[Federal Register Volume 84, Number 74 (Wednesday, April 17, 2019)]
[Rules and Regulations]
[Pages 15953-15954]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07651]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9847]
RIN 1545-BO71


Qualified Business Income Deduction; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations; correction.

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SUMMARY: This document contains corrections to final regulations (TD 
9847) that were published in the Federal Register on Friday, February 
8, 2019. The final regulations are concerning the deduction for 
qualified business income under section 199A of the Internal Revenue 
Code.

DATES: This correction is effective on April 17, 2019 and is applicable 
on or after February 8, 2019.

FOR FURTHER INFORMATION CONTACT: Vishal R. Amin or Sonia K. Kothari at 
(202) 317-6850 or Robert D. Alinsky, Margaret Burow, or Wendy L. 
Kribell at (202) 317-5279.

SUPPLEMENTARY INFORMATION: 

Background

    The final regulations (TD 9847) that are the subject of this 
correction are issued under sections 199A and 643 of the Internal 
Revenue Code.

Need for Correction

    As published, the final regulations (TD 9847) contain errors that 
may prove to be misleading and are in need of clarification.

Correction of Publication

    Accordingly, the final regulations (TD 9847), that are the subject 
of FR Doc. 2019-01025, which published on February 8, 2019 (84 FR 
2952), are corrected as follows:
    1. On page 2954, second column, in the preamble, under the 
paragraph heading ``2. Relevant Passthrough Entity'', the thirteenth 
line, the language ``trust funds as described in Sec.  1.6032-T'' is 
corrected to read ``trust funds as described in Sec.  1.6032-1T''.
    2. On page 2955, second column, in the preamble, under the 
paragraph heading ``b. Rental Real Estate Activities as a Trade or 
Business'', the fifth line from the bottom of the first full paragraph, 
the language ``respect to any real estate rental of which'' is 
corrected to read ``respect to any rental real estate of which''.
    3. On page 2955, third column, in the preamble, the seventh line 
from the bottom of the first full paragraph, the language, ``07, 2019-9 
IRB,'' is corrected to read ``07, 2019-9 IRB 740,''.
    4. On page 2957, second column, in the preamble, the fourth line 
from the bottom of the last partial paragraph under the paragraph 
headings ``C. Other Comments'', the language ``section 199A and 1.199A-
1 through'' is corrected to read ``section 199A and Sec. Sec.  1.199A-1 
through''.
    5. On page 2963, second column, in the preamble, the twelfth line, 
under the paragraph heading ``8. Interaction of Sections 857(l) and 
199A, the language ``section 199A'' is corrected to read ``section 
199A)''.
    6. On page 2963, third column, in the preamble, the fifth sentence 
of the second full paragraph, under the paragraph heading ``8, the 
language ``A rental real estate enterprise that meets the safe harbor 
described in Notice

[[Page 15954]]

2017-07, released concurrently with these final regulations, may also 
treated as trades or businesses for purposes of section 199A.'' is 
corrected to read ``A rental real estate enterprise that meets the safe 
harbor described in Notice 2019-07, released concurrently with these 
final regulations, may be also be treated as a trade or business for 
purposes of section 199A.''.
    7. On page 2968, second column, in the preamble, under section ``C. 
Aggregation by RPEs'', the eleventh line from the bottom of the 
paragraph, the language ``4(c)(1).'' is corrected to read ``4.''.
    8. On page 2969, third column, in the preamble, the eighth line 
from the bottom of the paragraph, the language ``look to the 
definitions provided for in'' is corrected to read ``look to the 
definitions provided in''.
    9. On page 2969, third column, in the preamble, the fifteenth line, 
the language ``engineering architecture, accounting,'' is corrected to 
read ``engineering, architecture, accounting,''.
    10. On page 2970, first column, in the preamble, the second line 
from the bottom of the last partial paragraph, the language ``of the 
listed fields in section 199(d)(2)'' is corrected to read ``of the 
listed fields in section 199A(d)(2)''.
    11. On page 2976, third column, in the preamble, the second line 
under the paragraph heading ``C. Services or Property Provided to an 
SSTB, the language ``special rules for service or property'' is 
corrected to read ``special rules for services or property''.
    12. On page 2979, second column, in the preamble, the second line 
under the paragraph heading ``3. ESBTs'', the language ``proposed 
regulation's position on'' is corrected to read ``proposed regulation's 
position on an''.
    13. On page 2988, first column, in the preamble, before the caption 
``Drafting Information'' is amended by adding section III. to read as 
follows:

III. 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 (CRA) (5 
U.S.C. 801 et seq.) 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 that 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. Section 199A was 
enacted on December 22, 2017, and applies to taxable years beginning 
after December 31, 2017, and before January 1, 2026. This means that 
the statute is currently effective and that taxpayers may claim the 
deduction when filing their U.S. federal income tax returns for taxable 
years ending in calendar year 2018. The Treasury Department and the IRS 
have determined that the rules in this Treasury decision are generally 
applicable to taxable years ending after February 8, 2019, the date 
this Treasury decision was published in the Federal Register. Sections 
1.199A-1(f), 1.199A-2(d), 1.199A-3(d), 1.199A-4(e), 1.199A-5(e), 
1.199A-6(e), and 1.643(f)-1(b) are applicable for taxable years ending 
after August 16, 2018, the date that the proposed regulations were 
published in the Federal Register. However, taxpayers may rely on the 
rules set forth in Sec. Sec.  [thinsp]1.199A-1 through 1.199A-6, in 
their entirety, or on the proposed regulations under Sec. Sec.  
[thinsp]1.199A-1 through 1.199A-6 issued on August 16, 2018, in their 
entirety, for taxable years ending in calendar year 2018. These final 
regulations provide crucial guidance for taxpayers on how to apply the 
rules of section 199A, correctly calculate their deduction under 
section 199A, and to accurately file their U.S. federal income tax 
returns.

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2019-07651 Filed 4-16-19; 8:45 am]
 BILLING CODE 4830-01-P