Proposed Rule2023-26785
Income and Currency Gain or Loss With Respect to a Qualified Business Unit; Correction
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 6, 2023
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This document contains a correction to a notice of proposed rulemaking that was published in the Federal Register on Tuesday, November 14, 2023. The proposed regulations provide guidance relating to the determination of taxable income or loss and foreign currency gain or loss with respect to a qualified business unit.
Full Text
<html>
<head>
<title>Federal Register, Volume 88 Issue 233 (Wednesday, December 6, 2023)</title>
</head>
<body><pre>
[Federal Register Volume 88, Number 233 (Wednesday, December 6, 2023)]
[Proposed Rules]
[Page 84770]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-26785]
[[Page 84770]]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-132422-17]
RIN 1545-BO07
Income and Currency Gain or Loss With Respect to a Qualified
Business Unit; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking; correction.
-----------------------------------------------------------------------
SUMMARY: This document contains a correction to a notice of proposed
rulemaking that was published in the Federal Register on Tuesday,
November 14, 2023. The proposed regulations provide guidance relating
to the determination of taxable income or loss and foreign currency
gain or loss with respect to a qualified business unit.
DATES: Written or electronic comments and requests for a public hearing
are still being accepted and must be received by February 12, 2024.
ADDRESSES: Commenters are strongly encouraged to submit public comments
electronically via the Federal eRulemaking Portal at <a href="https://www.regulations.gov">https://www.regulations.gov</a> (indicate IRS and REG-132422-17) 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 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-132422-17), Room 5203, Internal
Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC
20044.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Raphael J. Cohen at (202) 317-6938; concerning submissions of comments,
requests for a public hearing, and access to a public hearing, Vivian
Hayes at (202) 317-6901 (not toll-free numbers) or by email to
<a href="/cdn-cgi/l/email-protection#55252037393c363d3034273c3b3226153c27267b323a23"><span class="__cf_email__" data-cfemail="f08085929c999398959182999e9783b0998283de979f86">[email protected]</span></a> (preferred).
SUPPLEMENTARY INFORMATION:
Background
On November 14, 2023, the Federal Register published a notice of
proposed rulemaking and partial withdrawal of notice of proposed
rulemaking (REG-132422-17) at 88 FR 78134 (the proposed regulations).
The proposed regulations that are the subject of this correction are
issued under sections 861, 985 through 989, and 1502 of the Internal
Revenue Code.
Need for Correction
As published, the preamble to the proposed regulations contains
errors that may prove to be misleading. This document provides a
technical correction to the preamble, which clarifies the misleading
paragraph.
Correction of Publication
Accordingly, the publication of the proposed regulations (REG-
132422-17), which was the subject of FR Doc. 2023-24649, published on
November 14, 2023, is corrected on page 78156, in the third column, by
revising the first full paragraph to read, ``Taxpayers may rely on the
proposed regulations (and so much of the final regulations as would not
be modified by the proposed regulations) for taxable years ending after
November 9, 2023, provided the taxpayer and each member of its
consolidated group and section 987 electing group consistently follow
the proposed regulations in their entirety and in a consistent manner.
Additionally, for taxable years ending after November 9, 2023, and
beginning on or before December 31, 2024, taxpayers may rely on only
the applicability date provisions in proposed Sec. Sec. 1.861-
9(g)(2)(v), 1.985-5(g), 1.987-14(a), (c), and (d), 1.988-1(i), 1.988-
4(b)(2)(ii), and 1.989(a)-1(b)(4) and (d)(4), provided that: (1) the
taxpayer and each member of its consolidated group and section 987
electing group consistently follow those provisions in their entirety
and in a consistent manner for those taxable years; (2) with respect to
any terminating QBU to which proposed Sec. 1.987-14(a)(2) would apply
or partnership to which proposed Sec. 1.987-14(a)(3) would apply, the
taxpayer and each member of its consolidated group and section 987
electing group consistently follow all of the proposed regulations (and
so much of the final regulations as would not be modified by the
proposed regulations) in their entirety and in a consistent manner; and
(3) to the extent that, under proposed Sec. 1.987-14(c), proposed
Sec. 1.987-10 would be applied in lieu of prior Sec. 1.987-10, the
taxpayer and each member of its consolidated group and section 987
electing group consistently follow proposed Sec. 1.987-10 in its
entirety and in a consistent manner. Thus, for example, a calendar year
taxpayer that has consistently followed the method described in the
1991 proposed regulations could continue to follow that method for the
2024 taxable year in reliance on proposed Sec. 1.987-14(a)(1) (and
would not need to follow the other parts of the proposed regulations,
except to the extent provided in the prior sentence).''
Oluwafunmilayo A. Taylor,
Section Chief, Publications and Regulations Section, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. 2023-26785 Filed 12-5-23; 8:45 am]
BILLING CODE 4830-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on December 6, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.