§ 1.6038A-3T - Record maintenance (temporary).

(a)(1) through (3) Examples 1 through 3 [Reserved] For further guidance, see § 1.6038A-3(a)(1) through (3) Examples 1 through 3.

Example 4.

S, a U.S. reporting corporation, provides computer consulting services for its foreign parent, X. Based on the application of section 482 and the regulations, it is determined that the cost of services plus method, as described in § 1.482-9T(e), will provide the most reliable measure of an arm's length result, based on the facts and circumstances of the controlled transaction between S and X. S is required to maintain records to permit verification upon audit of the comparable transactional costs (as described in § 1.482-9T(e)(2)(iii)) used to calculate the arm's length price. Based on the facts and circumstances, if it is determined that X's records are relevant to determine the correct U.S. tax treatment of the controlled transaction between S and X, the record maintenance requirements under section 6038A(a) and this section will be applicable to the records of X.

(b)(1) through (h) [Reserved] For further guidance, see § 1.6038A-3T(b)(1) through (h).

(i) Effective date—(1) In general. This provision is generally applicable for taxable years beginning after December 31, 2006.

(2) Election to apply regulation to earlier taxable years. A person may elect to apply the provisions of this section to earlier taxable years in accordance with the rules set forth in § 1.482-9T(n)(2).

(3) Expiration date. The applicability of this section expires on or before July 31, 2009.