Certain Outbound Property Transfers by Domestic Corporations; Certain Stock Distributions by Domestic Corporations; Correcting Amendment, 51346-51347 [2020-16354]

Download as PDF 51346 Federal Register / Vol. 85, No. 162 / Thursday, August 20, 2020 / Rules and Regulations jbell on DSKJLSW7X2PROD with RULES 11. Liability. Any activity involving isotonitazene not authorized by, or in violation of the CSA, occurring as of August 20, 2020, is unlawful, and may subject the person to administrative, civil, and/or criminal sanctions. Regulatory Matters 21 U.S.C. 811(h) provides for a temporary scheduling action where such action is necessary to avoid an imminent hazard to the public safety. As provided in this subsection, the Attorney General may, by order, schedule a substance in schedule I on a temporary basis. Such an order may not be issued before the expiration of 30 days from: (1) The publication of a notice in the Federal Register of the intention to issue such order and the grounds upon which such order is to be issued, and (2) the date that notice of the proposed temporary scheduling order is transmitted to the Assistant Secretary of HHS. 21 U.S.C. 811(h)(1). Inasmuch as 21 U.S.C. 811(h) directs that temporary scheduling actions be issued by order and sets forth the procedures by which such orders are to be issued, including the requirement of a publication in the Federal Register of a Notice of Intent, the notice-andcomment requirements of section 553 of the Administrative Procedure Act (APA), 5 U.S.C. 553, do not apply to this temporary scheduling order. The APA expressly differentiates between an order and a rule, as it defines an ‘‘order’’ to mean a ‘‘final disposition, whether affirmative, negative, injunctive, or declaratory in form, of an agency in a matter other than rule making.’’ 5 U.S.C. 551(6) (emphasis added). The specific language chosen by Congress indicates an intention for DEA to proceed through the issuance of an order instead of proceeding by rulemaking. Given that Congress specifically requires the Attorney General to follow rulemaking procedures for other kinds of scheduling actions, see 21 U.S.C. 811(a), it is noteworthy that, in 21 U.S.C. 811(h), Congress authorized the issuance of temporary scheduling actions by order rather than by rule. In the alternative, even assuming that this action might be subject to section 553 of the APA, the Acting Administrator finds that there is good cause to forgo the notice-and-comment requirements of section 553, as any further delays in the process for issuance of temporary scheduling orders would be impracticable and contrary to the public interest in view of the manifest urgency to avoid an imminent hazard to the public safety. Although DEA believes this temporary scheduling order is not VerDate Sep<11>2014 15:44 Aug 19, 2020 Jkt 250001 subject to the notice-and-comment requirements of section 553 of the APA, DEA notes that in accordance with 21 U.S.C. 811(h)(4), the Acting Administrator took into consideration comments submitted by the Assistant Secretary in response to the notice that DEA transmitted to the Assistant Secretary pursuant to such subsection. Further, DEA believes that this temporary scheduling action is not a ‘‘rule’’ as defined by 5 U.S.C. 601(2), and, accordingly, is not subject to the requirements of the Regulatory Flexibility Act. The requirements for the preparation of an initial regulatory flexibility analysis in 5 U.S.C. 603(a) are not applicable where, as here, DEA is not required by section 553 of the APA or any other law to publish a general notice of proposed rulemaking. In accordance with the principles of Executive Orders (E.O.) 12866 and 13563, this action is not a significant regulatory action. E.O. 12866 directs agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health, and safety effects; distributive impacts; and equity). E.O. 13563 is supplemental to and reaffirms the principles, structures, and definitions governing regulatory review as established in E.O. 12866. E.O. 12866 classifies a ‘‘significant regulatory action,’’ requiring review by the Office of Management and Budget (OMB), as any regulatory action that is likely to result in a rule that may: (1) Have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy; a sector of the