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(a)Overview. Under section 103(a), interest on certain obligations issued by States and local governments is excludable from the gross income of the owners. Section 148 was enacted to minimize the arbitrage benefits from investing gross proceeds of tax-exempt bonds in higher yielding investments and to remove the arbitrage incentives to issue more bonds, to issue bonds earlier, or to leave bonds outstanding longer than is otherwise reasonably necessary to accomplish the governmental purposes for which the bonds were issued. To accomplish these purposes, section 148 restricts the direct and indirect investment of bond proceeds in higher yielding investments and requires that certain earnings on higher yielding investments be rebated to the United States. Violation of these provisions causes the bonds in the issue to become arbitrage bonds, the interest on which is not excludable from the gross income of the owners under section 103(a). The regulations in §§ 1.148-1 through 1.148-11 apply in a manner consistent with these purposes.
(b)Scope. Sections 1.148-1 through 1.148-11 apply generally for purposes of the arbitrage restrictions on State and local bonds under section 148.
(c)Table of contents. This paragraph (c) lists the table of contents for §§ 1.148-1, 1.148-2, 1.148-3, 1.148-4, 1.148-5, 1.148-6, 1.148-7, 1.148-8, 1.148-9, 1.148-10 and 1.148-11.
(a) In general.
(b) Certain definitions.
(c) Definition of replacement proceeds.
(1) In general.
(2) Sinking fund.
(3) Pledged fund.
(4) Other replacement proceeds.
(e) Investment-type property.
(3) Certain hedges.
(f) Definition of issue price.
(2) Bonds issued for money.
(4) Other special rules.
(b) Reasonable expectations.
(2) Certification of expectations.
(c) Intentional acts.
(d) Materially higher yielding investments.
(2) Definitions of materially higher yield.
(3) Mortgage loans.
(e) Temporary periods.
(2) General 3-year temporary period for capital projects and qualified mortgage loans.
(3) Temporary period for working capital expenditures.
(4) Temporary period for pooled financings.
(5) Temporary period for replacement proceeds.
(6) Temporary period for investment proceeds.
(7) Other amounts.
(f) Reserve or replacement funds.
(1) General 10 percent limitation on funding with sale proceeds.
(2) Exception from yield restriction for reasonably required reserve or replacement funds.
(3) Certain parity reserve funds.
(g) Minor portion.
(h) Certain waivers permitted.
(b) Definition of rebate amount.
(c) Computation of future value of a payment or receipt.
(d) Payments and receipts.
(1) Definition of payments.
(2) Definition of receipts.
(3) Special rules for commingled funds.
(4) Cost-of-living adjustment.
(e) Computation dates.
(2) Final computation date.
(f) Amount of required rebate installment payment.
(1) Amount of interim rebate payments.
(2) Amount of final rebate payment.
(3) Future value of rebate payments.
(g) Time and manner of payment.
(h) Penalty in lieu of loss of tax exemption.
(2) Interest on underpayments.
(3) Waivers of the penalty.
(4) Application to alternative penalty under § 1.148-7.
(i) Recovery of overpayment of rebate.
(2) Limitations on recovery.
(3) Time and manner for requesting refund.
(k) Bona fide debt service fund exception.
(b) Computing yield on a fixed yield issue.
(2) Yield on certain fixed yield bonds subject to mandatory or contingent early redemption.
(3) Yield on certain fixed yield bonds subject to optional early redemption.
(4) Yield recomputed upon transfer of certain rights associated with the bond.
(5) Special aggregation rule treating certain bonds as a single fixed yield bond.
(c) Computing yield on a variable yield issue.
(2) Payments on bonds included in yield for a computation period.
(d) Conversion from variable yield issue to fixed yield issue.
(e) Value of bonds.
(1) Plain par bonds.
(2) Other bonds.
(f) Qualified guarantees.
(2) Interest savings.
(3) Guarantee in substance.
(4) Reasonable charge.
(5) Guarantee of purpose investments.
(6) Allocation of qualified guarantee payments.
(7) Refund or reduction of guarantee payments.
(g) Yield on certain mortgage revenue and student loan bonds.
(h) Qualified hedging transactions.
(2) Qualified hedge defined.
(3) Accounting for qualified hedges.
(4) Certain variable yield bonds treated as fixed yield bonds.
(5) Contracts entered into before issue date of hedged bond.
(6) Authority of the Commissioner.
(b) Yield on an investment.
(2) Yield on a separate class of investments.
(3) Investments to be held beyond issue's maturity or beyond temporary period.
(4) Consistent redemption assumptions on purpose investments.
(5) Student loan special allowance payments included in yield.
(c) Yield reduction payments to the United States.
(2) Manner of payment.
(3) Applicability of special yield reduction rule.
(d) Value of investments.
(2) Mandatory valuation of certain yield restricted investments at present value.
(3) Mandatory valuation of certain investments at fair market value.
(4) Special transition rule for transferred proceeds.
(5) Definition of present value of an investment.
(6) Definition of fair market value.
(e) Administrative costs of investments.
(2) Qualified administrative costs on nonpurpose investments.
(3) Qualified administrative costs on purpose investments.
(1) Reasonable accounting methods required.
(2) Bona fide deviations from accounting method.
(b) Allocation of gross proceeds to an issue.
(1) One-issue rule and general ordering rules.
