Liabilities Recognized as Recourse Partnership Liabilities Under Section 752; Correction, 80994 [2016-27516]

Download as PDF 80994 Federal Register / Vol. 81, No. 222 / Thursday, November 17, 2016 / Rules and Regulations PART 1—INCOME TAXES DEPARTMENT OF THE TREASURY Paragraph 1. The authority citation for part 1 continues to read in part as follows: Internal Revenue Service Authority: 26 U.S.C. 7805 * * * Section 1.707–5T also issued under 26 U.S.C. 707(a)(2)(B). [TD 9788] ■ 26 CFR Part 1 RIN 1545–BM84 Par. 2. Section 1.707–5T is amended by revising paragraph (a)(2)(i); and paragraph (f) Example 7 (i) is amended by revising the second to last sentence. The revisions read as follows: ■ § 1.707–5T Disguised sales of property to partnership; special rules relating to liabilities (temporary). (a) * * * (2) * * * (i) In general. For purposes of § 1.707– 5, a partner’s share of a liability of a partnership, as defined in § 1.752–1(a) (whether a recourse liability or a nonrecourse liability) is determined by applying the same percentage used to determine the partner’s share of the excess nonrecourse liability under § 1.752–3(a)(3) (as limited in its application to this paragraph (a)(2)), but such share shall not exceed the partner’s share of the partnership liability under section 752 and applicable regulations (as limited in the application of § 1.752– 3(a)(3) to this paragraph (a)(2)). * * * * * (f) * * * Example 7. * * * (i) * * * For disguised sale purposes, assume that G’s and H’s share of liability 1 is $2,000 each in accordance with paragraph (a)(2) of this section (which determines a partner’s share of a liability using the percentage under § 1.752–3(a)(3), but not exceeding the partner’s share of the liability under section 752 and applicable regulations). * * * * * * * * Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration). [FR Doc. 2016–27517 Filed 11–16–16; 8:45 am] mstockstill on DSK3G9T082PROD with RULES BILLING CODE 4830–01–P VerDate Sep<11>2014 17:03 Nov 16, 2016 Jkt 241001 Liabilities Recognized as Recourse Partnership Liabilities Under Section 752; Correction Internal Revenue Service (IRS), Treasury. ACTION: Final and temporary regulations; correction. AGENCY: This document contains corrections to final and temporary regulations (TD 9788) that were published in the Federal Register on Wednesday, October 5, 2016 (81 FR 69282). The final and temporary regulations provide rules concerning how liabilities are allocated for purposes of section 707 of the Internal Revenue Code and when certain obligations are recognized for purposes of determining whether a liability is a recourse partnership liability under section 752. DATES: This correction is effective November 17, 2016 and is applicable on and after January 3, 2017. FOR FURTHER INFORMATION CONTACT: Caroline E. Hay or Deane M. Burke (202) 317–5279 (not a toll-free number). SUPPLEMENTARY INFORMATION: SUMMARY: Background Need for Correction As published, the final and temporary regulations (TD 9788) contain errors that may prove to be misleading and are in need of clarification. Correction of Publication Accordingly, the final and temporary regulations (TD 9788), that are the subject of FR Doc. 2016–23388, are corrected as follows: On page 69284, in the preamble, first column, the last sentence from the bottom of the first full paragraph, ‘‘Therefore, the 707 Temporary Regulations provide that a partner’s share of a partnership liability for disguised sale purposes does not include any amount of the liability for which another partner bears the EROL for the partnership liability under § 1.752–2.’’ is corrected to read ‘‘Therefore, the 707 Temporary Frm 00006 Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration). [FR Doc. 2016–27516 Filed 11–16–16; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE INTERIOR Bureau of Safety and Environmental Enforcement 30 CFR Part 250 [Docket ID: BSEE–2016–0010; 17XE1700DX EEEE500000 EX1SF0000.DAQ000] RIN 1014–AA30 Civil Penalty Inflation Adjustment Bureau of Safety and Environmental Enforcement, Interior. ACTION: Final rule. AGENCY: This final rule adjusts the level of the civil monetary penalty contained in the Bureau of Safety and Environmental Enforcement (BSEE) regulations pursuant to the Outer Continental Shelf Lands Act (OCSLA), the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, and Office of Management and Budget (OMB) guidance. DATES: Effective November 17, 2016. FOR FURTHER INFORMATION CONTACT: Robert Fisher, Acting Chief Safety and Enforcement Division, Bureau of Safety and Environmental Enforcement, (202) 208–3955 or by email: regs@bsee.gov. SUPPLEMENTARY INFORMATION: SUMMARY: The final and temporary regulations (TD 9788) that are the subject of this correction are under sections 707 and 752 of the Internal Revenue Code. PO 00000 Regulations provide that for purposes of § 1.707–5, a partner’s share of a liability of a partnership, as defined in § 1.752– 1(a) (whether a recourse liability or a nonrecourse liability) is determined by applying the same percentage used to determine the partner’s share of the excess nonrecourse liability under § 1.752–3(a)(3) (as limited in its application to § 1.707–5T(a)(2)), but such share shall not exceed the partner’s share of the partnership liability under section 752 and applicable regulations (as limited in the application of § 1.752– 3(a)(3) to § 1.707–5T(a)(2)).’’. Fmt 4700 Sfmt 4700 I. Background II. Calculation of Adjustment III. Comments Received on the Interim Final Rule IV. Procedural Matters A. Regulatory Planning and Review (E.O. 12866 and 13563) B. Regulatory Flexibility Act C. Small Business Regulatory Enforcement Fairness Act D. Unfunded Mandates Reform Act E. Takings (E.O. 12630) E:\FR\FM\17NOR1.SGM 17NOR1