economy; productivity; competition; jobs; the environment; public health or safety; or State, local, or tribal governments or communities; (2) create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; (3) materially alter the budgetary impact of entitlements, grants, user fees, or loan programs, or the rights and obligations of recipients thereof; or (4) raise novel legal or policy issues arising out of legal mandates, the President’s priorities, or the principles set forth in the E.O. Because this is not a rulemaking action, this is not a significant regulatory action as defined in Section 3(f) of E.O. 12866. In addition, because this action is not considered an E.O. 12866 ‘‘significant regulatory action,’’ it does not meet the definition of an E.O. 13771 regulatory action. Therefore, the repeal and cost offset requirements of E.O. 13771 have not been triggered. PO 00000 Frm 00046 Fmt 4700 Sfmt 4700 This action will not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. Therefore, in accordance with E.O. 13132 (Federalism), it is determined that this action does not have sufficient federalism implications to warrant the preparation of a Federalism Assessment. List of Subjects in 21 CFR Part 1308 Administrative practice and procedure, Drug traffic control, Reporting and recordkeeping requirements. For the reasons set out above, DEA amends 21 CFR part 1308 as follows: PART 1308—SCHEDULES OF CONTROLLED SUBSTANCES 1. The authority citation for part 1308 continues to read as follows: ■ Authority: 21 U.S.C. 811, 812, 871(b), 956(b), unless otherwise noted. 2. In § 1308.11, add paragraph (h)(48) to read as follows: ■ § 1308.11 * Schedule I * * (h) * * * * * (48) N,N-diethyl-2-(2-(4 isopropoxybenzyl)-5-nitro-1Hbenzimidazol-1-yl)ethan-1-amine, its isomers, esters, ethers, salts and salts of isomers, esters and ethers (Other names: isotonitazene; N,N-diethyl-2-[[4(1-methylethoxy)phenyl]methyl]5-nitro-1H-benzimidazole-1ethanamine) * * * * 9614 * Timothy J. Shea, Acting Administrator. [FR Doc. 2020–17951 Filed 8–19–20; 8:45 am] BILLING CODE 4410–09–P DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 [TD 9614] RIN 1545–AM97 Certain Outbound Property Transfers by Domestic Corporations; Certain Stock Distributions by Domestic Corporations; Correcting Amendment Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendments. AGENCY: E:\FR\FM\20AUR1.SGM 20AUR1 Federal Register / Vol. 85, No. 162 / Thursday, August 20, 2020 / Rules and Regulations This document contains a correction to a Treasury Decision 9614, which was published in the Federal Register on Tuesday, March 19, 2013. Treasury Decision 9614 contained final regulations that apply to transfers of certain property by a domestic corporation to a foreign corporation in certain nonrecognition exchanges, or to distributions of stock of certain foreign corporations by a domestic corporation in certain nonrecognition distributions. DATES: Effective date: These corrections are effective on August 20, 2020. Applicability date: March 19, 2013. FOR FURTHER INFORMATION CONTACT: Logan M. Kincheloe at (202) 317–6937 (not a toll-free number). SUPPLEMENTARY INFORMATION: SUMMARY: Background The final regulations (TD 9614) that are the subject of this correction are issued under section 367 of the Internal Revenue Code. Need for Correction As published on March 19, 2013 (53 FR 17024), the final regulations (TD 9614; FR Doc. 2013–05700), 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 Paragraph 1. The authority citation for part 1 continues to read in part as follows: ■ Authority: 26 U.S.C. 7805 * * * Par. 2. Section 1.367(a)–3 is amended by adding paragraph (g)(1)(v)(A) and (B) to read as follows: ■ § 1.367(a)–3 Treatment of transfers of stock or securities to foreign corporations. jbell on DSKJLSW7X2PROD with RULES * * * * * (g) * * * (1) * * * (v) * * * (A) Except as provided in paragraphs (g)(1)(v)(B) of this section and § 1.367(a)–3T(g)(1)(ix), the rules of paragraph (d)(2)(vi) of this section apply only to transactions occurring on or after January 23, 2006. See § 1.367(a)– 3(d)(2)(vi), as contained in 26 CFR part 1 revised as of April 1, 2005, for transactions occurring on or after July 20, 1998, and before January 23, 2006. VerDate Sep<11>2014 15:44 Aug 19, 2020 Jkt 250001 (B)(1) For purposes of paragraph (d)(2)(vi)(B)(1) of