Adjustment of Applicable Schedule Amount, 48474-48475 [2020-17424]
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48474
Federal Register / Vol. 85, No. 155 / Tuesday, August 11, 2020 / Rules and Regulations
(i) Example 1. In year 1, Taxpayer A
makes a payment of $500 to an entity
described in section 170(c). In return for
the payment, A receives a dollar-fordollar State income tax credit. Prior to
application of the credit, A’s State
income tax liability for year 1 was more
than $500. A applies the $500 credit to
A’s year 1 State income tax liability.
Under paragraph (j)(1) of this section, A
treats the $500 payment as a payment of
State income tax in year 1. To determine
A’s deduction amount, A must apply the
provisions of section 164 applicable to
payments of State and local taxes,
including the limitation in section
164(b)(6). See paragraph (j)(3) of this
section.
(ii) Example 2. In year 1, Taxpayer B
makes a payment of $7,000 to an entity
described in section 170(c). In return for
the payment, B receives a dollar-fordollar State income tax credit, which
under State law may be carried forward
for three taxable years. Prior to
application of the credit, B’s State
income tax liability for year 1 was
$5,000; B applies $5,000 of the $7,000
credit to B’s year 1 State income tax
liability. Under paragraph (j)(1) of this
section, B treats $5,000 of the $7,000
payment as a payment of State income
tax in year 1. Prior to application of the
remaining credit, B’s State income tax
liability for year 2 exceeds $2,000. B
applies the excess credit of $2,000 to B’s
year 2 State income tax liability. For
year 2, under paragraph (j)(2) of this
section, B treats the $2,000 as a payment
of State income tax under section 164.
To determine B’s deduction amounts in
years 1 and 2, B must apply the
provisions of section 164 applicable to
payments of State and local taxes,
including the limitation under section
164(b)(6). See paragraph (j)(3) of this
section.
(iii) Example 3. In year 1, Taxpayer C
makes a payment of $7,000 to an entity
described in section 170(c). In return for
the payment, C receives a local real
property tax credit equal to 25 percent
of the amount of this payment ($1,750).
Prior to application of the credit, C’s
local real property tax liability in year
1 was more than $1,750. C applies the
$1,750 credit to C’s year 1 local real
property tax liability. Under paragraph
(j)(1) of this section, for year 1, C treats
$1,750 of the $7,000 payment as a
payment of local real property tax for
purposes of section 164. To determine
C’s deduction amount, C must apply the
provisions of section 164 applicable to
payments of State and local taxes,
including the limitation under section
164(b)(6). See paragraph (j)(3) of this
section.
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15:51 Aug 10, 2020
Jkt 250001
(7) Applicability date. This paragraph
(j) applies to payments made to section
170(c) entities on or after June 11, 2019.
However, a taxpayer may choose to
apply this paragraph (j) to payments
made to section 170(c) entities after
August 27, 2018.
■ Par. 4. Section 1.170A–1 is amended
as follows:
■ 1. Paragraph (c)(5) is revised.
■ 2. In paragraph (h)(1) introductory
text, remove the cross-references to
‘‘§ 1.170A–13(f)(6)’’ and ‘‘§ 1.170A–
13(f)(5)’’ and add in their places
‘‘paragraph (h)(4)(i) of this section’’ and
‘‘paragraph (h)(4)(ii) of this section’’,
respectively.
■ 3. Paragraphs (h)(2)(i)(B) and (h)(3)(iii)
are revised.
■ 4. Paragraph (h)(3)(viii) is
redesignated as paragraph (h)(3)(x).
■ 5. New paragraph (h)(3)(viii) and
paragraph (h)(3)(ix) are added.
■ 6. Paragraphs (h)(4) through (6) are
redesignated as paragraphs (h)(5)
through (7).
■ 7. New paragraph (h)(4) is added.
The revisions and additions read as
follows:
§ 1.170A–1 Charitable, etc., contributions
and gifts; allowance of deduction.
*
*
*
*
*
(c) * * *
(5) For payments or transfers to an
entity described in section 170(c) by a
taxpayer carrying on a trade or business,
see § 1.162–15(a).
