Dividend Equivalents From Sources Within the United States; Correction, 75946-75947 [2015-30778]

Download as PDF 75946 Federal Register / Vol. 80, No. 234 / Monday, December 7, 2015 / Rules and Regulations Par. 2. Section 1.871–15 is amended by revising paragraphs (i)(4) Example 1. (ii), (i)(4) Example 2. (ii), (r)(1), and (r)(3) and adding paragraph (r)(4) to read as follows: ■ DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9734] § 1.871–15 Treatment of dividend equivalents. RIN 1545–BJ56 * Dividend Equivalents From Sources Within the United States; Correction Internal Revenue Service (IRS), Treasury. ACTION: Final and temporary regulations; correcting amendment. AGENCY: This document contains corrections to final and temporary regulations (TD 9734) that was published in the Federal Register on September 18, 2015 (80 FR 56866). These corrections include a change to the effective date that was applicable to transactions issued on or after January 1, 2016, and before January 1, 2017. This document provides 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. DATES: This correction is effective on December 7, 2015 and applicable on September 18, 2015. FOR FURTHER INFORMATION CONTACT: Peter Merkel or Karen Walny at (202) 317–6938 (not a toll free number). SUPPLEMENTARY INFORMATION: SUMMARY: Background The final and temporary regulations (TD 9734) that are the subject of this correction are under sections 871 and 894 of the Internal Revenue Code. Need for Correction As published, the final and temporary regulations (TD 9734) contain errors that may prove to be misleading and are in need of clarification. * * (i) * * * (4) * * * * * Example 1. * * * (ii) Subject to paragraph (i)(2)(iv) of this section, the estimated dividend amounts are the per-share dividend amounts because the estimates are reasonable and specified in accordance with paragraph (i)(2)(iii) of this section. The estimated per-share dividend amounts are dividend equivalents for purposes of this section. Example 2. * * * (ii) Because the LIBOR leg of the swap contract is reduced to reflect estimated dividends and the estimated dividend amounts are not specified, Foreign Investor is treated as receiving the actual dividend amounts are in accordance with paragraph (i)(2) of this section. The actual per-share dividend amounts are dividend equivalents for purposes of this section. * * * * * (r) * * * (1) In general. This section applies to payments made on or after September 18, 2015 except as provided in paragraphs (r)(2), (3), and (4) of this section. * * * * * (3) Effective/applicability date for paragraphs (d)(2) and (e). Paragraphs (d)(2) and (e) of this section apply to any payment made on or after January 1, 2017, with respect to any transaction issued on or after January 1, 2017. (4) Effective/applicability date for paragraphs (c)(2)(iv), (h), and (q) of this section. [Reserved]. For further guidance, see § 1.871–15T(r)(4). ■ Par. 3. Section 1.871–15T is amended by removing the language ‘‘transaction’’ and adding in its place ‘‘complex contract’’ in paragraph (h)(7) Example. (iv) and revising paragraph (h)(7) Example. (viii) to read as follows: § 1.1441–1 Requirements for the deduction and withholding of tax on payments to foreign persons. * * * * * (e) * * * (3) * * * (ii) * * * (F) [Reserved]. For further guidance, see § 1.1441–1T(e)(3)(ii)(F). * * * * * ■ Par. 5. Section 1.1441–1T is amended by revising the last sentence of paragraph (f)(3) to read as follows: § 1.1441–1T Requirements for the deduction and withholding of tax on payments to foreign persons (temporary). * * * * * (f) * * * (3) * * * Paragraphs (e)(3)(ii)(E) and (e)(6) of this section apply beginning September 18, 2015. * * * * * ■ Par. 6. Section 1.1461–1 is amended by adding a second sentence to paragraph (c)(2)(iii) to read as follows: § 1.1461–1 withheld. Payments and returns of tax * * * * * (c) * * * (2) * * * (iii) * * * Paragraphs (c)(2)(i)(M) and (c)(2)(ii)(J) of this section apply beginning September 18, 2015. * * * * * Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). [FR Doc. 2015–30777 Filed 