Federal Register / Vol. 86, No. 11 / Tuesday, January 19, 2021 / Rules and Regulations 4969 

8 DHS is working closely with counterparts in 

Mexico and Canada to identify appropriate public 

health conditions to safely ease restrictions in the 

future and support U.S. border communities. 

1 85 FR 16548 (Mar. 24, 2020). That same day, 

DHS also published notice of the Secretary’s 

decision to temporarily limit the travel of 

individuals from Mexico into the United States at 

land ports of entry along the United States-Mexico 

border to ‘‘essential travel,’’ as further defined in 

that document. 85 FR 16547 (Mar. 24, 2020). 

2See 85 FR 83432 (Dec. 22, 2020); 85 FR 74603 

(Nov. 23, 2020); 85 FR 67276 (Oct. 22, 2020); 85 FR 

59670 (Sept. 23, 2020); 85 FR 51634 (Aug. 21, 

2020); 85 FR 44185 (July 22, 2020); 85 FR 37744 

(June 24, 2020); 85 FR 31050 (May 22, 2020); 85 FR 

22352 (Apr. 22, 2020). DHS also published parallel 

notifications of the Secretary’s decisions to 

continue temporarily limiting the travel of 

individuals from Mexico into the United States at 

land ports of entry along the United States-Mexico 

border to ‘‘essential travel.’’ See 85 FR 83433 (Dec. 

22, 2020); 85 FR 74604 (Nov. 23, 2020); 85 FR 

67275 (Oct. 22, 2020); 85 FR 59669 (Sept. 23, 2020); 

85 FR 51633 (Aug. 21, 2020); 85 FR 44183 (July 22, 

2020); 85 FR 37745 (June 24, 2020); 85 FR 31057 

(May 22, 2020); 85 FR 22353 (Apr. 22, 2020). Both 

December notices contained typos with respect to 

the end date of the extension; as of December 23, 

2020, correction notices were pending publication 

in the Federal Register. 

3WHO, Coronavirus disease 2019 (COVID–19) 

Weekly Epidemiological Update (Jan. 5, 2021), 

available at https://www.who.int/publications/m/ 

item/weekly-epidemiological-update—5-january2021. 

4CDC, COVID Data Tracker (accessed Jan. 6, 

2021), available at https://covid.cdc.gov/covid-datatracker/. 

5WHO, COVID–19 Weekly Epidemiological 

Update (Jan. 5, 2021). 

6 Id. 

7 19 U.S.C. 1318(b)(1)(C) provides that 

‘‘[n]otwithstanding any other provision of law, the 

Secretary of the Treasury, when necessary to 

respond to a national emergency declared under the 

National Emergencies Act (50 U.S.C. 1601 et seq.) 

or to a specific threat to human life or national 

interests,’’ is authorized to ‘‘[t]ake any . . . action 

that may be necessary to respond directly to the 

national emergency or specific threat.’’ On March 

1, 2003, certain functions of the Secretary of the 

Treasury were transferred to the Secretary of 

Homeland Security. See 6 U.S.C. 202(2), 203(1). 

Under 6 U.S.C. 212(a)(1), authorities ‘‘related to 

Customs revenue functions’’ were reserved to the 

Secretary of the Treasury. To the extent that any 

authority under section 1318(b)(1) was reserved to 

the Secretary of the Treasury, it has been delegated 

to the Secretary of Homeland Security. See Treas. 

Dep’t Order No. 100–16 (May 15, 2003), 68 FR 

28322 (May 23, 2003). Additionally, 19 U.S.C. 

1318(b)(2) provides that ‘‘[n]otwithstanding any 

other provision of law, the Commissioner of U.S. 

Customs and Border Protection, when necessary to 

respond to a specific threat to human life or 

national interests, is authorized to close temporarily 

any Customs office or port of entry or take any other 

lesser action that may be necessary to respond to 

the specific threat.’’ Congress has vested in the 

Secretary of Homeland Security the ‘‘functions of 

all officers, employees, and organizational units of 

Continued 

temporary in nature and shall remain in 

effect until 11:59 p.m. EST on February 

21, 2021. This Notification may be 

amended or rescinded prior to that time, 

based on circumstances associated with 

the specific threat.8

The Commissioner of U.S. Customs 

and Border Protection (CBP) is hereby 

directed to prepare and distribute 

appropriate guidance to CBP personnel 

on the continued implementation of the 

temporary measures set forth in this 

Notification. The CBP Commissioner 

may determine that other forms of 

travel, such as travel in furtherance of 

economic stability or social order, 

constitute ‘‘essential travel’’ under this 

Notification. Further, the CBP 

Commissioner may, on an 

individualized basis and for 

humanitarian reasons or for other 

purposes in the national interest, permit 

the processing of travelers to the United 

States not engaged in ‘‘essential travel.’’ 

Peter T. Gaynor, 

Acting Secretary, U.S. Department of 

Homeland Security. 

