Noncompensatory Partnership Options; Correction, 17868-17869 [2013-06703]
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17868
Federal Register / Vol. 78, No. 57 / Monday, March 25, 2013 / Rules and Regulations
(c) Conditions of use in cattle—(1)
Indications for use and amounts.
(i) For the treatment of ovarian
follicular cysts in dairy cattle.
Administer 100 mg gonadorelin by
intramuscular or intravenous injection.
(ii) For use with cloprostenol sodium
to synchronize estrous cycles to allow
for fixed-time artificial insemination in
lactating dairy cows and beef cows.
Administer to each cow 100 mg
gonadorelin by intramuscular injection,
followed 6 to 8 days later by 500 mg
cloprostenol by intramuscular injection,
followed 30 to 72 hours later by 100 mg
gonadorelin by intramuscular injection.
(2) Limitations. Federal law restricts
this drug to use by or on the order of
a licensed veterinarian.
■ 5. In § 522.1077, revise the section
heading to read as set forth below; and
in paragraph (c)(3), remove the first
sentence.
§ 522.1077
Gonadorelin hydrochloride.
*
*
*
§ 522.1078
*
*
Authority: 21 U.S.C. 360b.
12. In paragraph (b) of § 529.1186,
remove ‘‘000074’’ and in its place add
‘‘000044’’.
also modify the regulations under
section 704(b) regarding the
maintenance of the partners’ capital
accounts and the determination of the
partners’ distributive shares of
partnership items. The final regulations
also contain a characterization rule
providing that the holder of a
noncompensatory option is treated as a
partner under certain circumstances.
DATES: This correction is effective on
March 25, 2013 and is applicable on or
after February 5, 2013.
FOR FURTHER INFORMATION CONTACT:
Benjamin Weaver, at (202) 622–3050
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
§ 529.2150
Background
§ 524.2482
[Amended]
10. In paragraph (b) of § 524.2482,
remove ‘‘067292’’ and in its place add
‘‘051311’’.
■
PART 529—CERTAIN OTHER DOSAGE
FORM NEW ANIMAL DRUGS
11. The authority citation for 21 CFR
part 529 continues to read as follows:
■
Authority: 21 U.S.C. 360b.
§ 529.1186
[Amended]
■
[Amended]
13. In paragraph (b) of § 529.2150,
remove ‘‘000074’’ and in its place add
‘‘000044’’.
■
The final regulations that are the
subject of this document are under
sections 171, 704, 721, 761, 1272, 1273,
and 1275 of the Internal Revenue Code.
Dated: March 20, 2013.
Bernadette Dunham,
Director, Center for Veterinary Medicine.
Need for Correction
BILLING CODE 4160–01–P
List of Subjects in 26 CFR Part 1
Internal Revenue Service
6. Redesignate § 522.1078 as
§ 522.1075.
■ 7. In § 522.1870, revise the section
heading and paragraphs (b), (c)(1)(iii),
and (c)(2)(iii) to read as follows:
As published, the final regulations
(TD 9612) contain errors that may prove
to be misleading and are in need of
clarification.
DEPARTMENT OF THE TREASURY
[Redesignated as § 522.1075]
Income taxes, Reporting and
recordkeeping requirements.
26 CFR Part 1
Correction of Publication
[TD 9612]
RIN 1545–BA53
Accordingly, 26 CFR part 1 is
corrected by making the following
correcting amendments:
Noncompensatory Partnership
Options; Correction
PART 1—INCOME TAXES
[FR Doc. 2013–06748 Filed 3–22–13; 8:45 am]
■
§ 522.1870
Praziquantel.
*
*
*
*
*
(b) Sponsors. See Nos. 000859 and
061623 in § 510.600(c) of this chapter.
(c) * * *
(1) * * *
(iii) Limitations. Federal law restricts
this drug to use by or on the order of
a licensed veterinarian.
(2) * * *
(iii) Limitations. Federal law restricts
this drug to use by or on the order of
a licensed veterinarian.
