Partial Withdrawal of Proposed Application of Section 367 to a Section 351 Exchange Resulting From a Transaction Described in Section 304(a)(1); Partial Withdrawal of Proposed Guidance for Determining Stock Ownership, 20587-20588 [2016-07295]

Download as PDF Federal Register / Vol. 81, No. 68 / Friday, April 8, 2016 / Proposed Rules and electric power contracts in question that should be reflected in the proposed guidance? If so, why and how? 7. Does the proposed guidance provide sufficient clarity that it does not supersede or modify the CFTC OGC FAQ referenced in footnote 34? Is there any potential overlap between the proposed guidance and the CFTC OGC FAQ that should be further clarified? If so, what elements of the proposed guidance should be clarified to indicate that the proposed guidance does not supersede or modify the CFTC OGC FAQ? 8. With respect to natural gas peaking contracts, are there natural gas providers other than LDCs, such as Intrastate and Interstate Natural Gas Pipelines (as those terms are defined by the Energy Information Administration),40 which are subject to regulatory obligations to prioritize and serve residential demand for natural gas, such that the providers are obligated to curtail service to electric utilities under certain circumstances? If so, please explain. By the Securities and Exchange Commission. Dated: April 4, 2016. Brent J. Fields, Secretary. Issued in Washington, DC, on April 4, 2016, by the Commodity Futures Trading Commission. Christopher J. Kirkpatrick, Secretary of the Commission. 26 CFR Part 1 [REG–135734–14] RIN 1545–BL00; RIN 1545–BN30 On this matter, Chairman Massad and Commissioners Bowen and Giancarlo voted in the affirmative. No Commissioner voted in the negative. asabaliauskas on DSK3SPTVN1PROD with PROPOSALS Partial Withdrawal of Proposed Application of Section 367 to a Section 351 Exchange Resulting From a Transaction Described in Section 304(a)(1); Partial Withdrawal of Proposed Guidance for Determining Stock Ownership Internal Revenue Service (IRS), Treasury. ACTION: Partial withdrawal of notice of proposed rulemaking. AGENCY: This document withdraws portions of a notice of proposed rulemaking published in the Federal Register on February 11, 2009. The withdrawn portions relate to the application of section 367(b) to transactions described in section 304(a)(1). This document also withdraws portions of a notice of proposed rulemaking published in the Federal Register on January 17, 2014. The withdrawn portions relate to the identification of certain stock of a foreign corporation that is disregarded in calculating ownership of the foreign corporation for purposes of determining whether it is a surrogate foreign corporation for purposes of section 7874. SUMMARY: Appendix 2—Statement of CFTC Chairman Timothy G. Massad Today, the CFTC and the Securities and Exchange Commission (SEC), have jointly proposed guidance relating to the appropriate treatment of certain peaking supply and capacity contracts. We are issuing this guidance after considering the useful input we have received from market participants expressing concern about this issue. I support this proposal, as it will properly clarify the treatment of contracts used by many businesses with respect to the supply and delivery of electric power and natural gas. 40 See Distribution of Natural Gas: The Final Step in the Transmission Process, Energy Information Administration, Office of Oil and Gas, June 2008, available at https://www.eia.gov/pub/oil_gas/ natural_gas/feature_articles/2008/ldc2008/ ldc2008.pdf. Jkt 238001 BILLING CODE 6351–01–P;8011–01–P Internal Revenue Service Appendix 1—Commodity Futures Trading Commission Voting Summary 18:31 Apr 07, 2016 [FR Doc. 2016–08076 Filed 4–7–16; 8:45 am] DEPARTMENT OF THE TREASURY Commodity Futures Trading Commission (CFTC) Appendices to Certain Natural Gas and Electric Power Contracts—Commission Voting Summary and Chairman’s Statement VerDate Sep<11>2014 We have proposed that certain electric power and natural gas contracts should not be considered ‘‘swaps’’ under the Commodity Exchange Act. We have done so because we believe they are examples of customary commercial arrangements as described in the final rule defining the term ‘‘swap.’’ For example, these contracts are entered into to assure availability of a commodity, not to hedge against risks arising from a future change in price of that commodity or for speculative, or investment purposes. They are typically entered into in response to regulatory requirements, the need to maintain reliable energy supplies, and practical considerations of storage or transport. All of these factors are consistent with what has been set forth in previous commission guidance. Today’s proposed guidance is an important complement to our final rule regarding Trade Options, which will reduce burdens on endusers and allow them to better address commercial risk. I thank my fellow Commissioners Bowen and Giancarlo for joining me in unanimously approving this proposal as well as that final rule. PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 20587 As of April 8, 2016, portions of proposed rules (REG–147636–08 and REG–121534–12) published in the Federal Register on February 11, 2009 (74 FR 6840) and January 17, 2014 (79 FR 3145) are withdrawn. FOR FURTHER INFORMATION CONTACT: Shane M. McCarrick or David A. Levine, (202) 317–6937. SUPPLEMENTARY INFORMATION: DATES: Background On February 11, 2009, the Department of Treasury (Treasury Department) and the IRS published in the Federal Register proposed regulations (REG– 147636–08, 74 FR 6840), including § 1.367(b)–4(e), (f), and (g), which provide guidance on the application of section 367(b) to transactions described in section 304(a)(1). The regulations were proposed by cross-reference to temporary regulations in § 1.367(b)–4T in the same issue of the Federal Register (T.D. 9444, 74 FR 6824). This document withdraws these proposed regulations because the rules in the proposed regulations do not reflect current law. See Notice 2012–15, 2012–9 I.R.B. 424 (revising the approach under the proposed regulations regarding the interaction of sections 367 and 304 and providing that section 367(a) and (b) apply fully to certain transctions described in section 304(a)(1)). In the Rules and Regulations section of this issue of the Federal Register, the Treasury Department and the IRS are issuing additional temporary regulations in § 1.367(b)–4T(e), (f), and (g), as well as (h), that, in the case of certain exchanges, generally require an inclusion of amounts in income as a deemed dividend or recognition of realized gain that is not otherwise recognized, or both. Accordingly, the Treasury Department and the IRS are issuing a notice of proposed rulemaking in the Proposed Rules section of this issue of the Federal Register that proposes new rules in § 1.367(b)–4T by cross-reference to the temporary regulations. On January 17, 2014, the Treasury Department and the IRS published in the Federal Register proposed regulations (REG–121534–12, 79 FR 3145), including in § 1.7874–4, that provide that certain stock of a foreign corporation is disregarded in calculating ownership of the foreign corporation for purposes of determining whether it is a surrogate foreign corporation for purposes of section 7874. The regulations were proposed by crossreference to temporary regulations in § 1.7874–4T in the same issue of the Federal Register (T.D. 9654, 79 FR E:\FR\FM\08APP1.SGM 08APP1 20588 Federal Register / Vol. 81, No. 68 / Friday, April 8, 2016 / Proposed Rules 3094). In the Rules and Regulations section of this issue of the Federal Register, the Treasury Department and the IRS are amending certain of the temporary regulations in § 1.7874–4T. Accordingly, the Treasury Department and the IRS are issuing a notice of proposed rulemaking in the Proposed Rules section of this issue of the Federal Register that proposes rules in § 1.7874– 4 by cross-reference to the amended temporary regulations. This document withdraws the previously proposed regulations that are replaced by the notice of proposed rulemaking in the Proposed Rules section of this issue of the Federal Register. List of Subjects in 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. Partial Withdrawal of a Notice of Proposed Rulemaking Accordingly, under the authority of 26 U.S.C. 7805, § 1.367(b)–4(e), (f), and (g) of the notice of proposed rulemaking (REG–147636–08) published in the Federal Register on February 11, 2009 (74 FR 6840) are withdrawn. Also, under the authority of 26 U.S.C. 7805, § 1.7874–4(c)(1)(i), (c)(1)(ii)(B), (c)(2), (d)(1)(i), (d)(1)(ii), (h), (i)(6), (i)(7)(iii)(C), (i)(7)(iv), (j)(7), (j)(8), and (k)(1), as well as paragraph (ii) of Example 1, paragraph (ii) of Example 2, and Example 3 through Example 8 of § 1.7874–4(j), of the notice of proposed rulemaking (REG–121534–12) published in the Federal Register on January 17, 2014 (79 FR 3145) are withdrawn. John Dalrymple, Deputy Commissioner for Services and Enforcement. [FR Doc. 2016–07295 Filed 4–4–16; 5:00 pm] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [REG–135734–14] RIN 1545–BM45 asabaliauskas on DSK3SPTVN1PROD with PROPOSALS Inversions and Related