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This section contains first a list of section headings and then a list of the paragraphs in each section in §§ 1.401(m)-1 through 1.401(m)-5.
(a) General nondiscrimination rules.
(1) Nondiscriminatory amount of contributions.
(i) Exclusive means of amounts testing.
(ii) Testing benefits, rights and features.
(2) Matching contributions.
(i) In general.
(ii) Employer contributions made on account of an employee contribution or elective deferral.
(iii) Employer contributions not on account of an employee contribution or elective deferral.
(A) General rule.
(B) Special rule for forfeitures and released ESOP shares.
(C) Exception for bona fide administrative considerations.
(3) Employee contributions.
(ii) Certain contributions not treated as employee contributions.
(iii) Qualified cost-of-living arrangements.
(b) Nondiscrimination requirements for amount of contributions.
(1) Matching contributions and employee contributions.
(2) Automatic satisfaction by certain plans.
(3) Anti-abuse provisions.
(4) Aggregation and restructuring.
(ii) Aggregation of employee contributions and matching contributions within a plan.
(iii) Aggregation of plans.
(A) In general.
(B) Arrangements with inconsistent ACP testing methods.
(iv) Disaggregation of plans and separate testing.
(B) Restructuring prohibited.
(v) Certain disaggregation rules not applicable.
(c) Additional requirements.
(1) Separate testing for employee contributions and matching contributions.
(2) Plan provision requirement.
(d) Effective date.
(1) General rule.
(2) Early implementation permitted.
(3) Applicability of prior regulations.
(a) Actual contribution percentage (ACP) test.
(1) In general.
(i) ACP test formula.
(ii) HCEs as sole eligible employees.
(iii) Special rule for early participation.
(2) Determination of ACP.
(i) General rule.
(ii) Determination of applicable year under current year and prior year testing method.
(3) Determination of ACR.
(ii) ACR of HCEs eligible under more than one plan.
(B) Plans not permitted to be aggregated.
(4) Employee contributions and matching contributions taken into account under the ACP test.
(i) Employee contributions.
(ii) Recharacterized elective contributions.
(iii) Matching contributions.
(5) Employee contributions and matching contributions not taken into account under the ACP test.
(ii) Disproportionate matching contributions.
(A) Matching contributions in excess of 100%.
(B) Representative matching rate.
(C) Definition of matching rate.
(iii) Qualified matching contributions used to satisfy the ADP test.
(iv) Matching contributions taken into account under safe harbor provisions.
(v) Treatment of forfeited matching contributions.
(vi) Additional employee contributions or matching contributions pursuant to section 414(u).
(6) Qualified nonelective contributions and elective contributions that may be taken into account under the ACP test.
(i) Timing of allocation.
(ii) Elective contributions taken into account under the ACP test.
(iii) Requirement that amount satisfy section 401(a)(4).
(iv) Aggregation must be permitted.
(v) Disproportionate contributions not taken into account.
(B) Definition of representative contribution rate.
(C) Definition of applicable contribution rate.
(D) Special rule for prevailing wage contributions.
(vi) Contribution only used once.
(b) Correction of excess aggregate contributions.
(1) Permissible correction methods.
(A) Additional contributions.
(B) Excess aggregate contributions distributed or forfeited.
(ii) Combination of correction methods.
(iii) Exclusive means of correction.
(2) Correction through distribution.
(ii) Calculation of total amount to be distributed.
(A) Calculate the dollar amount of excess aggregate contributions for each HCE.
(B) Determination of the total amount of excess aggregate contributions.
(C) Satisfaction of ACP.
(iii) Apportionment of total amount of excess aggregate contributions among the HCEs.
(B) Limit on amount apportioned to any HCE.
(C) Apportionment to additional HCEs.
(iv) Income allocable to excess aggregate contributions.
(B) Method of allocating income.
(C) Alternative method of allocating income for the plan year.
(D) Plan years before 2008.
(E) Alternative method of allocating plan year and gap period income.
(F) Allocable income for recharacterized elective contributions.
(v) Distribution and forfeiture.
(vi) Tax treatment of corrective distributions.
(A) Corrective distributions for plan years beginning on or after January 1, 2008.
(B) Corrective distributions for plan years beginning before January 1, 2008.