(2) Universal cap on value of nonpurpose investments allocated to an issue.
(c) Fair market value limit on allocations to nonpurpose investments.
(d) Allocation of gross proceeds to expenditures.
(1) Expenditures in general.
(2) Treatment of gross proceeds invested in purpose investments.
(3) Expenditures for working capital purposes.
(4) Expenditures for grants.
(5) Expenditures for reimbursement purposes.
(6) Expenditures of certain commingled investment proceeds of governmental issues.
(7) Payments to related parties.
(e) Special rules for commingled funds.
(2) Investments held by a commingled fund.
(3) Certain expenditures involving a commingled fund.
(4) Fiscal periods.
(5) Unrealized gains and losses on investments of a commingled fund.
(6) Allocations of commingled funds serving as common reserve funds or sinking funds.
(a) Scope of section.
(2) Relationship of spending exceptions.
(3) Spending exceptions not mandatory.
(b) Rules applicable for all spending exceptions.
(1) Special transferred proceeds rules.
(2) Application of multipurpose issue rules.
(3) Expenditures for governmental purposes of the issue.
(4) De minimis rule.
(5) Special definition of reasonably required reserve or replacement fund.
(6) Pooled financing issue.
(c) 6-month exception.
(1) General rule.
(2) Additional period for certain bonds.
(3) Amounts not included in gross proceeds.
(4) Series of refundings.
(d) 18-month exception.
(2) Extension for reasonable retainage.
(3) Gross proceeds.
(4) Application to multipurpose issues.
(e) 2-year exception.
(f) Construction issue.
(2) Use of actual facts.
(3) Ownership requirement.
(g) Construction expenditures.
(2) Certain acquisitions under turnkey contracts treated as construction expenditures.
(3) Constructed personal property.
(4) Specially developed computer software.
(h) Reasonable retainage definition.
(i) Available construction proceeds.
(1) Definition in general.
(2) Earnings on a reasonably required reserve or replacement fund.
(3) Reasonable expectations test for future earnings.
(4) Issuance costs.
(5) One and one-half percent penalty in lieu of arbitrage rebate.
(6) Payments on purpose investments and repayments of grants.
(j) Election to treat portion of issue used for construction as separate issue.
(k) One and one-half percent penalty in lieu of arbitrage rebate.
(2) Application to reasonable retainage.
(3) Coordination with rebate requirement.
(l) Termination of 1
1/2 percent penalty.
(1) Termination after initial temporary period.
(2) Termination before end of initial temporary period.
(3) Application to reasonable retainage.
(m) Payment of penalties.
(b) General taxing powers.
(c) Size limitation.
(2) Aggregation rules.
(3) Certain refunding bonds not taken into account.
(d) Pooled financings - treatment of conduit borrowers.
(e) Refunding issues.
(2) Multipurpose issues.
(a) Scope of application.
(b) Transferred proceeds allocation rule.
(2) Special definition of principal amount.
(3) Relation of transferred proceeds rule to universal cap rule.
(4) Limitation on multi-generational transfers.
(c) Special allocation rules for refunding issues.
(1) Allocations of investments.
(2) Allocations of mixed escrows to expenditures for principal, interest, and redemption prices on a prior issue.
(d) Temporary periods in refundings.
(2) Types of temporary periods in refundings.
(e) Reasonably required reserve or replacement funds in refundings.
(f) Minor portions in refundings.
(g) Certain waivers permitted.
(h) Multipurpose issue allocations.
(1) Application of multipurpose issue allocation rules.
(2) Rules on allocations of multipurpose issues.
(3) Separate purposes of a multipurpose issue.
(4) Allocations of bonds of a multipurpose issue.
(5) Limitation on multi-generation allocations.
(i) Operating rules for separation of prior issues into refunded and un refunded portions.
(2) Allocations of proceeds and investments in a partial refunding.
(3) References to prior issue.
(a) Abusive arbitrage device.
(2) Abusive arbitrage device defined.
(3) Exploitation of tax-exempt interest rates.
(4) Overburdening the tax-exempt market.
(b) Consequences of overburdening the tax-exempt bond market.
(c) Anti-abuse rules on excess gross proceeds of advance refunding issues.
(2) Definition of excess gross proceeds.
(3) Special treatment of transferred proceeds.
(4) Special rule for crossover refundings.
(5) Special rule for gross refundings.
(e) Authority of the Commissioner to prevent transactions that are inconsistent with the purpose of the arbitrage investment restrictions.
(f) Authority of the Commissioner to require an earlier date for payment of rebate.
(g) Authority of the Commissioner to waive regulatory limitations.
(b) Elective retroactive application in whole.
(2) No elective retroactive application for 18-month spending exception.
(3) No elective retroactive application for hedges of fixed rate issues.
(4) No elective retroactive application for safe harbor for establishing fair market value for guaranteed investment contracts and investments purchased for a yield restricted defeasance escrow.
(c) Elective retroactive application of certain provisions.
(1) Retroactive application of overpayment recovery provisions.
(2) Certain allocations of multipurpose issues.
(3) Special limitation.
(d) Transition rule excepting certain state guarantee funds from the definition of replacement proceeds.
(1) Certain perpetual trust funds.
(2) Permanent University Fund.
(e) Transition rule regarding special allowance payments.
(f) Transition rule regarding applicability of yield reduction rule.
(g) Provisions applicable to certain bonds sold before effective date.
