Guidance Regarding Deferred Discharge of Indebtedness Income of Corporations and Deferred Original Issue Discount Deductions; Correction, 48606-48607 [2013-19227]
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48606
Federal Register / Vol. 78, No. 154 / Friday, August 9, 2013 / Rules and Regulations
the initial notification subsequently
completes and submits to OEE the
narrative account required by paragraph
(c)(3) of this section such that OEE
receives it within 180 days of the initial
notification date, or within the
additional time, if any, granted by the
Director of OEE pursuant to paragraph
(c)(2)(iv) of this section, the disclosure,
including violations disclosed in the
narrative account that were not
expressly mentioned in the initial
notification, will be deemed to have
been made on the initial notification
date for purposes of paragraph (b)(3) of
this section if the initial notification was
made in compliance with paragraphs
(c)(1) and (2) of this section. Failure to
meet the deadline (either the initial 180day deadline or an extended deadline
granted by the Director of OEE) would
not be an additional violation of the
EAR, but such failure may reduce or
eliminate the mitigating impact of the
voluntary disclosure under Supplement
No. 1 to this part. For purposes of
determining whether the deadline has
been met under this paragraph, a
complete narrative account must
contain all of the pertinent information
called for in paragraphs (c)(3), (c)(4),
and (c)(5) of this section, and the
voluntary self-disclosure must
otherwise meet the requirements of this
section.
(iv) Deadline extensions. The Director
of OEE may extend the 180-day
deadline upon a determination in his or
her discretion that U.S. Government
interests would be served by an
extension or that the person making the
initial notification has shown that more
than 180 days is reasonably needed to
complete the narrative account.
(A) Conditions for extension. The
Director of OEE in his or her discretion
may place conditions on the approval of
an extension. For example, the Director
of OEE may require that the disclosing
person agree to toll the statute of
limitations with respect to violations
disclosed in the initial notification or
discovered during the review for or
preparation of the narrative account,
and/or require the disclosing person to
undertake specified interim remedial
compliance measures.
(B) Contents of Request. (1) In most
instances 180 days should be adequate
to complete the narrative account.
Requests to extend the 180-day deadline
set forth in paragraph (c)(2)(iii) of this
section will be determined by the
Director of OEE pursuant to his or her
authority under this paragraph (c)(2)(iv)
based upon his consideration and
evaluation of U.S. Government interests
and the facts and circumstances
surrounding the request and any related
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14:49 Aug 08, 2013
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investigations. Such requests should
show specifically that the person
making the request:
(i) Began its review promptly after
discovery of the violations;
(ii) Has been conducting its review
and preparation of the narrative account
as expeditiously as can be expected,
consistent with the need for
completeness and accuracy;
(iii) Reasonably needs the requested
extension despite having begun its
review promptly after discovery of the
violations and having conducted its
review and preparation of the narrative
account as expeditiously as can be
expected consistent with the need for
completeness and accuracy; and
(iv) Has considered whether interim
compliance or other corrective measures
may be needed and has undertaken such
measures as appropriate to prevent
recurring or additional violations.
(2) Such requests also should set out
a proposed timeline for completion and
submission of the narrative account that
is reasonable under the applicable facts
and circumstances, and should also
designate a contact person regarding the
request and provide that contact
person’s current business street address,
email address, and telephone number.
Requests may also include additional
information that the person making the
request reasonably believes is pertinent
to the request under the applicable facts
and circumstances.
(C) Timing of requests. Requests for an
extension should be made before the
180-day deadline and as soon as
possible once a disclosing person
determines that it will be unable to meet
the deadline or the extended deadline
where an extension previously has been
granted, and possesses the information
needed to prepare an extension request
in accordance with paragraph
(c)(2)(iv)(B) of this section. Requests for
extension that are not received before
the deadline for completing the
narrative account has passed will not be
considered. Parties who request an
extension shortly before the deadline
incur the risk that the Director of OEE
will be unable to consider the request,
determine whether or not to grant the
extension, and communicate his or her
decision before the deadline, and that
any subsequently submitted narrative
account will be considered untimely
under paragraph (c)(2)(iii) of this
section.