(C) Corrective distributions attributable to designated Roth contributions.
(3) Other rules.
(i) No employee or spousal consent required.
(ii) Treatment of corrective distributions and forfeited contributions as employer contributions.
(iii) No reduction of required minimum distribution.
(iv) Partial correction.
(v) Matching contributions on excess contributions, excess deferrals and excess aggregate contributions.
(A) Corrective distributions not permitted.
(B) Coordination with section 401(a)(4).
(vi) No requirement for recalculation.
(4) Failure to timely correct.
(i) Failure to correct within 2
1/2 months after end of plan year.
(ii) Failure to correct within 12 months after end of plan year.
(iii) Special rule for eligible automatic contribution arrangements.
(c) Additional rules for prior year testing method.
(1) Rules for change in testing method.
(2) Calculation of ACP under the prior year testing method for the first plan year.
(i) Plans that are not successor plans.
(ii) First plan year defined.
(iii) Plans that are successor plans.
(3) Plans using different testing methods for the ACP and ADP test.
(4) Rules for plan coverage change.
(ii) Optional rule for minor plan coverage changes.
(A) Plan coverage change.
(B) Prior year subgroup.
(C) Weighted average of the ACPs for the prior year subgroups.
(a) ACP test safe harbor.
(1) Section 401(m)(11) safe harbor.
(2) Section 401(m)(12) safe harbor.
(3) Requirements applicable to safe harbor contributions.
(b) Safe harbor nonelective contribution requirement.
(c) Safe harbor matching contribution requirement.
(d) Limitation on contributions.
(2) Matching rate must not increase.
(3) Limit on matching contributions.
(4) Limitation on rate of match.
(5) HCEs participating in multiple plans.
(6) Permissible restrictions on elective deferrals by NHCEs.
(ii) Restrictions on election periods.
(iii) Restrictions on amount of contributions.
(iv) Restrictions on types of compensation that may be deferred.
(v) Restrictions due to limitations under the Internal Revenue Code.
(e) Notice requirement.
(f) Plan year requirement.
(2) Initial plan year.
(3) Change of plan year.
(4) Final plan year.
(g) Plan amendments adopting nonelective safe harbor contributions.
(h) Permissible reduction or suspension of safe harbor contributions.
(i) Matching contributions.
(ii) Nonelective contributions.
(2) Supplemental notice.
(j) Other rules.
(1) Contributions taken into account.
(2) Use of safe harbor nonelective contributions to satisfy other nondiscrimination tests.
(3) Early participation rules.
(4) Satisfying safe harbor contribution requirement under another defined contribution plan.
(5) Contributions used only once.
(6) Plan must satisfy ACP with respect to employee contributions.
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 - Income attributable to domestic production activities
§ 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 - Deemed paid credit where domestic corporation owns 10 percent or more of voting stock of foreign corporation
§ 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 - Special rules for foreign tax credit
§ 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 - Credit to holders of qualified zone academy bonds
§ 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 - Limitations on certain multiple tax benefits 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 05-May-2017 03:22
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 announces a public hearing on an advance notice of proposed rulemaking, (REG-157714-06) relating to the determination of governmental plans. This notice supersedes the notice of public hearing published in the Federal Register on Monday, January 23, 2012 (77 FR 3202) that announced a public hearing for June 5, 2012. This notice also extends the comment period for the submission of public comments.
This document announces a public hearing on an advance notice of proposed rulemaking, (REG-133223-08) relating to Indian tribal government plans. This notice supersedes the notice of public hearing published in the Federal Register on Monday, January 23, 2012 (77 FR 3210) that announced a public hearing for June 5, 2012. This notice also extends the public comment period for submission of public comments.
This document contains proposed regulations relating to the purchase of longevity annuity contracts under tax-qualified defined contribution plans under section 401(a) of the Internal Revenue Code (Code), section 403(b) plans, individual retirement annuities and accounts (IRAs) under section 408, and eligible governmental section 457 plans. These regulations will provide the public with guidance necessary to comply with the required minimum distribution rules under section 401(a)(9). The regulations will affect individuals for whom a longevity annuity contract is purchased under these plans and IRAs (and their beneficiaries), sponsors and administrators of these plans, trustees and custodians of these IRAs, and insurance companies that issue longevity annuity contracts under these plans and IRAs. This document also provides a notice of a public hearing on these proposed regulations.
