Notional Principal Contracts; Swaps With Nonperiodic Payments, 61308 [2015-25921]
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Federal Register / Vol. 80, No. 197 / Tuesday, October 13, 2015 / Rules and Regulations
(B) [Reserved].
(vi) AASHTO LRFD Movable
Highway Bridge Design Specifications,
2nd Edition, 2007, with:
(A) Interim Revisions, 2008,
(B) Interim Revisions, 2010,
(C) Interim Revisions, 2011,
(D) Interim Revisions, 2012,
(E) Interim Revisions, 2014, and
(F) Interim Revisions, 2015
(vii) AASHTO/AWS D1.5M/D1.5:
2010 Bridge Welding Code, 6th Edition,
2010, with:
(A) Interim Revisions, 2011, and
(B) Interim Revisions, 2012
(viii) Standard Specifications for
Structural Supports for Highway Signs,
Luminaires and Traffic Signals, 6th
Edition, AASHTO 2013.
(2) American Welding Society (AWS),
8869 NW 36 Street, #130 Miami, FL
33166–6672; www.aws.org; or (800)
443–9353 or (305) 443–9353.
(i) D1.4/D1.4M: 2011 Structural
Welding Code—Reinforcing Steel, 2011.
(ii) [Reserved].
(e) The FHWA supports using, as
design resources to achieve context
sensitive designs, guides that national
organizations develop from peerreviewed research, or equivalent guides
that are developed in cooperation with
State or local officials, when such
guides are not in conflict with Federal
laws and regulations.
[FR Doc. 2015–25931 Filed 10–9–15; 8:45 am]
BILLING CODE 4910–22–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9719]
RIN 1545–BM62
Notional Principal Contracts; Swaps
With Nonperiodic Payments
Internal Revenue Service (IRS),
Treasury.
ACTION: Temporary regulations;
correcting amendments.
AGENCY:
This document contains
amendments to temporary regulations
relating to guidance for the treatment of
nonperiodic payments made or received
pursuant to certain notional principal
contracts. These amendments change
the applicability date of the embedded
loan rule for the treatment of
nonperiodic payments from November
4, 2015, to the later of January 1, 2017,
or six months after the date of
publication of the Treasury decision
adopting these rules as final regulations
asabaliauskas on DSK5VPTVN1PROD with RULES
SUMMARY:
VerDate Sep<11>2014
17:03 Oct 09, 2015
Jkt 238001
in the Federal Register. The
amendments to the temporary
regulations provide guidance to
taxpayers who are parties making and
receiving nonperiodic payments under
notional principal contracts.
DATES: Effective Date: These
amendments are effective on October
13, 2015.
Applicability Date: For the date of
applicability, see § 1.446–3T(j)(2), as
corrected.
FOR FURTHER INFORMATION CONTACT:
Alexa Dubert at (202) 317–6945 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
to nonperiodic payments that are
significant.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
Amendments to the Regulations
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:
■
Background
Authority: 26 U.S.C. 7805 * * *
The temporary regulations that are the
subject of these amendments are under
section 446(b) of the Internal Revenue
Code (Code). The temporary regulations
(TD 9719) were published in the
Federal Register on Friday, May 8, 2015
(80 FR 26437).
Need for Amendments
Section 1.446–3T(g)(4)(i) of the
temporary regulations provides that,
subject to certain exceptions set forth in
§ 1.446–3T(g)(4)(ii), a notional principal
contract with one or more nonperiodic
payments is treated as two separate
transactions consisting of an on-market,
level payment swap and one or more
loans (the embedded loan rule). Section
1.446–3T(g)(4)(i) eliminated the
exception to the embedded loan rule for
non-significant, nonperiodic payments
set forth in the final regulations (TD
8491) published in the Federal Register
on October 14, 1993 (58 FR 53125) (the
1993 Regulations). See § 1.446–3.
Section 1.446–3T(g)(4)(i) applies to
notional principal contracts entered into
on or after November 4, 2015. After
publication of the temporary
regulations, the Treasury Department
and the IRS received comments
requesting the delay of the applicability
date of the embedded loan rule set forth
in the temporary regulations. In
response to those comments, this
document amends the applicability date
to make § 1.446–3T(g)(4)(i) and § 1.446–
3T(g)(6) Example 2 apply to notional
principal contracts entered into on or
after the later of January 1, 2017, or 180
days after the date of publication of the
Treasury decision adopting these rules
as final regulations in the Federal
Register. Prior to the date of
applicability of § 1.446–3T(g)(4)(i), as
corrected, taxpayers may continue to
apply the 1993 Regulations that (except
for purposes of section 956) limit the
application of the embedded loan rule
PO 00000
Frm 00032
Fmt 4700
Sfmt 9990
Par. 2. Section 1.446–3T is amended
by revising paragraph (j)(2) to read as
follows:
■
§ 1.446–3T Notional principal contracts
(temporary).
*
*
*
*
*
(j) * * *
(2) Application of § 1.446–3T(g)(4).
