Small Business Taxpayer Exceptions Under Sections 263A, 448, 460 and 471; Correction
| Published date | 17 June 2021 |
| Citation | 86 FR 32185 |
| Record Number | 2021-12550 |
| Section | Rules and Regulations |
| Court | Internal Revenue Service,Treasury Department |
Federal Register, Volume 86 Issue 115 (Thursday, June 17, 2021)
[Federal Register Volume 86, Number 115 (Thursday, June 17, 2021)]
[Rules and Regulations]
[Pages 32185-32186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12550]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 9942]
RIN 1545-BP53
Small Business Taxpayer Exceptions Under Sections 263A, 448, 460
and 471; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correcting amendments.
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SUMMARY: This document contains corrections to the final regulations
Treasury Decision 9942, that were published in the Federal Register on
Tuesday, January 5, 2021. The final regulations implemented legislative
changes that simplify the application of certain tax accounting
provisions for eligible businesses with average annual gross receipts
that do not exceed $25,000,000, adjusted for inflation.
DATES: These corrections are effective on June 17, 2021. For dates of
applicability, see Sec. Sec. 1.263A-1(a)(2)(i), 1.263A-1(m)(6),
1.263A-2(g)(4), 1.263A-3(f)(2), 1.263A-4(g)(2), 1.263A-7(a)(4)(ii),
1.381(c)(5)-1(f), 1.446-1(c)(3), 1.448-2(h), 1.448-3(h), 1.460-1(h)(3),
1.460-3(d), 1.460-4(i), 1.460-6(k), and 1.471-1(c).
FOR FURTHER INFORMATION CONTACT: Concerning Sec. Sec. 1.460-1 through
1.460-6, Innessa Glazman, (202) 317-7006; concerning all other
regulations in this document, Anna Gleysteen, (202) 317-7007.
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9942) that are the subject of this
correction are issued under sections 263A, 448, 460, and 471 of the
Internal Revenue Code.
Need for Correction
As published on January 5, 2021 (86 FR 254), the final regulations
(TD 9942) contain errors that need to be corrected. In addition, a
correction to Example 1 in Sec. 1.263A-4(a)(5)(iii) is being made to
conform to the statutory amendments made to section 263A by section
13102 of Public Law 115-97 (131 Stat. 2054), commonly referred to as
the Tax Cuts and Jobs Act.
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 1.263A-0 is amended by adding the entries for Sec.
1.263A-1(m)(1) through (5) to read as follows:
Sec. 1.263A-0 Outline of regulations under section 263A.
* * * * *
Sec. 1.263A-1 Uniform Capitalization of Costs
* * * * *
(m) * * *
(1) In general.
(2) Mixed service costs; self-constructed tangible personal
property produced on a routine and repetitive basis.
(3) Costs allocable to property sold; indirect costs; licensing and
franchise costs.
(4) Materials and supplies.
(5) Definitions of section 471 costs and additional section 263A
costs.
* * * * *
[[Page 32186]]
Sec. 1.263A-4 [Amended]
0
Par. 3. Section 1.263A-4 is amended by:
0
1. Removing the language ``(a)(4)'' from the first sentence of
paragraph (a)(1) and adding ``(a)(5)'' in its place,
0
2. Adding the language ``(a)(3)'' to the first sentence of paragraph
(a)(4), after the language ``(a)(2),'',
0
3. Removing the language ``(a)(4)'' from paragraph (a)(5)(iii) and
adding ``(a)(5)'' in its place, and
0
4. Removing the last sentence of paragraph (a)(5)(iii) Example 1.
0
Par. 4. Section 1.263A-15 is amended by adding paragraph (a)(5) to read
as follows:
Sec. 1.263A-15 Effective dates, transitional rules, and anti-abuse
rule.
(a) * * *
(5) The last sentence of each of Sec. 1.263A-8(a)(1) and Sec.
1.263A-9(e)(2) apply to taxable years beginning on or after January 5,
2021. However, for a taxable year beginning after December 31, 2017,
and before January 5, 2021, a taxpayer may apply the last sentence of
each of Sec. 1.263A-8(a)(1) and Sec. 1.263A-9(e)(2), provided that
the taxpayer follows all the applicable rules contained in the
regulations under section 263A for such taxable year and all subsequent
taxable years.
* * * * *
Sec. 1.448-2 [Amended]
0
Par. 5. Section 1.448-2 is amended by removing the language ``(g)(3)''
from the sixth sentence of paragraph (g)(1) and adding ``(g)'' in its
place.
0
Par. 6. Section 1.460-0 is amended by revising the entry for Sec.
1.460-3(b)(3) and adding entry (b)(3)(iii) to read as follows:
Sec. 1.460-0 Outline of regulations under section 460.
* * * * *
Sec. 1.460-3 Long-term construction contracts.
* * * * *
(b) * * *
(3) Gross receipts test.
* * * * *
(iii) Method of accounting.
* * * * *
Sec. 1.460-3 [Amended]
0
Par. 7. Section 1.460-3 is amended by removing the language ``Example''
from the heading of paragraph (b)(3)((ii)(D) and adding ``Examples'' in
its place.
0
Par. 8. Section 1.460-6 is amended by revising the second sentence of
paragraph (c)(3)(vi) to read as follows:
Sec. 1.460-6 Look-back method.
* * * * *
(c) * * *
(3) * * *
(vi) * * * Thus, the taxes, if any, imposed under sections 55 and
59A (relating to alternative and base erosion minimum tax,
respectively) must be taken into account.* * *
* * * * *
Crystal Pemberton,
Senior Federal Register Liaison, Legal Processing Division, Associate
Chief Counsel, (Procedure and Administration).
[FR Doc. 2021-12550 Filed 6-16-21; 8:45 am]
BILLING CODE 4830-01-P
