Guidance on Passive Foreign Investment Companies; Correction, 13648-13649 [2021-04790]
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13648
Federal Register / Vol. 86, No. 45 / Wednesday, March 10, 2021 / Rules and Regulations
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.1297–0 is amended
by revising the entry for § 1.1297–
2(g)(12) to read as follows:
■
§ 1.1297–0
Table of contents.
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*
§ 1.1297–2 Special rules regarding lookthrough subsidiaries and look-through
partnerships.
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(g) * * *
(12) TFC obligation.
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■ Par. 3. Section 1.1297–1 is amended
by:
■ a. Removing ‘‘§ 1.1297–2(b)(2)(i))’’ in
the first sentence of paragraph
(d)(1)(v)(C)(1) and adding in its place
‘‘§ 1.1297–2(b)(2)(i)’’.
■ b. Revising paragraph (f)(8).
The revision reads as follows:
§ 1.1297–1 Definition of passive foreign
investment company.
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(f) * * *
(8) Related person. For purposes of
applying the rules of this section and
§ 1.1297–2 with respect to section
1297(b)(2)(C), the term means a related
person within the meaning of section
954(d)(3).
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■ Par. 4. Section 1.1297–2 is amended
by:
■ a. Removing ‘‘of this section))’’ in the
first sentence of paragraph (b)(3)(i) and
adding in its place ‘‘of this section)’’.
■ b. Revising the first sentence of
paragraph (c)(4)(iii)(B).
■ c. Removing ‘‘PFIC .’’ at the end of
paragraph (e)(3)(i)(B)(1) and adding in
its place ‘‘PFIC.’’
■ d. Revising the first sentence of
paragraph (g)(4)(iv)(A)(2)(iii).
The revisions read as follows:
§ 1.1297–2 Special rules regarding lookthrough subsidiaries and look-through
partnerships.
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*
*
*
*
(c) * * *
(4) * * *
(iii) * * *
(B) * * * The results are the same as
in paragraph (c)(4)(ii)(B) of this section
(the results in Example 2), except that
TFC’s assets also do not include the
stock of LTS2.
* * *
*
*
*
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*
(g) * * *
(4) * * *
(iv) * * *
(A) * * *
(2) * * *
(iii) * * * For purposes of paragraph
(b)(3) of this section, FPS qualifies as a
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look-through partnership because TFC
satisfies the active partner tests of both
paragraphs (g)(4)(ii)(A) and (B) of this
section. * * *
*
*
*
*
*
■ Par. 5. Section 1.1297–4 is amended
by:
■ a. Revising paragraph (d)(6).
■ b. Removing ‘‘written by a’’ in
paragraph (f)(5) and adding in its place
‘‘written by, a’’.
The revision reads as follows:
§ 1.1297–4 Qualifying insurance
corporation.
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*
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*
(d) * * *
(6) Stock ownership. For purposes of
this section, ownership of stock in a
foreign corporation means either direct
ownership of such stock or indirect
ownership determined using the rules
specified in § 1.1291–1(b)(8) (but
without regard to the 50 percent
ownership requirement of § 1.1291–
1(b)(8)(ii)(A)).
*
*
*
*
*
■ Par. 6. Section 1.1298–2 is amended
by revising the second sentence of
paragraph (c)(3), the second sentence of
paragraph (f)(1)(i)(B), and the first
sentence of paragraph (f)(2)(ii) to read as
follows:
§ 1.1298–2 Rules for certain corporations
changing businesses.
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*
*
(c) * * *
(3) * * * However, if activities
performed by the officers and
employees of a look-through subsidiary
of a corporation or of a look-through
partnership (including a look-through
subsidiary or a look-through partnership
with respect to which paragraph (d) of
this section applies) would be taken into
account by the corporation pursuant to
§ 1.1297–2(e) if it applied, such
activities are taken into account for
purposes of the determination of the
existence of an active trade or business
and the determination of whether assets
are used in an active trade or business.
*
*
*
*
*
(f) * * *
(1) * * *
(i) * * *
(B) * * * The residual gain computed
under § 1.1297–2(f)(2) on the sale of the
FS stock is $10x. * * *
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*
*
*
*
(2) * * *
(ii) * * * The results are the same as
in paragraph (f)(1)(ii) of this section (the
results in Example 1), except that under
paragraph (c)(1) of this section, the
passive income considered attributable
to proceeds from a disposition of one or
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more active trades or businesses is $4x
(from investment of disposition
proceeds). * * *
*
*
*
*
*
§ 1.1298–4
[Amended]
Par. 7. Section 1.1298–4(f) is amended
by removing ‘‘Janyuary’’ and adding in
its place ‘‘January’’.
■
Crystal Pemberton,
Senior Federal Register Liaison, Legal
Processing Division, Associate Chief Counsel
(Procedure and Administration).
