Dividend Equivalents From Sources Within the United States; Correction, 10054-10055 [2014-03767]
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10054
Federal Register / Vol. 79, No. 36 / Monday, February 24, 2014 / Proposed Rules
figures or factors, alternative
approaches, and relevant scientific,
technical and economic data. These
comments will help the Department
evaluate whether a proposed
rulemaking is needed and appropriate.
B. Executive Order 13132 (Federalism)
This ANPRM has been analyzed in
accordance with the principles and
criteria contained in Executive Order
13132 (‘‘Federalism’’). This notice does
not propose any regulation that (1) has
substantial direct effects on the States,
the relationship between the national
government and the States, or the
distribution of power and
responsibilities among the various
levels of government, (2) imposes
substantial direct compliance costs on
State and local governments, or (3)
preempts State law. States are already
preempted from regulating in this area
by the Airline Deregulation Act, 49
U.S.C. 41713. Therefore, the
consultation and funding requirements
of Executive Order 13132 do not apply.
C. Executive Order 13084
sroberts on DSK5SPTVN1PROD with PROPOSALS
D. Regulatory Flexibility Act
The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) requires an agency to
review regulations to assess their impact
on small entities unless the agency
determines that a rule is not expected to
have a significant economic impact on
a substantial number of small entities. A
direct air carrier or foreign air carrier is
a small business if it provides air
transportation only with small aircraft
(i.e., aircraft with up to 60 seats/18,000
pound payload capacity). See 14 CFR
399.73. If the Department proposes to
adopt the regulatory initiative discussed
in this ANPRM, it is possible that it may
have some impact on some small
entities but we do not believe that it
would have a significant economic
impact on a substantial number of small
entities. We invite comment to facilitate
our assessment of the potential impact
of these initiatives on small entities.
16:44 Feb 21, 2014
Under the Paperwork Reduction Act
(44 U.S.C. 3501 et seq.), no person is
required to respond to a collection of
information unless it displays a valid
OMB control number. This ANPRM
does not propose any new information
collection burdens.
F. Unfunded Mandates Reform Act
The Department has determined that
the requirements of Title II of the
Unfunded Mandates Reform Act of 1995
do not apply to this notice.
Issued this 14th Day of February 2014, in
Washington, DC.
Anthony R. Foxx,
Secretary of Transportation.
[FR Doc. 2014–03684 Filed 2–21–14; 8:45 am]
BILLING CODE 4910–XX–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–120282–10]
This ANPRM has been analyzed in
accordance with the principles and
criteria contained in Executive Order
13084 (‘‘Consultation and Coordination
with Indian Tribal Governments’’).
Because none of the topics on which we
are seeking comment would
significantly or uniquely affect the
communities of the Indian tribal
governments or impose substantial
direct compliance costs on them, the
funding and consultation requirements
of Executive Order 13084 do not apply.
VerDate Mar<15>2010
E. Paperwork Reduction Act
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RIN 1545–BJ56
Dividend Equivalents From Sources
Within the United States; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to a withdrawal of
notice of proposed rulemaking, notice of
proposed rulemaking and notice of
public hearing.
AGENCY:
This document contains
corrections to a withdrawal of notice of
proposed rulemaking, notice of
proposed rulemaking and notice of
public hearing (REG–120282–10) that
was published in the Federal Register
on Thursday, December 5, 2013 (78 FR
73128). The proposed rules provide
guidance to nonresident alien
individuals and foreign corporations
that hold certain financial products
providing for payments that are
contingent upon or determined by
reference to U.S. source dividend
payments and to withholding agents.
DATES: Written or electronic comments
and requests for a public hearing for the
notice of proposed rulemaking
published at 78 FR 73129, December 5,
2013 are still being accepted and must
be received by March 5, 2014.
FOR FURTHER INFORMATION CONTACT: D.
Peter Merkel at (202) 317–6938 (not a
toll free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
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Background
The withdrawal of notice of proposed
rulemaking, notice of proposed
rulemaking and notice of public hearing
(REG–120282–10) that is the subject of
these corrections is under section 871 of
the Internal Revenue Code.
Need for Correction
As published, withdrawal of notice of
proposed rulemaking, notice of
proposed rulemaking and notice of
public hearing (REG–120282–10)
contains errors that may prove to be
misleading and are in need of
clarification.
