Removal of Regulations on Advance Payments for Goods and Long-Term Contracts, 51904-51906 [2018-22025]
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<![CDATA[
51904
Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Proposed Rules
www.faa.gov/air_traffic/publications/
airspace_amendments/.
You may review the public docket
containing the proposal, any comments
received and any final disposition in
person in the Dockets Office (see the
ADDRESSES section for address and
phone number) between 9:00 a.m. and
5:00 p.m., Monday through Friday,
except federal holidays. An informal
docket may also be examined between
8:00 a.m. and 4:30 p.m., Monday
through Friday, except federal holidays
at the Eastern Service Center, Federal
Aviation Administration, Room 350,
1701 Columbia Avenue, College Park,
GA 30337.
Since this is a routine matter that will
only affect air traffic procedures and air
navigation, it is certified that this
proposed rule, when promulgated, will
not have a significant economic impact
on a substantial number of small entities
under the criteria of the Regulatory
Flexibility Act.
DEPARTMENT OF THE TREASURY
Environmental Review
Removal of Regulations on Advance
Payments for Goods and Long-Term
Contracts
Availability and Summary of
Documents for Incorporation by
Reference
This document proposes to amend
FAA Order 7400.11C, Airspace
Designations and Reporting Points,
dated August 13, 2018, and effective
September 15, 2018. FAA Order
7400.11C is publicly available as listed
in the ADDRESSES section of this
document. FAA Order 7400.11C lists
Class A, B, C, D, and E airspace areas,
air traffic service routes, and reporting
points.
Lists of Subjects in 14 CFR Part 71
khammond on DSK30JT082PROD with PROPOSAL
The Proposal
The FAA is considering an
amendment to Title 14 Code of Federal
Regulations (14 CFR) part 71 to establish
Class E airspace extending upward from
700 feet above the surface within a 6.4mile radius of Hyde County Airport,
Engelhard, NC, providing the controlled
airspace required to support the new
RNAV (GPS) standard instrument
approach procedures for IFR operations
at Hyde County Airport.
Class E airspace designations are
published in Paragraph 6005 of FAA
Order 7400.11C, dated August 13, 2018,
and effective September 15, 2018, which
is incorporated by reference in 14 CFR
71.1. The Class E airspace designation
listed in this document will be
published subsequently in the Order.
Regulatory Notices and Analyses
The FAA has determined that this
proposed regulation only involves an
established body of technical
regulations for which frequent and
routine amendments are necessary to
keep them operationally current. It,
therefore: (1) Is not a ‘‘significant
regulatory action’’ under Executive
Order 12866; (2) is not a ‘‘significant
rule’’ under DOT Regulatory Policies
and Procedures (44 FR 11034; February
26, 1979); and (3) does not warrant
preparation of a regulatory evaluation as
the anticipated impact is so minimal.
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This proposal would be subject to an
environmental analysis in accordance
with FAA Order 1050.1F,
‘‘Environmental Impacts: Policies and
Procedures’’ prior to any FAA final
regulatory action.
Airspace, Incorporation by reference,
Navigation (air).
The Proposed Amendment
Accordingly, pursuant to the
authority delegated to me, the Federal
Aviation Administration proposed to
amend 14 CFR part 71 as follows:
PART 71—DESIGNATION OF CLASS A,
B, C, D, AND E AIRSPACE AREAS; AIR
TRAFFIC SERVICE ROUTES; AND
REPORTING POINTS
1. The authority citation for part 71
continues to read as follows:
■
Authority: 49 U.S.C. 106(f), 106(g); 40103,
40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR,
1959–1963 Comp., p. 389.
§ 71.1
[Amended]
2. The incorporation by reference in
14 CFR 71.1 of Federal Aviation
Administration Order 7400.11C,
Airspace Designations and Reporting
Points, dated August 13, 2018, and
effective September 15, 2018, is
amended as follows:
■
Paragraph 6005 Class E Airspace Areas
Extending Upward From 700 Feet or More
Above the Surface of the Earth.
*
*
*
ASO NC E5
*
*
Engelhard, NC [New]
Hyde County Airport, NC
(Lat. 35°33′43″ N, long. 75°57′20″ W)
That airspace extending upward from 700
feet above the surface within a 6.4-mile
radius of Hyde County Airport.
Issued in College Park, Georgia, on October
3, 2018.
Ryan W. Almasy,
Manager, operations Support Group, Eastern
Service Center, Air Traffic Organization.