[FR Doc. 2021–04789 Filed 3–9–21; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9936]
RIN 1545–BO59
Guidance on Passive Foreign
Investment Companies; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations; correction.
AGENCY:
This document contains
corrections to the final regulations
(Treasury Decision 9936), that were
published in the Federal Register on
Friday, January 15, 2021. The final
regulations regarding the determination
of whether a foreign corporation is
treated as a passive foreign investment
company (‘‘PFIC’’) for purposes of the
Internal Revenue Code (‘‘Code’’), and
the application and scope of certain
rules that determine whether a United
States person that indirectly holds stock
in a PFIC is treated as a shareholder of
the PFIC.
DATES: These corrections are effective
on March 10, 2021 and applicable on or
after January 15, 2021.
FOR FURTHER INFORMATION CONTACT:
Concerning the regulations §§ 1.1291–0
and 1.1291–1, 1.1297–0 through 1.1297–
2, 1.1298–0, 1.1298–2, and 1.1298–4,
Christina G. Daniels at (202) 317–6934;
concerning the regulations §§ 1.1297–4
and 1.1297–6, Josephine Firehock at
(202) 317–4932 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
SUMMARY:
Background
The final regulations (TD 9936) that
are the subject of this correction are
issued under sections 1297 and 1298 of
the Internal Revenue Code.
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Federal Register / Vol. 86, No. 45 / Wednesday, March 10, 2021 / Rules and Regulations
Need for Correction
As published the final regulations (TD
9936) that contain errors that need to be
corrected.
Correction of Publication
Accordingly, the final regulations (TD
9936) that are the subject of FR Doc.
2020–27009, which published on
January 15, 2021 (86 FR 4516), are
corrected as follows:
1. On page 4532, the third column,
the ninth line from the bottom of the
last partial paragraph, the language
‘‘claims’’ is corrected to read ‘‘claims,’’.
2. On page 4534, the third column,
the tenth line from the bottom of the
first partial paragraph, the language
‘‘1000’’ is corrected to read ‘‘1,000’’.
3. On page 4541, the third column,
the last line of the third paragraph by
removing the language ‘‘Id.’’.
4. On page 4553, the second column,
the last line of the first full paragraph,
the language ‘‘[X]’’ is corrected to read
‘‘1545–1002’’.
Crystal Pemberton,
Senior Federal Register Liaison, Legal
Processing Division, Associate Chief Counsel
(Procedure and Administration).
[FR Doc. 2021–04790 Filed 3–9–21; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket Number USCG–2021–0133]
RIN 1625–AA87
Security Zone; San Diego Bay, San
Diego, CA
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
The Coast Guard is
establishing a temporary security zone
for all navigable waters within a 200yard radius of the U.S. Coast Guard
Cutter (USCGC) BERTHOLF while
berthed at 10th Avenue Marine
Terminal in San Diego, CA. The security
zone is needed to protect the military
vessel, personnel in and around the
military vessel, navigable waterways,
and waterfront facilities. Entry of
vessels or persons into this zone is
prohibited unless specifically
authorized by the Captain of the Port
San Diego.
DATES: This rule is effective from 8:30
a.m. until 10:30 a.m. on March 10, 2021.
ADDRESSES: To view documents
mentioned in this preamble as being
SUMMARY:
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16:13 Mar 09, 2021
Jkt 253001
available in the docket, go to https://
www.regulations.gov, type USCG–2021–
0133 in the ‘‘SEARCH’’ box and click
‘‘SEARCH.’’ Click on Open Docket
Folder on the line associated with this
rule.
If
you have questions on this rule, call or
email Lieutenant John Santorum,
Waterways Management, U.S. Coast
Guard Sector San Diego, CA; telephone
619–278–7656, email MarineEventsSD@
uscg.mil.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
I. Table of Abbreviations
CFR Code of Federal Regulations
DHS Department of Homeland Security
FR Federal Register
NPRM Notice of proposed rulemaking
§ Section
U.S.C. United States Code
II. Background Information and
Regulatory History
The Coast Guard is issuing this
temporary rule without prior notice and
opportunity to comment pursuant to
authority under section 4(a) of the
Administrative Procedure Act (APA) (5
U.S.C. 553(b)). This provision
authorizes an agency to issue a rule
without prior notice and opportunity to
comment when the agency for good
cause finds that those procedures are
‘‘impracticable, unnecessary, or contrary
to the public interest.’’ Under 5 U.S.C.
553(b)(B), the Coast Guard finds that
good cause exists for not publishing a
notice of proposed rulemaking (NPRM)
with respect to this rule because it
would be impracticable based on the
unpredictable nature of vessel
operations and the fact that details of
the port call were not finalized until
March 3, 2021. This security zone is
required to protect the military vessel,
personnel in and around the military
vessel, navigable waterways, and
waterfront facilities while the vessel is
docked at the 10th Avenue Marine
Terminal. It is impracticable to publish
an NPRM because we must establish
this security zone by March 10, 2021.