Correction of Publication
Accordingly, withdrawal of notice of
proposed rulemaking, notice of
proposed rulemaking and notice of
public hearing (REG–120282–10), that
was the subject of FR Doc. 2013–28932,
is corrected as follows:
1. On page 73131, in the preamble,
first column, under paragraph heading
‘‘B. Definition of ELI’’, second line, the
language ‘‘specified ELI in the 2012
proposed’’ is corrected to read ‘‘a
specified ELI in the 2012 proposed’’
2. On page 73134, in the preamble,
second column, twelfth line from the
bottom of the page, the language
‘‘security referenced in the contract’’ is
corrected to read ‘‘security referenced in
the transaction’’.
3. On page 73135, in the preamble,
third column, fifteenth line of the first
full paragraph, the language ‘‘any of the
following to has occurred: (a)’’ is
corrected to read ‘‘any of the following
has occurred: (a)’’.
4. On page 73135, in the preamble,
third column, Twelfth line from the
bottom of the page, the language ‘‘option
with a delta below 0.7, or both.’’ is
corrected to read ‘‘option with a delta
below 0.70, or both.’’
5. On page 73136, in the preamble,
second column, seventh line from the
top of the page, the language ‘‘for April
11, 2013, beginning at 10 a.m.’’ is
corrected to read ‘‘for April 11, 2014,
beginning at 10 a.m.’’.
§ 1.871–15
[Corrected]
6. On Page 73137, first column, the
first sentence of paragraph (a)(7)(iv)(B)
Example. (i) should read ‘‘Stock X and
Stock Y are underlying securities within
the meaning of paragraph (a)(11) of this
section.’’.
7. On page 73137, third column, the
first sentence of paragraph (c)(2)(i)
should read ‘‘A payment pursuant to a
section 871(m) transaction that
references a distribution with respect to
an underlying security is not a dividend
equivalent to the extent that the
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Federal Register / Vol. 79, No. 36 / Monday, February 24, 2014 / Proposed Rules
distribution would not be subject to tax
pursuant to section 871 or 881, or
withholding under chapter 3 or 4, if the
long party owned the underlying
security referenced by the section
871(m) transaction.’’.
8. On page 73137, third column, the
first sentence of paragraph (e) should
read ‘‘With respect to payments made
on or after January 1, 2016, a specified
ELI is any ELI acquired by the long
party on or after March 5, 2014, that has
a delta of 0.70 or greater with respect to
an underlying security at the time that
the long party acquires the ELI.’’.
9. On page 73141, first column,
paragraph (l)(6) Example 3. (ii) should
read ‘‘FI’s purchased call option has an
initial delta of 0.75 and therefore is a
specified ELI and a section 871(m)
transaction. FI’s purchased call option
and sold put option reference the same
underlying security. Because FI sold the
put option referencing Stock X to adjust
FI’s economic position associated with
the call option referencing Stock X,
these options are entered into in
connection with each other and treated
as a combined transaction under
paragraph (l)(1) of this section. Because
the delta of the combined transaction is
tested on the date that FI entered into
the additional transaction, the delta of
the combined purchased call option and
sold put option is 0.60 (0.35 + 0.25). The
combined transaction is not a specified
ELI; however, the purchased call option
remains a specified ELI.’’.
§ 1.1441–1
[Corrected]
sroberts on DSK5SPTVN1PROD with PROPOSALS
10. On page 73142, third column,
paragraph (b)(4)(xxiii) should read ‘‘If a
potential section 871(m) transaction is
only a section 871(m) transaction as a
result of applying § 1.871–15(l)
(combined transactions) and the
withholding agent did not know that the
long party (or a related person) entered
into the potential section 871(m)
transaction in connection with any
other potential section 871(m)
transaction, the potential section 871(m)
transaction is exempt from withholding
under section 1441(a).’’.
Martin V. Franks,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. 2014–03767 Filed 2–21–14; 8:45 am]
BILLING CODE 4830–01–P
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16:44 Feb 21, 2014
Jkt 232001
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–130843–13]
RIN 1545–BL74
Net Investment Income Tax; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to a withdrawal of
notice of proposed rulemaking and
notice of proposed rulemaking.
AGENCY:
This document contains
corrections to a withdrawal of notice of
proposed rulemaking and notice of
proposed rulemaking (REG–130843–13)
that was published in the Federal
Register on Monday, December 2, 2013,
providing guidance on the computation
of net investment income.