[FR Doc. 2018–22257 Filed 10–12–18; 8:45 am]
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Internal Revenue Service
26 CFR Parts 1 and 602
[REG–104872–18]
RIN 1545–BO66
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking.
AGENCY:
This notice of proposed
rulemaking proposes to streamline IRS
regulations by removing regulations that
are no longer necessary after the
enactment of recent tax legislation.
Specifically, these regulations would
remove existing regulations regarding
advance payments for goods and longterm contracts. The regulations would
affect accrual method taxpayers who
receive advance payments for goods,
including those for inventoriable goods.
DATES: Written or electronic comments
and requests for a public hearing must
be received by January 14, 2019.
ADDRESSES: Send submissions to:
CC:PA: LPD:PR (REG–104872–18),
Room 5205, Internal Revenue Service,
P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. 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–104872–
18), Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue NW,
Washington, DC, or sent electronically,
via the Federal eRulemaking Portal at
www.regulations.gov (IRS REG–104872–
18).
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Charles Gorham, (202) 317–5091, or
Joanna L. Trebat, (202) 317–6890;
concerning submissions of comments
and requests for a hearing, Regina
Johnson, (202) 317–6901 (not toll-free
numbers).
SUMMARY:
SUPPLEMENTARY INFORMATION:
Background and Explanation of
Provisions
This document proposes to remove
§ 1.451–5 of the Income Tax Regulations
(26 CFR part 1), and its cross-references,
relating to the treatment of advance
payments for goods and long-term
contracts under section 451 of the
Internal Revenue Code (Code).
In general, section 451 provides that
the amount of any item of gross income
is included in gross income for the
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15OCP1
khammond on DSK30JT082PROD with PROPOSAL
Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Proposed Rules
taxable year in which it is received by
the taxpayer, unless, under the method
of accounting used in computing taxable
income, the amount is to be properly
accounted for as of a different period.
Under § 1.451–1, accrual method
taxpayers generally include items of
income in the taxable year when all the
events have occurred that fix the right
to receive the income and the amount of
the income can be determined with
reasonable accuracy (the ‘‘all events’’
test).
Section 1.451–5 generally allows
accrual method taxpayers to defer the
inclusion of income for advance
payments for goods until the taxable
year in which they are properly
included in income under the taxpayer’s
method of accounting for federal income
tax purposes if that method results in
the advance payments being included in
gross income no later than when the
advance payments are recognized in
gross receipts under the taxpayer’s
method of accounting for financial
reporting purposes.
Section 13221 of ‘‘An Act to provide
for reconciliation pursuant to titles II
and V of the concurrent resolution on
the budget for fiscal year 2018,’’ Public
Law 115–97 (the ‘‘Act’’), amended
section 451 by redesignating section
451(b) through (i) as (d) through (k) and
adding new subsections (b) and (c).
New section 451(b) generally requires
that for accrual method taxpayers the all
events test with respect to a particular
item of gross income must not be treated
as met any later than when the item is
taken into account as revenue in a
taxpayer’s applicable financial
statement, or such other financial
statement as the Secretary may
prescribe.
New section 451(c) generally requires
an accrual method taxpayer that
receives any advance payment
described in section 451(c)(4) during the
taxable year to include the advance
payment in income in the taxable year
of receipt or make an election to: (1)
Include any portion of the advance
payment in income in the taxable year
of receipt to the extent required under
new section 451(b); and (2) include the
remaining portion of the advance
payment in income in the following
taxable year. The election to defer
advance payments of goods and services
under new section 451(c) is similar to
the rules regarding the treatment of
advance payments for goods, services,
and other specified items provided in
Revenue Procedure 2004–34, 2004–1 CB
991. See H.R. Rep. No. 115–466, at 429
(2017) (Conf. Rep.).
New section 451(c) and its election to
defer advance payments override the
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deferral method provided by § 1.451–5.
See H.R. Rep. No. 115–466, at 429 n.880
(2017) (Conf. Rep.). Accordingly, the
Treasury Department and the IRS
propose to remove § 1.451–5 and its
cross references. Removing § 1.451–5
also will ensure that the new deferral
rules of section 451(c) apply uniformly
and consistently to all taxpayers as well
as simplify tax administration.
