Application of Section 108(i) to Partnerships and S Corporations; Correction, 49366-49367 [2013-19680]

Download as PDF 49366 Federal Register / Vol. 78, No. 157 / Wednesday, August 14, 2013 / Rules and Regulations the 2013 Final Rule operates in a way that should already have been apparent to many market participants and because the rule corrects an inadvertent, technical error. The Bureau believes that there is minimal, if any, basis for substantive disagreement with the clarificatory amendment or the technical correction. III. Corrections to FR Doc. 2013–10604 In FR Doc. 2013–10604 appearing on page 30661 in the Federal Register on Wednesday May 22, 2013, the following corrections are made: § 1005.33 [Corrected] 1. On page 30705, in the first column, § 1005.33 is corrected by revising paragraph (c)(2)(iii) to read as follows: (iii) In the case of an error under paragraph (a)(1)(iv) of this section that occurred because the sender provided incorrect or insufficient information in connection with the remittance transfer, the remittance transfer provider shall provide the remedies required by paragraphs (c)(2)(ii)(A)(1) and (B) within three business days of providing the report required by paragraph (c)(1) or (d)(1) of this section except that the provider may agree to the sender’s request, upon receiving the results of the error investigation, that the funds be applied towards a new remittance transfer, rather than be refunded, if the provider has not yet processed a refund. The provider may deduct from the amount refunded or applied towards a new transfer any fees actually imposed on or, to the extent not prohibited by law, taxes actually collected on the remittance transfer as part of the first unsuccessful remittance transfer attempt. * * * * * ■ Supplement I to Part 1005 [Corrected] 2. On page 30715, in the first column, amendatory instruction 7.D.ii. is corrected to read ‘‘Under comment 33(c), paragraphs 2, 3, 4, 5 and 6 are revised, and paragraphs 11 and 12 are added.’’ ■ 3. On page 30719, in the second column, comment 33(c)–5 is redesignated as comment 33(c)–6 and republished, and comment 33(c)–(5) is added. These corrections read as follows: 5. Amount appropriate to resolve the error. For purposes of the remedies set forth in § 1005.33(c)(2)(i)(A), (c)(2)(i)(B), (c)(2)(ii)(A)(1), and (c)(2)(i)(A)(2) the amount appropriate to resolve the error is the specific amount of transferred funds that should have been received if the remittance transfer had been mstockstill on DSK4VPTVN1PROD with RULES ■ VerDate Mar<15>2010 15:59 Aug 13, 2013 Jkt 229001 effected without error. The amount appropriate to resolve the error does not include consequential damages. 6. Form of refund. For a refund provided under § 1005.33(c)(2)(i)(A), (c)(2)(ii)(A)(1), (c)(2)(ii)(B), or (c)(2)(iii), a remittance transfer provider may generally, at its discretion, issue a refund either in cash or in the same form of payment that was initially provided by the sender for the remittance transfer. For example, if the sender originally provided a credit card as payment for the transfer, the remittance transfer provider may issue a credit to the sender’s credit card account in the appropriate amount. However, if a sender initially provided cash for the remittance transfer, a provider may issue a refund by check. For example, if the sender originally provided cash as payment for the transfer, the provider may mail a check to the sender in the amount of the payment. Dated: August 7, 2013. Richard Cordray, Director, Bureau of Consumer Financial Protection. This correction is effective on August 14, 2013 and applicable on or after July 2, 2013. FOR FURTHER INFORMATION CONTACT: Joseph R. Worst, at (202) 622–3070 (not a toll-free number). SUPPLEMENTARY INFORMATION: DATES: Background The final regulations and removal of temporary regulations (TD 9623) 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 9623) 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: [FR Doc. 2013–19503 Filed 8–13–13; 8:45 am] PART 1—INCOME TAXES BILLING CODE 4810–AM–P Paragraph 1. The authority citation for part 1 continues to read in part as follows: ■ DEPARTMENT OF THE TREASURY Authority: 26 U.S.C. 7805 * * * Internal Revenue Service Par. 2. Section 1.108(i)–2 is amended by revising paragraphs (b)(6)(i)(A)(4), (c)(3)(i)(A)(5), and (d)(2)(iii) Example 2. (ii) to read as follows: ■ 26 CFR Part 1 [TD 9623] RIN 1545–BI99 § 1.108(i)–2 Application of section 108(i) to partnerships and S Corporations. Application of Section 108(i) to Partnerships and S Corporations; Correction * Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendments. AGENCY: This document contains corrections to final regulations and removal of temporary regulations (TD 9623) that were published in the Federal Register on Wednesday, July 3, 2013 (78 FR 39973). The final regulations are relating to the application of section 108(i) of the Internal Revenue Code to partnerships and S corporations and provides rules regarding the deferral of discharge of indebtedness income and original issue discount deductions by a partnership or an S corporation with respect to reacquisitions of applicable debt instruments after December 31, 2008, and before January 1, 2011. SUMMARY: PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 * * * * (b) * * * (6) * * * (i) * * * (A) * * * (4) In the taxable year that includes the day before the day on which the electing partnership files a petition in a title 11 or similar case. * * * * * (c) * * * (3) * * * (i) * * * (A) * * * (5) In the taxable year that includes the day before the day on which the electing S corporation files a petition in a title 11 or similar case. * * * * * (d) * * * (2) * * * (iii) * * * Example 2. * * * (ii) Under paragraph (d)(2) of this section, ABC partnership’s deferred OID deduction E:\FR\FM\14AUR1.SGM 14AUR1 Federal Register / Vol. 78, No. 157 / Wednesday, August 14, 2013 / Rules and Regulations for 2012 is the lesser of: $23.25 ($31 of OID that