(h) Safe harbor for establishing fair market value for guaranteed investment contracts and investments purchased for a yield restricted defeasance escrow.
(i) Special rule for certain broker's commissions and similar fees.
(j) Certain prepayments.
(k) Certain arbitrage guidance updates.
(2) Valuation of investments in refunding transactions.
(3) Rebate overpayment recovery.
(4) Hedge identification.
(5) Hedge modifications and termination.
(6) Small issuer exception to rebate requirement for conduit borrowers of pooled financings.
(l) Permissive application of certain arbitrage updates.
(2) Computation credit.
(3) Yield reduction payments.
(4) External commingled funds.
(m) Definition of issue price.
This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.
This list is taken from the Parallel Table of Authorities and Rules provided by GPO [Government Printing Office].
It is not guaranteed to be accurate or up-to-date, though we do refresh the database weekly. More limitations on accuracy are described at the GPO site.
§ 1 - Tax imposed
§ 21 - Expenses for household and dependent care services necessary for gainful employment
§ 23 - Adoption expenses
§ 25 - Interest on certain home mortgages
§ 25A - Hope and Lifetime Learning credits
§ 28 - Renumbered § 45C]
§ 30 - Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(2)(A), Dec. 19, 2014, 128 Stat. 4037]
§ 36B - Refundable credit for coverage under a qualified health plan
§ 38 - General business credit
§ 40 - Alcohol, etc., used as fuel
§ 41 - Credit for increasing research activities
§ 42 - Low-income housing credit
§ 43 - Enhanced oil recovery credit
§ 45D - New markets tax credit
§ 46 - Amount of credit
§ 47 - Rehabilitation credit
§ 52 - Special rules
§ 56 - Adjustments in computing alternative minimum taxable income
§ 58 - Denial of certain losses
§ 61 - Gross income defined
§ 62 - Adjusted gross income defined
§ 66 - Treatment of community income
§ 67 - 2-percent floor on miscellaneous itemized deductions
§ 72 - Annuities; certain proceeds of endowment and life insurance contracts
§ 101 - Certain death benefits
§ 103 - Interest on State and local bonds
§ 103A - Repealed. Pub. L. 99–514, title XIII, § 1301(j)(1), Oct. 22, 1986, 100 Stat. 2657]
§ 108 - Income from discharge of indebtedness
§ 110 - Qualified lessee construction allowances for short-term leases
§ 129 - Dependent care assistance programs
§ 132 - Certain fringe benefits
§ 148 - Arbitrage
§ 149 - Bonds must be registered to be tax exempt; other requirements
§ 150 - Definitions and special rules
§ 152 - Dependent defined
§ 162 - Trade or business expenses
§ 163 - Interest
§ 165 - Losses
§ 166 - Bad debts
§ 168 - Accelerated cost recovery system
§ 170 - Charitable, etc., contributions and gifts
§ 171 - Amortizable bond premium
§ 179 - Election to expense certain depreciable business assets
§ 179A - Repealed. Pub. L. 113–295, div. A, title II, § 221(a)(34)(A), Dec. 19, 2014, 128 Stat. 4042]
§ 197 - Amortization of goodwill and certain other intangibles
§ 199 - Repealed. Pub. L. 115–97, title I, § 13305(a), Dec. 22, 2017, 131 Stat. 2126]
§ 216 - Deduction of taxes, interest, and business depreciation by cooperative housing corporation tenant-stockholder
§ 221 - Interest on education loans
§ 263A - Capitalization and inclusion in inventory costs of certain expenses
§ 267 - Losses, expenses, and interest with respect to transactions between related taxpayers
§ 274 - Disallowance of certain entertainment, etc., expenses
§ 280C - Certain expenses for which credits are allowable
§ 280F - Limitation on depreciation for luxury automobiles; limitation where certain property used for personal purposes
§ 280G - Golden parachute payments
§ 301 - Distributions of property
§ 304 - Redemption through use of related corporations
§ 305 - Distributions of stock and stock rights
§ 336 - Gain or loss recognized on property distributed in complete liquidation
§ 337 - Nonrecognition for property distributed to parent in complete liquidation of subsidiary
§ 338 - Certain stock purchases treated as asset acquisitions
§ 351 - Transfer to corporation controlled by transferor
§ 355 - Distribution of stock and securities of a controlled corporation
§ 357 - Assumption of liability
§ 358 - Basis to distributees
§ 362 - Basis to corporations
§ 367 - Foreign corporations
§ 382 - Limitation on net operating loss carryforwards and certain built-in losses following ownership change
§ 383 - Special limitations on certain excess credits, etc.