This document contains proposed regulations providing guidance relating to the minimum present value requirements applicable to certain defined benefit pension plans. These proposed regulations would change the regulations regarding the minimum present value requirements for defined benefit plan distributions to permit plans to simplify the treatment of certain optional forms of benefit that are paid partly in the form of an annuity and partly in a more accelerated form. These regulations would affect sponsors, administrators, participants, and beneficiaries of defined benefit pension plans. This document also provides a notice of a public hearing on these proposed regulations.
This document contains corrections to final regulations (TD 9568), which were published in the Federal Register on Thursday, December 22, 2011 (76 FR 80082), Relating to section 482 and methods to determine taxable income in connection with a cost sharing arrangement.
This document contains final regulations relating to the exclusion from gross income for amounts received on account of personal physical injuries or physical sickness. The final regulations reflect amendments under the Small Business Job Protection Act of 1996. The final regulations affect taxpayers receiving damages on account of personal physical injuries or physical sickness and taxpayers paying these damages.
This document contains temporary regulations relating to dividend equivalents for purposes of section 871(m) of the Internal Revenue Code (Code). The regulations provide guidance to nonresident aliens and foreign corporations that hold notional principal contracts (NPCs) providing for payments determined by reference to payments of dividends from sources within the United States. The text of the temporary regulations also serves as the text of the proposed regulations set forth in the notice of proposed rulemaking on this subject in the Proposed Rules Section in this issue of the Federal Register .
In the Rules and Regulations section of this issue of the Federal Register , the IRS is issuing temporary regulations that provide guidance on the definition of the term “specified notional principal contract” for purposes of section 871(m) of the Internal Revenue Code (Code) beginning after March 18, 2012 through December 31, 2012. The text of those regulations also serves as the text of the proposed regulations. The preamble to the temporary regulations explains the amendments added by the temporary regulations. The preamble to this notice of proposed rulemaking explains the proposed regulations, which provide guidance to nonresident aliens and foreign corporations that hold certain financial products providing for payments that are contingent upon or determined by reference to payments of dividends from sources within the United States. This document also provides a notice of a public hearing on these proposed regulations.
This document announces a public hearing on proposed regulations, (REG-157714-06) relating to the determination of governmental plans.
This document announces a public hearing on proposed regulations, (REG-133223-08) relating to Indian tribal government plans.
This document changes the date of a public hearing on proposed regulations relating to the deduction and capitalization of expenditures related to tangible property.
This document contains temporary regulations that provide guidance regarding the allocation and apportionment of interest expense. These temporary regulations provide guidance concerning the allocation and apportionment of interest expense by corporations owning a 10 percent or greater interest in a partnership, as well as the allocation and apportionment of interest expense using the fair market value method. These temporary regulations also update the interest allocation regulations to conform to the statutory changes made by section 216 of the legislation commonly referred to as the Education Jobs and Medicaid Assistance Act (EJMAA), enacted on August 10, 2010, affecting the affiliation of certain foreign corporations for purposes of section 864(e). These regulations affect taxpayers that allocate and apportion interest expense. The text of these temporary regulations also serves as the text of the proposed regulations (REG-113903-10) set forth in the notice of proposed rulemaking on this subject published elsewhere in this issue of the Federal Register .
In the Rules and Regulations section in this issue of the Federal Register , the IRS is issuing temporary regulations that provide guidance relating to the allocation and apportionment of interest expense. The temporary regulations provide guidance concerning the allocation and apportionment of interest expense by corporations owning a 10 percent or greater interest in a partnership, as well as the allocation and apportionment of interest expense using the fair market value asset method. The temporary regulations also update the interest allocation regulations to conform to the changes made to the applicable law by the legislation commonly referred to as the Education Jobs and Medicaid Assistance Act (EJMAA), enacted on August 10, 2010 (Pub. L. 111-226, 124 Stat. 2389 (2010)), which affect corporations owning certain foreign corporations engaged in the conduct of a trade or business in the United States. The text of those temporary regulations published in this issue of the Federal Register also serves as the text of these proposed regulations. This document also provides a notice of public hearing on these proposed regulations.