accrues on the new debt instrument in 2012 less $7.75 of this OID that is allowed as a deduction to A in 2012) or $9.75 (the excess of $75 (ABC partnership’s deferred COD income of $150 less A’s share of ABC partnership’s deferred COD income that is included in A’s income for 2012 of $75) over $65.25 (the aggregate amount of OID that accrued in previous taxable years of $87 less the aggregate amount of such OID that has been allowed as a deduction by A in 2012 of $21.75)). Thus, of the $31 of OID that accrues in 2012, $9.75 is deferred under section 108(i). * * * * * Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration). [FR Doc. 2013–19680 Filed 8–13–13; 8:45 am] BILLING CODE 4830–01–P the subject of this correction is under section 108(i) of the Internal Revenue Code. Need for Correction As published, the final regulations and removal of temporary regulations (TD 9623) 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 9623), that are the subject of FR Doc. 2013–15585, are corrected as follows: On page 39974, column 3, in the preamble, under the paragraph heading ‘‘1. Bankruptcy Issues’’, in the first full paragraph, the language ‘‘Title 11’’ is corrected to read ‘‘title 11’’ wherever it appears. Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). DEPARTMENT OF THE TREASURY Internal Revenue Service [FR Doc. 2013–19682 Filed 8–13–13; 8:45 am] 26 CFR Parts 1 and 602 BILLING CODE 4830–01–P [TD 9623] RIN 1545–BI99 DEPARTMENT OF THE TREASURY Application of Section 108(i) to Partnerships and S Corporations; Correction Internal Revenue Service 26 CFR Part 301 Internal Revenue Service (IRS), Treasury. ACTION: Final regulations and removal of temporary regulations; correction. AGENCY: This document contains corrections to final regulations and removal of temporary regulations (TD 9623) that were published in the Federal Register on Wednesday, July 3, 2013 (78 FR 39973). The final regulations are relating to the application of section 108(i) of the Internal Revenue Code to partnerships and S corporations and provides rules regarding the deferral of discharge of indebtedness income and original issue discount deductions by a partnership or an S corporation with respect to reacquisitions of applicable debt instruments after December 31, 2008, and before January 1, 2011. DATES: This correction is effective on August 14, 2013 and applicable on or after July 2, 2013. FOR FURTHER INFORMATION CONTACT: Joseph R. Worst, at (202) 622–3070 (not a toll free number). SUPPLEMENTARY INFORMATION: mstockstill on DSK4VPTVN1PROD with RULES SUMMARY: Background The final regulations and removal of temporary regulations (TD 9623) that are VerDate Mar<15>2010 15:59 Aug 13, 2013 Jkt 229001 [TD 9628] RIN 1545–BK87 Regulations Pertaining to the Disclosure of Return Information To Carry Out Eligibility Requirements for Health Insurance Affordability Programs Internal Revenue Service (IRS), Treasury. ACTION: Final regulations. AGENCY: This document contains final regulations relating to the disclosure of return information under section 6103(l)(21) of the Internal Revenue Code, as enacted by the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010. The regulations define certain terms and prescribe certain items of return information in addition to those items prescribed by statute that will be disclosed, upon written request, under section 6103(l)(21). DATES: Effective date: These regulations are effective on August 14, 2013. Applicability date: For date of applicability, see § 301.6103(l)(21)–1(d). SUMMARY: PO 00000 Frm 00009 Fmt 4700 Sfmt 4700 49367 FOR FURTHER INFORMATION CONTACT: Steven Karon, (202) 622–4570; (not a toll-free number). SUPPLEMENTARY INFORMATION: Background Section 6103(l)(21) of the Internal Revenue Code (the Code) permits the disclosure of return information to assist Exchanges in performing certain functions set forth in the Patient Protection and Affordable Care Act, Public Law 111–148 (124 Stat. 119 (2010)) (the Affordable Care Act) for which income verification is required (including determinations of eligibility for the insurance affordability programs described in the Affordable Care Act), as well as to assist State agencies administering a State Medicaid program under title XIX of the Social Security Act, a State’s children’s health insurance program under title XXI of the Social Security Act (CHIP), or a basic health program (BHP) under section 1331 of the Affordable Care Act (if applicable). Section 6103(l)(21) identifies specific items of return information that will be disclosed. For taxpayers whose income is relevant in determining eligibility for an insurance affordability program, Medicaid, CHIP, or BHP, section 6103(l)(21) explicitly authorizes the disclosure of the following items of return information: Taxpayer identity information, filing status, the number of individuals for whom a deduction is allowed under section 151 of the Code, the taxpayer’s modified adjusted gross income as defined under section 36B of the Code (MAGI), and the taxable year to which any such information relates or, alternatively, that such information is not available. Section 6103(l)(21) also authorizes the disclosure of such other information prescribed by regulation that might indicate whether an individual is eligible for the premium tax credit under section 36B of the Code, or cost-sharing reductions under section 1402 of the Affordable Care Act, and the amount thereof. The Treasury Department and the IRS published a notice of proposed rulemaking (REG–119632–11) in the Federal Register, 77 FR 25378, on April 30, 2012, proposing additional items to be disclosed pursuant to section 6103(l)(21). A public hearing was scheduled for August 31, 2012. The IRS did not receive any requests to testify at the public hearing, and the public hearing was cancelled. Five written comments responding to the proposed regulations were received. All comments were considered and are available for public inspection at E:\FR\FM\14AUR1.SGM 14AUR1