Transactions Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed rulemaking by cross-reference to temporary regulation. AGENCY: The Department of Treasury (Treasury Department) and the IRS are issuing temporary regulations that address transactions that are structured SUMMARY: VerDate Sep<11>2014 18:31 Apr 07, 2016 Jkt 238001 to avoid the purposes of sections 7874 and 367 of the Internal Revenue Code (the Code) and certain post-inversion tax avoidance transactions in the Rules and Regulations section of this issue of the Federal Register. The temporary regulations affect certain domestic corporations and domestic partnerships whose assets are directly or indirectly acquired by a foreign corporation and certain persons related to such domestic corporations and domestic partnerships. The text of the temporary regulations also serves as the text of these proposed regulations. DATES: Written or electronic comments and requests for a public hearing must be received by July 7, 2016. ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG–135734–14), room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20224. Submissions may be hand-delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG–135734– 14), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC 20224, or sent electronically via the Federal eRulemaking Portal at http:// www.regulations.gov (IRS REG–135734– 14). FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations under sections 304, 367, and 7874, Shane M. McCarrick or David A. Levine, (202) 317–6937; concerning the proposed regulations under sections 956 and 7701(l), Rose E. Jenkins, (202) 317– 6934 (not toll-free numbers); concerning submissions of comments or requests for a public hearing, Regina Johnson, (202) 317–5177 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Background The temporary regulations in the Rules and Regulations section of this issue of the Federal Register contain regulations under sections 304, 367, 954, 956, 7701(l), and 7874 of the Internal Revenue Code (Code) that address transactions that are structured to avoid the purposes of sections 7874 and 367 of the Internal Revenue Code (the Code) and certain post-inversion tax avoidance transactions. The text of the temporary regulations also serves as the text of the proposed regulations herein. The preamble to the temporary regulations explains the temporary regulations and the corresponding proposed regulations. Special Analyses Certain IRS regulations, including this one, are exempt from the requirements PO 00000 Frm 00014 Fmt 4702 Sfmt 4702 of Executive Order 12866, as supplemented and reaffirmed by Executive Order 13563. Therefore, a regulatory assessment is not required. It has also been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. Chapter 5) does not apply to these regulations, and because the regulations do not impose a collection of information on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f), this notice of proposed rulemaking has been submitted to the Chief Counsel of Advocacy of the Small Business Administration for comment on its impact on small business. Comments and Requests for Public Hearing Before these proposed regulations are adopted as final regulations, consideration will be given to any comments that are submitted timely to the IRS as prescribed in this preamble under the ADDRESSES heading. Treasury and the IRS request comments on all aspects of the proposed rules. All comments will be available at www.regulations.gov or upon request. A public hearing will be scheduled if requested in writing by any person that timely submits electronic or written comments. If a public hearing is scheduled, notice of the date, time, and place for the public hearing will be published in the Federal Register. Drafting Information The principal authors of these proposed regulations are Rose E. Jenkins, David A. Levine, and Shane M. McCarrick of the Office of Associate Chief Counsel (International). However, other personnel from the Treasury Department and the IRS participated in their development. List of Subjects in 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. Proposed Amendments to the Regulations Accordingly, 26 CFR part 1 is proposed to be amended as follows: PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 is amended by adding and revising entries in numerical order to read in part as follows: ■ Authority: 26 U.S.C. 7805 * * * Section 1.304–7 also issued under 26 U.S.C. 304(b)(5)(C). Section 1.367(b)–4 also issued under 26 U.S.C. 367(a), 367(b), and 954(c)(6)(A). Section 1.956–2 also issued under 26 U.S.C. 956(d) and 956(e). E:\FR\FM\08APP1.SGM 08APP1