[FR Doc. 2021–01029 Filed 1–15–21; 8:45 am] 

BILLING CODE 9112–FP–P 

DEPARTMENT OF HOMELAND 

SECURITY 

U.S. Customs and Border Protection 

19 CFR Chapter I 

Notification of Temporary Travel 

Restrictions Applicable to Land Ports 

of Entry and Ferries Service Between 

the United States and Canada 

AGENCY: Office of the Secretary, U.S. 

Department of Homeland Security; U.S. 

Customs and Border Protection, U.S. 

Department of Homeland Security. 

ACTION: Notification of continuation of 

temporary travel restrictions. 

SUMMARY: This document announces the 

decision of the Secretary of Homeland 

Security (Secretary) to continue to 

temporarily limit the travel of 

individuals from Canada into the United 

States at land ports of entry along the 

United States-Canada border. Such 

travel will be limited to ‘‘essential 

travel,’’ as further defined in this 

document. 

DATES: These restrictions go into effect 

at 12 a.m. Eastern Standard Time (EST) 

on January 22, 2021 and will remain in 

effect until 11:59 p.m. EST on February 

21, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Stephanie Watson, Office of Field 

Operations Coronavirus Coordination 

Cell, U.S. Customs and Border 

Protection (CBP) at 202–325–0840. 

SUPPLEMENTARY INFORMATION: 

Background 

On March 24, 2020, DHS published 

notice of the Secretary’s decision to 

temporarily limit the travel of 

individuals from Canada into the United 

States at land ports of entry along the 

United States-Canada border to 

‘‘essential travel,’’ as further defined in 

that document.1 The document 

described the developing circumstances 

regarding the COVID–19 pandemic and 

stated that, given the outbreak and 

continued transmission and spread of 

the virus associated with COVID–19 

within the United States and globally, 

the Secretary had determined that the 

risk of continued transmission and 

spread of the virus associated with 

COVID–19 between the United States 

and Canada posed a ‘‘specific threat to 

human life or national interests.’’ The 

Secretary later published a series of 

notifications continuing such 

limitations on travel until 11:59 p.m. 

EST on January 21, 2021.2

The Secretary has continued to 

monitor and respond to the COVID–19 

pandemic. As of the week of January 4, 

there have been over 83.3 million 

confirmed cases globally, with over 1.8 

million confirmed deaths.3 There have 

been over 20.7 million confirmed and 

probable cases within the United 

States,4 over 587,000 confirmed cases in 

Canada,5 and over 1.4 million 

confirmed cases in Mexico.6

Notice of Action 

Given the outbreak and continued 

transmission and spread of COVID–19 

within the United States and globally, 

the Secretary has determined that the 

risk of continued transmission and 

spread of the virus associated with 

COVID–19 between the United States 

and Canada poses an ongoing ‘‘specific 

threat to human life or national 

interests.’’ 

U.S. and Canadian officials have 

mutually determined that non-essential 

travel between the United States and 

Canada poses additional risk of 

transmission and spread of the virus 

associated with COVID–19 and places 

the populace of both nations at 

increased risk of contracting the virus 

associated with COVID–19. Moreover, 

given the sustained human-to-human 

transmission of the virus, returning to 

previous levels of travel between the 

two nations places the personnel 

staffing land ports of entry between the 

United States and Canada, as well as the 

individuals traveling through these 

ports of entry, at increased risk of 

exposure to the virus associated with 

COVID–19. Accordingly, and consistent 

with the authority granted in 19 U.S.C. 

1318(b)(1)(C) and (b)(2),7 I have 


khammond on DSKJM1Z7X2PROD with RULES
4970 Federal Register / Vol. 86, No. 11 / Tuesday, January 19, 2021 / Rules and Regulations 

the Department,’’ including the Commissioner of 

CBP. 6 U.S.C. 112(a)(3). 

8 DHS is working closely with counterparts in 

Mexico and Canada to identify appropriate public 

health conditions to safely ease restrictions in the 

future and support U.S. border communities. 

determined that land ports of entry 

along the U.S.-Canada border will 

continue to suspend normal operations 

and will only allow processing for entry 

into the United States of those travelers 

engaged in ‘‘essential travel,’’ as defined 

below. Given the definition of ‘‘essential 

travel’’ below, this temporary alteration 

in land ports of entry operations should 

not interrupt legitimate trade between 

the two nations or disrupt critical 

supply chains that ensure food, fuel, 

medicine, and other critical materials 

reach individuals on both sides of the 

border. 

For purposes of the temporary 

alteration in certain designated ports of 

entry operations authorized under 19 

U.S.C. 1318(b)(1)(C) and (b)(2), travel 

through the land ports of entry and ferry 

terminals along the United StatesCanada border shall be limited to 

‘‘essential travel,’’ which includes, but 

is not limited to— 

• U.S. citizens and lawful permanent 

residents returning to the United States; 

• Individuals traveling for medical 

purposes (e.g., to receive medical 

treatment in the United States); 

• Individuals traveling to attend 

educational institutions; 

• Individuals traveling to work in the 

United States (e.g., individuals working 

in the farming or agriculture industry 

who must travel between the United 

States and Canada in furtherance of 

such work); 

• Individuals traveling for emergency 

response and public health purposes 

(e.g., government officials or emergency 

responders entering the United States to 

support federal, state, local, tribal, or 

territorial government efforts to respond 

to COVID–19 or other emergencies); 

• Individuals engaged in lawful crossborder trade (e.g., truck drivers 

supporting the movement of cargo 

between the United States and Canada); 

• Individuals engaged in official 

government travel or diplomatic travel; 

• Members of the U.S. Armed Forces, 

and the spouses and children of 

members of the U.S. Armed Forces, 

returning to the United States; and 

• Individuals engaged in militaryrelated travel or operations. 

