Use of Differential Income Stream as an Application of the Income Method and as a Consideration in Assessing the Best Method; Correction, 62426 [2013-24537]

Download as PDF 62426 Federal Register / Vol. 78, No. 204 / Tuesday, October 22, 2013 / Rules and Regulations Correction of Publication Accordingly, 26 CFR part 1 is corrected by making the following correcting amendment: FOR FURTHER INFORMATION CONTACT: Beth Tucker, Deputy Commissioner for Operations Support. Approved: August 19, 2013. Mark J. Mazur, Assistant Secretary of the Treasury (Tax Policy). 877–8339 and ask to be connected to 202–326–4024.) SUPPLEMENTARY INFORMATION: PBGC’s regulation on Benefits Payable in Terminated Single-Employer Plans (29 CFR Part 4022) prescribes actuarial assumptions—including interest assumptions—for paying plan benefits under terminating single-employer plans covered by title IV of the Employee Retirement Income Security Act of 1974. The interest assumptions in the regulation are also published on PBGC’s Web site (http://www.pbgc.gov). PBGC uses the interest assumptions in Appendix B to Part 4022 to determine whether a benefit is payable as a lump sum and to determine the amount to pay. Appendix C to Part 4022 contains interest assumptions for private-sector pension practitioners to refer to if they wish to use lump-sum interest rates determined using PBGC’s historical methodology. Currently, the rates in Appendices B and C of the benefit payment regulation are the same. The interest assumptions are intended to reflect current conditions in the financial and annuity markets. Assumptions under the benefit payments regulation are updated monthly. This final rule updates the benefit payments interest assumptions for November 2013.1 The November 2013 interest assumptions under the benefit payments regulation will be 1.75 percent for the period during which a benefit is in pay status and 4.00 percent during any years preceding the benefit’s placement in pay status. In comparison with the interest assumptions in effect for October 2013, these interest assumptions are unchanged. PBGC has determined that notice and public comment on this amendment are impracticable and contrary to the public interest. This finding is based on the need to determine and issue new interest assumptions promptly so that the assumptions can reflect current market conditions as accurately as possible. Because of the need to provide immediate guidance for the payment of benefits under plans with valuation dates during November 2013, PBGC finds that good cause exists for making the assumptions set forth in this amendment effective less than 30 days after publication. Catherine B. Klion (Klion.Catherine@ pbgc.gov), Assistant General Counsel for Regulatory Affairs, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005, 202–326– 4024. (TTY/TDD users may call the Federal relay service toll-free at 1–800– stock occurring in taxable years prior to November 4, 1992. 1 Appendix B to PBGC’s regulation on Allocation of Assets in Single-Employer Plans (29 CFR Part 4044) prescribes interest assumptions for valuing benefits under terminating covered single-employer plans for purposes of allocation of assets under ERISA section 4044. Those assumptions are updated quarterly. PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 continues to read in part as follows: ■ [FR Doc. 2013–24538 Filed 10–21–13; 8:45 am] Authority: 26 U.S.C. 7805 * * * BILLING CODE 4830–01–P Par. 2. Section 1.482–7 is amended by revising the last sentence of paragraph (g)(4)(vi)(F)(2) to read as follows: ■ DEPARTMENT OF THE TREASURY § 1.482–7 Methods to determine taxable income in connection with a cost sharing arrangement. Internal Revenue Service 26 CFR Part 1 * [TD 9630] RIN 1545–BK71 Use of Differential Income Stream as an Application of the Income Method and as a Consideration in Assessing the Best Method; Correction Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendment. AGENCY: This document contains corrections to final regulations and removal of temporary regulations (TD 9630) that were published in the Federal Register on Tuesday, August 27, 2013 (78 FR 52854). The final regulations implement the use of the differential income stream as a consideration in assessing the best method in connection with a cost sharing arrangement and as a specified application of the income method. DATES: This correction is effective October 22, 2013, and is applicable beginning on or after December 19, 2011. FOR FURTHER INFORMATION CONTACT: Mumal R. Hemrajani, at (202) 622–3800 (not a toll free number). SUPPLEMENTARY INFORMATION: SUMMARY: emcdonald on DSK67QTVN1PROD with RULES Background The final regulations and removal of temporary regulations (TD 9630) that are the subject of this correction are under section 482 of the Internal Revenue Code. Need for Correction As published, the final regulations and removal of temporary regulations (TD 9630) contains an error that may prove to be misleading and is in need of clarification. List of Subjects in 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. VerDate Mar<15>2010 16:26 Oct 21, 2013 Jkt 232001 * * * * (g) * * * (4) * * * (vi) * * * (F) * * * (2) * * * See Example 8 of paragraph (g)(4)(viii) of this section. * * * * * Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). [FR Doc. 2013–24537 Filed 10–21–13; 8:45 am] BILLING CODE 4830–01–P PENSION BENEFIT GUARANTY CORPORATION 29 CFR Part 4022 Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions for Paying Benefits Pension Benefit Guaranty Corporation. ACTION: Final rule. AGENCY: This final rule amends the Pension Benefit Guaranty Corporation’s regulation on Benefits Payable in Terminated Single-Employer Plans to prescribe interest assumptions under the regulation for valuation dates in November 2013. The interest assumptions are used for paying benefits under terminating singleemployer plans covered by the pension insurance system administered by PBGC. SUMMARY: DATES: PO 00000 Effective November 1, 2013. Frm 00010 Fmt 4700 Sfmt 4700 E:\FR\FM\22OCR1.SGM 22OCR1

Agencies

[Federal Register Volume 78, Number 204 (Tuesday, October 22, 2013)]
[Rules and Regulations]
[Page 62426]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-24537]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9630]
RIN 1545-BK71


Use of Differential Income Stream as an Application of the Income 
Method and as a Consideration in Assessing the Best Method; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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

SUMMARY: This document contains corrections to final regulations and 
removal of temporary regulations (TD 9630) that were published in the 
Federal Register on Tuesday, August 27, 2013 (78 FR 52854). The final 
regulations implement the use of the differential income stream as a 
consideration in assessing the best method in connection with a cost 
sharing arrangement and as a specified application of the income 
method.

DATES: This correction is effective October 22, 2013, and is applicable 
beginning on or after December 19, 2011.

FOR FURTHER INFORMATION CONTACT: Mumal R. Hemrajani, at (202) 622-3800 
(not a toll free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations and removal of temporary regulations (TD 
9630) that are the subject of this correction are under section 482 of 
the Internal Revenue Code.

Need for Correction

    As published, the final regulations and removal of temporary 
regulations (TD 9630) contains an error that may prove to be misleading 
and is 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 amendment:

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 1.482-7 is amended by revising the last sentence of 
paragraph (g)(4)(vi)(F)(2) to read as follows:


Sec.  1.482-7  Methods to determine taxable income in connection with a 
cost sharing arrangement.

* * * * *
    (g) * * *
    (4) * * *
    (vi) * * *
    (F) * * *
    (2) * * * See Example 8 of paragraph (g)(4)(viii) of this section.
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2013-24537 Filed 10-21-13; 8:45 am]
BILLING CODE 4830-01-P