Agencies

[Federal Register Volume 78, Number 157 (Wednesday, August 14, 2013)]
[Rules and Regulations]
[Pages 49366-49367]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-19680]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9623]
RIN 1545-BI99


Application of Section 108(i) to Partnerships and S Corporations; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

-----------------------------------------------------------------------

SUMMARY: This document contains corrections to final regulations and 
removal of temporary regulations (TD 9623) that were published in the 
Federal Register on Wednesday, July 3, 2013 (78 FR 39973). The final 
regulations are relating to the application of section 108(i) of the 
Internal Revenue Code to partnerships and S corporations and provides 
rules regarding the deferral of discharge of indebtedness income and 
original issue discount deductions by a partnership or an S corporation 
with respect to reacquisitions of applicable debt instruments after 
December 31, 2008, and before January 1, 2011.

DATES: This correction is effective on August 14, 2013 and applicable 
on or after July 2, 2013.

FOR FURTHER INFORMATION CONTACT: Joseph R. Worst, at (202) 622-3070 
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations and removal of temporary regulations (TD 
9623) 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 9623) 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)-2 is amended by revising paragraphs 
(b)(6)(i)(A)(4), (c)(3)(i)(A)(5), and (d)(2)(iii) Example 2. (ii) to 
read as follows:


Sec.  1.108(i)-2  Application of section 108(i) to partnerships and S 
Corporations.

* * * * *
    (b) * * *
    (6) * * *
    (i) * * *
    (A) * * *
    (4) In the taxable year that includes the day before the day on 
which the electing partnership files a petition in a title 11 or 
similar case.
* * * * *
    (c) * * *
    (3) * * *
    (i) * * *
    (A) * * *
    (5) In the taxable year that includes the day before the day on 
which the electing S corporation files a petition in a title 11 or 
similar case.
* * * * *
    (d) * * *
    (2) * * *
    (iii) * * *
    Example 2. * * *
    (ii) Under paragraph (d)(2) of this section, ABC partnership's 
deferred OID deduction

[[Page 49367]]

for 2012 is the lesser of: $23.25 ($31 of OID that accrues on the 
new debt instrument in 2012 less $7.75 of this OID that is allowed 
as a deduction to A in 2012) or $9.75 (the excess of $75 (ABC 
partnership's deferred COD income of $150 less A's share of ABC 
partnership's deferred COD income that is included in A's income for 
2012 of $75) over $65.25 (the aggregate amount of OID that accrued 
in previous taxable years of $87 less the aggregate amount of such 
OID that has been allowed as a deduction by A in 2012 of $21.75)). 
Thus, of the $31 of OID that accrues in 2012, $9.75 is deferred 
under section 108(i).
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2013-19680 Filed 8-13-13; 8:45 am]
BILLING CODE 4830-01-P

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