[Federal Register Volume 76, Number 168 (Tuesday, August 30, 2011)]
[Rules and Regulations]
[Page 53819]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-22065]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9536]
RIN 1545-BK40


Determining the Amount of Taxes Paid for Purposes of the Foreign 
Tax Credit

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains amendments to correct errors in final 
and temporary regulations (TD 9536) that were published in the Federal 
Register on Monday, July 18, 2011, providing guidance relating to the 
determination of the amount of taxes paid for purposes of the foreign 
tax credit. These regulations address certain highly structured 
arrangements that produce inappropriate foreign tax credit results. The 
regulations affect individuals and corporations that claim direct and 
indirect foreign tax credits.

DATES: This correction is effective on August 30, 2011 and is 
applicable beginning July 18, 2011.

FOR FURTHER INFORMATION CONTACT: Jeffery Cowan, (202) 622-3850 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The temporary and final regulation (TD 9536) that is the subject of 
this correction is under section 901 of the Internal Revenue Code.

Need for Correction

    As published July 18, 2011 (76 FR 42036), TD 9536 contains errors 
that may prove to be misleading and is in need of clarification.

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 1.901-2 is amended by adding paragraphs 
(e)(5)(iv)(B)(1)(iii) and (h)(3) to read as follows:


Sec.  1.901-2  Income, war profits, or excess profits tax paid or 
accrued.

* * * * *
    (e) * * *
    (5) * * *
    (iv) * * *
    (B) * * *
    (1) * * *
    (iii) [Reserved]. For further guidance, see Sec.  1.901-
2T(e)(5)(iv)(B)(1)(iii).
* * * * *
    (h) * * *
    (3) [Reserved]. For further guidance, see Sec.  1.901-2T(h)(3).

0
Par. 3. Section 1.901-2T is added to read as follows:


Sec.  1.901-2T  Income, war profits, or excess profits tax paid or 
accrued.

    (a) through (e)(5)(iv)(B)(1)(ii) [Reserved]. For further guidance, 
see Sec.  1.901-2(a) through (e)(5)(iv)(B)(1)(ii).
    (iii) A foreign payment attributable to income of the entity, 
within the meaning of Sec.  1.901-2(e)(5)(iv)(B)(1)(ii), also includes 
a withholding tax (within the meaning of section 901(k)(1)(B)) imposed 
on a dividend or other distribution (including distributions made by a 
pass-through entity or an entity that is disregarded as an entity 
separate from its owner for U.S. tax purposes) with respect to the 
equity of the entity.
    (2) through (h)(2) [Reserved]. For further guidance, see Sec.  
1.901-2(e)(5)(iv)(B)(2) through (h)(2).
    (h)(3) Effective/applicability date. This section applies to 
foreign payments that, if such payments were an amount of tax paid, 
would be considered paid or accrued under Sec.  1.901-2(f) on or after 
July 14, 2011.
    (h)(4) Expiration date. The applicability of this section expires 
on July 14, 2014.

Treena V. Garrett,
Federal Register Liaison, Publication and Regulations Branch, Legal 
Processing Division, Associate Chief Counsel, (Procedure and 
Administration).
[FR Doc. 2011-22065 Filed 8-29-11; 8:45 am]
BILLING CODE 4830-01-P