§ 522.2005
[Amended]
8. In paragraph (b)(2) of § 522.2005,
remove ‘‘000074’’ and in its place add
‘‘000044’’.
■
PART 524—OPHTHALMIC AND
TOPICAL DOSAGE FORM NEW
ANIMAL DRUGS
9. The authority citation for 21 CFR
part 524 continues to read as follows:
■
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendment.
AGENCY:
This document contains
corrections to final regulations (TD
9612) that were published in the
Federal Register on Tuesday, February
5, 2013 (78 FR 7997) relating to the tax
treatment of noncompensatory options
and convertible instruments issued by a
partnership. The final regulations
generally provide that the exercise of a
noncompensatory option does not cause
the recognition of immediate income or
loss by either the issuing partnership or
the option holder. The final regulations
Authority: 26 U.S.C. 7805 * * *
SUMMARY:
K
srobinson on DSK4SPTVN1PROD with NOTICES
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
Tax
Par. 2. Section 1.704–1 is amended by
revising the table in paragraph (b)(5)
Example 35 (ii), and the first sentence
of paragraph (b)(5) Example 35 (iii) to
read as follows:
■
§ 1.704–1
*
Partner’s distributive share.
*
*
*
*
(b) * * *
(5) * * *
Example 35. * * *
(ii) * * *
L
Book
Tax
M
Book
Tax
Book
Initial capital account ...............................
Year 1 net income ...................................
Year 2 net income ...................................
Year 3 net income ...................................
$10,000
1,000
1,000
1,000
$10,000
1,000
1,000
1,000
$10,000
1,000
1,000
1,000
$10,000
1,000
1,000
1,000
0
0
0
0
0
0
0
0
Year 4 initial capital account ....................
13,000
13,000
13,000
13,000
0
0
VerDate Mar<15>2010
16:01 Mar 22, 2013
Jkt 229001
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Fmt 4700
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Federal Register / Vol. 78, No. 57 / Monday, March 25, 2013 / Rules and Regulations
(iii) At the beginning of Year 4, at a
time when property D, LLC’s only asset,
has a value of $33,000 and basis of
$24,000 ($30,000 original basis less
$6,000 depreciation in Years 1 through
3), and LLC has accumulated
undistributed cash of $12,000 ($15,000
gross income less $3,000 of interest
payments) in LLC, M converts the debt
into a 1⁄3 interest in LLC. * * *
*
*
*
*
*
DEPARTMENT OF HOMELAND
SECURITY
Par. 3. Section 1.761–3 is amended
by:
■ a. Revising the second sentence of
paragraph (b)(3);
■ b. Revising paragraph (f) introductory
text;
■ c. Removing ‘‘1’’ from paragraph (f)
Example heading; and
■ d. Revising the second sentence in the
paragraph (f) Example.
The revisions read as follows:
AGENCY:
■
§ 1.761–3
partners.
Certain option holders treated as
*
*
*
*
*
(b) * * *
(3) * * * In addition, an option
includes convertible debt (as defined in
§ 1.721–2(g)(2)) and convertible equity
(as defined in § 1.721–2(g)(3)). * * *
*
*
*
*
*
(f) Example. The following example
illustrates the provisions of this section.
For purposes of the example, assume
that PRS is a partnership for Federal tax
purposes, none of the noncompensatory
option holders or partners are related
persons, and that general principles of
law do not apply to treat the
noncompensatory option as a
partnership interest. The example reads
as follows:
Example. * * * In exchange for a premium
of $10x, PRS issues a noncompensatory
option to A to acquire a 10 percent interest
in PRS for $110x at any time during a 3-year
period commencing on the date on which the
option is issued. * * *
*
*
*
*
*
srobinson on DSK4SPTVN1PROD with NOTICES
LaNita VanDyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, (Procedure and Administration).
[FR Doc. 2013–06703 Filed 3–22–13; 8:45 am]
BILLING CODE 4830–01–P
VerDate Mar<15>2010
16:01 Mar 22, 2013
Jkt 229001
Coast Guard
33 CFR Part 165
[Docket No. USCG–2013–0005]
RIN 1625–AA00
Safety Zone; Desert Storm Shootout;
Lake Havasu, Lake Havasu City, AZ
ACTION:
Coast Guard, DHS.
