Rules Regarding Certain Hybrid Arrangements; Correcting Amendment, 48651 [2020-15842]

Download as PDF Federal Register / Vol. 85, No. 156 / Wednesday, August 12, 2020 / Rules and Regulations Dated: July 17, 2020. Lauren K. Roth, Associate Commissioner for Policy. PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 continues to read in part as follows: ■ [FR Doc. 2020–15826 Filed 8–11–20; 8:45 am] BILLING CODE 4164–01–P Authority: 26 U.S.C. 7805 * * * Par. 2. Section 1.267A–5 is amended by revising paragraph (a)(20)(ii) to read as follows: ■ DEPARTMENT OF THE TREASURY Internal Revenue Service § 1.267A–5 26 CFR Part 1 [TD 9896] RIN 1545–BO53 Rules Regarding Certain Hybrid Arrangements; Correcting Amendment Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendments. AGENCY: This document contains corrections to final regulations Treasury Decision 9896 that were published in the Federal Register on Wednesday, April 8, 2020. The final regulations providing guidance regarding hybrid dividends and certain amounts paid or accrued pursuant to hybrid arrangements, which generally involve arrangements whereby U.S. and foreign tax law classify a transaction or entity differently for tax purposes. DATES: Effective date: This correction is effective on August 12, 2020. Applicability dates: For dates of applicability, see §§ 1.267A–7 and 1.1503(d). SUMMARY: FOR FURTHER INFORMATION CONTACT: Tracy Villecco at (202) 317–6933 or Tianlin (Laura) Shi at (202) 317–6936 (not toll-free numbers). SUPPLEMENTARY INFORMATION: § 1.267A–7 Background The final regulations (TD 9896) that are the subject of this correction are issued under sections 267A and 1503(d) of the Code. Need for Correction khammond on DSKJM1Z7X2PROD with RULES As published April 8, 2020 (85 FR 19802), the final regulation (TD 9896; FR Doc. 2020–05924) 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: VerDate Sep<11>2014 15:56 Aug 11, 2020 Jkt 250001 Definitions and special rules. (a) * * * (20) * * * (ii) Party to a structured arrangement. A party to a structured arrangement means a tax resident, a taxable branch, or an entity that participates in the structured arrangement. For purposes of this paragraph (a)(20)(ii), in the case of an entity, the entity’s participation in a structured arrangement is imputed to its investors. However, a tax resident, a taxable branch or an entity (the relevant party) is considered to participate in the structured arrangement only if— (A) The relevant party (or a related tax resident or taxable branch, determined under paragraph (a)(14) of this section by treating the relevant party as a specified party) could, based on all the facts and circumstances, reasonably be expected to be aware of the hybrid mismatch; and (B) The relevant party or one or more of its investors (or a related tax resident or taxable branch, determined under paragraph (a)(14) of this section by treating the relevant party or an investor as a specified party) shares in the value of the tax benefit resulting from the hybrid mismatch. * * * * * ■ Par. 3. Section 1.267A–7 is amended by revising paragraph (a) to read as follows: Applicability dates. (a) General rule. Except as provided in paragraph (b) of this section, §§ 1.267A– 1 through 1.267A–6 apply to taxable years ending on or after December 20, 2018, provided that such taxable years begin after December 31, 2017. However, taxpayers may apply the regulations in §§ 1.267A–1 through 1.267A–6 in their entirety (including by taking into account paragraph (b) of this section) for taxable years beginning after December 31, 2017, and ending before December 20, 2018. In lieu of applying the regulations in §§ 1.267A–1 through 1.267A–6 (including paragraph (b) of this section), taxpayers may apply the provisions matching §§ 1.267A–1 through 1.267A–6 (including by taking into account the provision matching paragraph (b) of this section) from the Internal Revenue Bulletin (IRB) 2019–03 PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 48651 (https://www.irs.gov/pub/irs-irbs/irb1903.pdf) in their entirety for all taxable years ending on or before April 8, 2020. * * * * * § 1.1503(d)–7 [Amended] Par. 4. Section 1.1503(d)– 7(c)(6)(iii)(A) is amended by removing ‘‘paragraphs’’ and adding ‘‘paragraph’’ in its place. ■ Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). [FR Doc. 2020–15842 Filed 8–11–20; 8:45 am] BILLING CODE 4830–01–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 180 [EPA–HQ–OPP–2019–0232; FRL–10009–42] Nitrapyrin; Pesticide Tolerances Environmental Protection Agency (EPA). ACTION: Final rule. AGENCY: This regulation establishes tolerances for residues of nitrapyrin in or on sugar beet molasses, sugar beet roots, sugar beet tops, rapeseed seed, and the vegetable, tuberous and corm, crop subgroup 1C. Dow AgroSciences LLC requested these tolerances under the Federal Food, Drug, and Cosmetic Act (FFDCA). DATES: This regulation is effective August 12, 2020. Objections and requests for hearings must be received on or before October 13, 2020 and must be filed in accordance with the instructions provided in 40 CFR part 178 (see also Unit I.C. of the SUPPLEMENTARY INFORMATION). ADDRESSES: The docket for this action, identified by docket identification (ID) number EPA–HQ–OPP–2019–0232, is available at http://www.regulations.gov or at the Office of Pesticide Programs Regulatory Public Docket (OPP Docket) in the Environmental Protection Agency Docket Center (EPA/DC), West William Jefferson Clinton Bldg., Rm. 3334, 1301 Constitution Ave. NW, Washington, DC 20460–0001. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The telephone number for the Public Reading Room is (202) 566–1744, and the telephone number for the OPP Docket is (703) 305–5805. Please note that due to the public health emergency the EPA Docket Center (EPA/DC) and Reading Room was closed to public visitors on March SUMMARY: E:\FR\FM\12AUR1.SGM 12AUR1

