Rules Regarding Certain Hybrid Arrangements; Correcting Amendment
| Published date | 12 August 2020 |
| Citation | 85 FR 48651 |
| Record Number | 2020-15842 |
| Section | Rules and Regulations |
| Court | Internal Revenue Service |
Federal Register, Volume 85 Issue 156 (Wednesday, August 12, 2020)
[Federal Register Volume 85, Number 156 (Wednesday, August 12, 2020)]
[Rules and Regulations]
[Page 48651]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15842]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9896]
RIN 1545-BO53
Rules Regarding Certain Hybrid Arrangements; Correcting Amendment
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendments.
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SUMMARY: This document contains corrections to final regulations
Treasury Decision 9896 that were published in the Federal Register on
Wednesday, April 8, 2020. The final regulations providing guidance
regarding hybrid dividends and certain amounts paid or accrued pursuant
to hybrid arrangements, which generally involve arrangements whereby
U.S. and foreign tax law classify a transaction or entity differently
for tax purposes.
DATES:
Effective date: This correction is effective on August 12, 2020.
Applicability dates: For dates of applicability, see Sec. Sec.
1.267A-7 and 1.1503(d).
FOR FURTHER INFORMATION CONTACT: Tracy Villecco at (202) 317-6933 or
Tianlin (Laura) Shi at (202) 317-6936 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9896) that are the subject of this
correction are issued under sections 267A and 1503(d) of the Code.
Need for Correction
As published April 8, 2020 (85 FR 19802), the final regulation (TD
9896; FR Doc. 2020-05924) contained errors that need to be corrected.
List 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:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
0
Par. 2. Section 1.267A-5 is amended by revising paragraph (a)(20)(ii)
to read as follows:
Sec. 1.267A-5 Definitions and special rules.
(a) * * *
(20) * * *
(ii) Party to a structured arrangement. A party to a structured
arrangement means a tax resident, a taxable branch, or an entity that
participates in the structured arrangement. For purposes of this
paragraph (a)(20)(ii), in the case of an entity, the entity's
participation in a structured arrangement is imputed to its investors.
However, a tax resident, a taxable branch or an entity (the relevant
party) is considered to participate in the structured arrangement only
if--
(A) The relevant party (or a related tax resident or taxable
branch, determined under paragraph (a)(14) of this section by treating
the relevant party as a specified party) could, based on all the facts
and circumstances, reasonably be expected to be aware of the hybrid
mismatch; and
(B) The relevant party or one or more of its investors (or a
related tax resident or taxable branch, determined under paragraph
(a)(14) of this section by treating the relevant party or an investor
as a specified party) shares in the value of the tax benefit resulting
from the hybrid mismatch.
* * * * *
0
Par. 3. Section 1.267A-7 is amended by revising paragraph (a) to read
as follows:
Sec. 1.267A-7 Applicability dates.
(a) General rule. Except as provided in paragraph (b) of this
section, Sec. Sec. 1.267A-1 through 1.267A-6 apply to taxable years
ending on or after December 20, 2018, provided that such taxable years
begin after December 31, 2017. However, taxpayers may apply the
regulations in Sec. Sec. 1.267A-1 through 1.267A-6 in their entirety
(including by taking into account paragraph (b) of this section) for
taxable years beginning after December 31, 2017, and ending before
December 20, 2018. In lieu of applying the regulations in Sec. Sec.
1.267A-1 through 1.267A-6 (including paragraph (b) of this section),
taxpayers may apply the provisions matching Sec. Sec. 1.267A-1 through
1.267A-6 (including by taking into account the provision matching
paragraph (b) of this section) from the Internal Revenue Bulletin (IRB)
2019-03 (https://www.irs.gov/pub/irs-irbs/irb19-03.pdf) in their
entirety for all taxable years ending on or before April 8, 2020.
* * * * *
Sec. 1.1503(d)-7 [Amended]
0
Par. 4. Section 1.1503(d)-7(c)(6)(iii)(A) is amended by removing
``paragraphs'' and adding ``paragraph'' in its place.
Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2020-15842 Filed 8-11-20; 8:45 am]
BILLING CODE 4830-01-P
