Federal Register / Vol. 86, No. 181 / Wednesday, September 22, 2021 / Rules and Regulations 52611 

1 85 FR 16547 (Mar. 24, 2020). That same day, 

DHS also published notice of its 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. 85 FR 

16548 (Mar. 24, 2020). 

2See 86 FR 46963 (Aug. 23, 2021); 86 FR 38554 

(July 22, 2021); 86 FR 32766 (June 23, 2021); 86 FR 

27800 (May 24, 2021); 86 FR 21189 (Apr. 22, 2021); 

86 FR 14813 (Mar. 19, 2021); 86 FR 10816 (Feb. 23, 

2021); 86 FR 4967 (Jan. 19, 2021); 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). DHS 

also published parallel notifications of its decisions 

to continue temporarily limiting the travel of 

individuals from Canada into the United States at 

land ports of entry along the United States-Canada 

border to ‘‘essential travel.’’ See 86 FR 46964 (Aug. 

23, 2021); 86 FR 38556 (July 22, 2021); 86 FR 32764 

(June 23, 2021); 86 FR 27802 (May 24, 2021); 86 FR 

21188 (Apr. 22, 2021); 86 FR 14812 (Mar. 19, 2021); 

86 FR 10815 (Feb. 23, 2021); 86 FR 4969 (Jan. 19, 

2021); 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). 

3WHO, Coronavirus disease 2019 (COVID–19) 

Weekly Epidemiological Update (Sept. 7, 2021), 

available at https://www.who.int/emergencies/ 

diseases/novel-coronavirus-2019/situation-reports 

(accessed Sept. 9, 2021). 

4CDC, COVID Data Tracker: United States 

COVID–19 Cases, Deaths, and Laboratory Testing 

(NAATs) by State, Territory, and Jurisdiction, 

https://covid.cdc.gov/covid-data-tracker/#cases_

casesper100klast7days (accessed Sept. 9, 2021). 

5WHO, Situation by Region, Country, Territory & 

Area, available at https://covid19.who.int/table 

(accessed Sept. 9, 2021). 

6 Id. 

7See CDC, Delta Variant: What We Know About 

the Science, https://www.cdc.gov/coronavirus/ 

2019-ncov/variants/delta-variant.html (accessed 

Sept. 9, 2021). 

8See Government of Canada, Coronavirus Disease 

(COVID–19) For Health Professionals, https://

health-infobase.canada.ca/covid-19/ 

epidemiological-summary-covid-19- 

cases.html#VOC (accessed Sept. 9, 2021). See 

Government of Mexico, Ministry of Health, COVID– 

19 National General Information, https://

datos.covid-19.conacyt.mx/#DOView (accessed 

Sept. 9, 2021); Mexican Consortium of Genomic 

Surveillance (CoViGen-Mex), Reportes, http://

mexcov2.ibt.unam.mx:8080/COVID-TRACKER/ 

(accessed Sept. 9, 2021). 

9 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 

the Department,’’ including the Commissioner of 

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

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 Mexico 

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 Mexico into the United 

States at land ports of entry along the 

United States-Mexico 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 Daylight Time (EDT) 

on September 22, 2021 and will remain 

in effect until 11:59 p.m. EDT on 

October 21, 2021, unless amended or 

rescinded prior to that time. 

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 its decision to temporarily 

limit the travel of individuals from 

Mexico into the United States at land 

ports of entry along the United StatesMexico 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, DHS had determined that the 

risk of continued transmission and 

spread of the virus associated with 

COVID–19 between the United States 

and Mexico posed a ‘‘specific threat to 

human life or national interests.’’ DHS 

later published a series of notifications 

continuing such limitations on travel 

until 11:59 p.m. EDT on September 21, 

2021.2

DHS continues to monitor and 

respond to the COVID–19 pandemic. As 

of the week of September 5, 2021, there 

have been over 220 million confirmed 

cases globally, with over 4.5 million 

confirmed deaths.3 There have been 

over 40.3 million confirmed and 

probable cases within the United 

States,4 over 1.5 million confirmed 

cases in Canada,5 and over 3.4 million 

confirmed cases in Mexico.6

DHS also notes that the Delta variant 

continues to drive an increase in cases, 

hospitalizations, and deaths in the 

United States.7 Canada and Mexico are 

also seeing increased case counts and 

deaths.8

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 Mexico poses an ongoing ‘‘specific 

threat to human life or national 

interests.’’ 

