[Federal Register Volume 85, Number 213 (Tuesday, November 3, 2020)]
[Rules and Regulations]
[Pages 69500-69501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22996]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9901]
RIN 1545-BO55


Deduction for Foreign-Derived Intangible Income and Global 
Intangible Low-Taxed Income; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations; correction.

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SUMMARY: This document contains corrections to the final regulations 
(Treasury Decision 9901) that were published in the Federal Register on 
Wednesday July 15, 2020. Treasury Decision 9901 contained final 
regulations that provide guidance regarding the deduction for foreign-
derived intangible income (FDII) and global intangible low-taxed income 
(GILTI) and for coordinating the deduction for FDII and GILTI with 
other provisions in the Internal Revenue Code.

DATES: These corrections are effective on November 2, 2020. For dates 
of applicability, see Sec. Sec.  1.250-1(b) and 1.861-8(h).

FOR FURTHER INFORMATION CONTACT: Brad McCormack at (202) 317-6911 and 
Lorraine Rodriguez at (202) 317-6726 (not toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Background

    The final regulations (TD 9901) that are the subject of this 
correction are under sections 250 and 861 of the Internal Revenue Code.

[[Page 69501]]

Need for Correction

    As published on July 15, 2020 (85 FR 43042) the final regulations 
(TD 9901) contain errors that need to be corrected.

Correction of Publication

    Accordingly, the final regulations (TD 9901) that were the subject 
of FR Doc. 2020-14649, published at 85 FR 43042 (July 15, 2020), are 
corrected as follows:
    1. On page 43044, third column, the third through the fifth, and 
the ninth line from the top of the last partial paragraph, and page 
43045, first column, the first line from the top of the first partial 
paragraph, the language ``taken into account in determining the taxable 
income limitation in section 250(a)(2),'' is corrected to read ``taken 
into account for coordinating taxable income limitations (including the 
taxable income limitation in section 250(a)(2)),'' and the language 
``if the method is applied consistently for all taxable'' is corrected 
to read '' if the same method is applied consistently for all relevant 
Code sections and for all taxable''.
    2. On page 43071, first column, the third and eighth and ninth line 
from the top of the last partial paragraph from the bottom, the text 
``years beginning before January 1, 2021,'' is corrected to read 
``years beginning on or after January 1, 2018, and before January 1, 
2021,'' and the text ``provisions in Sec.  1.250(b)-4(d)(3) or Sec.  
1.250(b)-5(e)(4))'' is corrected to read ``provisions in Sec.  
1.250(b)-4(d)(3) or Sec.  1.250(b)-5(e)(4)), but once applied, 
taxpayers must apply the final regulations for all subsequent taxable 
years beginning before January 1, 2021''.
    3. On page 43071, second column, amend the first partial paragraph 
by adding at the end of the paragraph the text: ``The final regulations 
also make conforming amendments to Sec.  1.861-8 in relation to the 
finalization of the regulations under section 250. Consistent with the 
general applicability date for Sec. Sec.  1.250(a)-1 through 1.250(b)-
6, these amendments apply to taxable years beginning on or after 
January 1, 2021. For taxable years beginning before January 1, 2021, 
taxpayers may allocate and apportion deductions for purposes of 
determining deduction eligible income and foreign-derived deduction 
eligible income by allocating and apportioning deductions in accordance 
with the principles of Sec. Sec.  1.861-8 through 1.861-17. No 
inference is intended as to whether other approaches for allocating and 
apportioning deductions for purposes of section 250(b) may be 
considered to result in properly allocable deductions.''

Crystal Pemberton,
Senior Federal Register Liaison, Publications and Regulations Branch, 
Legal Processing Division, Associate Chief Counsel, (Procedure and 
Administration).
[FR Doc. 2020-22996 Filed 11-2-20; 8:45 am]
BILLING CODE 4830-01-P