12–4–15; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9734] RIN 1545–BJ56 List of Subjects in 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. § 1.871–15T Treatment of dividend equivalents (temporary). Dividend Equivalents From Sources Within the United States; Correction * AGENCY: jstallworth on DSK7TPTVN1PROD with RULES Correction of Publication Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments: PART 1—INCOME TAXES Authority: 26 U.S.C. 7805 * * * 15:15 Dec 04, 2015 * * Example. * * * (viii) FI concludes that the Contract is not a section 871(m) transaction because the complex contract calculation of 7.68 exceeds the benchmark calculation of 4.473. * Paragraph 1. The authority citation for part 1 continues to read in part as follows: ■ VerDate Sep<11>2014 * * (h) * * * (7) * * * Jkt 238001 * * * * ■ Par. 4. Section 1.1441–1 is amended by removing the second occurrence of paragraph (e)(3)(ii)(E) and adding paragraph (e)(3)(ii)(F) to read as follows: PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 Internal Revenue Service (IRS), Treasury. ACTION: Final and temporary regulations; correction. This document contains corrections to final and temporary regulations (TD 9734) that was published in the Federal Register on September 18, 2015 (80 FR 56866). These corrections include a change to the effective date that was applicable to transactions issued on or after January 1, SUMMARY: E:\FR\FM\07DER1.SGM 07DER1 Federal Register / Vol. 80, No. 234 / Monday, December 7, 2015 / Rules and Regulations 2016, and before January 1, 2017. This document provides 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. DATES: This correction is effective on December 7, 2015 and applicable on September 18, 2015. FOR FURTHER INFORMATION CONTACT: Peter Merkel or Karen Walny at (202) 317–6938 (not a toll free number). SUPPLEMENTARY INFORMATION: Background The final and temporary regulations (TD 9734) that are the subject of this correction are under sections 871 and 894 of the Internal Revenue Code. Need for Correction As published, the final and temporary regulations (TD 9734) contain errors that may prove to be misleading and are in need of clarification. jstallworth on DSK7TPTVN1PROD with RULES Correction of Publication Accordingly, the final and temporary regulations (TD 9734), that are the subject of FR Doc. 2015–21759, are corrected as follows: 1. On page 56866, in the preamble, the first column, under the caption ‘‘DATES’’, the fourth through seventh lines of the paragraph, the language ‘‘applicability, see §§ 1.871–14(j)(3), 1.871–15(r), 1.871–15T(r)(4), 1.1441– 1(f)(4), 1.1441–1T(f)(3), 1.1441–2(f), 1.1441–3(h)(3), 1.1441–7(a)(4), and ’’ is corrected to read ‘‘applicability, see §§ 1.871–14(j)(3), 1.871–15(r), 1.871– 15T(r)(4), 1.1441–1(f)(4), 1.1441– 1T(f)(3), 1.1441–2(f), 1.1441–3(h)(3), 1.1441–7(a)(4), 1.1461–1(c)(2)(iii), and’’. 2. On page 56866, in the preamble, the first column, the eleventh line from the bottom of the column, the language ‘‘871(m). This information will be used’’ is corrected to read ‘‘871(m) of the Internal Revenue Code. This information will be used’’. 3. On page 56868, in the preamble, the first column, the ninth line from the bottom of the column, the language ‘‘discussed in section E.1 of this’’ is corrected to read ‘‘discussed in section F.1 of this’’. 4. On page 56869, in the preamble, the second column, the tenth line of the first full paragraph, the language ‘‘dividends. As noted in Part II.L. of this’’ is corrected to read ‘‘dividends. As noted in Part II.M. of this’’. 5. On page 56870, in the preamble, the first column, the thirty-second line from the bottom of the column, the VerDate Sep<11>2014 15:15 Dec 04, 2015 Jkt 238001 language ‘‘D. Payment of a Dividend Equivalent’’ is corrected to read ‘‘E. Payment of a Dividend Equivalent’’. 6. On page 56870, in the preamble, the second column, the twenty-second line of the second full paragraph, the language ‘‘equivalent, as discussed in Part II.M of’’ is corrected to read ‘‘equivalent, as discussed in Part II.N of’’. 