Temporary final rule.
The Coast Guard is
establishing a temporary safety zone on
the navigable waters of the Colorado
River in Lake Havasu, Lake Havasu City,
Arizona in support of the Desert Storm
Shootout. This temporary safety zone is
necessary to provide for the safety of the
participants, crew, spectators,
participating vessels, and other vessels
and users of the waterway. Persons and
vessels are prohibited from entering
into, transiting through, or anchoring
within this safety zone unless
authorized by the Captain of the Port, or
his designated representative.
DATES: This rule is effective from 8 a.m.
on April 26 through 6 p.m. April 28,
2013. It will be enforced from 8 a.m.
through 6 p.m. on April 26 and 27,
2013. If the event is delayed by
inclement weather, it will also be
enforced from 8 a.m. to 6 p.m. on April
28, 2013.
ADDRESSES: Documents mentioned in
this preamble are part of docket [USCG–
2013–0005]. To view documents
mentioned in this preamble as being
available in the docket, go to https://
www.regulations.gov, type the docket
number in the ‘‘SEARCH’’ box and click
‘‘SEARCH.’’ Click on Open Docket
Folder on the line associated with this
rulemaking. You may also visit the
Docket Management Facility in Room
W12–140 on the ground floor of the
Department of Transportation West
Building, 1200 New Jersey Avenue SE.,
Washington, DC 20590, between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this rule, call or
email Petty Officer Deborah Metzger,
Waterways Management, U.S. Coast
Guard Sector San Diego, Coast Guard;
telephone 619–278–7656, email
d11marineeventssandiego@uscg.mil. If
you have questions on viewing or
submitting material to the docket, call
Barbara Hairston, Program Manager,
Docket Operations, telephone (202)
366–9826.
SUPPLEMENTARY INFORMATION:
SUMMARY:
PO 00000
Frm 00005
Fmt 4700
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17869
Table of Acronyms
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of Proposed Rulemaking
A. Regulatory History and Information
The Coast Guard is issuing this
temporary final rule without prior
notice and opportunity to comment
pursuant to authority under section 4(a)
of the Administrative Procedure Act
(APA) (5 U.S.C. 553(b)). This provision
authorizes an agency to issue a rule
without prior notice and opportunity to
comment when the agency for good
cause finds that those procedures are
‘‘impracticable, unnecessary, or contrary
to the public interest.’’ Under 5 U.S.C.
553(b)(B), the Coast Guard finds that
good cause exists for not publishing a
notice of proposed rulemaking (NPRM)
with respect to this rule because notice
procedures were impracticable. The
Coast Guard did not receive notice of
the pertinent details of this event in
time to publish an NPRM and solicit
public comment. This is a very large
event with many spectators and
participants expecting it to occur as
scheduled.
Under 5 U.S.C. 553(d)(3), the Coast
Guard finds that good cause exists for
making this rule effective less than 30
days after publication in the Federal
Register. The Coast Guard did not
receive notice of the pertinent details of
this event in time to allow for the delay
between publication and the effective
date of the rule. Delaying the effective
date would be contrary to the public
interest. Many spectators and
participants expect this event to occur
as scheduled. Immediate action is
necessary to ensure the safety of the
crew, spectators, and other vessels and
users of the waterway.
B. Basis and Purpose
The legal basis for this temporary rule
is the Ports and Waterways Safety Act
which authorizes the Coast Guard to
establish safety zones (33 U.S.C 1221 et
seq.).
Lake Racer LLC is sponsoring the
Desert Storm Shootout, which is to be
held on the Colorado River in Lake
Havasu City, Arizona. This temporary
safety zone is necessary to provide for
the safety of the participants, crew,
spectators, sponsor vessels, and other
users of the waterway. This event
involves powerboats participating in an
exhibition run on a closed course. The
size of the boats varies from 19 to 55
feet. Approximately 250 boats will
participate in this event. The sponsor
will provide approximately 25 rescue,
and safety patrol boats for the safety of
this event.