In March 2020, U.S. and Mexican 

officials mutually determined that nonessential travel between the United 

States and Mexico posed additional risk 

of transmission and spread of the virus 

associated with COVID–19 and placed 

the populace of both nations at 

increased risk of contracting the virus 

associated with COVID–19. Given the 

sustained human-to-human 

transmission of the virus, coupled with 

risks posed by new variants, nonessential travel to the United States 

places the personnel staffing land ports 

of entry between the United States and 

Mexico, 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),9 I have 

determined that land ports of entry 

along the U.S.-Mexico 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 

52612 Federal Register / Vol. 86, No. 181 / Wednesday, September 22, 2021 / Rules and Regulations 

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 StatesMexico 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 Mexico 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 Mexico); 

• 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 Mexico, 

but does apply to passenger rail, 

passenger ferry travel, and pleasure boat 

travel between the United States and 

Mexico. These restrictions are 

temporary in nature and shall remain in 

effect until 11:59 p.m. EDT on October 

21, 2021. This Notification may be 

amended or rescinded prior to that time, 

based on circumstances associated with 

the specific threat. In coordination with 

public health and medical experts, DHS 

continues working closely with its 

partners across the United States and 

internationally to determine how to 

safely and sustainably resume normal 

travel. 

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.’’ 

Alejandro N. Mayorkas, 

Secretary, U.S. Department of Homeland 

Security. 

[FR Doc. 2021–20344 Filed 9–21–21; 8:45 am] 

BILLING CODE 9112–FP–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9954] 

RIN 1545–BN80 

Treatment of Distributions of Property 

From a Corporation to a Shareholder 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations under section 301 of the 

Internal Revenue Code of 1986 (Code). 

These regulations update existing 

regulations under section 301 to reflect 

statutory changes made by the 

Technical and Miscellaneous Revenue 

Act of 1988, which changes provide that 

the amount of a distribution of property 

made by a corporation to its shareholder 

is the fair market value of the 

distributed property. The regulations 

affect shareholders that receive a 

distribution of property from a 

corporation. 

DATES:

Effective date: These regulations are 

effective on September 22, 2021. 

Applicability date: For dates of 

applicability, see § 1.301–1(f)(3), (m)(4), 

and (n). 

FOR FURTHER INFORMATION CONTACT: Grid 

R. Glyer, (202) 317–6847 (not a toll-free 

number). 

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Provisions 

This document contains amendments 

to 26 CFR part 1 under section 301 of 

the Code relating to the treatment of 

distributions of property from a 

corporation to a shareholder. Section 

301 provides rules for the treatment of 

a distribution of property, including 

money, made by a corporation to its 

shareholder with respect to that 

shareholder’s stock ownership in that 

corporation (distribution). 

Section 1006(e)(10) and (e)(11) of the 

Technical and Miscellaneous Revenue 

Act of 1988, Public Law 100–647, 102 

Stat. 3342 (1988) (Act), amended section 

301(b)(1) and (d), respectively (such 

amendments, the 1988 Amendments). 

Section 1019(a) of the Act provided that, 

in general, the 1988 Amendments were 

effective as if included in the Tax 

Reform Act of 1986, Public Law 99–514, 

100 Stat. 2085 (1986). Accordingly, the 

1988 Amendments generally are 

effective for taxable years beginning 

after December 31, 1986. 

As a result of the 1988 Amendments, 

section 301(b)(1) provides that, for 

purposes of section 301, the amount of 

any distribution is the amount of money 

received plus the fair market value of 

the other property received. Section 

301(d) provides that the basis of 

property received in a distribution to 

which section 301(a) applies is the fair 

market value of such property. 

The current regulations issued under 

section 301 reflect the rules of sections 

301(b)(1) and 301(d) as they existed 

prior to the 1988 Amendments. 

Accordingly, to the extent preempted by 

statute, the current regulations have no 

application. 

A notice of proposed rulemaking 

(REG–121694–16) published in the 

Federal Register on March 26, 2019 (84 

FR 11263) proposed to amend § 1.301– 

1 to reflect the 1988 Amendments (2019 

proposed regulations). The scope of the 

2019 proposed regulations was limited 

to (1) deleting provisions made obsolete 

by statutory changes, (2) making minor 

additions and revisions to reflect 

current statutory text, and (3) making 

certain non-substantive changes for 

purposes of clarity and readability, 

including reordering and redesignating 

paragraphs. The 2019 proposed 

regulations also amended crossreferences in §§ 1.356–1(f), 1.368– 

2(m)(3)(iii), 1.902–1(a)(12), and 1.902– 

3(a)(7) to reflect the proposed reordering 

and redesignating of paragraphs in 

§ 1.301–1. For further discussion of the 

changes proposed to be made to 

§ 1.301–1 by the 2019 proposed