Foreign Tax Credit Guidance Related to the Tax Cuts and Jobs Act, Overall Foreign Loss Recapture, and Foreign Tax Redeterminations; Correcting Amendment, 29323 [2020-08995]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 85, Number 95 (Friday, May 15, 2020)]
[Rules and Regulations]
[Page 29323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08995]



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Rules and Regulations
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 

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Federal Register / Vol. 85, No. 95 / Friday, May 15, 2020 / Rules and 
Regulations

[[Page 29323]]



DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9882]
RIN 1545-BP19; 1545-BK55; 1545-AC09


Foreign Tax Credit Guidance Related to the Tax Cuts and Jobs Act, 
Overall Foreign Loss Recapture, and Foreign Tax Redeterminations; 
Correcting Amendment

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

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

SUMMARY: This document contains corrections to Treasury Decision 9882, 
which was published in the Federal Register on Tuesday, December 17, 
2019. Treasury Decision 9882 contained final and temporary regulations 
that provide guidance relating to the determination of the foreign tax 
credit under the Internal Revenue Code.

DATES: These corrections are effective on May 15, 2020 and applicable 
December 17, 2019.

FOR FURTHER INFORMATION CONTACT: Jeffrey P. Cowan, (202) 317-4924 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9882) that are the subject of this 
correction are under sections 861 and 904 of the Internal Revenue Code.

Need for Correction

    As published December 17, 2019 (84 FR 69022), the final and 
temporary regulations (TD 9882; FR Doc. 2019-24848) contained errors 
that need to be corrected.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

    Accordingly, 26 CFR part 1 is corrected by making the following 
correcting amendments:

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 1.861-8 is amended by revising the second and third 
sentence in paragraph (c)(4) and revising the first sentence in 
paragraph (e)(6)(i) to read as follows:


Sec.  1.861-8  Computation of taxable income from sources within the 
United States and from other sources and activities

* * * * *
    (c) * * *
    (4) * * * In determining whether two or more corporations are 
members of the same controlled group under section 267(b)(3), a person 
is considered to own stock owned directly by such person, stock owned 
by application of section 1563(e)(1), and stock owned by application of 
section 267(c). In determining whether a corporation is related to a 
partnership under section 267(b)(10), a person is considered to own the 
partnership interest owned directly by such person and the partnership 
interest owned by application of section 267(e)(3).
* * * * *
    (e) * * *
    (6) * * *
    (i) * * * The deduction for foreign income, war profits and excess 
profits taxes allowed by section 164 (including with respect to a 
controlled foreign corporation) is allocated and apportioned among the 
applicable statutory and residual groupings under the principles of 
Sec.  1.904-6(a)(1)(i), (ii), and (iv). * * *
* * * * *

0
Par. 3. Section 1.861-17 is amended by revising the first sentence in 
paragraph (e)(3) to read as follows:


Sec.  1.861-17  Allocation and apportionment of research and 
experimental expenditures.

* * * * *
    (e) * * *
    (3) * * * A taxpayer otherwise subject to the binding election 
described in paragraph (e)(1) of this section may change its method (on 
an original or an amended return) either for all taxable years 
beginning after December 31, 2017, and before January 1, 2020, or for 
its last taxable year beginning before January 1, 2020, without the 
prior consent of the Commissioner. * * *
* * * * *


Sec.  1.904-4  [Amended]

0
Par. 4. Section 1.904-4(c)(6)(iii) is amended by removing the language 
``deemed paid or accrued'' and adding the language ``deemed paid'' in 
its place.


Sec.  1.904-5  [Amended]

0
Par. 5. Section 1.904-5 is amended by removing paragraph (c)(1)(ii).


Sec.  1.904(g)-0  [Amended]

0
Par. 6. Section 1.904(g)-0 is amended by adding ``the'' in the heading 
for Sec.  1.904(g)-3 before the word ``recapture''.

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2020-08995 Filed 5-14-20; 8:45 am]
 BILLING CODE 4830-01-P