E:\FR\FM\25MRR1.SGM
25MRR1
]]>Agencies
[Federal Register Volume 78, Number 57 (Monday, March 25, 2013)]
[Rules and Regulations]
[Pages 17868-17869]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-06703]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9612]
RIN 1545-BA53
Noncompensatory Partnership Options; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendment.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to final regulations (TD
9612) that were published in the Federal Register on Tuesday, February
5, 2013 (78 FR 7997) relating to the tax treatment of noncompensatory
options and convertible instruments issued by a partnership. The final
regulations generally provide that the exercise of a noncompensatory
option does not cause the recognition of immediate income or loss by
either the issuing partnership or the option holder. The final
regulations also modify the regulations under section 704(b) regarding
the maintenance of the partners' capital accounts and the determination
of the partners' distributive shares of partnership items. The final
regulations also contain a characterization rule providing that the
holder of a noncompensatory option is treated as a partner under
certain circumstances.
DATES: This correction is effective on March 25, 2013 and is applicable
on or after February 5, 2013.
FOR FURTHER INFORMATION CONTACT: Benjamin Weaver, at (202) 622-3050
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the subject of this document are
under sections 171, 704, 721, 761, 1272, 1273, and 1275 of the Internal
Revenue Code.
Need for Correction
As published, the final regulations (TD 9612) 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 1.704-1 is amended by revising the table in paragraph
(b)(5) Example 35 (ii), and the first sentence of paragraph (b)(5)
Example 35 (iii) to read as follows:
Sec. 1.704-1 Partner's distributive share.
* * * * *
(b) * * *
(5) * * *
Example 35. * * *
(ii) * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
K L M
-----------------------------------------------------------------------------------------------
Tax Book Tax Book Tax Book
--------------------------------------------------------------------------------------------------------------------------------------------------------
Initial capital account................................. $10,000 $10,000 $10,000 $10,000 0 0
Year 1 net income....................................... 1,000 1,000 1,000 1,000 0 0
Year 2 net income....................................... 1,000 1,000 1,000 1,000 0 0
Year 3 net income....................................... 1,000 1,000 1,000 1,000 0 0
-----------------------------------------------------------------------------------------------
Year 4 initial capital account.......................... 13,000 13,000 13,000 13,000 0 0
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 17869]]
(iii) At the beginning of Year 4, at a time when property D, LLC's
only asset, has a value of $33,000 and basis of $24,000 ($30,000
original basis less $6,000 depreciation in Years 1 through 3), and LLC
has accumulated undistributed cash of $12,000 ($15,000 gross income
less $3,000 of interest payments) in LLC, M converts the debt into a
\1/3\ interest in LLC. * * *
* * * * *
0
Par. 3. Section 1.761-3 is amended by:
0
a. Revising the second sentence of paragraph (b)(3);
0
b. Revising paragraph (f) introductory text;
0
c. Removing ``1'' from paragraph (f) Example heading; and
0
d. Revising the second sentence in the paragraph (f) Example.
The revisions read as follows:
Sec. 1.761-3 Certain option holders treated as partners.
* * * * *
(b) * * *
(3) * * * In addition, an option includes convertible debt (as
defined in Sec. 1.721-2(g)(2)) and convertible equity (as defined in
Sec. 1.721-2(g)(3)). * * *
* * * * *
(f) Example. The following example illustrates the provisions of
this section. For purposes of the example, assume that PRS is a
partnership for Federal tax purposes, none of the noncompensatory
option holders or partners are related persons, and that general
principles of law do not apply to treat the noncompensatory option as a
partnership interest. The example reads as follows:
Example. * * * In exchange for a premium of $10x, PRS issues a
noncompensatory option to A to acquire a 10 percent interest in PRS
for $110x at any time during a 3-year period commencing on the date
on which the option is issued. * * *
* * * * *
LaNita VanDyke,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2013-06703 Filed 3-22-13; 8:45 am]
BILLING CODE 4830-01-P