§ 401 - Qualified pension, profit-sharing, and stock bonus plans
§ 401 note - Qualified pension, profit-sharing, and stock bonus plans
§ 402A - Optional treatment of elective deferrals as Roth contributions
§ 403 - Taxation of employee annuities
§ 404 - Deduction for contributions of an employer to an employees’ trust or annuity plan and compensation under a deferred-payment plan
§ 408 - Individual retirement accounts
§ 408A - Roth IRAs
§ 409 - Qualifications for tax credit employee stock ownership plans
§ 410 - Minimum participation standards
§ 411 - Minimum vesting standards
§ 414 - Definitions and special rules
§ 417 - Definitions and special rules for purposes of minimum survivor annuity requirements
§ 419A - Qualified asset account; limitation on additions to account
§ 420 - Transfers of excess pension assets to retiree health accounts
§ 441 - Period for computation of taxable income
§ 442 - Change of annual accounting period
§ 444 - Election of taxable year other than required taxable year
§ 446 - General rule for methods of accounting
§ 453 - Installment method
§ 453A - Special rules for nondealers
§ 458 - Magazines, paperbacks, and records returned after the close of the taxable year
§ 460 - Special rules for long-term contracts
§ 461 - General rule for taxable year of deduction
§ 465 - Deductions limited to amount at risk
§ 466 - Repealed. Pub. L. 99–514, title VIII, § 823(a), Oct. 22, 1986, 100 Stat. 2373]
§ 467 - Certain payments for the use of property or services
§ 468A - Special rules for nuclear decommissioning costs
§ 468B - Special rules for designated settlement funds
§ 469 - Passive activity losses and credits limited
§ 471 - General rule for inventories
§ 472 - Last-in, first-out inventories
§ 475 - Mark to market accounting method for dealers in securities
§ 481 - Adjustments required by changes in method of accounting
§ 482 - Allocation of income and deductions among taxpayers
§ 483 - Interest on certain deferred payments
§ 504 - Status after organization ceases to qualify for exemption under section 501(c)(3) because of substantial lobbying or because of political activities
§ 514 - Unrelated debt-financed income
§ 527 - Political organizations
§ 585 - Reserves for losses on loans of banks
§ 597 - Treatment of transactions in which Federal financial assistance provided
§ 642 - Special rules for credits and deductions
§ 643 - Definitions applicable to subparts A, B, C, and D
§ 645 - Certain revocable trusts treated as part of estate
§ 663 - Special rules applicable to sections 661 and 662
§ 664 - Charitable remainder trusts
§ 672 - Definitions and rules
§ 679 - Foreign trusts having one or more United States beneficiaries
§ 701 - Partners, not partnership, subject to tax
§ 702 - Income and credits of partner
§ 703 - Partnership computations
§ 704 - Partner’s distributive share
§ 705 - Determination of basis of partner’s interest
§ 706 - Taxable years of partner and partnership
§ 707 - Transactions between partner and partnership
§ 708 - Continuation of partnership
§ 709 - Treatment of organization and syndication fees
§ 721 - Nonrecognition of gain or loss on contribution
§ 722 - Basis of contributing partner’s interest
§ 723 - Basis of property contributed to partnership
§ 724 - Character of gain or loss on contributed unrealized receivables, inventory items, and capital loss property
§ 731 - Extent of recognition of gain or loss on distribution
§ 732 - Basis of distributed property other than money
§ 733 - Basis of distributee partner’s interest
§ 734 - Adjustment to basis of undistributed partnership property where section 754 election or substantial basis reduction
§ 735 - Character of gain or loss on disposition of distributed property
§ 736 - Payments to a retiring partner or a deceased partner’s successor in interest
§ 737 - Recognition of precontribution gain in case of certain distributions to contributing partner
§ 741 - Recognition and character of gain or loss on sale or exchange
§ 742 - Basis of transferee partner’s interest
§ 743 - Special rules where section 754 election or substantial built-in loss
§ 751 - Unrealized receivables and inventory items
§ 752 - Treatment of certain liabilities
§ 753 - Partner receiving income in respect of decedent
§ 754 - Manner of electing optional adjustment to basis of partnership property
§ 755 - Rules for allocation of basis
§ 761 - Terms defined
§ 809 - Repealed. Pub. L. 108–218, title II, § 205(a), Apr. 10, 2004, 118 Stat. 610]
§ 817A - Special rules for modified guaranteed contracts
§ 832 - Insurance company taxable income
§ 845 - Certain reinsurance agreements
§ 846 - Discounted unpaid losses defined
§ 848 - Capitalization of certain policy acquisition expenses
§ 852 - Taxation of regulated investment companies and their shareholders
§ 860E - Treatment of income in excess of daily accruals on residual interests
§ 860G - Other definitions and special rules
§ 863 - Special rules for determining source
§ 864 - Definitions and special rules
§ 865 - Source rules for personal property sales
§ 874 - Allowance of deductions and credits
§ 882 - Tax on income of foreign corporations connected with United States business
§ 883 - Exclusions from gross income
§ 884 - Branch profits tax
§ 892 - Income of foreign governments and of international organizations
§ 894 - Income affected by treaty
§ 897 - Disposition of investment in United States real property
§ 901 - Taxes of foreign countries and of possessions of United States
§ 902 - Repealed. Pub. L. 115–97, title I, § 14301(a), Dec. 22, 2017, 131 Stat. 2221]
§ 904 - Limitation on credit
§ 907 - Special rules in case of foreign oil and gas income
§ 911 - Citizens or residents of the United States living abroad
§ 934 - Limitation on reduction in income tax liability incurred to the Virgin Islands
§ 936 - Puerto Rico and possession tax credit
§ 937 - Residence and source rules involving possessions
§ 954 - Foreign base company income