*
*
*
*
*
PART 766—[AMENDED]
3. The authority citation paragraph for
part 766 continues to read as follows:
■
PO 00000
Frm 00008
Fmt 4700
Sfmt 4700
Authority: 50 U.S.C. app. 2401 et seq.; 50
U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025,
3 CFR, 2001 Comp., p. 783; Notice of August
15, 2012, 77 FR 49699 (August 16, 2012).
4. Section 766.3 is amended by
revising paragraphs (b)(1) and (c) to read
as follows:
■
§ 766.3 Institution of administrative
enforcement proceedings.
*
*
*
*
*
(b) * * *
(1) By sending a copy by registered or
certified mail or by express mail or
commercial courier or delivery service
addressed to the respondent at the
respondent’s last known address;
* * *
(c) The date of service of notice of the
issuance of a charging letter instituting
an administrative enforcement
proceeding, or service of notice of the
issuance of a supplement or amendment
to a charging letter, is the date of its
delivery, or of its attempted delivery, by
any means described in paragraph (b)(1)
of this section.
Dated August 5, 2013.
Kevin J. Wolf,
Assistant Secretary for Export
Administration.
[FR Doc. 2013–19364 Filed 8–8–13; 8:45 am]
BILLING CODE 3510–33–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9622]
RIN 1545–BI96
Guidance Regarding Deferred
Discharge of Indebtedness Income of
Corporations and Deferred Original
Issue Discount Deductions; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendments.
AGENCY:
This document contains
corrections to final regulations and
removal of temporary regulations (TD
9622) that were published in the
Federal Register on Wednesday, July 3,
2013 (78 FR 39984). The final
regulations provide necessary guidance
regarding the accelerated inclusion of
deferred discharge of indebtedness (also
known as cancellation of debt (COD))
income (deferred COD income) and the
accelerated deduction of deferred
original issue discount (OID) (deferred
OID deductions) under section
108(i)(5)(D) (acceleration rules), and the
calculation of earnings and profits as a
SUMMARY:
E:\FR\FM\09AUR1.SGM
09AUR1
Federal Register / Vol. 78, No. 154 / Friday, August 9, 2013 / Rules and Regulations
result of an election under section
108(i). In addition, these regulations
provide rules applicable to all taxpayers
regarding deferred OID deductions
under section 108(i) as a result of a
reacquisition of an applicable debt
instrument by an issuer or related party.
DATES: This correction is effective on
August 9, 2013 and is applicable on or
after July 2, 2013.
FOR FURTHER INFORMATION CONTACT:
Robert M. Rhyne, at (202) 622–7790 (not
a toll free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations and removal of
temporary regulations (TD 9622) that are
the subject of this correction are under
section 108(i) of the Internal Revenue
Code.
Need for Correction
As published, the final regulations
and removal of temporary regulations
(TD 9622) contains errors that may
prove to be misleading and are in need
of clarification.
Par. 3. Section 1.108(i)–1 is amended
by revising the third and fourth
sentences of paragraph (b)(2)(iii)(D), and
the fifth and seventh sentences of
paragraph (c) Example 3 (ii) to read as
follows:
■
§ 1.108(i)–1 Deferred discharge of
indebtedness income and deferred original
issue discount deductions of C
corporations.