The rules of section 446 regarding
changes in methods of accounting will
apply to taxpayers changing a method of
accounting for advance payments from
a method described in § 1.451–5 to
another method. The Treasury
Department and the IRS request
comments on whether any changes to
existing procedural rules under section
446 for changes in methods of
accounting are necessary or desirable as
a result of removing § 1.451–5.
The removal of these regulations
would apply as of the date the Treasury
decision adopting this notice of
proposed rulemaking is published in the
Federal Register.
Special Analyses
This regulation is not subject to
review under section 6(b) of Executive
Order 12866 pursuant to the
Memorandum of Agreement (April 11,
2018) between the Department of the
Treasury and the Office of Management
and Budget regarding review of tax
regulations. Because the proposed
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) of the Code, this notice
of proposed rulemaking has been
submitted to the Chief Counsel for
Advocacy of the Small Business
Administration for comment on its
impact on small business.
Comments and Requests for a Public
Hearing
Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
comments that are timely submitted to
the IRS in the preamble under the
ADDRESSES section. All comments
submitted will be made available at
www.regulations.gov for public
inspection and copying.
A public hearing will be scheduled, if
requested, by any person who timely
submits comments. If a public hearing is
scheduled, notice of the date, time, and
place for the hearing will be published
in the Federal Register.
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Drafting Information
The principal author of this document
is Joanna L. Trebat, Office of the
Associate Chief Counsel (Income Tax
and Accounting). Other personnel from
the IRS and Treasury Department
participated in its development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and
recordkeeping requirements.
26 CFR Part 602
Reporting and recordkeeping
requirements.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR parts 1 and 602
are proposed to be amended as follows:
PART 1—INCOME TAXES
Proposed Applicability Date
PO 00000
51905
Paragraph 1. The authority citation
for part 1 continues to read in part as
follows:
■
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.381(c)(4)–1 is
amended by revising the second
sentence of paragraph (b)(2) to read as
follows:
■
§ 1.381(c)(4)–1
Method of accounting.
*
*
*
*
*
(b) * * *
(2) * * * The installment method
under section 453, the mark-to-market
method under section 475, the
amortization of bond premium under
section 171, the percentage of
completion method under section 460,
the recurring item exception of § 1.461–
5, and the income deferral method
under section 455 are examples of
special methods of accounting. * * *
*
*
*
*
*
■ Par. 3. Section 1.382–7 is amended by
revising the third sentence of paragraph
(a) to read as follows:
§ 1.382–7
Built in gains and losses.
(a) * * * Examples to which this
paragraph (a) will apply include, but are
not limited to, income received prior to
the change date that is deferred under
section 455 or Rev. Proc. 2004–34
(2004–1 CB 991 (June 1, 2004)) (or any
successor revenue procedure) (see
§ 601.601(d)(2)(ii)(b)).
*
*
*
*
*
§ 1.451–5
■
[Removed]
Par. 4. Section 1.451–5 is removed.
§ 1.861–18
[Amended]
Par. 5. Section 1.861–18 is amended
in paragraph (i)(4) by:
■
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Federal Register / Vol. 83, No. 199 / Monday, October 15, 2018 / Proposed Rules
1. Removing Example 2;
■ 2. Designating Examples 1 and 3 as
paragraphs (i)(4)(i) and (ii), respectively;
and
■ 3. In the heading for newly designated
paragraph (i)(4)(ii), removing ‘‘3’’ and
adding ‘‘2’’ in its place.
DEPARTMENT OF THE TREASURY
§ 1.6655–0
Guidance Regarding the Transition Tax
Under Section 965 and Related
Provisions; Hearing
■
[Amended]
Par. 6. Section 1.6655–0 is amended
by removing the entries for § 1.6655–
2(f)(3)(i) and (f)(3)(i)(A) and
redesignating the entry for § 1.6655–
2(f)(3)(i)(B) as § 1.6655–2(f)(3)(i).
■
§ 1.6655–2
Methods of accounting.
*
*
*
*
*
(c) Example. The following example
illustrates the rules of this section:
(1)
Example. * * *
*
*
*
PART 602—OMB CONTROL NUMBERS
UNDER THE PAPERWORK
REDUCTION ACT
Par. 9. Add an authority citation for
part 602 to read as follows:
■
Authority: 26 U.S.C. 7805.