§ 956 - Investment of earnings in United States property
§ 957 - Controlled foreign corporations; United States persons
§ 960 - Deemed paid credit for subpart F inclusions
§ 963 - Repealed. Pub. L. 94–12, title VI, § 602(a)(1), Mar. 29, 1975, 89 Stat. 58]
§ 985 - Functional currency
§ 987 - Branch transactions
§ 988 - Treatment of certain foreign currency transactions
§ 989 - Other definitions and special rules
§ 1017 - Discharge of indebtedness
§ 1032 - Exchange of stock for property
§ 1059 - Corporate shareholder’s basis in stock reduced by nontaxed portion of extraordinary dividends
§ 1060 - Special allocation rules for certain asset acquisitions
§ 1092 - Straddles
§ 1202 - Partial exclusion for gain from certain small business stock
§ 1221 - Capital asset defined
§ 1244 - Losses on small business stock
§ 1248 - Gain from certain sales or exchanges of stock in certain foreign corporations
§ 1254 - Gain from disposition of interest in oil, gas, geothermal, or other mineral properties
§ 1275 - Other definitions and special rules
§ 1286 - Tax treatment of stripped bonds
§ 1291 - Interest on tax deferral
§ 1293 - Current taxation of income from qualified electing funds
§ 1294 - Election to extend time for payment of tax on undistributed earnings
§ 1295 - Qualified electing fund
§ 1296 - Election of mark to market for marketable stock
§ 1297 - Passive foreign investment company
§ 1298 - Special rules
§ 1301 - Averaging of farm income
§ 1361 - S corporation defined
§ 1368 - Distributions
§ 1374 - Tax imposed on certain built-in gains
§ 1377 - Definitions and special rule
§ 1378 - Taxable year of S corporation
§ 1397D - Qualified zone property defined
§ 1397E - Repealed. Pub. L. 115–97, title I, § 13404(c)(1), Dec. 22, 2017, 131 Stat. 2138]
§ 1402 - Definitions
§ 1441 - Withholding of tax on nonresident aliens
§ 1443 - Foreign tax-exempt organizations
§ 1445 - Withholding of tax on dispositions of United States real property interests
§ 1471 - Withholdable payments to foreign financial institutions
§ 1472 - Withholdable payments to other foreign entities
§ 1473 - Definitions
§ 1474 - Special rules
§ 1502 - Regulations
§ 1503 - Computation and payment of tax
§ 1504 - Definitions
§ 1561 - Limitation on accumulated earnings credit in the case of certain controlled corporations
§ 3401 - Definitions
§ 5000 - Certain group health plans
§ 5000A - Requirement to maintain minimum essential coverage
§ 6001 - Notice or regulations requiring records, statements, and special returns
§ 6011 - General requirement of return, statement, or list
§ 6015 - Relief from joint and several liability on joint return
§ 6033 - Returns by exempt organizations
§ 6035 - Basis information to persons acquiring property from decedent
§ 6038 - Information reporting with respect to certain foreign corporations and partnerships
§ 6038A - Information with respect to certain foreign-owned corporations
§ 6038B - Notice of certain transfers to foreign persons
§ 6038D - Information with respect to foreign financial assets
§ 6039I - Returns and records with respect to employer-owned life insurance contracts
§ 6041 - Information at source
§ 6043 - Liquidating, etc., transactions
§ 6045 - Returns of brokers
§ 6046A - Returns as to interests in foreign partnerships
§ 6049 - Returns regarding payments of interest
§ 6050E - State and local income tax refunds
§ 6050H - Returns relating to mortgage interest received in trade or business from individuals
§ 6050K - Returns relating to exchanges of certain partnership interests
§ 6050M - Returns relating to persons receiving contracts from Federal executive agencies
§ 6050P - Returns relating to the cancellation of indebtedness by certain entities
§ 6050S - Returns relating to higher education tuition and related expenses
§ 6060 - Information returns of tax return preparers
§ 6061 - Signing of returns and other documents
§ 6065 - Verification of returns
§ 6081 - Extension of time for filing returns
§ 6103 - Confidentiality and disclosure of returns and return information
§ 6109 - Identifying numbers
§ 6302 - Mode or time of collection
§ 6402 - Authority to make credits or refunds
§ 6411 - Tentative carryback and refund adjustments
§ 6655 - Failure by corporation to pay estimated income tax
§ 6662 - Imposition of accuracy-related penalty on underpayments
§ 6695 - Other assessable penalties with respect to the preparation of tax returns for other persons
§ 6851 - Termination assessments of income tax
§ 7520 - Valuation tables
§ 7654 - Coordination of United States and certain possession individual income taxes
§ 7701 - Definitions
§ 7702 - Life insurance contract defined
§ 7805 - Rules and regulations
§ 7872 - Treatment of loans with below-market interest rates
§ 7874 - Rules relating to expatriated entities and their foreign parents
§ 1001 note - Congressional findings and declaration of policy
103 Stat. 2373
103 Stat. 2413
114 Stat. 464
114 Stat. 2763
114 Stat. 2763A-638
115 Stat. 38
94 Stat. 1208
94 Stat. 1308
96 Stat. 324
96 Stat. 669
Reorganization ... 1978 Plan No. 4
Title 26 published on 08-Jun-2018 03:50
The following are ALL rules, proposed rules, and notices (chronologically) published in the Federal Register relating to 26 CFR Part 1 after this date.
This document contains proposed regulations regarding the arbitrage investment restrictions under section 148 of the Internal Revenue Code (Code) applicable to tax-exempt bonds and other tax-advantaged bonds issued by State and local governments. The proposed regulations would clarify existing regulations regarding the definition of “investment-type property” covered by arbitrage restrictions by expressly providing an exception for investments in capital projects that are used in furtherance of the public purposes of the bonds. The proposed regulations affect State and local governmental issuers of these bonds and potential investors in capital projects financed with these bonds.