*
*
*
*
*
(h) * * *
(2) * * *
(i) * * *
(B) The fair market value of the goods
or services received or expected to be
received in return.
*
*
*
*
*
(3) * * *
(iii) In consideration for. For purposes
of paragraph (h) of this section, the term
in consideration for has the meaning set
forth in paragraph (h)(4)(i) of this
section.
*
*
*
*
*
(viii) Safe harbor for payments by C
corporations and specified passthrough
entities. For payments by a C
corporation or by a specified
passthrough entity to an entity
described in section 170(c), where the C
corporation or specified passthrough
entity receives or expects to receive a
State or local tax credit that reduces the
charitable contribution deduction for
such payments under paragraph (h)(3)
of this section, see § 1.162–15(a)(3)
(providing safe harbors under section
162(a) to the extent of that reduction).
(ix) Safe harbor for individuals. Under
certain circumstances, an individual
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who itemizes deductions and makes a
payment to an entity described in
section 170(c) in consideration for a
State or local tax credit may treat the
portion of such payment for which a
charitable contribution deduction is
disallowed under paragraph (h)(3) of
this section as a payment of State or
local taxes under section 164. See
§ 1.164–3(j), providing a safe harbor for
certain payments by individuals in
exchange for State or local tax credits.
*
*
*
*
*
(4) Definitions. For purposes of this
paragraph (h), the following definitions
apply:
(i) In consideration for. A taxpayer
receives goods or services in
consideration for a taxpayer’s payment
or transfer to an entity described in
section 170(c) if, at the time the
taxpayer makes the payment to such
entity, the taxpayer receives or expects
to receive goods or services from that
entity or any other party in return.
(ii) Goods or services. Goods or
services means cash, property, services,
benefits, and privileges.
(iii) Applicability date. The
definitions provided in this paragraph
(h)(4) are applicable to amounts paid or
property transferred on or after
December 17, 2019.
*
*
*
*
*
§ 1.170A–13
[Amended]
Par. 5.Section 1.170A–13 is amended
in paragraph (f)(7) by removing the
cross-reference ‘‘§ 1.170A–1(h)(5)’’ and
adding in its place ‘‘§ 1.170A–1(h)(6)’’.
■
Sunita Lough,
Deputy Commissioner for Services and
Enforcement.
Approved: July 27, 2020.
David J. Kautter,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2020–17393 Filed 8–7–20; 4:15 pm]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 501
Adjustment of Applicable Schedule
Amount
Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is issuing this final rule
to make technical amendments to the
SUMMARY:
E:\FR\FM\11AUR1.SGM
11AUR1
Federal Register / Vol. 85, No. 155 / Tuesday, August 11, 2020 / Rules and Regulations
definition of ‘‘applicable schedule
amount’’ in its regulations. In recent
years, OFAC has adjusted its civil
monetary penalties (CMPs) as required
by the Federal Civil Penalties Inflation
Adjustment Act, as amended by the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
2015. While OFAC’s ‘‘applicable
schedule amount’’ values are not civil
monetary penalties that are required to
be adjusted pursuant to such statute,
OFAC is making technical changes to
this definition to ensure the applicable
schedule amount values continue to
correspond appropriately to OFAC’s
CMPs.
DATES: This rule is effective August 11,
2020.
FOR FURTHER INFORMATION CONTACT:
OFAC: Assistant Director for Licensing,
tel.: 202–622–2480; Assistant Director
for Regulatory Affairs, tel.: 202–622–
4855; or Assistant Director for Sanctions
Compliance & Evaluation, tel.: 202–622–
2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional
information concerning OFAC are
available on OFAC’s website
(www.treasury.gov/ofac).
Background
On September 8, 2008, OFAC issued
as an interim final rule the ‘‘Economic
Sanctions Enforcement Guidelines’’
(Enforcement Guidelines) as appendix A
to the Reporting, Procedures and
Penalties Regulations at 31 CFR part 501
(73 FR 51933, September 8, 2008). On
November 9, 2009, OFAC re-issued as a
final rule the Enforcement Guidelines
(74 FR 57593, November 9, 2009).
