2020-23632. Limitation on Deduction for Dividends Received From Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception; Correcting Amendment
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Start Preamble
Start Printed Page 72564
AGENCY:
Internal Revenue Service (IRS), Treasury.
ACTION:
Correcting amendments.
SUMMARY:
This document contains corrections to the final regulations (Treasury Decision 9909) that were published in the Federal Register on Thursday, August 27, 2020. Treasury Decision 9909 contained final regulations under sections 245A and 954 of the Internal Revenue Code (the “Code”) that limit the deduction for certain dividends received by United States persons from foreign corporations under section 245A and the exception to subpart F income under section 954(c)(6) for certain dividends received by controlled foreign corporations.
DATES:
These corrections are effective on November 13, 2020.
Start Further InfoFOR FURTHER INFORMATION CONTACT:
Arielle M. Borsos or Logan M. Kincheloe at (202) 317-6937 (not a toll-free number).
End Further Info End Preamble Start Supplemental InformationSUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9909) that are the subject of this correction are issued under sections 245A, 954(c)(6), and 6038 of the Internal Revenue Code.
Need for Correction
As published on August 27, 2020 (85 FR 53068), the final regulations (TD 9909; FR Doc. 2020-18543) contain errors that need to be corrected.
Start List of SubjectsList of Subjects in 26 CFR Part 1
- Income taxes
- Reporting and recordkeeping requirements
Correction of Publication
Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments:
Start PartPART 1—INCOME TAXES
End Part Start Amendment PartParagraph 1. The authority citation for part 1 continues to read in part as follows:
End Amendment Part Start Amendment PartPar. 2. Section 1.245A-5 is amended by:
End Amendment Part Start Amendment Parta. Adding a sentence after the first sentence of paragraph (e)(3)(i)(A); and
End Amendment Part Start Amendment Partb. Revising paragraphs (i)(8) and (9) and the first sentence of paragraph (j)(10)(ii).
End Amendment PartThe addition and revisions read as follows:
Limitation of section 245A deduction and section 954(c)(6) exception.* * * * *(e) * * *
(3) * * *
(i) * * *
(A) * * * Because the determination as to whether there would be an extraordinary reduction amount or tiered extraordinary reduction amount greater than zero is made without regard to this paragraph (e)(3)(i), this determination is made without taking into account any elections that may be available, or other events that may occur, solely by reason of an election described in this paragraph (e)(3)(i), such as the application of section 954(b)(4) to a short taxable year created as a result of the election. * * *
* * * * *(i) * * *
(8) Extraordinary disposition E&P. The term extraordinary disposition E&P has the meaning set forth in paragraph (c)(3)(i)(C) of this section.
(9) Extraordinary disposition ownership percentage. The term extraordinary disposition ownership percentage has the meaning set forth in paragraph (c)(3)(i)(B) of this section.
* * * * *(j) * * *
(10) * * *
(ii) * * * Because the loan from CFC1 to CFC2 and the subsequent distribution of cash were carried out with a principal purpose of avoiding the purposes of this section, appropriate adjustments are required to be made under the anti-abuse rule in paragraph (h) of this section. * * *
Crystal Pemberton,
Senior Federal Register Liaison, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2020-23632 Filed 11-12-20; 8:45 am]
BILLING CODE 4830-01-P
Document Information
- Effective Date:
- 11/13/2020
- Published:
- 11/13/2020
- Department:
- Internal Revenue Service
- Entry Type:
- Rule
- Action:
- Correcting amendments.
- Document Number:
- 2020-23632
- Dates:
- These corrections are effective on November 13, 2020.
- Pages:
- 72564-72564 (1 pages)
- Docket Numbers:
- TD 9909
- RINs:
- 1545-BP35: Limitation on Deduction for Dividends Received From Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception
- RIN Links:
- https://www.federalregister.gov/regulations/1545-BP35/limitation-on-deduction-for-dividends-received-from-certain-foreign-corporations-and-amounts-eligibl
- Topics:
- Income taxes, Reporting and recordkeeping requirements
- PDF File:
- 2020-23632.pdf
- Supporting Documents:
- » Limitation on Deduction for Dividends Received From Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception; Correcting Amendment
- » Limitation on Deduction for Dividends Received From Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception; Correction
- » Limitation on Deduction for Dividends Received From Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception
- » Limitation on Deduction for Dividends Received from Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception
- » Limitation on Deduction for Dividends Received from Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception; Hearing
- » Limitation on Deduction for Dividends Received From Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception; Correcting Amendment
- » Limitation on Deduction for Dividends Received From Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception; Correction
- » Limitation on Deduction for Dividends Received From Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception; Correction
- » Limitation on Deduction for Dividends Received from Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception
- » Limitation on Deduction for Dividends Received from Certain Foreign Corporations and Amounts Eligible for Section 954 Look-Through Exception
- CFR: (1)
- 26 CFR 1.245A-5