§ 602.101
[Amended]
Par. 10. Section 602.101 is amended
by removing the entry for § 1.451–5 and
the parenthetical authority citation at
the end of the section.
khammond on DSK30JT082PROD with PROPOSAL
■
Kirsten Wielobob,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2018–22025 Filed 10–12–18; 8:45 am]
BILLING CODE 4830–01–P
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This document provides a
notice of public hearing on proposed
regulations relating to section 965 of the
Internal Revenue Code as amended by
the Tax Cuts and Jobs Act, which was
enacted on December 22, 2017.
DATES: The public hearing is being held
on Monday, October 22, 2018, at 10 a.m.
The IRS must receive speakers’ outlines
of the topics to be discussed at the
public hearing by Tuesday, October 16,
2018.
ADDRESSES: The public hearing is being
held in the IRS Auditorium, Internal
Revenue Service Building, 1111
Constitution Avenue NW, Washington,
DC 20224. Due to building security
procedures, visitors must enter at the
Constitution Avenue entrance. In
addition, all visitors must present a
valid photo identification to enter the
building.
Send Submissions to CC:PA:LPD:PR
(REG–104226–18), Room 5205, Internal
Revenue Service, P.O. Box 7604, Ben
Franklin Station, Washington, DC
20044. Submissions may be handdelivered Monday through Friday to
CC:PA:LPD:PR (REG–104226–18),
Couriers Desk, Internal Revenue
Service, 1111 Constitution Avenue NW,
Washington, DC 20224 or sent
electronically via the Federal
eRulemaking Portal at
www.regulations.gov (IRS REG–104226–
18).
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations,
Leni C. Perkins (202) 317–6934;
concerning submissions of comments,
the hearing and/or to be placed on the
building access list to attend the
hearing, Regina Johnson at (202) 317–
6901 (not toll-free numbers).
SUPPLEMENTARY INFORMATION: The
subject of the public hearing is the
notice of proposed rulemaking (REG–
104226–18) that was published in the
Federal Register on Thursday, August 9,
2018 (83 FR 39514).
The rules of 26 CFR 601.601(a)(3)
apply to the hearing. Persons who wish
SUMMARY:
Par. 7. Section 1.6655–2 is amended
by removing paragraphs (f)(3)(i) heading
and (f)(3)(i)(A) and redesignating
(f)(3)(i)(B) as (f)(3)(i).
■ Par. 8. Section 1.6655–6 is amended
in paragraph (c) by:
■ 1. Revising the heading and
introductory text;
■ 2. Removing Example 1;
■ 3. Designating Example 2 as paragraph
(c)(1) and revising the heading of newly
designated paragraph (c)(1); and
■ 3. Adding a reserved paragraph (c)(2).
The revisions read as follows:
*
[REG–104266–18]
Internal Revenue Service (IRS),
Treasury.
ACTION: Proposed rule; notice of hearing.
■
*
26 CFR Part 301
AGENCY:
[Amended]
§ 1.6655–6
Internal Revenue Service
17:23 Oct 12, 2018
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to present oral comments at the hearing
that submitted written comments by
October 9, 2018, must submit an outline
of the topics to be addressed and the
amount of time to be devoted to each
topic by Tuesday, October 16, 2018.
A period of 10 minutes is allotted to
each person for presenting oral
comments. After the deadline for
receiving outlines has passed, the IRS
will prepare an agenda containing the
schedule of speakers. Copies of the
agenda will be made available, free of
charge, at the hearing or by contacting
the Publications and Regulations Branch
at (202) 317–6901 (not a toll-free
number).
Because of access restrictions, the IRS
will not admit visitors beyond the
immediate entrance area more than 30
minutes before the hearing starts. For
information about having your name
placed on the building access list to
attend the hearing, see the FOR FURTHER
INFORMATION CONTACT section of this
document.
Martin V. Franks,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, (Procedure and Administration).
[FR Doc. 2018–22345 Filed 10–12–18; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF EDUCATION
34 CFR Chapter VI
[Docket ID ED–2018–OPE–0076]
RIN 1840–AD36, 1840–AD37, 1840–AD38,
1840–AD40, 1840–AD44
Negotiated Rulemaking Committee;
Negotiator Nominations and Schedule
of Committee Meetings—Accreditation
and Innovation
Office of Postsecondary
Education, Department of Education.
ACTION: Intent to establish negotiated
rulemaking committee.