DATES: Written or electronic comments
and requests for a public hearing for the
notice of proposed rulemaking
published at 78 FR 72451, December 2,
2013 are still being accepted and must
be received by March 3, 2014.
FOR FURTHER INFORMATION CONTACT:
Adrienne M. Mikolashek at (202) 317–
6852 (not a toll free number).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
The withdrawal of notice of proposed
rulemaking and notice of proposed
rulemaking (REG–130843–13) that is the
subject of these corrections is under
section 1411 of the Internal Revenue
Code.
Need for Correction
As published, withdrawal of notice of
proposed rulemaking and notice of
proposed rulemaking (REG–130843–13)
contains errors that may prove to be
misleading and are in need of
clarification.
Correction of Publication
Accordingly, withdrawal of notice of
proposed rulemaking and notice of
proposed rulemaking (REG–130843–13)
that was the subject of FR Doc. 2013–
28409, is corrected as follows:
1. On page 72456, in the preamble,
first column, twenty-first line from the
top of the page, the language ‘‘taken
income account in computing net’’ is
corrected to read ‘‘taken into account in
computing net’’.
2. On page 72456, in the preamble,
third column, under the paragraph
heading ‘‘B. Section 1291 Funds’’, first
line, the language ‘‘The Final 2013
Regulations also’’ is corrected to read
‘‘The 2013 Final Regulations also’’.
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10055
3. On page 72457, in the preamble,
first column, sixth line of the second
full paragraph, the language ‘‘chapter 1
under section 953(d) and’’ is corrected
to read ‘‘chapter 1 under sections 953(d)
and’’.
4. On page 72457, in the preamble,
second column, tenth line of the first
full paragraph, the language
‘‘calculation rules for CFC QEFs, and’’ is
corrected to read ‘‘calculation rules for
CFCs, QEFs, and’’.
5. On page 72460, in the preamble,
first column, second line from the top
of the page, the language
‘‘2T(e)(3)(ii)(B)(1)(i) requires the
taxpayer’’ is corrected to read
‘‘2T(e)(3)(ii)(B)(1)(i) requires the
taxpayer’’.
6. On page 72460, in the preamble,
first column, sixth line of the second
full paragraph, the language ‘‘469 do not
apply for purposes of these’’ is corrected
to read ‘‘section 469 do not apply for
purposes of these’’.
7. On page 72461, in the preamble,
second column, twelfth line from the
top of the page, the language ‘‘through
is appropriate’’ is corrected to read ‘‘is
appropriate’’.
8. On page 72461, in the preamble,
third column, under the paragraph
heading ‘‘G. Information Reporting’’,
fifth line, the language ‘‘commentators
expressed concern that’’ is corrected to
read ‘‘commentators expressed concern
that the’’.
§ 1.1411–4
[Corrected]
9. On Page 72470, first column, the
paragraph heading for (g)(11)(ii)(B)
Example 1. should read ‘‘Example 1.
Distributive share for unrealized
receivables.’’
10. On page 72470, first column, the
first and second sentences of paragraph
(g)(11)(ii)(B) Example 1. (i), should read
‘‘A retires from PRS, a business entity
classified as a partnership for Federal
Income tax purposes for which capital
is not a material income producing
factor. A is entitled, pursuant to the
partnership agreement, to receive 10%
of PRS’s net income for 60 months
commencing immediately following A’s
retirement in exchange for A’s fair
market value share of PRS’s unrealized
receivables.’’.
11. On page 72470, first column, the
fifth sentence of paragraph (g)(11)(ii)(B)
Example 1. (i), should read ‘‘Prior to A’s
retirement, A materially participated as
a general partner in PRS’s trade or
business within the meaning of § 1.469–
5T.’’.
§ 1.1411–7
[Corrected]
12. On page 72473, second column,
the first sentence of paragraph (c)(4),
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]]>Agencies
[Federal Register Volume 79, Number 36 (Monday, February 24, 2014)]
[Proposed Rules]
[Pages 10054-10055]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03767]
=======================================================================
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-120282-10]
RIN 1545-BJ56
Dividend Equivalents From Sources Within the United States;
Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correction to a withdrawal of notice of proposed rulemaking,
notice of proposed rulemaking and notice of public hearing.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to a withdrawal of notice
of proposed rulemaking, notice of proposed rulemaking and notice of
public hearing (REG-120282-10) that was published in the Federal
Register on Thursday, December 5, 2013 (78 FR 73128). The proposed
rules provide guidance to nonresident alien individuals and foreign
corporations that hold certain financial products providing for
payments that are contingent upon or determined by reference to U.S.
source dividend payments and to withholding agents.
