78160 Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Rules and Regulations 

account, however, in determining the 

regular tax liability under section 53(c) 

for the election year. 

* * * * * 

(g) Effective/applicability date. This 

section applies for taxable years 

beginning after December 15, 2010. See 

the provisions of §§ 1.1301–1 and 

1.1301–1T as in effect on December 14, 

2010 for rules that apply for taxable 

years beginning on or before December 

15, 2010. In addition, a taxpayer may 

apply paragraph (b)(1)(ii) of this section 

in taxable years beginning after 

December 31, 2003. 

§ 1.1301–1T [Removed] 

■ Par. 3. Section 1.1301–1T is removed. 

Linda E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: December 7, 2010. 

Michael Mundaca, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2010–31497 Filed 12–14–10; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9510] 

RIN 1545–BJ54 

Requirement of a Statement Disclosing 

Uncertain Tax Positions 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulation. 

SUMMARY: This document contains final 

regulations allowing the IRS to require 

corporations to file a schedule 

disclosing uncertain tax positions 

related to the tax return as required by 

the IRS. 

DATES: Effective date: This regulation is 

effective on December 15, 2010. 

Applicability date: For dates of 

applicability, see § 1.6012–2(a)(5). 

FOR FURTHER INFORMATION CONTACT: 

Kathryn Zuba at (202) 622–3400 (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains amendments 

to the Income Tax Regulations (26 CFR 

part 1) under section 6012 relating to 

the returns of income corporations are 

required to file. Section 6011 provides 

that persons liable for a tax imposed by 

Title 26 shall make a return when 

required by regulations prescribed by 

the Secretary of the Treasury according 

to the forms and regulations prescribed 

by the Secretary. Treasury Regulation 

§ 1.6011–1 requires every person liable 

for income tax to make the returns 

required by regulation. Section 6012 

requires corporations subject to an 

income tax to make a return with 

respect to that tax. Treasury Regulation 

§ 1.6012–2 sets out the corporations that 

are required to file returns and the form 

those returns must take. 

A proposed regulation under section 

6012 (REG–119046–10) was published 

in the Federal Register on September 9, 

2010. Requirement of a Statement 

Disclosing Uncertain Tax Positions, 75 

FR 54802 (proposed Sept. 9, 2010). The 

IRS received one written comment 

concerning the proposed regulation, and 

a public hearing regarding the proposed 

regulation was held on October 19, 

2010. Neither of the two speakers at the 

public hearing had comments relating to 

the proposed regulation, although both 

organizations the speakers represented 

had previously submitted written 

comments concerning the draft 

Schedule UTP and instructions. 

Announcement 2010–30, 2010–19 IRB 

668. After considering the comments, 

the proposed regulation is adopted by 

this Treasury decision with one nonsubstantive change related to the 

effective date. While the proposed 

regulation applied to returns filed for 

tax years beginning after December 15, 

2009 and ending after the date the 

regulations were published in the 

Federal Register, the final regulation 

applies to returns filed for tax years 

beginning on or after January 1, 2010. 

Explanation and Summary of 

Comments 

This rule will authorize the IRS to 

require certain corporations, as set out 

in forms, publications, instructions, or 

other guidance, to provide information 

concerning uncertain tax positions 

concurrent with the filing of a return. 

On September 24, 2010, the IRS released 

Schedule UTP with accompanying 

instructions that explain how the IRS 

plans to implement the authority 

provided by this regulation. One 

commentator asked that the proposed 

regulation not be adopted because 

Schedule UTP would require the 

disclosure of privileged information. If 

the regulation is adopted, the 

commentator recommended it should 

state that taxpayer may assert any 

applicable privileges to providing 

information sought by Schedule UTP 

and that any disclosure of information 

on that schedule will not constitute a 

waiver of any applicable privilege. 