Paragraph (g)(4)(i) of this section and
paragraph (g)(6) Example 2 of this
section apply to notional principal
contracts entered into on or after the
later of January 1, 2017, or 180 days
after the date of publication of the
Treasury decision adopting these rules
as final regulations in the Federal
Register. Paragraph (g)(4)(ii) of this
section applies to notional principal
contracts entered into on or after May 8,
2015. However, before the later of
January 1, 2017, or 180 days after the
date of publication of the Treasury
decision adopting paragraph (g)(4)(i) of
this section as final regulations in the
Federal Register, taxpayers may rely on
the provision in § 1.446–3(g)(4), as
contained in 26 CFR part 1, revised
April 1, 2015, which (except for
purposes of section 956) limits the
application of the embedded loan rule
to nonperiodic payments that are
significant, even if the requirements for
the exceptions in paragraph (g)(4)(ii) of
this section are not met. Taxpayers may
apply paragraph (g)(4)(i) of this section,
paragraph (g)(4)(ii) of this section, or
both to notional principal contracts
entered into before the dates set forth in
this paragraph (j)(2).
*
*
*
*
*
Martin Franks,
Branch Chief, Publications & Regulations
Branch, Legal Processing Division, Associate
Chief Counsel (Procedure & Administration).
[FR Doc. 2015–25921 Filed 10–9–15; 8:45 am]
BILLING CODE 4830–01–P
E:\FR\FM\13OCR1.SGM
13OCR1
]]>Agencies
[Federal Register Volume 80, Number 197 (Tuesday, October 13, 2015)]
[Rules and Regulations]
[Page 61308]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-25921]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9719]
RIN 1545-BM62
Notional Principal Contracts; Swaps With Nonperiodic Payments
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Temporary regulations; correcting amendments.
-----------------------------------------------------------------------
SUMMARY: This document contains amendments to temporary regulations
relating to guidance for the treatment of nonperiodic payments made or
received pursuant to certain notional principal contracts. These
amendments change the applicability date of the embedded loan rule for
the treatment of nonperiodic payments from November 4, 2015, to the
later of January 1, 2017, or six months after the date of publication
of the Treasury decision adopting these rules as final regulations in
the Federal Register. The amendments to the temporary regulations
provide guidance to taxpayers who are parties making and receiving
nonperiodic payments under notional principal contracts.
DATES: Effective Date: These amendments are effective on October 13,
2015.
Applicability Date: For the date of applicability, see Sec. 1.446-
3T(j)(2), as corrected.
FOR FURTHER INFORMATION CONTACT: Alexa Dubert at (202) 317-6945 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The temporary regulations that are the subject of these amendments
are under section 446(b) of the Internal Revenue Code (Code). The
temporary regulations (TD 9719) were published in the Federal Register
on Friday, May 8, 2015 (80 FR 26437).
Need for Amendments
Section 1.446-3T(g)(4)(i) of the temporary regulations provides
that, subject to certain exceptions set forth in Sec. 1.446-
3T(g)(4)(ii), a notional principal contract with one or more
nonperiodic payments is treated as two separate transactions consisting
of an on-market, level payment swap and one or more loans (the embedded
loan rule). Section 1.446-3T(g)(4)(i) eliminated the exception to the
embedded loan rule for non-significant, nonperiodic payments set forth
in the final regulations (TD 8491) published in the Federal Register on
October 14, 1993 (58 FR 53125) (the 1993 Regulations). See Sec. 1.446-
3. Section 1.446-3T(g)(4)(i) applies to notional principal contracts
entered into on or after November 4, 2015. After publication of the
temporary regulations, the Treasury Department and the IRS received
comments requesting the delay of the applicability date of the embedded
loan rule set forth in the temporary regulations. In response to those
comments, this document amends the applicability date to make Sec.
1.446-3T(g)(4)(i) and Sec. 1.446-3T(g)(6) Example 2 apply to notional
principal contracts entered into on or after the later of January 1,
2017, or 180 days after the date of publication of the Treasury
decision adopting these rules as final regulations in the Federal
Register. Prior to the date of applicability of Sec. 1.446-
3T(g)(4)(i), as corrected, taxpayers may continue to apply the 1993
Regulations that (except for purposes of section 956) limit the
application of the embedded loan rule to nonperiodic payments that are
significant.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Amendments to the Regulations
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 1.446-3T is amended by revising paragraph (j)(2) to
read as follows:
Sec. 1.446-3T Notional principal contracts (temporary).
* * * * *
(j) * * *
(2) Application of Sec. 1.446-3T(g)(4). Paragraph (g)(4)(i) of
this section and paragraph (g)(6) Example 2 of this section apply to
notional principal contracts entered into on or after the later of
January 1, 2017, or 180 days after the date of publication of the
Treasury decision adopting these rules as final regulations in the
Federal Register. Paragraph (g)(4)(ii) of this section applies to
notional principal contracts entered into on or after May 8, 2015.
However, before the later of January 1, 2017, or 180 days after the
date of publication of the Treasury decision adopting paragraph
(g)(4)(i) of this section as final regulations in the Federal Register,
taxpayers may rely on the provision in Sec. 1.446-3(g)(4), as
contained in 26 CFR part 1, revised April 1, 2015, which (except for
purposes of section 956) limits the application of the embedded loan
rule to nonperiodic payments that are significant, even if the
requirements for the exceptions in paragraph (g)(4)(ii) of this section
are not met. Taxpayers may apply paragraph (g)(4)(i) of this section,
paragraph (g)(4)(ii) of this section, or both to notional principal
contracts entered into before the dates set forth in this paragraph
(j)(2).
* * * * *
Martin Franks,
Branch Chief, Publications & Regulations Branch, Legal Processing
Division, Associate Chief Counsel (Procedure & Administration).
[FR Doc. 2015-25921 Filed 10-9-15; 8:45 am]
BILLING CODE 4830-01-P