*
*
*
*
*
(b) * * *
(2) * * *
(iii) * * *
(D) * * * Appropriate adjustments
must be made to take into account any
issuances or redemptions of stock, or
similar transactions, occurring during
the taxable year of distribution or any of
the preceding three taxable years. If the
electing corporation has a short taxable
year for the year of the distribution or
for any of the preceding three taxable
years, the amounts are determined on an
annualized basis. * * *
*
*
*
*
*
(c) * * *
Example 3. * * *
(ii) * * * However, under paragraph
(b)(2)(iii)(A) of this section, S’s distribution
to P is an impairment transaction and the net
value acceleration rule is applied with
respect to the assets, liabilities, and deferred
items of P (S’s successor). * * *
Accordingly, under the net value acceleration
rule of paragraph (b)(2)(iii)(A) of this section,
S is required to take into account its $400 of
deferred COD income immediately before the
distribution, unless value is restored to P
pursuant to paragraph (b)(2)(iii)(C) of this
section.
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 1.108(i)–0 is amended
by revising paragraph (b) to read as
follows:
■
§ 1.108(i)–0 Definitions and effective/
applicability dates.
*
*
*
*
Martin V. Franks,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. 2013–19227 Filed 8–8–13; 8:45 am]
BILLING CODE 4830–01–P
pmangrum on DSK3VPTVN1PROD with RULES
*
*
*
*
*
(b) Effective/Applicability dates—(1)
In general. The rules of this section,
§ 1.108(i)–1, and § 1.108(i)–2, apply on
or after July 2, 2013, to reacquisitions of
applicable debt instruments in taxable
years ending after December 31, 2008. In
addition, the rules of § 1.108(i)–3 apply
on or after July 2, 2013, to debt
instruments issued after December 31,
2008, in connection with reacquisitions
of applicable debt instruments in
taxable years ending after December 31,
2008.
(2) Prior periods. For rules applying
before July 2, 2013, see § 1.108(i)–0T,
§ 1.108(i)–1T, § 1.108(i)–2T, and
§ 1.108(i)–3T, as contained in 26 CFR
part 1, revised April 1, 2013.
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14:49 Aug 08, 2013
Jkt 229001
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602
[TD 9622]
RIN 1545–BI96
Guidance Regarding Deferred
Discharge of Indebtedness Income of
Corporations and Deferred Original
Issue Discount Deductions; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations and removal of
temporary regulations; correction.
AGENCY:
PO 00000
Frm 00009
Fmt 4700
Sfmt 9990
48607
This document contains
corrections to final regulations and
removal of temporary regulations (TD
9622) that were published in the
Federal Register on Wednesday, July 3,
2013 (78 FR 39984). The final
regulations provide necessary guidance
regarding the accelerated inclusion of
deferred discharge of indebtedness (also
known as cancellation of debt (COD))
income (deferred COD income) and the
accelerated deduction of deferred
original issue discount (OID) (deferred
OID deductions) under section
108(i)(5)(D) (acceleration rules), and the
calculation of earnings and profits as a
result of an election under section
108(i). In addition, these regulations
provide rules applicable to all taxpayers
regarding deferred OID deductions
under section 108(i) as a result of a
reacquisition of an applicable debt
instrument by an issuer or related party.
SUMMARY:
This correction is effective on
August 9, 2013 and applicable on or
after July 2, 2013.
DATES:
FOR FURTHER INFORMATION CONTACT:
Robert M. Rhyne, at (202) 622–7790 (not
a toll free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations and removal of
temporary regulations (TD 9622) that are
the subject of this correction are under
section 108(i) of the Internal Revenue
Code.
Need for Correction
As published, the final regulations
and removal of temporary regulations
(TD 9622) contains errors that may
prove to be misleading and are in need
of clarification.
Correction of Publication
Accordingly, the final regulations and
removal of temporary regulations (TD
9622), that are the subject of FR Doc.
2013–15881, are corrected as follows:
1. On page 39986, column 2, in the
preamble, under the paragraph heading
‘‘Special Analyses’’, lines 19 and 20, the
language ‘‘and the deduction of deferred
original issue discount that is
otherwise’’ is corrected to read ‘‘and the
deduction of deferred OID that is
otherwise’’.
Martin V. Franks,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, (Procedure and Administration).