The final regulation does not adopt 

this recommendation. The regulation 

addresses the IRS’s authority to require 

certain corporations to provide 

information concerning uncertain tax 

positions. The IRS has decided to 

require the filing of Schedule UTP based 

on its determination that the 

information about uncertain tax 

positions taken in a tax return required 

by the schedule is essential to achieving 

an effective and efficient self-assessment 

tax system. Provisions relating to the 

assertion of privilege are not included in 

this regulation, since it does not affect 

the existence of any applicable 

privileges taxpayers may have 

concerning information requested by a 

return or how they may assert those 

privileges. 

Special Analyses 

It has been determined that this final 

rule is not a significant regulatory action 

as defined in Executive Order 12866. 

Therefore, a regulatory assessment is not 

required. 

This regulation will only affect 

taxpayers that prepare or are required to 

issue audited financial statements. 

Small entities rarely prepare or are 

required to issue audited financial 

statements due to the expense involved. 

It is hereby certified that this regulation 

will not have a significant economic 

impact on a substantial number of small 

entities pursuant to the Regulatory 

Flexibility Act (5 U.S.C. chapter 6). 

Accordingly, a regulatory flexibility 

analysis is not required. Pursuant to 5 

U.S.C. 553(d)(3), it has been determined 

that there is good cause for the effective 

date of this final rule, which is less than 

30 days after the date of publication. 

Pursuant to section 7805(f) of the 

Internal Revenue Code, the notice of 

proposed rulemaking preceding this 

regulation was submitted to the Chief 

Counsel for Advocacy of the Small 

Business Administration for comment 

on their impact on small business. 

Drafting Information 

The principal author of these 

regulations is Kathryn Zuba of the 

Office of the Associate Chief Counsel 

(Procedure and Administration). 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Adoption of Amendments to the 

Regulations 

■ Accordingly, 26 CFR part 1 is 

amended as follows: 


emcdonald on DSK2BSOYB1PROD with RULES
Federal Register / Vol. 75, No. 240 / Wednesday, December 15, 2010 / Rules and Regulations 78161 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 is amended by adding an entry 

in numerical order to read as follows: 

Authority: 26 U.S.C. 7805.* * * 

Section 1.6012–2 is also issued under the 

authority of 26 U.S.C. 6011 and 6012. 

■ Par. 2. Section 1.6012–2 is amended 

by adding paragraphs (a)(4) and (5) to 

read as follows: 

§ 1.6012–2 Corporations required to make 

returns of income. 

(a) * * * 

(4) Disclosure of uncertain tax 

positions. A corporation required to 

make a return under this section shall 

attach Schedule UTP, Uncertain Tax 

Position Statement, or any successor 

form, to such return, in accordance with 

forms, instructions, or other appropriate 

guidance provided by the IRS. 

(5) Effective/applicability date. 

Paragraph (a)(4) of this section applies 

to returns filed for tax years beginning 

on or after January 1, 2010. 

* * * * * 

Steven T. Miller 

Deputy Commissioner for Services and 

Enforcement. 

Approved: December 9, 2010. 

Michael Mundaca, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2010–31576 Filed 12–13–10; 11:15 am] 

BILLING CODE 4830–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Parts 4022 and 4044 

Allocation of Assets in SingleEmployer Plans; Benefits Payable in 

Terminated Single-Employer Plans; 

Interest Assumptions for Valuing and 

Paying Benefits 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: This final rule amends 

Pension Benefit Guaranty Corporation’s 

regulations on Benefits Payable in 

Terminated Single-Employer Plans and 

Allocation of Assets in Single-Employer 

Plans to prescribe interest assumptions 

under the benefit payments regulation 

for valuation dates in January 2011 and 

interest assumptions under the asset 

allocation regulation for valuation dates 

in the first quarter of 2011. Interest 

assumptions are also published on 

PBGC’s Web site (http://www.pbgc.gov). 

DATES: Effective January 1, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Catherine B. Klion, Manager, Regulatory 

and Policy Division, Legislative and 

Regulatory Department, Pension Benefit 

Guaranty Corporation, 1200 K Street, 

NW., Washington, DC 20005, 202–326– 

4024. (TTY/TDD users may call the 

Federal relay service toll-free at 1–800– 

877–8339 and ask to be connected to 

202–326–4024.) 

