Quiero saber acerca de...

Federal Register / Vol. 86, No. 183 / Friday, September 24, 2021 / Rules and Regulations DEPARTMENT OF THE TREASURY
Internal Revenue Service 26 CFR Part 1
TD 9956
RIN 1545BP91; RIN 1545BP70

Guidance on the Treatment of Qualified Improvement Property Under Sections 250b and 951Ad and Guidance Related to the Foreign Tax Credit Internal Revenue Service IRS, Treasury.
ACTION: Final regulations.
AGENCY:

This document contains final regulations under sections 250 and 951A addressing the calculation of qualified business asset investment QBAI for qualified improvement property QIP under the alternative depreciation system ADS. This document also contains final regulations with transition rules relating to the impact on loss accounts of net operating loss NOL carrybacks allowed by reason of the Coronavirus Aid, Relief, and Economic Security Act the CARES
Act. The final regulations affect United States shareholders of controlled foreign corporations, domestic corporations eligible for the section 250
deduction, and taxpayers that claim credits or deductions for foreign income taxes.
DATES:
Effective date: These regulations are effective on September 24, 2021.
Applicability dates: For dates of applicability, see 1.2501b, 1.904f12j7, and 1.951A7a.
FOR FURTHER INFORMATION CONTACT:
Concerning 1.250b1b2 and 1.250b2e2, Lorraine Rodriguez at 202 3176726; concerning 1.904f 12, Jeffrey L. Parry at 202 3174916;
concerning 1.951A3e2, Jorge M.
Oben at 202 3176934 not toll-free numbers.
SUMMARY:

SUPPLEMENTARY INFORMATION:

Background I. Treatment of QIP Under Sections 250
and 951A
On January 15, 2021, the Department of the Treasury Treasury Department and the IRS published proposed regulations REG11195020
under sections 250, 951A, 1297, and 1298 in the Federal Register 86 FR
4582, as corrected at 86 FR 12886 the 2021 proposed regulations. The provisions in the 2021 proposed regulations under sections 250 and
VerDate Sep<11>2014

16:01 Sep 23, 2021

Jkt 253001

951A, which were added to the Code in the Tax Cuts and Jobs Act, Public Law 11597, 131 Stat. 2234 2017, addressed the treatment of QIP under the ADS for purposes of calculating QBAI.
The Treasury Department and the IRS
received no written comments with respect to the proposed rules under sections 250 and 951A. A public hearing on the 2021 proposed regulations was not held because there were no requests to speak.
This rulemaking finalizes the portion of the 2021 proposed regulations under sections 250 and 951A, but does not finalize the portions of the 2021
proposed regulations under sections 1297 and 1298 determining whether a foreign corporation is treated as a passive foreign investment company and the treatment of income and assets of a qualifying insurance corporation that is engaged in the active conduct of an insurance business. The Treasury Department and the IRS intend to finalize those portions of the 2021
proposed regulations separately.
II. Treatment of Net Operating Losses Incurred in Post-2017 Taxable Years That Are Carried Back to Pre-2018
Taxable Years On November 12, 2020, the Treasury Department and the IRS published proposed regulations REG10165720
in the Federal Register 85 FR 72078
the 2020 FTC proposed regulations, which included revisions to the transition rules for post-2017 NOL
carrybacks to pre-2018 taxable years.
The Treasury Department and the IRS
received no written comments with respect to the proposed revisions to the transition rules that address post-2017
NOL carrybacks to pre-2018 taxable years. A public hearing on the 2020 FTC
proposed regulations was held on April 7, 2021.
This rulemaking finalizes the portion of the 2020 FTC proposed regulations that addresses the transition rules for post-2017 NOL carrybacks to pre-2018
taxable years. This rulemaking does not finalize any other portions of the 2020
FTC proposed regulations. The Treasury Department and the IRS intend to finalize those portions of the 2020 FTC
proposed regulations separately.
Summary of Comments and Explanation of Revisions The Treasury Department and the IRS
received no written comments with respect to the proposed rules under sections 250 and 951A or the transition rules that address post-2017 NOL
carrybacks to pre-2018 taxable years.
Therefore, those portions of the
PO 00000

Frm 00021

Fmt 4700

Sfmt 4700

52971

proposed regulations are being finalized without substantive change.
Special Analyses I. Regulatory Planning and Review Economic Analysis These regulations are not subject to review under section 6b of Executive Order 12866 pursuant to the Memorandum of Agreement April 11, 2018 between the Treasury Department and the Office of Management and Budget regarding review of tax regulations.
II. Paperwork Reduction Act The Paperwork Reduction Act of 1995
44 U.S.C. 35013520 generally requires that a federal agency obtain the approval of the OMB before collecting information from the public, whether such collection of information is mandatory, voluntary, or required to obtain or retain a benefit.
There are no information collection requirements associated with these final regulations.
III. Regulatory Flexibility Act It is hereby certified that these final regulations will not have a significant economic impact on a substantial number of small entities within the meaning of section 6016 of the Regulatory Flexibility Act 5 U.S.C.
chapter 6.
A. Regulations Regarding the Treatment of QIP Under Sections 250 and 951A
The economic impact of the regulations regarding the treatment of QIP under sections 250 and 951A is not likely to be significant because these regulations merely clarify that the technical amendment to section 168
enacted in section 2307a of the CARES
Act applies to determine the adjusted basis of property under section 951Ad3 as if it had originally been part of section 13204 of the Act. The clarification resolves an ambiguity and adopts the interpretation that does not require duplicative recordkeeping for the basis in this property. Therefore, this rule should reduce recordkeeping and compliance burdens that might otherwise apply. In addition, the regulations do not impose a collection of information burden on any person, including small entities. Accordingly, it is hereby certified that the regulations regarding the treatment of QIP under sections 250 and 951A will not have a significant economic impact on a substantial number of small entities.

E:FRFM24SER1.SGM

24SER1