OFAC’s Enforcement Guidelines
provide a general framework for the
enforcement of all economic sanctions
programs administered by OFAC.
Section V.B.2.a.ii. of the Enforcement
Guidelines states that the base amount
of a proposed civil penalty in a PrePenalty Notice shall be the ‘‘applicable
schedule amount,’’ subject to certain
caps noted in that section, where the
case is deemed non-egregious and the
apparent violation has come to OFAC’s
attention by means other than a
voluntary self-disclosure. Section I.B. of
the Enforcement Guidelines provides a
definition of ‘‘applicable schedule
amount.’’
Separately, as required by the Federal
Civil Penalties Inflation Adjustment Act
(1990 Pub. L. 101–410, 104 Stat. 890; 28
U.S.C. 2461 note), as amended by the
Federal Civil Penalties Inflation
Adjustment Act Improvements Act of
VerDate Sep<11>2014
15:51 Aug 10, 2020
Jkt 250001
2015 (Pub. L. 114–74, 129 Stat. 599, 28
U.S.C. 2461 note) (collectively, the
FCPIA Act), OFAC has adjusted its
CMPs five times since the Federal Civil
Penalties Inflation Adjustment Act
Improvements Act went into effect on
November 2, 2015: An initial catch-up
adjustment on August 1, 2016 (81 FR
43070, July 1, 2016), and annual
adjustments on February 10, 2017 (82
FR 10434, February 10, 2017), March 19,
2018 (83 FR 11876, March 19, 2018),
June 14, 2019 (84 FR 27714, June 14,
2019), and April 9, 2020 (85 FR 19884,
April 9, 2020).
OFAC’s applicable schedule amount
values in the Enforcement Guidelines,
while not required to be adjusted
pursuant to the FCPIA Act, correspond
in certain ways with OFAC’s CMPs. As
a result, to correspond with OFAC’s
recent CMP adjustments required by the
FCPIA Act, OFAC is now amending the
definition of ‘‘applicable schedule
amount’’ in section I.B. of appendix A
to 31 CFR part 501, to adjust applicable
schedule amount values for transactions
valued at $100,000 or more.
Specifically, OFAC is amending
sections I.B.6. and I.B.7., such that in
the case of transactions valued at
$100,000 or more but less than
$200,000, the applicable schedule
amount is now $200,000, and in the
case of transactions valued at $200,000
or more, the applicable schedule
amount is now $307,922, which
corresponds with the current maximum
CMP amount for a violation of the
International Emergency Economic
Powers Act (50 U.S.C. 1701–1706, at
1705). These changes are not required
pursuant to the FCPIA; however, OFAC
is making these changes to ensure the
applicable schedule amount values
continue to correspond appropriately to
OFAC’s CMPs as the CMPs are adjusted
pursuant to the FCPIA annually.
Additionally, OFAC is amending the
authorities section of 31 CFR part 501 to
shorten citations to conform to Federal
Register guidance.
Public Participation
Because this final rule imposes no
obligations on any person, but only
amends OFAC’s enforcement policy and
procedures based on existing
substantive rules, provisions of the
Administrative Procedure Act (5 U.S.C.
553) requiring notice of proposed
rulemaking, opportunity for public
participation, and delay in effective date
are inapplicable. Further, this final rule
is not a significant regulatory action for
purposes of Executive Order 12866.
Accordingly, the provisions of
Executive Order 13771 are inapplicable.
Because no notice of proposed
PO 00000
Frm 00011
Fmt 4700
Sfmt 4700
48475
rulemaking is required for this rule, the
Regulatory Flexibility Act (5 U.S.C.
601–612) does not apply.
Paperwork Reduction Act
The Paperwork Reduction Act does
not apply because this rule does not
impose information collection
requirements that would require the
approval of the Office of Management
and Budget under 44 U.S.C. 3501 et seq.
List of Subjects in 31 CFR Part 501
Administrative practice and
procedure, Banks, banking, Blocking of
assets, Exports, Foreign trade, Licensing,
Penalties, Sanctions.