Under 5 U.S.C. 553(d)(3), the Coast
Guard finds that good cause exists for
making this rule effective less than 30
days after publication in the Federal
Register. Delaying the effective date of
this rule would be impracticable
because the security zone is needed on
March 10, 2021 to provide for the
security of the military vessel, personnel
in and around the military vessel,
navigable waterways, and waterfront
facilities while the vessel is docked at
the 10th Avenue Marine Terminal.
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13649
III. Legal Authority and Need for Rule
The Coast Guard is issuing this rule
under authority in 46 U.S.C. 70034. The
Captain of the Port Sector San Diego
(COTP) has determined that the
presence of the military vessel at this
location presents a potential target for
terrorist attack, sabotage, or other
subversive acts, accidents, or other
causes of similar nature. This rule is
needed to protect the military vessel,
personnel in and around the military
vessel, navigable waterways, and
waterfront facilities while the vessel is
docked at the 10th Avenue Marine
Terminal.
IV. Discussion of the Rule
This rule establishes a security zone
from 8:30 a.m. until 10:30 a.m. on
March 10, 2021. The security zone will
cover all navigable waters within a 200yard radius around the USCGC
BERTHOLF while berthed at 10th
Avenue Marine Terminal in San Diego,
CA. The duration of the zone is
intended to protect the military vessel,
personnel in and around the military
vessel, navigable waterways, and
waterfront facilities while the vessel is
docked at the 10th Avenue Marine
Terminal. No vessel or person will be
permitted to enter the security zone
without obtaining permission from the
COTP or a designated representative.
V. Regulatory Analyses
We developed this rule after
considering numerous statutes and
Executive orders related to rulemaking.
Below we summarize our analyses
based on a number of these statutes and
Executive orders, and we discuss First
Amendment rights of protestors.
A. Regulatory Planning and Review
Executive Orders 12866 and 13563
direct agencies to assess the costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits.
This rule has not been designated a
‘‘significant regulatory action,’’ under
Executive Order 12866. Accordingly,
this rule has not been reviewed by the
Office of Management and Budget
(OMB).
This regulatory action determination
is based on the size, location, and
limited duration of the security zone.
This zone impacts a small designated
area of the San Diego Bay for a very
limited period. Furthermore, vessel
traffic can safely transit around the
security zone.
E:\FR\FM\10MRR1.SGM
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]]>Agencies
[Federal Register Volume 86, Number 45 (Wednesday, March 10, 2021)]
[Rules and Regulations]
[Pages 13648-13649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-04790]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9936]
RIN 1545-BO59
Guidance on Passive Foreign Investment Companies; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations; correction.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to the final regulations
(Treasury Decision 9936), that were published in the Federal Register
on Friday, January 15, 2021. The final regulations regarding the
determination of whether a foreign corporation is treated as a passive
foreign investment company (``PFIC'') for purposes of the Internal
Revenue Code (``Code''), and the application and scope of certain rules
that determine whether a United States person that indirectly holds
stock in a PFIC is treated as a shareholder of the PFIC.
DATES: These corrections are effective on March 10, 2021 and applicable
on or after January 15, 2021.
FOR FURTHER INFORMATION CONTACT: Concerning the regulations Sec. Sec.
1.1291-0 and 1.1291-1, 1.1297-0 through 1.1297-2, 1.1298-0, 1.1298-2,
and 1.1298-4, Christina G. Daniels at (202) 317-6934; concerning the
regulations Sec. Sec. 1.1297-4 and 1.1297-6, Josephine Firehock at
(202) 317-4932 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9936) that are the subject of this
correction are issued under sections 1297 and 1298 of the Internal
Revenue Code.
[[Page 13649]]
Need for Correction
As published the final regulations (TD 9936) that contain errors
that need to be corrected.
Correction of Publication
Accordingly, the final regulations (TD 9936) that are the subject
of FR Doc. 2020-27009, which published on January 15, 2021 (86 FR
4516), are corrected as follows:
1. On page 4532, the third column, the ninth line from the bottom
of the last partial paragraph, the language ``claims'' is corrected to
read ``claims,''.
2. On page 4534, the third column, the tenth line from the bottom
of the first partial paragraph, the language ``1000'' is corrected to
read ``1,000''.
3. On page 4541, the third column, the last line of the third
paragraph by removing the language ``Id.''.
4. On page 4553, the second column, the last line of the first full
paragraph, the language ``[X]'' is corrected to read ``1545-1002''.
Crystal Pemberton,
Senior Federal Register Liaison, Legal Processing Division, Associate
Chief Counsel (Procedure and Administration).
[FR Doc. 2021-04790 Filed 3-9-21; 8:45 am]
BILLING CODE 4830-01-P
