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Rule

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

A Rule by the Internal Revenue Service on 05/15/2020

Document Details

Information about this document as published in the Federal Register.

Printed version:
PDF
Publication Date:
05/15/2020
Agencies:
Internal Revenue Service
Dates:
These corrections are effective on May 15, 2020 and applicable December 17, 2019.
Effective Date:
05/15/2020
Document Type:
Rule
Document Citation:
85 FR 29323
Page:
29323 (1 page)
CFR:
26 CFR 1
Agency/Docket Number:
TD 9882
RIN:
1545-AC09
1545-BK55
1545-BP19
Document Number:
2020-08995
Document Details
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Enhanced Content

Relevant information about this document from Regulations.gov provides additional context. This information is not part of the official Federal Register document.

Docket Number:
IRS-2018-0040
Docket Name:
Guidance Related to the Foreign Tax Credit, Including Guidance Implementing Changes Made by the Tax Cuts and Jobs Act (REG-105600-18)
Docket RIN
1545-BO62
Enhanced Content
Published Document

This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

Start Preamble Start Printed Page 29323

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.

Start Further Info

FOR FURTHER INFORMATION CONTACT:

Jeffrey P. Cowan, (202) 317-4924 (not a toll-free number).

End Further Info End Preamble Start Supplemental Information

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.

Start List of Subjects

List of Subjects in 26 CFR Part 1

  • Income taxes
  • Reporting and recordkeeping requirements
End List of Subjects

Correction of Publication

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

Start Part

PART 1—INCOME TAXES

End Part Start Amendment Part

Paragraph 1. The authority citation for part 1 continues to read in part as follows:

End Amendment Part Start Authority

Authority: 26 U.S.C. 7805 * * *

End Authority Start Amendment Part

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:

End Amendment Part
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 § 1.904-6(a)(1)(i), (ii), and (iv). * * *

* * * * *
Start Amendment Part

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

End Amendment Part
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. * * *

* * * * *
[Amended]
Start Amendment Part

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.

End Amendment Part
[Amended]
Start Amendment Part

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

End Amendment Part
[Amended]
Start Amendment Part

Par. 6. Section 1.904(g)-0 is amended by adding “the” in the heading for § 1.904(g)-3 before the word “recapture”.

End Amendment Part Start Signature

Martin V. Franks,

Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration).

End Signature End Supplemental Information

[FR Doc. 2020-08995 Filed 5-14-20; 8:45 am]

BILLING CODE 4830-01-P

Published Document