[Federal Register Volume 88, Number 218 (Tuesday, November 14, 2023)]
[Proposed Rules]
[Pages 77921-77922]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-24650]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-128276-12]
RIN 1545-BO07


Recognition and Deferral of Section 987 Gain or Loss; Comment 
Period Reopening

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking; reopening of comment period.

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SUMMARY: The Department of the Treasury and the IRS are reopening the 
comment period for REG-128276-12, published in the Federal Register on 
December 8, 2016, relating to the determination and recognition of 
taxable income or loss and foreign currency gain or loss with respect 
to a qualified business unit.

DATES: The comment period for REG-128276-12 (81 FR 88882, December 8, 
2016) (the ``2016 proposed regulations'') is reopened, and additional 
written or electronic comments and requests for a public hearing must 
be received by February 12, 2024.

ADDRESSES: Commenters are strongly encouraged to submit additional 
public comments electronically via the Federal eRulemaking Portal at 
https://www.regulations.gov (indicate IRS and REG-128276-12) by 
following the online instructions for submitting comments. Requests for 
a public hearing must be submitted as prescribed in the ``Comments and 
Requests for a Public Hearing'' section. Once submitted to the Federal 
eRulemaking Portal, comments cannot be edited or withdrawn. The 
Department of the Treasury (the ``Treasury Department'') and the IRS 
will publish for public availability any comments submitted to the 
IRS's public docket. Send paper submissions to: CC:PA:01:PR (REG-
128276-12), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben 
Franklin Station, Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: Jack Zhou at (202) 317-6938; 
concerning submissions of comments, requests for a public hearing, or 
access to a public hearing, Vivian Hayes at (202) 317-6901 (not toll-
free numbers) or by email to [email protected] (preferred).

SUPPLEMENTARY INFORMATION: On December 8, 2016, the Treasury Department 
and the IRS published a notice of proposed rulemaking (REG-128276-12, 
81 FR 88882, December 8,

[[Page 77922]]

2016) (the ``2016 proposed regulations'') in the Federal Register. The 
2016 proposed regulations cross-reference temporary regulations in 
Treasury Decision 9795 (81 FR 88854, December 8, 2016) (the ``temporary 
regulations''), which provided rules under section 987 of the Internal 
Revenue Code relating to the determination and recognition of taxable 
income or loss and foreign currency gain or loss with respect to a 
qualified business unit. On May 13, 2019, the Treasury Department and 
the IRS published Treasury Decision 9857 (84 FR 20790, May 13, 2019), 
which finalized parts of the 2016 proposed regulations and withdrew one 
section of the temporary regulations. The temporary regulations that 
were not finalized or withdrawn expired on December 6, 2019. A notice 
of proposed rulemaking published in this issue of the Federal Register 
contains new proposed regulations under section 987 and withdraws parts 
of the 2016 proposed regulations. The parts of the 2016 proposed 
regulations that remain outstanding include: (1) rules regarding the 
treatment of section 988 transactions of a section 987 QBU (see 
Sec. Sec.  1.987-1, 1.987-3, and 1.988-1 of the 2016 proposed 
regulations); (2) rules regarding QBUs with the U.S. dollar as their 
functional currency (see Sec. Sec.  1.987-1 and 1.987-6 of the 2016 
proposed regulations); (3) rules regarding the translation of income 
used to pay creditable foreign income taxes (see Sec.  1.987-3 of the 
2016 proposed regulations); and (4) rules requiring the deferral of 
certain section 988 loss that arises with respect to related-party 
loans (see Sec.  1.988-2 of the 2016 proposed regulations).
    The Treasury Department and the IRS are considering finalizing 
these parts of the 2016 proposed regulations and, therefore, are 
reopening the comment period for 90 days. Comments that were previously 
submitted in accordance with the 2016 proposed regulations will be 
considered and do not need to be resubmitted.
    Comments and Requests for a Public Hearing: Before the parts of the 
2016 proposed regulations that remain outstanding are adopted as final 
regulations, consideration will be given to comments that are submitted 
timely to the IRS as prescribed in this Notice in the ``Addresses'' 
section. Any comments submitted will be made available at https://www.regulations.gov or upon request.
    A public hearing will be scheduled if requested in writing by any 
person who timely submits written comments. Requests for a public 
hearing are also encouraged to be made electronically. If a public 
hearing is scheduled, notice of the date and time for the public 
hearing will be published in the Federal Register.

Oluwafunmilayo A. Taylor,
Section Chief, Publications and Regulations Section, Associate Chief 
Counsel, (Procedure and Administration).
[FR Doc. 2023-24650 Filed 11-9-23; 4:15 pm]
BILLING CODE 4830-01-P