This document contains final regulations that prevent a corporate partner from avoiding corporate-level gain through transactions with a partnership involving equity interests of the partner or certain related entities. This document also contains final regulations that allow consolidated group members that are partners in the same partnership to aggregate their bases in stock distributed by the partnership for the purpose of limiting the application of rules that might otherwise cause basis reduction or gain recognition. This document also contains final regulations that may also require certain corporations that engage in gain elimination transactions to reduce the basis of corporate assets or to recognize gain. These final regulations affect partnerships and their partners.
This document contains corrections to final regulations (TD 9777) that were published in the Federal Register on Monday, July 18, 2016. The final regulations are related to arbitrage restrictions under section 148 of the Internal Revenue Code applicable to tax-exempt bonds and other tax-advantaged bonds issued by State and local governments.
This document contains final regulations relating to the allocation of the credit for increasing research activities (research credit) to corporations and trades or businesses under common control (controlled groups). This document also contains final regulations relating to the allocation of the railroad track maintenance credit and the election for a reduced research credit.
This document contains corrections to final regulations (TD 9588) that were published in the Federal Register on Monday, May 7, 2012. The final regulations are related to allocate prepaid qualified mortgage insurance premiums to determine the amount of the prepaid premium that is treated as qualified residence interest each taxable year.
Pursuant to the policies stated in Executive Orders 13777 and 13789 (the executive orders), the Treasury Department and the IRS conducted a review of existing regulations, with the goal of reducing regulatory burden for taxpayers by revoking or revising existing tax regulations that meet the criteria set forth in the executive orders. This notice of proposed rulemaking proposes to streamline IRS regulations by removing 298 regulations that are no longer necessary because they do not have any current or future applicability under the Internal Revenue Code (Code) and by amending 79 regulations to reflect the proposed removal of the 298 regulations. The proposed removal and amendment of these regulations may affect various categories of taxpayers.
This document contains proposed regulations implementing section 1101 of the Bipartisan Budget Act of 2015, which was enacted into law on November 2, 2015. The Bipartisan Budge Act repeals the current rules governing partnership audits and replaces them with a new centralized partnership audit regime that, in general, determines, assesses and collects tax at the partnership level. These proposed regulations provide rules addressing how partnerships and their partners adjust tax attributes to take into account partnership adjustments under the centralized partnership audit regime.
This document contains corrections to final regulations (TD 9825) that were published in the Federal Register on Thursday, October 19, 2017. The final regulations are under section 597 of the Internal Revenue Code. These final regulations amend existing regulations that address the federal income tax treatment of transactions in which federal financial assistance is provided to banks and domestic building and loan associations, and they clarify the federal income tax consequences of those transactions to banks, domestic building and loan associations, and related parties.
This document contains corrections to the proposed regulations (REG-119514-15) that were published in the Federal Register on Tuesday, December 19, 2017. The proposed regulations provide guidance on the treatment of foreign currency gain or loss of a controlled foreign corporation (CFC) under the business needs exclusion from foreign personal holding company income (FPHCI). The proposed regulations also provide an election for a taxpayer to use a mark-to-market method of accounting for foreign currency gain or loss attributable to section 988 transactions. In addition, the proposed regulations permit the controlling United States shareholders of a CFC to automatically revoke certain elections concerning the treatment of foreign currency gain or loss.
This document contains proposed regulations that provide guidance on the treatment of foreign currency gain or loss of a controlled foreign corporation (CFC) under the business needs exclusion from foreign personal holding company income (FPHCI). The proposed regulations also provide an election for a taxpayer to use a mark-to-market method of accounting for foreign currency gain or loss attributable to section 988 transactions. In addition, the proposed regulations permit the controlling United States shareholders of a CFC to automatically revoke certain elections concerning the treatment of foreign currency gain or loss. The proposed regulations affect taxpayers and United States shareholders of CFCs that engage in transactions giving rise to foreign currency gain or loss under section 988 of the Internal Revenue Code (Code).
This document contains corrections to final regulations (TD 9803) that were published in the Federal Register on Friday, December 16, 2016. The final regulations are related to certain transfers of property by United States persons to foreign corporations.
This document contains corrections to final and temporary regulations (TD TD 9815), which were published in the Federal Register on Tuesday, January 24, 2017.
This document corrects a correction to a notice of proposed rulemaking (REG-134247-16) that was published in the Federal Register on Friday, September 15, 2017. The notice of proposed rulemaking, published on January 6, 2017, under section 1441 of the Internal Revenue Code of 1986 (Code), relates to withholding of tax on certain U.S. source income paid to foreign persons and requirements for certain claims for refund or credit of income tax made by foreign persons.
This document withdraws a notice of proposed rulemaking regarding the definition of a political subdivision for purposes of tax-exempt bonds.
This document contains final regulations under section 597 of the Internal Revenue Code (Code). These final regulations amend existing regulations that address the federal income tax treatment of transactions in which federal financial assistance (FFA) is provided to banks and domestic building and loan associations, and they clarify the federal income tax consequences of those transactions to banks, domestic building and loan associations, and related parties. These regulations affect banks, domestic building and loan associations, and related parties.
