Proposed Rule2024-19027
Rules Regarding Dual Consolidated Losses and the Treatment of Certain Disregarded Payments; Correction
Primary source
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Published
September 3, 2024
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This document contains corrections to the proposed regulations (REG-105128-23), published in the Federal Register on August 7, 2024. The proposed regulations concern certain issues arising under the dual consolidated loss rules and the application of those rules to certain foreign taxes. The proposed regulations also include rules regarding certain disregarded payments that give rise to losses for foreign tax purposes.
Full Text
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<title>Federal Register, Volume 89 Issue 170 (Tuesday, September 3, 2024)</title>
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[Federal Register Volume 89, Number 170 (Tuesday, September 3, 2024)]
[Proposed Rules]
[Pages 71214-71215]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-19027]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[REG-105128-23]
RIN 1545-BQ72
Rules Regarding Dual Consolidated Losses and the Treatment of
Certain Disregarded Payments; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking; correction.
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SUMMARY: This document contains corrections to the proposed regulations
(REG-105128-23), published in the Federal Register on August 7, 2024.
The proposed regulations concern certain issues arising under the dual
consolidated loss rules and the application of those rules to certain
foreign taxes. The proposed regulations also include rules regarding
certain disregarded payments that give rise to losses for foreign tax
purposes.
DATES: Written or electronic comments and requests for a public hearing
are still being accepted and must be received by October 7, 2024.
FOR FURTHER INFORMATION CONTACT: Andrew L. Wigmore at (202) 317-5443
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The proposed regulations (REG-105128-23) subject to this correction
are proposed to be issued under sections 1502 and 1503(d) of the
Internal Revenue Code.
Correction of Publication
Accordingly, FR Doc. 2024-16665 (REG-105128-23), appearing on page
64750 in the Federal Register on Wednesday, August 7, 2024, is
corrected as follows:
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1. On page 64753, in the third column, in the second partial paragraph,
the third sentence is corrected to read ``Where a taxpayer uses a
fiscal year for tax purposes that ends after 2023, the foreign use
exception is conditioned on the relevant MNE Group using the same
fiscal year when applying the GloBE Model Rules.''.
0
2. On page 64762, in the third column, in the first full paragraph, the
third sentence is corrected to read ``The disregarded payment loss
generally measures the entity's net loss, if any, for foreign tax
purposes that is composed of certain payments that are disregarded for
U.S. tax purposes as transactions
[[Page 71215]]
between the disregarded payment entity and its tax owner (for example,
a payment by the disregarded payment entity to the specified domestic
owner or to another disregarded payment entity of the specified
domestic owner).''.
Sec. 1.1502-13 [Corrected]
0
3. On page 64768, in the first column, in Sec. 1.1502-13, the first
sentence of paragraph (j)(15)(x)(C) is corrected to read ``The facts
are the same as in paragraph (j)(15)(x)(A) of this section, except that
for the years at issue, B's interest expense deduction would be limited
under the domestic use limitation rule of Sec. 1.1503(d)-4(b) (and no
exception under Sec. 1.1503(d)-6 applies) and is not currently
deductible.''.
0
4. Starting on page 64771, in amendatory instruction 3, in Sec.
1.1503(d)-1:
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a. On page 64771, in the second column, paragraph (d)(6)(ii)(C)(2) is
corrected.
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b. On page 64771, in the second and third columns, paragraph
(d)(6)(ii)(D)(2) is corrected.
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c. On page 64772, in the second column, the last sentence of paragraph
(d)(7)(v) is corrected.
The corrections read as follows:
Sec. 1.1503(d)-1 [Corrected]
* * * * *
(d) * * *
(6) * * *
(ii) * * *
(C) * * *
(2) The payment, accrual, or other transaction giving rise to the
item is disregarded for U.S. tax purposes as a transaction between a
disregarded entity and its tax owner (for example, a payment by a
disregarded entity to its tax owner or to another disregarded entity
held by its tax owner, or a payment from a dual resident corporation to
its disregarded entity.
* * * * *
(D)
(2) The payment, accrual, or other transaction giving rise to the
item is disregarded for U.S. tax purposes as a transaction between a
disregarded entity and its tax owner (for example, because it is a
payment to a disregarded entity from the disregarded entity's tax owner
or from another disregarded entity held by its tax owner, or a payment
to a dual resident corporation from its disregarded entity).
* * * * *
(7) * * *
(v) * * * For purposes of this paragraph (d)(7)(v), the term hybrid
mismatch rules has the meaning provided in Sec. 1.267A-5(a)(10).
* * * * *
Sec. 1.1503(d)-7 [Corrected]
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5. On page 64774, in the second column, amendatory instruction 7.12 for
Sec. 1.1503(d)-7 is corrected to read ``In paragraph (c)(26)(i),
removing the language from the sixth sentence `all of the interests'
and adding the language `90 percent of the interests' in its place.''.
Oluwafunmilayo A. Taylor,
Chief, Publications and Regulations Section, Associate Chief Counsel
(Procedure and Administration).
[FR Doc. 2024-19027 Filed 8-30-24; 8:45 am]
BILLING CODE 4830-01-P
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