[Federal Register Volume 69, Number 138 (Tuesday, July 20, 2004)]
[Proposed Rules]
[Page 43366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-16375]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-104683-00]
RIN 1545-AX88


Partial Withdrawal of Proposed Regulations Relating to the 
Application of Section 904 to Income Subject To Separate Limitations 
and Computation of Deemed-Paid Credit Under Section 902

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Partial withdrawal of notice of proposed rulemaking.

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SUMMARY: This document withdraws a portion of a notice of proposed 
rulemaking published on January 3, 2001, relating to the application of 
the foreign tax credit limitation under section 904 and the deemed-paid 
credit under section 902.

DATES: The withdrawal of proposed Sec. Sec.  1.902-0, 1.902-1 and 
1.904-4(g) is made on July 20, 2004.

FOR FURTHER INFORMATION CONTACT: Bethany A. Ingwalson, (202) 622-3850 
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    On January 3, 2001, the Treasury Department and the IRS published 
in the Federal Register (66 FR 319) a notice of proposed rulemaking 
(REG-104683-00) providing guidance with respect to the application of 
sections 902 and 904. Written comments were received and a public 
hearing on the proposed regulations was held on April 26, 2001. After 
consideration of the comments received, the Treasury Department and the 
IRS are withdrawing the portions of the proposed regulations that would 
have amended Sec. Sec.  1.902-1 and 1.904-4(g). The amendments to Sec.  
1.902-1 would have terminated the pooling of a foreign corporation's 
post-1986 undistributed earnings and foreign income taxes if the 
ownership requirements of section 902(c)(3)(B) were not met as of the 
end of any taxable year. The amendments to Sec.  1.904-4(g) would have 
disallowed look-through treatment for a dividend paid by a CFC or 
noncontrolled section 902 corporation out of E&P accumulated while the 
corporation was a look-through entity (i.e., the corporation was a CFC 
or, for tax years beginning after December 31, 2002, a noncontrolled 
section 902 corporation) if paid after an intervening period during 
which the corporation was a non-look-through entity (i.e., a less-than-
10%-U.S.-owned corporation or, for tax years beginning on or before 
December 31, 2002, a noncontrolled section 902 corporation).
    Final regulations adopting the remaining portions of the proposed 
regulations are being published in the Rules and Regulations section in 
this issue of the Federal Register. See the preamble to the final 
regulations for a discussion of the reasons Sec. Sec.  1.902-1 and 
1.904-4(g) are being withdrawn.

Drafting Information

    The principal author of this withdrawal notice is Bethany A. 
Ingwalson, Office of Associate Chief Counsel (International). However, 
other personnel from the Treasury Department and the IRS participated 
in its development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Partial Withdrawal of a Notice of Proposed Rulemaking

    Accordingly, under the authority of 26 U.S.C. 7805, Sec. Sec.  
1.902-0, 1.902-1 and 1.904-4(g) of the notice of proposed rulemaking 
published in the Federal Register (66 FR 319) on January 3, 2001 are 
withdrawn.

Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 04-16375 Filed 7-19-04; 8:45 am]
BILLING CODE 4830-01-P