On April 21, 2017, the President issued Executive Order 13789 (82 FR 19317), a directive designed to reduce tax regulatory burdens. The order directed the Secretary of the Treasury to identify significant tax regulations issued on or after January 1, 2016, that impose an undue financial burden on U.S. taxpayers, add undue complexity to the Federal tax laws, or exceed the statutory authority of the Internal Revenue Service (IRS). In an interim Report to the President dated June 22, 2017, Treasury identified eight such regulations. Executive Order 13789 further directs the Secretary to submit to the President and publish in the Federal Register a report recommending specific actions to mitigate the burden imposed by regulations identified in the interim report. This Second Report sets forth the Secretary's recommendations.
This document contains proposed amendments to the regulation relating to the requirements for making a valid election under section 754 of the Internal Revenue Code of 1986 (Code), as amended. The proposed regulation affects partnerships and their partners by removing a regulatory burden in making an election to adjust the basis of partnership property.
This document contains final regulations prescribing mortality tables to be used by most defined benefit pension plans. The tables specify the probability of survival year-by-year for an individual based on age, gender, and other factors. This information is used (together with other actuarial assumptions) to calculate the present value of a stream of expected future benefit payments for purposes of determining the minimum funding requirements for a defined benefit plan. These mortality tables are also relevant in determining the minimum required amount of a lump-sum distribution from such a plan. In addition, this document contains final regulations updating the requirements that a plan sponsor must meet to obtain IRS approval to use mortality tables specific to the plan for minimum funding purposes (instead of using the generally applicable mortality tables). These regulations affect participants in, beneficiaries of, employers maintaining, and administrators of certain retirement plans.
This document contains proposed regulations to update and streamline the public approval requirement provided in section 147(f) of the Internal Revenue Code applicable to tax-exempt private activity bonds issued by State and local governments. The proposed regulations would update the existing regulations on the public approval requirement to reflect statutory changes, to streamline the public approval process, and to reduce burden on State and local governments that issue tax-exempt private activity bonds. This document also withdraws two previous notices of proposed rulemaking on this topic. The proposed regulations affect State and local governments that issue tax-exempt private activity bonds.
This document contains proposed amendments to the regulations under sections 6051 and 6052 of the Internal Revenue Code (Code). To aid employers' efforts to protect employees from identity theft, these proposed regulations would amend existing regulations to permit employers to voluntarily truncate employees' social security numbers (SSNs) on copies of Forms W-2, Wage and Tax Statement, that are furnished to employees so that the truncated SSNs appear in the form of IRS truncated taxpayer identification numbers (TTINs). These proposed regulations also would amend the regulations under section 6109 to clarify the application of the truncation rules to Forms W-2 and to add an example illustrating the application of these rules. Additionally, these proposed amendments would delete obsolete provisions and update cross references in the regulations under sections 6051 and 6052. These proposed regulations affect employers who are required to furnish Forms W-2 and employees who receive Forms W-2.
This document contains proposed regulations that provide guidance on the definitions of registration-required obligation and registered form, including guidance on the issuance of pass-through certificates and participation interests in registered form. This document also withdraws a portion of previously proposed regulations regarding the definition of a registration-required obligation. The proposed regulations generally are necessary to address changes in market practices as well as issues raised by the statutory repeal of the foreign-targeted bearer obligation exception to the registered form requirement. The proposed regulations will affect issuers and holders of obligations in registered form as well as issuers and holders of registration-required obligations that are not issued in registered form.
This document contains a correction to a notice of proposed rulemaking (REG-134247-16) that was published in the Federal Register on Friday, January 6, 2017 (82 FR 1645). The notice of proposed rulemaking under section 1441 of the Internal Revenue Code of 1986 (Code) relates to withholding of tax on certain U.S. source income paid to foreign persons and requirements for certain claims for refund or credit of income tax made by foreign persons.
This document contains a correction to a notice of proposed rulemaking (REG-103477-14) that was published in the Federal Register on Friday, January 6, 2017 (82 FR 1629). The notice of proposed rulemaking under chapter 4 of the Subtitle A (sections 1471 through 1474) of the Internal Revenue Code of 1986 (Code) relates to verification and certification requirements for certain entities and reporting by foreign financial institutions.
This document contains corrections to the final regulations (T.D. 9812) that were published in the Federal Register on Wednesday, January 18, 2017. The regulations identify certain stock of a foreign corporation that is disregarded in calculating ownership of the foreign corporation for purposes of determining whether it is a surrogate foreign corporation.
This document contains corrections to the temporary regulations (T.D. 9814) that were published in the Federal Register on Thursday, January 19, 2017 (82 FR 7582). The regulations address transfers of appreciated property by United States persons to partnerships with foreign partners related to the transferor. The regulations override the rules providing for nonrecognition of gain on a contribution of property to a partnership in exchange for an interest in the partnership under section 721(a) of the Internal Revenue Code (Code) pursuant to section 721(c) unless the partnership adopts the remedial method and certain other requirements are satisfied.
This document contains a correction to final regulations (TD 9777) that were published in the Federal Register on Monday, July 18, 2016 (81 FR 46582). The final regulations relate to the arbitrage restrictions under section 148 of the Internal Revenue Code applicable to tax-exempt bonds and other tax-advantaged bonds issued by State and local governments.