For the reasons set forth in the
preamble, the Department of the
Treasury’s Office of Foreign Assets
Control amends 31 CFR part 501 as
follows:
PART 501—REPORTING,
PROCEDURES AND PENALTIES
REGULATIONS
1. The authority citation for part 501
is revised to read as follows:
■
Authority: 8 U.S.C. 1189; 18 U.S.C. 2332d,
2339B; 19 U.S.C. 3901–3913; 21 U.S.C. 1901–
1908; 22 U.S.C. 287c; 22 U.S.C. 2370(a),
6009, 6032, 7205; 28 U.S.C. 2461 note; 31
U.S.C. 321(b); 50 U.S.C. 1701–1706; 50 U.S.C.
4301–4341; 22 U.S.C. 8501–8551.
Appendix A to Part 501 [Amended]
2. Amend appendix A to part 501 as
follows:
■ a. In section I.B.6., remove ‘‘$170,000’’
in both places it appears and add in its
place ‘‘$200,000’’ in both places.
■ b. In section I.B.7., remove
‘‘$250,000’’ and add in its place
‘‘$307,922’’, and remove ‘‘$170,000’’
and add in its place ‘‘$200,000’’.
■
Dated: August 5, 2020.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2020–17424 Filed 8–10–20; 8:45 am]
BILLING CODE 4810–AL–P
DEPARTMENT OF AGRICULTURE
Forest Service
36 CFR Part 251
RIN 0596–AD36
Land Uses; Special Uses; Procedures
for Operating Plans and Agreements
for Powerline Facility Maintenance and
Vegetation Management Within and
Abutting the Linear Boundary of a
Special Use Authorization for a
Powerline Facility; Correction
AGENCY:
E:\FR\FM\11AUR1.SGM
Forest Service, USDA.
11AUR1
Agencies
[Federal Register Volume 85, Number 155 (Tuesday, August 11, 2020)]
[Rules and Regulations]
[Pages 48474-48475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17424]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 501
Adjustment of Applicable Schedule Amount
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is issuing this final rule to make technical amendments
to the
[[Page 48475]]
definition of ``applicable schedule amount'' in its regulations. In
recent years, OFAC has adjusted its civil monetary penalties (CMPs) as
required by the Federal Civil Penalties Inflation Adjustment Act, as
amended by the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015. While OFAC's ``applicable schedule amount''
values are not civil monetary penalties that are required to be
adjusted pursuant to such statute, OFAC is making technical changes to
this definition to ensure the applicable schedule amount values
continue to correspond appropriately to OFAC's CMPs.
DATES: This rule is effective August 11, 2020.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, tel.: 202-622-2480; Assistant Director for Regulatory
Affairs, tel.: 202-622-4855; or Assistant Director for Sanctions
Compliance & Evaluation, tel.: 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website (www.treasury.gov/ofac).
Background
On September 8, 2008, OFAC issued as an interim final rule the
``Economic Sanctions Enforcement Guidelines'' (Enforcement Guidelines)
as appendix A to the Reporting, Procedures and Penalties Regulations at
31 CFR part 501 (73 FR 51933, September 8, 2008). On November 9, 2009,
OFAC re-issued as a final rule the Enforcement Guidelines (74 FR 57593,
November 9, 2009). OFAC's Enforcement Guidelines provide a general
framework for the enforcement of all economic sanctions programs
administered by OFAC. Section V.B.2.a.ii. of the Enforcement Guidelines
states that the base amount of a proposed civil penalty in a Pre-
Penalty Notice shall be the ``applicable schedule amount,'' subject to
certain caps noted in that section, where the case is deemed non-
egregious and the apparent violation has come to OFAC's attention by
means other than a voluntary self-disclosure. Section I.B. of the
Enforcement Guidelines provides a definition of ``applicable schedule
amount.''
Separately, as required by the Federal Civil Penalties Inflation
Adjustment Act (1990 Pub. L. 101-410, 104 Stat. 890; 28 U.S.C. 2461
note), as amended by the Federal Civil Penalties Inflation Adjustment
Act Improvements Act of 2015 (Pub. L. 114-74, 129 Stat. 599, 28 U.S.C.