[FR Doc. 2013–19225 Filed 8–8–13; 8:45 am]
BILLING CODE 4830–01–P
E:\FR\FM\09AUR1.SGM
09AUR1
]]>Agencies
[Federal Register Volume 78, Number 154 (Friday, August 9, 2013)]
[Rules and Regulations]
[Pages 48606-48607]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-19227]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9622]
RIN 1545-BI96
Guidance Regarding Deferred Discharge of Indebtedness Income of
Corporations and Deferred Original Issue Discount Deductions;
Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendments.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to final regulations and
removal of temporary regulations (TD 9622) that were published in the
Federal Register on Wednesday, July 3, 2013 (78 FR 39984). The final
regulations provide necessary guidance regarding the accelerated
inclusion of deferred discharge of indebtedness (also known as
cancellation of debt (COD)) income (deferred COD income) and the
accelerated deduction of deferred original issue discount (OID)
(deferred OID deductions) under section 108(i)(5)(D) (acceleration
rules), and the calculation of earnings and profits as a
[[Page 48607]]
result of an election under section 108(i). In addition, these
regulations provide rules applicable to all taxpayers regarding
deferred OID deductions under section 108(i) as a result of a
reacquisition of an applicable debt instrument by an issuer or related
party.
DATES: This correction is effective on August 9, 2013 and is applicable
on or after July 2, 2013.
FOR FURTHER INFORMATION CONTACT: Robert M. Rhyne, at (202) 622-7790
(not a toll free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations and removal of temporary regulations (TD
9622) that are the subject of this correction are under section 108(i)
of the Internal Revenue Code.
Need for Correction
As published, the final regulations and removal of temporary
regulations (TD 9622) contains 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 1.108(i)-0 is amended by revising paragraph (b) to read
as follows:
Sec. 1.108(i)-0 Definitions and effective/applicability dates.
* * * * *
(b) Effective/Applicability dates--(1) In general. The rules of
this section, Sec. 1.108(i)-1, and Sec. 1.108(i)-2, apply on or after
July 2, 2013, to reacquisitions of applicable debt instruments in
taxable years ending after December 31, 2008. In addition, the rules of
Sec. 1.108(i)-3 apply on or after July 2, 2013, to debt instruments
issued after December 31, 2008, in connection with reacquisitions of
applicable debt instruments in taxable years ending after December 31,
2008.
(2) Prior periods. For rules applying before July 2, 2013, see
Sec. 1.108(i)-0T, Sec. 1.108(i)-1T, Sec. 1.108(i)-2T, and Sec.
1.108(i)-3T, as contained in 26 CFR part 1, revised April 1, 2013.
0
Par. 3. Section 1.108(i)-1 is amended by revising the third and fourth
sentences of paragraph (b)(2)(iii)(D), and the fifth and seventh
sentences of paragraph (c) Example 3 (ii) to read as follows:
Sec. 1.108(i)-1 Deferred discharge of indebtedness income and
deferred original issue discount deductions of C corporations.
* * * * *
(b) * * *
(2) * * *
(iii) * * *
(D) * * * Appropriate adjustments must be made to take into account
any issuances or redemptions of stock, or similar transactions,
occurring during the taxable year of distribution or any of the
preceding three taxable years. If the electing corporation has a short
taxable year for the year of the distribution or for any of the
preceding three taxable years, the amounts are determined on an
annualized basis. * * *
* * * * *
(c) * * *
Example 3. * * *
(ii) * * * However, under paragraph (b)(2)(iii)(A) of this
section, S's distribution to P is an impairment transaction and the
net value acceleration rule is applied with respect to the assets,
liabilities, and deferred items of P (S's successor). * * *
Accordingly, under the net value acceleration rule of paragraph
(b)(2)(iii)(A) of this section, S is required to take into account
its $400 of deferred COD income immediately before the distribution,
unless value is restored to P pursuant to paragraph (b)(2)(iii)(C)
of this section.
* * * * *
Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2013-19227 Filed 8-8-13; 8:45 am]
BILLING CODE 4830-01-P