This document contains final regulations relating to the health insurance premium tax credit. These regulations affect individuals who enroll in qualified health plans through Affordable Insurance Exchanges (Exchanges, also called Marketplaces) and claim the premium tax credit and Exchanges that make qualified health plans available to individuals.
This document provides a notice of public hearing on proposed changes to the regulations under section 468A of the Internal Revenue Code of 1986 (Code) relating to deductions for contributions to trusts maintained for decommissioning nuclear power plants and the use of the amounts in those trusts to decommission nuclear plants.
This document contains final and temporary regulations that update the due dates and extensions of time to file certain tax returns and information returns. The dates are updated to reflect the new statutory requirements set by section 2006 of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 and section 201 of the Protecting Americans from Tax Hikes Act of 2015. These regulations affect taxpayers who file Form W-2 (series, except Form W-2G), Form W-3, Form 990 (series), Form 1099-MISC, Form 1041, Form 1041-A, Form 1065, Form 1120 (series), Form 4720, Form 5227, Form 6069, Form 8804, or Form 8870.
In the Rules and Regulations section of this issue of the Federal Register, the IRS is issuing temporary regulations that update the due dates and extensions of time to file certain tax returns and information returns. The text of those regulations also serves as the text of these proposed regulations.
This document withdraws the remaining part of a notice of proposed rulemaking containing proposed regulations that would have required an exchange or distribution of net value for certain corporate formations and reorganizations to qualify for nonrecognition treatment under the Internal Revenue Code (Code). Other parts of the notice of proposed rulemaking were previously adopted as final regulations. The proposed regulations being withdrawn also addressed the treatment of certain distributions not qualifying for tax-free treatment under section 332 of the Code. The proposed regulations being withdrawn would have affected corporations and their shareholders.
This document contains corrections to final and temporary regulations (TD 9808), which were published in the Federal Register on Friday, January 6, 2017 (82 FR 2046). These regulations are related to withholding of tax on certain U.S. source income paid to foreign persons, information reporting and backup withholding with respect to payments made to certain U.S. persons, and portfolio interest paid to nonresident alien individuals and foreign corporations.
This document contains a correction to final and temporary regulations (TD 9809) that were published in the Federal Register on Friday, January 6, 2017 (82 FR 2124). The final and temporary regulations under chapter 4 of Subtitle A (sections 1471 through 1474) of the Internal Revenue Code of 1986 (Code) relate to information reporting by foreign financial institutions (FFIs) with respect to U.S. accounts and withholding on certain payments to FFIs and other foreign entities.
This document contains corrections to final and temporary regulations (TD 9809) that were published in the Federal Register on Friday, January 6, 2017 (82 FR 2124). The final and temporary regulations under chapter 4 of the Subtitle A (sections 1471 through 1474) of the Internal Revenue Code of 1986 (Code) relate to information reporting by foreign financial institutions (FFIs) with respect to U.S. accounts and withholding on certain payments to FFIs and other foreign entities.
This document contains final regulations that allow the Commissioner of Internal Revenue to adopt a streamlined application process that eligible organizations may use to apply for recognition of tax-exempt status under section 501(c)(3) of the Internal Revenue Code (Code). The final regulations affect organizations seeking recognition of tax-exempt status under section 501(c)(3).
This document contains corrections to temporary regulations (TD 9805) that published in the Federal Register on Monday, December 19, 2016 (81 FR 91738). The temporary regulations provide guidance regarding the distribution by a distributing corporation of stock or securities of a controlled corporation without the recognition of income, gain, or loss.
This document provides guidance to nonresident alien individuals and foreign corporations that hold certain financial products providing for payments that are contingent upon or determined by reference to U.S. source dividend payments. This document also provides guidance to withholding agents that are responsible for withholding U.S. tax with respect to a dividend equivalent, as well as certain other parties to section 871(m) transactions and their agents.
This document contains corrections to the final and temporary regulations (T.D. 9790) that were published in the Federal Register on Friday, October 21, 2016 (81 FR 72858). The regulations relate to the determination of whether an interest in a corporation is treated as stock or indebtedness for all purposes of the Internal Revenue Code.
This document contains proposed regulations relating to certain financial products providing for payments that are contingent upon or determined by reference to U.S. source dividend payments.
This document contains final regulations under section 7704(d)(1)(E) of the Internal Revenue Code (Code) relating to the qualifying income exception for publicly traded partnerships to not be treated as corporations for Federal income tax purposes. Specifically, these regulations define the activities that generate qualifying income from exploration, development, mining or production, processing, refining, transportation, and marketing of minerals or natural resources. These regulations affect publicly traded partnerships and their partners.
This document contains corrections to a notice of proposed rulemaking by cross-reference to temporary regulation (REG-133353-16) that was published in the Federal Register on Friday, December 9, 2016. The proposed regulations authorize the disclosure of specified return information to the Census Bureau (Bureau) for purposes of structuring the censuses and national economic accounts and conducting related statistical activities authorized by title 13.
This document contains final regulations regarding the application of the modified carryover basis rules of section 1022 of the Internal Revenue Code (Code). Specifically, the final regulations modify provisions of the Treasury Regulations involving basis rules by including a reference to section 1022 where appropriate. The regulations will affect property transferred from certain decedents who died in 2010. The regulations reflect changes to the law made by the Economic Growth and Tax Relief Reconciliation Act of 2001 and the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.