7. On page 56870, in the preamble, the second column, the eighteenth line from the bottom of the column, the language ‘‘E. Amount of a Dividend Equivalent’’ is corrected to read ‘‘F. Amount of a Dividend Equivalent’’. 8. On page 56870, in the preamble, the third column, the eleventh line from the bottom of the column, the language ‘‘defined in § 1.871–15(a)(14)(ii)’’ is corrected to read ‘‘defined in § 1.871– 15(a)(5)’’. 9. On page 56871, in the preamble, the first column, the twenty-sixth line from the bottom of the column, the language ‘‘F. Qualified Indices’’ is corrected to read ‘‘G. Qualified Indices’’. 10. On page 56872, in the preamble, the first column, the last line of the first full paragraph, the language ‘‘qualified index rule. See § 1.871–15(l)’’ is corrected to read ‘‘qualified index rule. See § 1.871–15(l).’’. 11. On page 56872, in the preamble, the second column, the sixth line from the bottom of the column, the language ‘‘G. Combined Transactions’’ is corrected to read ‘‘H. Combined Transactions’’. 12. On page 56873, in the preamble, the third column, the twelfth line from the top of the column, the language ‘‘H. Derivatives Referenced to Partnership’’ is corrected to read ‘‘I. Derivatives Referenced to Partnership’’. 13. On page 56873, in the preamble, the third column, the fifth line from the bottom of the column, the language ‘‘I. Anti-Abuse Rule’’ is corrected to read ‘‘J. Anti-Abuse Rule’’. 14. On page 56874, in the preamble, the first column, the twenty-fourth line from the top of the column, the language ‘‘J. Reporting Obligations’’ is corrected to read ‘‘K. Reporting Obligations’’. 15. On page 56874, in the preamble, the first column, the fifteenth line of the second full paragraph, the language ‘‘871(m) transaction the broker or dealer’’ is corrected to read ‘‘871(m) transaction, the broker or dealer’’. 16. On page 56874, in the preamble, the third column, the first line of column, the language ‘‘K. Recordkeeping Rules’’ is corrected to read ‘‘L. Recordkeeping Rules’’. 17. On page 56874, in the preamble, the third column, the thirty-second line from the top of column, the language ‘‘L. PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 75947 Contingent and Convertible Debt’’ is corrected to read ‘‘M. Contingent and Convertible Debt’’. 18. On page 56875, in the preamble, the second column, the third line from the top of the column, the language ‘‘M. Amounts Subject to Withholding’’ is corrected to read ‘‘N. Amounts Subject to Withholding’’. 19. On page 56877, in the preamble, the second column, the fifth line from the bottom of the third full paragraph, the language ‘‘on the same underlying securities.’’ is corrected to read ‘‘on the same underlying security.’’. 20. On page 56878, in the preamble, the second column, under the paragraph heading ‘‘IV. Effective/Applicability Date’’, the third sentence of the first full paragraph is removed. Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration). [FR Doc. 2015–30778 Filed 12–4–15; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF DEFENSE Department of the Army, Corps of Engineers 33 CFR Part 334 West Arm Behm Canal, Naval Surface Warfare Center, Ketchikan, Alaska; Restricted Areas AGENCY: U.S. Army Corps of Engineers, DoD. ACTION: Final rule. The U.S. Army Corps of Engineers (Corps) is amending existing regulations for an existing restricted area near Ketchikan, Alaska to correct inaccuracies in regards to flashing beacon light descriptions, point of contact changes, and restrictive area distances for small craft. DATES: Effective date: January 6, 2016. ADDRESSES: U.S. Army Corps of Engineers, Attn: CECW–CO (David B. Olson), 441 G Street NW., Washington, DC 20314–1000. FOR FURTHER INFORMATION CONTACT: Mr. David Olson, Headquarters, Operations and Regulatory Community of Practice, Washington, DC at 202–761–4922 or Ms. Linda Speerstra, U.S. Army Corps of Engineers, Alaska District, Regulatory Division, at 907–747–0658. SUPPLEMENTARY INFORMATION: Pursuant to its authorities in Section 7 of the Rivers and Harbors Act of 1917 (40 Stat 266; 33 U.S.C. 1) and Chapter XIX of the Army Appropriations Act of 1919 (40 SUMMARY: E:\FR\FM\07DER1.SGM 07DER1

