The Standard for Determining Joint-Employer Status, 55329 [2018-24134]
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Federal Register / Vol. 83, No. 214 / Monday, November 5, 2018 / Proposed Rules
described in section 959(c)(2) are
reclassified as earnings and profits
described in section 959(c)(1).
(iii) Example 3. (A) Facts. (1) USP, a
domestic corporation, owns all of the
single class of stock of CFC1, and has
held such stock for five years. CFC1 has
held 70% of the single class of stock of
CFC2 for three years. The other 30% of
the CFC2 stock has been held by a
foreign individual unrelated to USP or
CFC1 since CFC2’s formation. All of the
stock of each of CFC1 and CFC2 is
treated as equity for U.S. income tax
purposes and under the laws of the
jurisdiction in which each respective
corporation is organized and liable to
tax as a resident. CFC2 has a calendar
taxable year. On December 1, Year 1,
CFC1 acquires the remaining 30% of the
stock of CFC2 for cash. On June 30, Year
2, CFC1 sells to a third party the 30%
of CFC2 stock acquired in Year 1 at no
gain. CFC2 made no distributions
during Year 1.
(2) The functional currency of CFC1
and CFC2 is the U.S. dollar. CFC2 has
$120x of undistributed earnings as
defined in section 245A(c)(2), all of
which constitute undistributed foreign
earnings. Neither CFC1 nor CFC2 would
receive a deduction or other tax benefit
with respect to any income, war profits,
or excess profits taxes on a distribution.
None of the earnings and profits of
CFC2 are described in section 959(c)(1)
or (2) or are earnings and profits
attributable to income excluded from
subpart F income under section 952(b).
CFC2’s applicable earnings (as defined
in section 956(b)(1)) are $120x. CFC2
has held an obligation of USP with an
adjusted basis of $100x on every day of
Year 1 that was acquired while USP
owned all of the stock of CFC1 and
CFC1 held 70% of the single class of
stock of CFC2.
(B) Analysis. Because USP indirectly
owns (within the meaning of section
958(a)) all of the stock of CFC2 at the
end of Year 1, USP’s aggregate tentative
section 956 amount with respect to
CFC2 for Year 1 is $100x, the lesser of
USP’s pro rata share of the average
amounts of United States property held
by CFC2 ($100x) and its pro rata share
of CFC2’s applicable earnings ($120x).
Under paragraph (a)(2)(i) of this section,
USP’s section 956 amount with respect
to CFC2 for Year 1 is its aggregate
tentative section 956 amount with
respect to CFC2 reduced by the
deduction under section 245A that USP
would be allowed if USP received an
amount equal to its aggregate tentative
section 956 amount as a distribution
with respect to the CFC2 stock that USP
owns indirectly within the meaning of
section 958(a)(2). For purposes of
VerDate Sep<11>2014
17:06 Nov 02, 2018
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determining the consequences of this
hypothetical distribution, under
paragraph (a)(2)(ii)(A)(1) of this section,
USP is treated as owning the CFC2 stock
directly. In addition, under paragraph
(a)(2)(ii)(A)(4) of this section, the
holding period requirement of section
246(c) is applied by reference to the
period during which USP owned
(within the meaning of section 958(a))
the stock of CFC2. Therefore, with
respect to the hypothetical distribution
from CFC2 to USP, USP would satisfy
the holding period requirement under
section 246(c) with respect to the 70%
of the CFC2 stock that USP indirectly
owned for three years through CFC1, but
not with respect to the 30% of the CFC2
stock that USP indirectly owned
through CFC1 for a period of less than
365 days. Accordingly, USP’s section
956 amount with respect to CFC2 for
Year 1 is $30x, its aggregate tentative
section 956 amount ($100x) reduced by
the amount of the deduction that USP
would have been allowed under section
245A with respect to the hypothetical
distribution ($70x).
*
*
*
*
*
(g) * * *
(4) Paragraphs (a)(2) and (3) of this
section apply to taxable years of
controlled foreign corporations
beginning on or after the date of
publication of the Treasury decision
adopting paragraphs (a)(2) and (3) of
this section as final regulations in the
Federal Register, and to taxable years of
a United States shareholder in which or
with which such taxable years of the
controlled foreign corporation end.
(5) Paragraph (e)(6) of this section
applies to property acquired in
exchanges occurring on or after June 24,
2011.
Kirsten Wielobob,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2018–24140 Filed 11–1–18; 4:15 pm]
BILLING CODE 4830–01–P
NATIONAL LABOR RELATIONS
BOARD
29 CFR Chapter I
RIN 3142–AA13
The Standard for Determining JointEmployer Status
National Labor Relations Board
Proposed rulemaking; extension
of comment period.
AGENCY:
ACTION:
The National Labor Relations
Board (the Board) published a Notice of
Proposed Rulemaking in the Federal
SUMMARY:
PO 00000
Frm 00036
Fmt 4702
Sfmt 4702
55329
Register of September 14, 2018, seeking
comments from the public concerning
the standard for determining jointemployer status under the National
Labor Relations Act. The date to submit
responses to the Notice is extended for
30 days.
DATES: The comment period for the
notice of proposed rulemaking
published at 83 FR 46681 is extended.
Comments must be received by the
Board on or before December 13, 2018.
Comments replying to the comments
submitted during the initial comment
period must be received by the Board on
or before December 20, 2018.
Dated: October 31, 2018.
Farah Z. Qureshi,
Associate Executive Secretary.
[FR Doc. 2018–24134 Filed 11–2–18; 8:45 am]
BILLING CODE P
DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 111
[Docket ID: DOD–2016–OS–0116]
RIN 0790–AI99
Transitional Compensation (TC) for
Abused Dependents
Office of the Under Secretary of
Defense for Personnel and Readiness,
DoD.
ACTION: Proposed rule.
AGENCY:
Transitional compensation is
one of the many resources available to
victims of domestic abuse. The
Transitional Compensation for Abused
Dependents program is a
congressionally-authorized program
which provides temporary monetary
payments and military benefits to
dependents of Service members, when
the member has been separated from the
military due to a dependent-abuse or
child abuse offense. If adopted as final,
this rulemaking would establish
requirements and describes authorized
benefits for an abused spouse and/or
abused children affected by the
separation or forfeiture of pay and
allowances of a military Service
member.
DATES: Comments must be received by
January 4, 2019.
ADDRESSES: You may submit comments,
identified by docket number and/or RIN
number and title, by any of the
following methods:
• Federal Rulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
SUMMARY:
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]]>Agencies
[Federal Register Volume 83, Number 214 (Monday, November 5, 2018)]
[Proposed Rules]
[Page 55329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24134]
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NATIONAL LABOR RELATIONS BOARD
29 CFR Chapter I
RIN 3142-AA13
The Standard for Determining Joint-Employer Status
AGENCY: National Labor Relations Board
ACTION: Proposed rulemaking; extension of comment period.
-----------------------------------------------------------------------
SUMMARY: The National Labor Relations Board (the Board) published a
Notice of Proposed Rulemaking in the Federal Register of September 14,
2018, seeking comments from the public concerning the standard for
determining joint-employer status under the National Labor Relations
Act. The date to submit responses to the Notice is extended for 30
days.
DATES: The comment period for the notice of proposed rulemaking
published at 83 FR 46681 is extended. Comments must be received by the
Board on or before December 13, 2018. Comments replying to the comments
submitted during the initial comment period must be received by the
Board on or before December 20, 2018.
Dated: October 31, 2018.
Farah Z. Qureshi,
Associate Executive Secretary.
[FR Doc. 2018-24134 Filed 11-2-18; 8:45 am]
BILLING CODE P
