 1.367(a)-3(e) is the same as the
text of Sec. 1.367(a)-3T(e) published elsewhere in this issue of the
Federal Register].
* * * * *
(g) * * *
(1) * * *
(vii)(A) [The text of proposed Sec. 1.367(a)-3(a)(1)(vii)(A) is
the same as the text of Sec. 1.367(a)-3T(g)(1)(vii)(A) published
elsewhere in this issue of the Federal Register].
* * * * *
(ix) [The text of proposed Sec. 1.367(a)-3(g)(1)(ix) is the same
as the text of Sec. 1.367(a)-3T(g)(1)(ix) published elsewhere in this
issue of the Federal Register].
* * * * *
0
Par. 3. Section 1.367(a)-6 is amended by adding a sentence to paragraph
(e)(4) to read as follows:
Sec. 1.367(a)-6 Transfer of foreign branch with previously deducted
losses.
* * * * *
(e) * * *
(4) * * * [The text of the final sentence of proposed Sec.
1.367(a)-6(e)(4) is the same as the text of the final sentence of Sec.
1.367(a)-6T(e)(4) published elsewhere in this issue of the Federal
Register].
0
Par. 4. Section 1.367(a)-7 is amended by revising paragraph (e)(2) to
read as follows:
Sec. 1.367(a)-7 Outbound transfers of property described in section
361(a) or (b).
* * * * *
(e) * * *
(2) [The text of proposed Sec. 1.367(a)-7(e)(2) is the same as the
text of Sec. 1.367(a)-7T(e)(2) published elsewhere in this issue of
the Federal Register].
* * * * *
0
Par. 5. Section 1.1248(f)-3 is amended by revising paragraph (a) to
read as follows:
Sec. 1.1248(f)-3 Reasonable cause and effective/applicability dates.
(a) [The text of proposed Sec. 1.1248(f)-3 is the same as the text
of proposed Sec. 1.1248(f)-3T published elsewhere in this issue of the
Federal Register].
* * * * *
0
Par. 6. Section 1.6038B-1 is amended by revising paragraph (f)(3) to
read as follows:
Sec. 1.6038B-1 Reporting of certain transfers to foreign
corporations.
* * * * *
(f) * * *
(3) [The text of proposed Sec. 1.6038B-1(f)(3) is the same as the
text of Sec. 1.6038B-1T(f)(3) published elsewhere in this issue of the
Federal Register].
* * * * *
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2013-05702 Filed 3-18-13; 8:45 am]
BILLING CODE 4830-01-P