AGENCY:
We announce our intention to
establish one negotiated rulemaking
committee to prepare proposed
regulations for the Federal Student Aid
programs authorized under title IV of
the Higher Education Act of 1965, as
amended (HEA). The committee will
include representatives of organizations
or groups with interests that are
significantly affected by the subject
matter of the proposed regulations. We
request nominations for individual
negotiators who represent key
stakeholder constituencies for the issues
to be negotiated to serve on the
committee, and we set a schedule for
committee meetings. We also announce
SUMMARY:
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]]>Agencies
[Federal Register Volume 83, Number 199 (Monday, October 15, 2018)]
[Proposed Rules]
[Pages 51904-51906]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-22025]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602
[REG-104872-18]
RIN 1545-BO66
Removal of Regulations on Advance Payments for Goods and Long-
Term Contracts
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This notice of proposed rulemaking proposes to streamline IRS
regulations by removing regulations that are no longer necessary after
the enactment of recent tax legislation. Specifically, these
regulations would remove existing regulations regarding advance
payments for goods and long-term contracts. The regulations would
affect accrual method taxpayers who receive advance payments for goods,
including those for inventoriable goods.
DATES: Written or electronic comments and requests for a public hearing
must be received by January 14, 2019.
ADDRESSES: Send submissions to: CC:PA: LPD:PR (REG-104872-18), Room
5205, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. 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-
104872-18), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue NW, Washington, DC, or sent electronically, via the Federal
eRulemaking Portal at www.regulations.gov (IRS REG-104872-18).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Charles Gorham, (202) 317-5091, or Joanna L. Trebat, (202) 317-6890;
concerning submissions of comments and requests for a hearing, Regina
Johnson, (202) 317-6901 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
This document proposes to remove Sec. 1.451-5 of the Income Tax
Regulations (26 CFR part 1), and its cross-references, relating to the
treatment of advance payments for goods and long-term contracts under
section 451 of the Internal Revenue Code (Code).
In general, section 451 provides that the amount of any item of
gross income is included in gross income for the
[[Page 51905]]
taxable year in which it is received by the taxpayer, unless, under the
method of accounting used in computing taxable income, the amount is to
be properly accounted for as of a different period.
Under Sec. 1.451-1, accrual method taxpayers generally include
items of income in the taxable year when all the events have occurred
that fix the right to receive the income and the amount of the income
can be determined with reasonable accuracy (the ``all events'' test).
Section 1.451-5 generally allows accrual method taxpayers to defer
the inclusion of income for advance payments for goods until the
taxable year in which they are properly included in income under the
taxpayer's method of accounting for federal income tax purposes if that
method results in the advance payments being included in gross income
no later than when the advance payments are recognized in gross
receipts under the taxpayer's method of accounting for financial
reporting purposes.
Section 13221 of ``An Act to provide for reconciliation pursuant to
titles II and V of the concurrent resolution on the budget for fiscal
year 2018,'' Public Law 115-97 (the ``Act''), amended section 451 by
redesignating section 451(b) through (i) as (d) through (k) and adding
new subsections (b) and (c).
New section 451(b) generally requires that for accrual method
taxpayers the all events test with respect to a particular item of
gross income must not be treated as met any later than when the item is
taken into account as revenue in a taxpayer's applicable financial
statement, or such other financial statement as the Secretary may
prescribe.
New section 451(c) generally requires an accrual method taxpayer
that receives any advance payment described in section 451(c)(4) during
the taxable year to include the advance payment in income in the
taxable year of receipt or make an election to: (1) Include any portion
of the advance payment in income in the taxable year of receipt to the
extent required under new section 451(b); and (2) include the remaining
portion of the advance payment in income in the following taxable year.
The election to defer advance payments of goods and services under new
section 451(c) is similar to the rules regarding the treatment of
advance payments for goods, services, and other specified items
provided in Revenue Procedure 2004-34, 2004-1 CB 991. See H.R. Rep. No.
115-466, at 429 (2017) (Conf. Rep.).
New section 451(c) and its election to defer advance payments
override the deferral method provided by Sec. 1.451-5. See H.R. Rep.
No. 115-466, at 429 n.880 (2017) (Conf. Rep.). Accordingly, the
Treasury Department and the IRS propose to remove Sec. 1.451-5 and its
cross references. Removing Sec. 1.451-5 also will ensure that the new
deferral rules of section 451(c) apply uniformly and consistently to
all taxpayers as well as simplify tax administration.
The rules of section 446 regarding changes in methods of accounting
will apply to taxpayers changing a method of accounting for advance
payments from a method described in Sec. 1.451-5 to another method.