Agencies

[Federal Register Volume 80, Number 234 (Monday, December 7, 2015)]
[Rules and Regulations]
[Pages 75946-75947]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30778]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9734]
RIN 1545-BJ56


Dividend Equivalents From Sources Within the United States; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final and temporary regulations; correction.

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

SUMMARY: This document contains corrections to final and temporary 
regulations (TD 9734) that was published in the Federal Register on 
September 18, 2015 (80 FR 56866). These corrections include a change to 
the effective date that was applicable to transactions issued on or 
after January 1,

[[Page 75947]]

2016, and before January 1, 2017. This document provides 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.

DATES: This correction is effective on December 7, 2015 and applicable 
on September 18, 2015.

FOR FURTHER INFORMATION CONTACT: Peter Merkel or Karen Walny at (202) 
317-6938 (not a toll free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final and temporary regulations (TD 9734) that are the subject 
of this correction are under sections 871 and 894 of the Internal 
Revenue Code.

Need for Correction

    As published, the final and temporary regulations (TD 9734) contain 
errors that may prove to be misleading and are in need of 
clarification.

Correction of Publication

    Accordingly, the final and temporary regulations (TD 9734), that 
are the subject of FR Doc. 2015-21759, are corrected as follows:
    1. On page 56866, in the preamble, the first column, under the 
caption ``DATES'', the fourth through seventh lines of the paragraph, 
the language ``applicability, see Sec. Sec.  1.871-14(j)(3), 1.871-
15(r), 1.871-15T(r)(4), 1.1441-1(f)(4), 1.1441-1T(f)(3), 1.1441-2(f), 
1.1441-3(h)(3), 1.1441-7(a)(4), and '' is corrected to read 
``applicability, see Sec. Sec.  1.871-14(j)(3), 1.871-15(r), 1.871-
15T(r)(4), 1.1441-1(f)(4), 1.1441-1T(f)(3), 1.1441-2(f), 1.1441-
3(h)(3), 1.1441-7(a)(4), 1.1461-1(c)(2)(iii), and''.
    2. On page 56866, in the preamble, the first column, the eleventh 
line from the bottom of the column, the language ``871(m). This 
information will be used'' is corrected to read ``871(m) of the 
Internal Revenue Code. This information will be used''.
    3. On page 56868, in the preamble, the first column, the ninth line 
from the bottom of the column, the language ``discussed in section E.1 
of this'' is corrected to read ``discussed in section F.1 of this''.
    4. On page 56869, in the preamble, the second column, the tenth 
line of the first full paragraph, the language ``dividends. As noted in 
Part II.L. of this'' is corrected to read ``dividends. As noted in Part 
II.M. of this''.
    5. On page 56870, in the preamble, the first column, the thirty-
second line from the bottom of the column, the language ``D. Payment of 
a Dividend Equivalent'' is corrected to read ``E. Payment of a Dividend 
Equivalent''.
    6. On page 56870, in the preamble, the second column, the twenty-
second line of the second full paragraph, the language ``equivalent, as 
discussed in Part II.M of'' is corrected to read ``equivalent, as 
discussed in Part II.N of''.
    7. On page 56870, in the preamble, the second column, the 
eighteenth line from the bottom of the column, the language ``E. Amount 
of a Dividend Equivalent'' is corrected to read ``F. Amount of a 
Dividend Equivalent''.
    8. On page 56870, in the preamble, the third column, the eleventh 
line from the bottom of the column, the language ``defined in Sec.  
1.871-15(a)(14)(ii)'' is corrected to read ``defined in Sec.  1.871-
15(a)(5)''.
    9. On page 56871, in the preamble, the first column, the twenty-
sixth line from the bottom of the column, the language ``F. Qualified 
Indices'' is corrected to read ``G. Qualified Indices''.
    10. On page 56872, in the preamble, the first column, the last line 
of the first full paragraph, the language ``qualified index rule. See 
Sec.  1.871-15(l)'' is corrected to read ``qualified index rule. See 
Sec.  1.871-15(l).''.
    11. On page 56872, in the preamble, the second column, the sixth 
line from the bottom of the column, the language ``G. Combined 
Transactions'' is corrected to read ``H. Combined Transactions''.
    12. On page 56873, in the preamble, the third column, the twelfth 
line from the top of the column, the language ``H. Derivatives 
Referenced to Partnership'' is corrected to read ``I. Derivatives 
Referenced to Partnership''.
    13. On page 56873, in the preamble, the third column, the fifth 
line from the bottom of the column, the language ``I. Anti-Abuse Rule'' 
is corrected to read ``J. Anti-Abuse Rule''.
    14. On page 56874, in the preamble, the first column, the twenty-
fourth line from the top of the column, the language ``J. Reporting 
Obligations'' is corrected to read ``K. Reporting Obligations''.
    15. On page 56874, in the preamble, the first column, the fifteenth 
line of the second full paragraph, the language ``871(m) transaction 
the broker or dealer'' is corrected to read ``871(m) transaction, the 
broker or dealer''.
    16. On page 56874, in the preamble, the third column, the first 
line of column, the language ``K. Recordkeeping Rules'' is corrected to 
read ``L. Recordkeeping Rules''.
    17. On page 56874, in the preamble, the third column, the thirty-
second line from the top of column, the language ``L. Contingent and 
Convertible Debt'' is corrected to read ``M. Contingent and Convertible 
Debt''.
    18. On page 56875, in the preamble, the second column, the third 
line from the top of the column, the language ``M. Amounts Subject to 
Withholding'' is corrected to read ``N. Amounts Subject to 
Withholding''.
    19. On page 56877, in the preamble, the second column, the fifth 
line from the bottom of the third full paragraph, the language ``on the 
same underlying securities.'' is corrected to read ``on the same 
underlying security.''.
    20. On page 56878, in the preamble, the second column, under the 
paragraph heading ``IV. Effective/Applicability Date'', the third 
sentence of the first full paragraph is removed.

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2015-30778 Filed 12-4-15; 8:45 am]
 BILLING CODE 4830-01-P