DATES: Written or electronic comments and requests for a public hearing
for the notice of proposed rulemaking published at 78 FR 73129,
December 5, 2013 are still being accepted and must be received by March
5, 2014.
FOR FURTHER INFORMATION CONTACT: D. Peter Merkel at (202) 317-6938 (not
a toll free number).
SUPPLEMENTARY INFORMATION:
Background
The withdrawal of notice of proposed rulemaking, notice of proposed
rulemaking and notice of public hearing (REG-120282-10) that is the
subject of these corrections is under section 871 of the Internal
Revenue Code.
Need for Correction
As published, withdrawal of notice of proposed rulemaking, notice
of proposed rulemaking and notice of public hearing (REG-120282-10)
contains errors that may prove to be misleading and are in need of
clarification.
Correction of Publication
Accordingly, withdrawal of notice of proposed rulemaking, notice of
proposed rulemaking and notice of public hearing (REG-120282-10), that
was the subject of FR Doc. 2013-28932, is corrected as follows:
1. On page 73131, in the preamble, first column, under paragraph
heading ``B. Definition of ELI'', second line, the language ``specified
ELI in the 2012 proposed'' is corrected to read ``a specified ELI in
the 2012 proposed''
2. On page 73134, in the preamble, second column, twelfth line from
the bottom of the page, the language ``security referenced in the
contract'' is corrected to read ``security referenced in the
transaction''.
3. On page 73135, in the preamble, third column, fifteenth line of
the first full paragraph, the language ``any of the following to has
occurred: (a)'' is corrected to read ``any of the following has
occurred: (a)''.
4. On page 73135, in the preamble, third column, Twelfth line from
the bottom of the page, the language ``option with a delta below 0.7,
or both.'' is corrected to read ``option with a delta below 0.70, or
both.''
5. On page 73136, in the preamble, second column, seventh line from
the top of the page, the language ``for April 11, 2013, beginning at 10
a.m.'' is corrected to read ``for April 11, 2014, beginning at 10
a.m.''.
Sec. 1.871-15 [Corrected]
6. On Page 73137, first column, the first sentence of paragraph
(a)(7)(iv)(B) Example. (i) should read ``Stock X and Stock Y are
underlying securities within the meaning of paragraph (a)(11) of this
section.''.
7. On page 73137, third column, the first sentence of paragraph
(c)(2)(i) should read ``A payment pursuant to a section 871(m)
transaction that references a distribution with respect to an
underlying security is not a dividend equivalent to the extent that the
[[Page 10055]]
distribution would not be subject to tax pursuant to section 871 or
881, or withholding under chapter 3 or 4, if the long party owned the
underlying security referenced by the section 871(m) transaction.''.
8. On page 73137, third column, the first sentence of paragraph (e)
should read ``With respect to payments made on or after January 1,
2016, a specified ELI is any ELI acquired by the long party on or after
March 5, 2014, that has a delta of 0.70 or greater with respect to an
underlying security at the time that the long party acquires the
ELI.''.
9. On page 73141, first column, paragraph (l)(6) Example 3. (ii)
should read ``FI's purchased call option has an initial delta of 0.75
and therefore is a specified ELI and a section 871(m) transaction. FI's
purchased call option and sold put option reference the same underlying
security. Because FI sold the put option referencing Stock X to adjust
FI's economic position associated with the call option referencing
Stock X, these options are entered into in connection with each other
and treated as a combined transaction under paragraph (l)(1) of this
section. Because the delta of the combined transaction is tested on the
date that FI entered into the additional transaction, the delta of the
combined purchased call option and sold put option is 0.60 (0.35 +
0.25). The combined transaction is not a specified ELI; however, the
purchased call option remains a specified ELI.''.
Sec. 1.1441-1 [Corrected]
10. On page 73142, third column, paragraph (b)(4)(xxiii) should
read ``If a potential section 871(m) transaction is only a section
871(m) transaction as a result of applying Sec. 1.871-15(l) (combined
transactions) and the withholding agent did not know that the long
party (or a related person) entered into the potential section 871(m)
transaction in connection with any other potential section 871(m)
transaction, the potential section 871(m) transaction is exempt from
withholding under section 1441(a).''.
Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2014-03767 Filed 2-21-14; 8:45 am]
BILLING CODE 4830-01-P