The Treasury Department and the IRS request comments on whether any
changes to existing procedural rules under section 446 for changes in
methods of accounting are necessary or desirable as a result of
removing Sec. 1.451-5.
Proposed Applicability Date
The removal of these regulations would apply as of the date the
Treasury decision adopting this notice of proposed rulemaking is
published in the Federal Register.
Special Analyses
This regulation is not subject to review under section 6(b) of
Executive Order 12866 pursuant to the Memorandum of Agreement (April
11, 2018) between the Department of the Treasury and the Office of
Management and Budget regarding review of tax regulations. Because the
proposed 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) of the Code, this notice of proposed
rulemaking has been submitted to the Chief Counsel for Advocacy of the
Small Business Administration for comment on its impact on small
business.
Comments and Requests for a Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any comments that are timely submitted
to the IRS in the preamble under the ADDRESSES section. All comments
submitted will be made available at www.regulations.gov for public
inspection and copying.
A public hearing will be scheduled, if requested, by any person who
timely submits comments. If a public hearing is scheduled, notice of
the date, time, and place for the hearing will be published in the
Federal Register.
Drafting Information
The principal author of this document is Joanna L. Trebat, Office
of the Associate Chief Counsel (Income Tax and Accounting). Other
personnel from the IRS and Treasury Department participated in its
development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 602
Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR parts 1 and 602 are proposed to be amended as
follows:
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 1.381(c)(4)-1 is amended by revising the second
sentence of paragraph (b)(2) to read as follows:
Sec. 1.381(c)(4)-1 Method of accounting.
* * * * *
(b) * * *
(2) * * * The installment method under section 453, the mark-to-
market method under section 475, the amortization of bond premium under
section 171, the percentage of completion method under section 460, the
recurring item exception of Sec. 1.461-5, and the income deferral
method under section 455 are examples of special methods of accounting.
* * *
* * * * *
0
Par. 3. Section 1.382-7 is amended by revising the third sentence of
paragraph (a) to read as follows:
Sec. 1.382-7 Built in gains and losses.
(a) * * * Examples to which this paragraph (a) will apply include,
but are not limited to, income received prior to the change date that
is deferred under section 455 or Rev. Proc. 2004-34 (2004-1 CB 991
(June 1, 2004)) (or any successor revenue procedure) (see Sec.
601.601(d)(2)(ii)(b)).
* * * * *
Sec. 1.451-5 [Removed]
0
Par. 4. Section 1.451-5 is removed.
Sec. 1.861-18 [Amended]
0
Par. 5. Section 1.861-18 is amended in paragraph (i)(4) by:
[[Page 51906]]
0
1. Removing Example 2;
0
2. Designating Examples 1 and 3 as paragraphs (i)(4)(i) and (ii),
respectively; and
0
3. In the heading for newly designated paragraph (i)(4)(ii), removing
``3'' and adding ``2'' in its place.
Sec. 1.6655-0 [Amended]
0
Par. 6. Section 1.6655-0 is amended by removing the entries for Sec.
1.6655-2(f)(3)(i) and (f)(3)(i)(A) and redesignating the entry for
Sec. 1.6655-2(f)(3)(i)(B) as Sec. 1.6655-2(f)(3)(i).
Sec. 1.6655-2 [Amended]
0
Par. 7. Section 1.6655-2 is amended by removing paragraphs (f)(3)(i)
heading and (f)(3)(i)(A) and redesignating (f)(3)(i)(B) as (f)(3)(i).
0
Par. 8. Section 1.6655-6 is amended in paragraph (c) by:
0
1. Revising the heading and introductory text;
0
2. Removing Example 1;
0
3. Designating Example 2 as paragraph (c)(1) and revising the heading
of newly designated paragraph (c)(1); and
0
3. Adding a reserved paragraph (c)(2).
The revisions read as follows:
Sec. 1.6655-6 Methods of accounting.
* * * * *
(c) Example. The following example illustrates the rules of this
section:
(1)
Example. * * *
* * * * *
PART 602--OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT
0
Par. 9. Add an authority citation for part 602 to read as follows:
Authority: 26 U.S.C. 7805.
Sec. 602.101 [Amended]
0
Par. 10. Section 602.101 is amended by removing the entry for Sec.
1.451-5 and the parenthetical authority citation at the end of the
section.
Kirsten Wielobob,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2018-22025 Filed 10-12-18; 8:45 am]
BILLING CODE 4830-01-P
