[Federal Register Volume 84, Number 69 (Wednesday, April 10, 2019)]
[Rules and Regulations]
[Pages 14261-14262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07018]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9846]
RIN 1545-BO51


Regulations Regarding the Transition Tax Under Section 965 and 
Related Provisions; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations; correction.

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SUMMARY: This document contains a correction to final regulations (TD 
9846) that were published in the Federal Register on Tuesday, February 
5, 2019 (84 FR 1838). The final regulations implement section 965 of 
the Internal Revenue Code (the ``Code''). Section 965 was amended by 
the Tax Cuts and Job Act, which was enacted on December 22, 2017.

DATES: This correction is effective on April 10, 2019.

FOR FURTHER INFORMATION CONTACT: Natalie Punchak at (202) 317-6934 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9846) that are the subject of this 
correction are issued under section 965 of the Code.

[[Page 14262]]

Need for Correction

    As published, the final regulations (TD 9846) contain errors that 
may prove to be misleading and are in need of clarification.

Correction of Publication

    Accordingly, the final regulations (TD 9846), that are the subject 
of FR Doc. 2019-00265, are corrected as follows:
    On page 1874, in the preamble, the second column, under the caption 
``Special Analyses,'' is amended by adding section VI. to read as 
follows:

VI. Congressional Review Act

    The Administrator of the Office of Information and Regulatory 
Affairs of the Office of Management and Budget has determined that this 
is a major rule for purposes of the Congressional Review Act (5 U.S.C. 
801 et. seq.) (``CRA''). Under section 801(3) of the CRA, a major rule 
takes effect 60 days after the rule is published in the Federal 
Register. Notwithstanding this requirement, section 808(2) of the CRA 
allows agencies to dispense with the requirements of 801 when the 
agency for good cause finds that such procedure would be impracticable, 
unnecessary, or contrary to the public interest and the rule shall take 
effect at such time as the agency promulgating the rule determines.
    Pursuant to section 808(2) of the CRA, the Treasury Department and 
the IRS find, for good cause, that a 60-day delay in the effective date 
is unnecessary and contrary to the public interest. The Treasury 
Department and the IRS have determined that the rules in this Treasury 
decision shall take effect on December 22, 2017. December 22, 2017, is 
the date that section 965 in its current form was enacted. Section 965 
applies to the last taxable year of foreign corporations that began 
before January 1, 2018, and to the taxable years of United States 
persons in which such taxable years of foreign corporations end. This 
means that the statute is currently effective, and taxpayers may be 
required to make payments under section 965 on a U.S. federal income 
tax return for 2017 or 2018 tax years. These final regulations provide 
crucial guidance for taxpayers on how to apply the rules of section 
965, correctly calculate their liability under section 965, and 
accurately file their U.S. Federal income tax returns. Because the 
statute already requires taxpayers to comply with section 965, a 60-day 
delay in the effective date is unnecessary and contrary to the public 
interest.

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2019-07018 Filed 4-9-19; 8:45 am]
BILLING CODE 4830-01-P