this section as contained in 26 CFR part 1 revised as of April 1, 2007, except as provided in paragraph (g)(1)(v)(B)(3) of this section, the following conditions must be satisfied for transactions occurring on or after December 28, 2007, and before March 18, 2013: The conditions and requirements of section 367(a)(5) and paragraph (g)(1)(v)(B)(2) of this section must be satisfied with respect to the domestic acquired corporation’s transfer of assets to the foreign acquiring corporation and those conditions and requirements apply before the application of the exception under paragraph (d)(2)(vi)(B)(1) of this section as contained in 26 CFR part 1 revised as of April 1, 2007. (2) The domestic acquired corporation is controlled (within the meaning of section 368(c)) by five or fewer (but at least one) domestic corporations (controlling domestic corporations) immediately before the reorganization, appropriate basis adjustments under section 367(a)(5) are made to the stock received by the controlling domestic corporations in the reorganization, and any other conditions as provided in regulations under section 367(a)(5) are satisfied. For purposes of determining whether the domestic acquired corporation is controlled by five or fewer domestic corporations, all members of the same affiliated group within the meaning of section 1504 are treated as one corporation. Any adjustments to stock basis required under section 367(a)(5) must be made to the stock received by the controlling domestic corporation in the reorganization so the appropriate amount of built-in gain in the property transferred by the domestic acquired corporation to the foreign acquiring corporation in the section 361 exchange is reflected in the stock received. The basis adjustment requirement cannot be satisfied by adjusting the basis in stock of the foreign acquiring corporation held by the controlling domestic corporation before the reorganization. To the extent the appropriate amount of built-in gain in the property transferred by the domestic acquired corporation to the foreign acquiring corporation in the section 361 exchange cannot be preserved in the stock received by the controlling domestic corporation in the reorganization, the domestic acquired corporation’s transfer of property to the foreign acquiring corporation is subject to section 367(a) and (d). (3) For transactions occurring on or after August 19, 2008, and before March 18, 2013, the following condition also applies: To the extent any of the PO 00000 Frm 00047 Fmt 4700 Sfmt 4700 51347 retransferred assets constitute property to which section 367(d) applies, the exception under paragraph (d)(2)(iv)(B)(1) of this section, as contained in 26 CFR part 1 revised as of April 1, 2007, applies only if the property to which section 367(d) applies is treated as property subject to section 367(a) for purposes of satisfying the conditions and requirements of section 367(a)(5). * * * * * § 1.367(a)–7 [Amended] Par. 3. In § 1.367(a)–7 amend paragraph (f)(10) by removing ‘‘§ 1.367(a)–1T(d)(4)’’ and adding in its place ‘‘§ 1.367(a)–1(d)(4)’’. ■ Martin V. Franks, Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration). [FR Doc. 2020–16354 Filed 8–19–20; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF DEFENSE Office of the Secretary 32 CFR Part 220 [Docket ID: DOD–2016–HA–0107] RIN 0720–AB68 Collection From Third Party Payers of Reasonable Charges for Healthcare Services Office of the Assistant Secretary of Defense (Health Affairs), Department of Defense (DoD). ACTION: Final rule. AGENCY: This rule exercises the DoD’s authority to update current regulations to compute reasonable charges for inpatient and ambulatory (outpatient) institutional resources and also for pharmaceuticals, durable medical equipment (DME), supplies, immunizations, injections or other medications administered or furnished by DoD military medical treatment facilities (MTFs) under their three existing healthcare cost recovery programs: Third Party Collections, Medical Services Account, and Medical Affirmative Claims. DATES: This rule is effective on September 21, 2020. FOR FURTHER INFORMATION CONTACT: Ms. DeLisa E. Prater, Program Manager, Defense Health Agency Uniform Business Office, (703) 275–6380. SUPPLEMENTARY INFORMATION: SUMMARY: E:\FR\FM\20AUR1.SGM 20AUR1