SUPPLEMENTARY INFORMATION: PBGC’s 

regulations on Allocation of Assets in 

Single-Employer Plans (29 CFR part 

4044) and Benefits Payable in 

Terminated Single-Employer Plans (29 

CFR part 4022) prescribe actuarial 

assumptions—including interest 

assumptions—for valuing and paying 

plan benefits under terminating singleemployer plans covered by title IV of 

the Employee Retirement Income 

Security Act of 1974. 

The interest assumptions in appendix 

B to part 4044 are used to value benefits 

for allocation purposes under ERISA 

section 4044. PBGC uses the interest 

assumptions in appendix B to part 4022 

to determine whether a benefit is 

payable as a lump sum and to determine 

the amount to pay. Appendix C to part 

4022 contains interest assumptions for 

private-sector pension practitioners to 

refer to if they wish to use lump-sum 

interest rates determined using PBGC’s 

historical methodology. Currently, the 

rates in appendices B and C of the 

benefit payment regulation are the same. 

The interest assumptions are intended 

to reflect current conditions in the 

financial and annuity markets. 

Assumptions under the asset allocation 

regulation are updated quarterly; 

assumptions under the benefit payments 

regulation are updated monthly. This 

final rule updates the benefit payments 

interest assumptions for January 2011 

and updates the asset allocation interest 

assumptions for the first quarter 

(January through March) of 2011. 

The first-quarter 2011 interest 

assumptions under the allocation 

regulation will be 4.07 percent for the 

first 25 years following the valuation 

date and 3.93 percent thereafter. In 

comparison with the interest 

assumptions in effect for the fourth 

quarter of 2010, these interest 

assumptions represent no change in the 

select period (the period during which 

the select rate (the initial rate) applies), 

a decrease of 0.41 percent in the select 

rate, and a decrease of 0.58 percent in 

the ultimate rate (the final rate). 

The January 2011 interest 

assumptions under the benefit payments 

regulation will be 2.25 percent for the 

period during which a benefit is in pay 

status and 4.00 percent during any years 

preceding the benefit’s placement in pay 

status. In comparison with the interest 

assumptions in effect for December 

2010, these interest assumptions are 

unchanged. 

PBGC has determined that notice and 

public comment on this amendment are 

impracticable and contrary to the public 

interest. This finding is based on the 

need to determine and issue new 

interest assumptions promptly so that 

the assumptions can reflect current 

market conditions as accurately as 

possible. 

Because of the need to provide 

immediate guidance for the valuation 

and payment of benefits under plans 

with valuation dates during January 

2011, PBGC finds that good cause exists 

for making the assumptions set forth in 

this amendment effective less than 30 

days after publication. 

PBGC has determined that this action 

is not a ‘‘significant regulatory action’’ 

under the criteria set forth in Executive 

Order 12866. 

Because no general notice of proposed 

rulemaking is required for this 

amendment, the Regulatory Flexibility 

Act of 1980 does not apply. See 5 U.S.C. 

601(2). 

List of Subjects 

29 CFR Part 4022 

Employee benefit plans, Pension 

insurance, Pensions, Reporting and 

recordkeeping requirements. 

29 CFR Part 4044 

Employee benefit plans, Pension 

insurance, Pensions. 

■ In consideration of the foregoing, 29 

CFR parts 4022 and 4044 are amended 

as follows: 

PART 4022—BENEFITS PAYABLE IN 

TERMINATED SINGLE-EMPLOYER 

PLANS 

■ 1. The authority citation for part 4022 

continues to read as follows: 

Authority: 29 U.S.C. 1302, 1322, 1322b, 

1341(c)(3)(D), and 1344. 

■ 2. In appendix B to part 4022, Rate Set 

207 is added to the table to read as 

follows: 

Appendix B to Part 4022—Lump Sum 

Interest Rates For PBGC Payments 

* * * * * 


emcdonald on DSK2BSOYB1PROD with RULES