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]
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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withdrawn portions relate to the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.
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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.
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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
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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 https://
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
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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
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]]>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
