[Federal Register Volume 64, Number 133 (Tuesday, July 13, 1999)]
[Rules and Regulations]
[Pages 37677-37678]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-17369]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[TD 8827]
RIN 1545-AW49
Removal of Regulations Providing Guidance Under Subpart F
Relating to Partnerships and Branches
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Removal of temporary and final regulations.
-----------------------------------------------------------------------
SUMMARY: This document removes regulations relating to the treatment
under subpart F of certain payments involving branches of a controlled
foreign corporation (CFC) that are treated as separate entities for
foreign tax purposes or partnerships in which CFCs are partners, as
published in the Federal Register on March 26, 1998. Removal of the
temporary regulations will allow Congress and the Treasury the
opportunity to consider in greater depth the issues pertaining to
hybrid transactions.
EFFECTIVE DATES: These regulations are removed effective March 23,
1998.
FOR FURTHER INFORMATION CONTACT: Valerie Mark, (202) 622-3840 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background
On March 23, 1998 (63 FR 14669, March 26, 1998), the IRS issued
proposed regulations (REG-104537-97) relating to the treatment under
subpart F of certain partnership and hybrid branch transactions. The
provisions of the proposed regulations concerning hybrid branch
transactions were also issued as temporary regulations (TD 8767) (63 FR
14613, March 26, 1998). Congress and taxpayers raised concerns about
the proposed and temporary regulations relating to hybrid branch
transactions. Accordingly, as announced in Notice 98-35 (1998-27 I.R.B.
35), the IRS has decided to withdraw the proposed regulations (see
document withdrawing proposed regulations and setting out new proposed
regulations, published elsewhere in this issue of the Federal Register)
and remove the temporary regulations. Removal of the temporary
regulations will allow Congress and the Treasury the opportunity to
consider in greater depth the issues pertaining to hybrid transactions.
Drafting Information: The principal author of these regulations is
Valerie Mark, of the Office of the Associate Chief Counsel
(International). Other personnel from the IRS and Treasury Department
also participated in the development of these regulations.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR parts 1 and 301 are amended as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for 26 CFR part 1 continues to
read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Sec. 1.904-5 [Amended]
Par. 2. In Sec. 1.904-5, paragraph (o) is amended by removing the
last sentence.
Sec. 1.904-5T [Removed]
Par. 3. Sec. 1.904-5T is removed.
Sec. 1.954-1 [Amended]
Par. 4. Section 1.954-1 is amended by removing paragraph
(c)(1)(iv).
[[Page 37678]]
Sec. 1.954-1T [Removed]
Par. 5. Section 1.954-1T is removed.
Sec. 1.954-2T [Removed]
Par. 7. Section 1.954-2T is removed.
Sec. 1.954-9T [Removed]
Par. 9. Section 1.954-9T is removed.
PART 301--PROCEDURE AND ADMINISTRATION
Par. 10. The authority citation for 26 CFR part 301 continues to
read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Sec. 301.7701-3 [Amended]
Par. 11. In Sec. 301.7701-3, the last sentence in paragraph (f)(1)
is removed.
Sec. 301.7701-3T [Removed]
Par. 12. Section 301.7701-3T is removed.
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
Approved: June 29, 1999.
Donald C. Lubick,
Assistant Secretary of the Treasury.
[FR Doc. 99-17369 Filed 7-12-99; 8:45 am]
BILLING CODE 4830-01-U