2461 note) (collectively, the FCPIA Act), OFAC has adjusted its CMPs
five times since the Federal Civil Penalties Inflation Adjustment Act
Improvements Act went into effect on November 2, 2015: An initial
catch-up adjustment on August 1, 2016 (81 FR 43070, July 1, 2016), and
annual adjustments on February 10, 2017 (82 FR 10434, February 10,
2017), March 19, 2018 (83 FR 11876, March 19, 2018), June 14, 2019 (84
FR 27714, June 14, 2019), and April 9, 2020 (85 FR 19884, April 9,
2020).
OFAC's applicable schedule amount values in the Enforcement
Guidelines, while not required to be adjusted pursuant to the FCPIA
Act, correspond in certain ways with OFAC's CMPs. As a result, to
correspond with OFAC's recent CMP adjustments required by the FCPIA
Act, OFAC is now amending the definition of ``applicable schedule
amount'' in section I.B. of appendix A to 31 CFR part 501, to adjust
applicable schedule amount values for transactions valued at $100,000
or more. Specifically, OFAC is amending sections I.B.6. and I.B.7.,
such that in the case of transactions valued at $100,000 or more but
less than $200,000, the applicable schedule amount is now $200,000, and
in the case of transactions valued at $200,000 or more, the applicable
schedule amount is now $307,922, which corresponds with the current
maximum CMP amount for a violation of the International Emergency
Economic Powers Act (50 U.S.C. 1701-1706, at 1705). These changes are
not required pursuant to the FCPIA; however, OFAC is making these
changes to ensure the applicable schedule amount values continue to
correspond appropriately to OFAC's CMPs as the CMPs are adjusted
pursuant to the FCPIA annually. Additionally, OFAC is amending the
authorities section of 31 CFR part 501 to shorten citations to conform
to Federal Register guidance.
Public Participation
Because this final rule imposes no obligations on any person, but
only amends OFAC's enforcement policy and procedures based on existing
substantive rules, provisions of the Administrative Procedure Act (5
U.S.C. 553) requiring notice of proposed rulemaking, opportunity for
public participation, and delay in effective date are inapplicable.
Further, this final rule is not a significant regulatory action for
purposes of Executive Order 12866. Accordingly, the provisions of
Executive Order 13771 are inapplicable. Because no notice of proposed
rulemaking is required for this rule, the Regulatory Flexibility Act (5
U.S.C. 601-612) does not apply.
Paperwork Reduction Act
The Paperwork Reduction Act does not apply because this rule does
not impose information collection requirements that would require the
approval of the Office of Management and Budget under 44 U.S.C. 3501 et
seq.
List of Subjects in 31 CFR Part 501
Administrative practice and procedure, Banks, banking, Blocking of
assets, Exports, Foreign trade, Licensing, Penalties, Sanctions.
For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control amends 31 CFR part 501 as
follows:
PART 501--REPORTING, PROCEDURES AND PENALTIES REGULATIONS
0
1. The authority citation for part 501 is revised to read as follows:
Authority: 8 U.S.C. 1189; 18 U.S.C. 2332d, 2339B; 19 U.S.C.
3901-3913; 21 U.S.C. 1901-1908; 22 U.S.C. 287c; 22 U.S.C. 2370(a),
6009, 6032, 7205; 28 U.S.C. 2461 note; 31 U.S.C. 321(b); 50 U.S.C.
1701-1706; 50 U.S.C. 4301-4341; 22 U.S.C. 8501-8551.
Appendix A to Part 501 [Amended]
0
2. Amend appendix A to part 501 as follows:
0
a. In section I.B.6., remove ``$170,000'' in both places it appears and
add in its place ``$200,000'' in both places.
0
b. In section I.B.7., remove ``$250,000'' and add in its place
``$307,922'', and remove ``$170,000'' and add in its place
``$200,000''.
Dated: August 5, 2020.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2020-17424 Filed 8-10-20; 8:45 am]
BILLING CODE 4810-AL-P