Agencies

[Federal Register Volume 81, Number 68 (Friday, April 8, 2016)]
[Proposed Rules]
[Pages 20587-20588]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-07295]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-135734-14]
RIN 1545-BL00; RIN 1545-BN30


Partial Withdrawal of Proposed Application of Section 367 to a 
Section 351 Exchange Resulting From a Transaction Described in Section 
304(a)(1); Partial Withdrawal of Proposed Guidance for Determining 
Stock Ownership

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Partial withdrawal of notice of proposed rulemaking.

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

SUMMARY: This document withdraws portions of a notice of proposed 
rulemaking published in the Federal Register on February 11, 2009. The 
withdrawn portions relate to the application of section 367(b) to 
transactions described in section 304(a)(1). This document also 
withdraws portions of a notice of proposed rulemaking published in the 
Federal Register on January 17, 2014. The withdrawn portions relate to 
the identification of certain stock of a foreign corporation that is 
disregarded in calculating ownership of the foreign corporation for 
purposes of determining whether it is a surrogate foreign corporation 
for purposes of section 7874.

DATES: As of April 8, 2016, portions of proposed rules (REG-147636-08 
and REG-121534-12) published in the Federal Register on February 11, 
2009 (74 FR 6840) and January 17, 2014 (79 FR 3145) are withdrawn.

FOR FURTHER INFORMATION CONTACT: Shane M. McCarrick or David A. Levine, 
(202) 317-6937.

SUPPLEMENTARY INFORMATION: 

Background

    On February 11, 2009, the Department of Treasury (Treasury 
Department) and the IRS published in the Federal Register proposed 
regulations (REG-147636-08, 74 FR 6840), including Sec.  1.367(b)-4(e), 
(f), and (g), which provide guidance on the application of section 
367(b) to transactions described in section 304(a)(1). The regulations 
were proposed by cross-reference to temporary regulations in Sec.  
1.367(b)-4T in the same issue of the Federal Register (T.D. 9444, 74 FR 
6824). This document withdraws these proposed regulations because the 
rules in the proposed regulations do not reflect current law. See 
Notice 2012-15, 2012-9 I.R.B. 424 (revising the approach under the 
proposed regulations regarding the interaction of sections 367 and 304 
and providing that section 367(a) and (b) apply fully to certain 
transctions described in section 304(a)(1)). In the Rules and 
Regulations section of this issue of the Federal Register, the Treasury 
Department and the IRS are issuing additional temporary regulations in 
Sec.  1.367(b)-4T(e), (f), and (g), as well as (h), that, in the case 
of certain exchanges, generally require an inclusion of amounts in 
income as a deemed dividend or recognition of realized gain that is not 
otherwise recognized, or both. Accordingly, the Treasury Department and 
the IRS are issuing a notice of proposed rulemaking in the Proposed 
Rules section of this issue of the Federal Register that proposes new 
rules in Sec.  1.367(b)-4T by cross-reference to the temporary 
regulations.
    On January 17, 2014, the Treasury Department and the IRS published 
in the Federal Register proposed regulations (REG-121534-12, 79 FR 
3145), including in Sec.  1.7874-4, that provide that certain stock of 
a foreign corporation is disregarded in calculating ownership of the 
foreign corporation for purposes of determining whether it is a 
surrogate foreign corporation for purposes of section 7874. The 
regulations were proposed by cross-reference to temporary regulations 
in Sec.  1.7874-4T in the same issue of the Federal Register (T.D. 
9654, 79 FR

[[Page 20588]]

3094). In the Rules and Regulations section of this issue of the 
Federal Register, the Treasury Department and the IRS are amending 
certain of the temporary regulations in Sec.  1.7874-4T. Accordingly, 
the Treasury Department and the IRS are issuing a notice of proposed 
rulemaking in the Proposed Rules section of this issue of the Federal 
Register that proposes rules in Sec.  1.7874-4 by cross-reference to 
the amended temporary regulations. This document withdraws the 
previously proposed regulations that are replaced by the notice of 
proposed rulemaking in the Proposed Rules section of this issue of the 
Federal Register.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Partial Withdrawal of a Notice of Proposed Rulemaking

    Accordingly, under the authority of 26 U.S.C. 7805, Sec.  1.367(b)-
4(e), (f), and (g) of the notice of proposed rulemaking (REG-147636-08) 
published in the Federal Register on February 11, 2009 (74 FR 6840) are 
withdrawn. Also, under the authority of 26 U.S.C. 7805, Sec.  1.7874-
4(c)(1)(i), (c)(1)(ii)(B), (c)(2), (d)(1)(i), (d)(1)(ii), (h), (i)(6), 
(i)(7)(iii)(C), (i)(7)(iv), (j)(7), (j)(8), and (k)(1), as well as 
paragraph (ii) of Example 1, paragraph (ii) of Example 2, and Example 3 
through Example 8 of Sec.  1.7874-4(j), of the notice of proposed 
rulemaking (REG-121534-12) published in the Federal Register on January 
17, 2014 (79 FR 3145) are withdrawn.

John Dalrymple,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2016-07295 Filed 4-4-16; 5:00 pm]
 BILLING CODE 4830-01-P