Agencies

[Federal Register Volume 85, Number 162 (Thursday, August 20, 2020)]
[Rules and Regulations]
[Pages 51346-51347]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-16354]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9614]
RIN 1545-AM97


Certain Outbound Property Transfers by Domestic Corporations; 
Certain Stock Distributions by Domestic Corporations; Correcting 
Amendment

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

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[[Page 51347]]

SUMMARY: This document contains a correction to a Treasury Decision 
9614, which was published in the Federal Register on Tuesday, March 19, 
2013. Treasury Decision 9614 contained final regulations that apply to 
transfers of certain property by a domestic corporation to a foreign 
corporation in certain nonrecognition exchanges, or to distributions of 
stock of certain foreign corporations by a domestic corporation in 
certain nonrecognition distributions.

DATES: 
    Effective date: These corrections are effective on August 20, 2020.
    Applicability date: March 19, 2013.

FOR FURTHER INFORMATION CONTACT: Logan M. Kincheloe at (202) 317-6937 
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9614) that are the subject of this 
correction are issued under section 367 of the Internal Revenue Code.

Need for Correction

    As published on March 19, 2013 (53 FR 17024), the final regulations 
(TD 9614; FR Doc. 2013-05700), 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 1.367(a)-3 is amended by adding paragraph (g)(1)(v)(A) 
and (B) to read as follows:


Sec.  1.367(a)-3  Treatment of transfers of stock or securities to 
foreign corporations.

* * * * *
    (g) * * *
    (1) * * *
    (v) * * *
    (A) Except as provided in paragraphs (g)(1)(v)(B) of this section 
and Sec.  1.367(a)-3T(g)(1)(ix), the rules of paragraph (d)(2)(vi) of 
this section apply only to transactions occurring on or after January 
23, 2006. See Sec.  1.367(a)-3(d)(2)(vi), as contained in 26 CFR part 1 
revised as of April 1, 2005, for transactions occurring on or after 
July 20, 1998, and before January 23, 2006.
    (B)(1) For purposes of paragraph (d)(2)(vi)(B)(1) of this section 
as contained in 26 CFR part 1 revised as of April 1, 2007, except as 
provided in paragraph (g)(1)(v)(B)(3) of this section, the following 
conditions must be satisfied for transactions occurring on or after 
December 28, 2007, and before March 18, 2013: The conditions and 
requirements of section 367(a)(5) and paragraph (g)(1)(v)(B)(2) of this 
section must be satisfied with respect to the domestic acquired 
corporation's transfer of assets to the foreign acquiring corporation 
and those conditions and requirements apply before the application of 
the exception under paragraph (d)(2)(vi)(B)(1) of this section as 
contained in 26 CFR part 1 revised as of April 1, 2007.
    (2) The domestic acquired corporation is controlled (within the 
meaning of section 368(c)) by five or fewer (but at least one) domestic 
corporations (controlling domestic corporations) immediately before the 
reorganization, appropriate basis adjustments under section 367(a)(5) 
are made to the stock received by the controlling domestic corporations 
in the reorganization, and any other conditions as provided in 
regulations under section 367(a)(5) are satisfied. For purposes of 
determining whether the domestic acquired corporation is controlled by 
five or fewer domestic corporations, all members of the same affiliated 
group within the meaning of section 1504 are treated as one 
corporation. Any adjustments to stock basis required under section 
367(a)(5) must be made to the stock received by the controlling 
domestic corporation in the reorganization so the appropriate amount of 
built-in gain in the property transferred by the domestic acquired 
corporation to the foreign acquiring corporation in the section 361 
exchange is reflected in the stock received. The basis adjustment 
requirement cannot be satisfied by adjusting the basis in stock of the 
foreign acquiring corporation held by the controlling domestic 
corporation before the reorganization. To the extent the appropriate 
amount of built-in gain in the property transferred by the domestic 
acquired corporation to the foreign acquiring corporation in the 
section 361 exchange cannot be preserved in the stock received by the 
controlling domestic corporation in the reorganization, the domestic 
acquired corporation's transfer of property to the foreign acquiring 
corporation is subject to section 367(a) and (d).
    (3) For transactions occurring on or after August 19, 2008, and 
before March 18, 2013, the following condition also applies: To the 
extent any of the retransferred assets constitute property to which 
section 367(d) applies, the exception under paragraph (d)(2)(iv)(B)(1) 
of this section, as contained in 26 CFR part 1 revised as of April 1, 
2007, applies only if the property to which section 367(d) applies is 
treated as property subject to section 367(a) for purposes of 
satisfying the conditions and requirements of section 367(a)(5).
* * * * *


Sec.  1.367(a)-7   [Amended]

0
Par. 3. In Sec.  1.367(a)-7 amend paragraph (f)(10) by removing ``Sec.  
1.367(a)-1T(d)(4)'' and adding in its place ``Sec.  1.367(a)-1(d)(4)''.

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2020-16354 Filed 8-19-20; 8:45 am]
BILLING CODE 4830-01-P

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