Agencies

[Federal Register Volume 85, Number 156 (Wednesday, August 12, 2020)]
[Rules and Regulations]
[Page 48651]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15842]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9896]
RIN 1545-BO53


Rules Regarding Certain Hybrid Arrangements; Correcting Amendment

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

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

SUMMARY: This document contains corrections to final regulations 
Treasury Decision 9896 that were published in the Federal Register on 
Wednesday, April 8, 2020. The final regulations providing guidance 
regarding hybrid dividends and certain amounts paid or accrued pursuant 
to hybrid arrangements, which generally involve arrangements whereby 
U.S. and foreign tax law classify a transaction or entity differently 
for tax purposes.

DATES: 
    Effective date: This correction is effective on August 12, 2020.
    Applicability dates: For dates of applicability, see Sec. Sec.  
1.267A-7 and 1.1503(d).

FOR FURTHER INFORMATION CONTACT: Tracy Villecco at (202) 317-6933 or 
Tianlin (Laura) Shi at (202) 317-6936 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9896) that are the subject of this 
correction are issued under sections 267A and 1503(d) of the Code.

Need for Correction

    As published April 8, 2020 (85 FR 19802), the final regulation (TD 
9896; FR Doc. 2020-05924) 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 1.267A-5 is amended by revising paragraph (a)(20)(ii) 
to read as follows:


Sec.  1.267A-5   Definitions and special rules.

    (a) * * *
    (20) * * *
    (ii) Party to a structured arrangement. A party to a structured 
arrangement means a tax resident, a taxable branch, or an entity that 
participates in the structured arrangement. For purposes of this 
paragraph (a)(20)(ii), in the case of an entity, the entity's 
participation in a structured arrangement is imputed to its investors. 
However, a tax resident, a taxable branch or an entity (the relevant 
party) is considered to participate in the structured arrangement only 
if--
    (A) The relevant party (or a related tax resident or taxable 
branch, determined under paragraph (a)(14) of this section by treating 
the relevant party as a specified party) could, based on all the facts 
and circumstances, reasonably be expected to be aware of the hybrid 
mismatch; and
    (B) The relevant party or one or more of its investors (or a 
related tax resident or taxable branch, determined under paragraph 
(a)(14) of this section by treating the relevant party or an investor 
as a specified party) shares in the value of the tax benefit resulting 
from the hybrid mismatch.
* * * * *

0
Par. 3. Section 1.267A-7 is amended by revising paragraph (a) to read 
as follows:


Sec.  1.267A-7   Applicability dates.

    (a) General rule. Except as provided in paragraph (b) of this 
section, Sec. Sec.  1.267A-1 through 1.267A-6 apply to taxable years 
ending on or after December 20, 2018, provided that such taxable years 
begin after December 31, 2017. However, taxpayers may apply the 
regulations in Sec. Sec.  1.267A-1 through 1.267A-6 in their entirety 
(including by taking into account paragraph (b) of this section) for 
taxable years beginning after December 31, 2017, and ending before 
December 20, 2018. In lieu of applying the regulations in Sec. Sec.  
1.267A-1 through 1.267A-6 (including paragraph (b) of this section), 
taxpayers may apply the provisions matching Sec. Sec.  1.267A-1 through 
1.267A-6 (including by taking into account the provision matching 
paragraph (b) of this section) from the Internal Revenue Bulletin (IRB) 
2019-03 (https://www.irs.gov/pub/irs-irbs/irb19-03.pdf) in their 
entirety for all taxable years ending on or before April 8, 2020.
* * * * *


Sec.  1.1503(d)-7   [Amended]

0
Par. 4. Section 1.1503(d)-7(c)(6)(iii)(A) is amended by removing 
``paragraphs'' and adding ``paragraph'' in its place.

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2020-15842 Filed 8-11-20; 8:45 am]
BILLING CODE 4830-01-P