The following travel does not fall 

within the definition of ‘‘essential 

travel’’ for purposes of this 

Notification— 

• Individuals traveling for tourism 

purposes (e.g., sightseeing, recreation, 

gambling, or attending cultural events). 

At this time, this Notification does not 

apply to air, freight rail, or sea travel 

between the United States and Canada, 

but does apply to passenger rail, 

passenger ferry travel, and pleasure boat 

travel between the United States and 

Canada. These restrictions are 

temporary in nature and shall remain in 

effect until 11:59 p.m. EST on February 

21, 2021. This Notification may be 

amended or rescinded prior to that time, 

based on circumstances associated with 

the specific threat.8

The Commissioner of U.S. Customs 

and Border Protection (CBP) is hereby 

directed to prepare and distribute 

appropriate guidance to CBP personnel 

on the continued implementation of the 

temporary measures set forth in this 

Notification. The CBP Commissioner 

may determine that other forms of 

travel, such as travel in furtherance of 

economic stability or social order, 

constitute ‘‘essential travel’’ under this 

Notification. Further, the CBP 

Commissioner may, on an 

individualized basis and for 

humanitarian reasons or for other 

purposes in the national interest, permit 

the processing of travelers to the United 

States not engaged in ‘‘essential travel.’’ 

Peter T. Gaynor 

Acting Secretary, U.S. Department of 

Homeland Security. 

[FR Doc. 2021–01028 Filed 1–15–21; 8:45 am] 

BILLING CODE 9112–FP–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9946] 

RIN 1545–BO67 

Denial of Deduction for Certain Fines, 

Penalties, and Other Amounts; Related 

Information Reporting Requirements 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations providing guidance on 

section 162(f) of the Internal Revenue 

Code (Code), as amended in 2017, 

concerning the deduction of certain 

fines, penalties, and other amounts. 

This document also contains final 

regulations providing guidance relating 

to the information reporting 

requirements under new section 6050X 

of the Code with respect to those fines, 

penalties, and other amounts. The final 

regulations affect taxpayers that pay or 

incur amounts to, or at the direction of, 

governments, governmental entities or 

certain nongovernmental entities treated 

as governmental entities relating to the 

violation of any law or investigations or 

inquiries by such governments, 

governmental entities, or 

nongovernmental entities into the 

potential violation of any law. The final 

regulations also affect governments, 

governmental entities, and 

nongovernmental entities subject to the 

related reporting requirements. 

DATES: 

Effective date: These regulations are 

effective on January 14, 2021. 

Applicability dates: For dates of 

applicability, see §§ 1.162–21(g) and 

1.6050X–1(g). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the regulations on amended 

section 162(f), Sharon Y. Horn (202) 

317–4426; concerning the information 

reporting requirement, Nancy L. Rose 

(202) 317–5147. The phone numbers 

above may also be reached by 

individuals who are deaf or hard of 

hearing, or who have speech 

disabilities, through the Federal Relay 

Service toll-free at (800) 877–8339. 

SUPPLEMENTARY INFORMATION: 

Background 

Prior to its amendment in 2017, 

section 162(f) disallowed an ordinary 

and necessary business expense 

deduction under section 162(a) for any 

fine or similar penalty paid to a 

government for the violation of any law. 

On February 20, 1975, the Treasury 

Department and the IRS issued final 

regulations under the prior version of 

section 162(f) (TD 7345, 40 FR 7437), 

which were amended on July 11, 1975 

(T.D. 7366, 40 FR 29290) (together the 

1975 regulations). 

Section 162(f) was amended by 

section 13306(a) of Public Law 115–97, 

131 Stat. 2054 (2017), commonly 

referred to as the Tax Cuts and Jobs Act 

(TCJA). Section 6050X was added to the 

Code by section 13306(b) of the TCJA. 

As amended by the TCJA, the general 

rule of section 162(f)(1) provides that no 

deduction otherwise allowable under 

chapter 1 of the Code (chapter 1) shall 

be allowed for any amount paid or 

incurred (whether by suit, agreement, or 

otherwise) to, or at the direction of, a 

government or governmental entity in 

relation to the violation of any law or 

the investigation or inquiry by such 

government or governmental entity into 

the potential violation of any law. 

Section 162(f)(5) describes certain selfregulating nongovernmental entities that 

are treated as governmental entities for 


khammond on DSKJM1Z7X2PROD with RULES