Agencies

[Federal Register Volume 81, Number 222 (Thursday, November 17, 2016)]
[Rules and Regulations]
[Page 80994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27516]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9788]
RIN 1545-BM84


Liabilities Recognized as Recourse Partnership Liabilities Under 
Section 752; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final and temporary regulations; correction.

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SUMMARY: This document contains corrections to final and temporary 
regulations (TD 9788) that were published in the Federal Register on 
Wednesday, October 5, 2016 (81 FR 69282). The final and temporary 
regulations provide rules concerning how liabilities are allocated for 
purposes of section 707 of the Internal Revenue Code and when certain 
obligations are recognized for purposes of determining whether a 
liability is a recourse partnership liability under section 752.

DATES: This correction is effective November 17, 2016 and is applicable 
on and after January 3, 2017.

FOR FURTHER INFORMATION CONTACT: Caroline E. Hay or Deane M. Burke 
(202) 317-5279 (not a toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final and temporary regulations (TD 9788) that are the subject 
of this correction are under sections 707 and 752 of the Internal 
Revenue Code.

Need for Correction

    As published, the final and temporary regulations (TD 9788) contain 
errors that may prove to be misleading and are in need of 
clarification.

Correction of Publication

    Accordingly, the final and temporary regulations (TD 9788), that 
are the subject of FR Doc. 2016-23388, are corrected as follows:
    On page 69284, in the preamble, first column, the last sentence 
from the bottom of the first full paragraph, ``Therefore, the 707 
Temporary Regulations provide that a partner's share of a partnership 
liability for disguised sale purposes does not include any amount of 
the liability for which another partner bears the EROL for the 
partnership liability under Sec.  1.752-2.'' is corrected to read 
``Therefore, the 707 Temporary Regulations provide that for purposes of 
Sec.  1.707-5, a partner's share of a liability of a partnership, as 
defined in Sec.  1.752-1(a) (whether a recourse liability or a 
nonrecourse liability) is determined by applying the same percentage 
used to determine the partner's share of the excess nonrecourse 
liability under Sec.  1.752-3(a)(3) (as limited in its application to 
Sec.  1.707-5T(a)(2)), but such share shall not exceed the partner's 
share of the partnership liability under section 752 and applicable 
regulations (as limited in the application of Sec.  1.752-3(a)(3) to 
Sec.  1.707-5T(a)(2)).''.

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2016-27516 Filed 11-16-16; 8:45 am]
BILLING CODE 4830-01-P