5966 Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Proposed Rules 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–100861–15] 

RIN 1545–BM56 

Allocation of Creditable Foreign Taxes 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

by cross-reference to temporary 

regulations. 

SUMMARY: 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 by a 

partnership of foreign income taxes. 

Those temporary regulations are 

necessary to improve the operation of an 

existing safe harbor rule that is used for 

determining whether allocations of 

creditable foreign tax expenditures are 

deemed to be in accordance with the 

partners’ interests in the partnership. 

The text of those temporary regulations 

published in this issue of the Federal 

Register also serves as the text of these 

proposed regulations. 

DATES: Comments and requests for a 

public hearing must be received by May 

4, 2016. 

ADDRESSES: Send submissions to 

CC:PA:LPD:PR (REG–100861–15), Room 

5205, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand delivered Monday through 

Friday between the hours of 8 a.m. and 

4 p.m. to CC:PA:LPD:PR (REG–100861– 

15), Courier’s desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC 20224, or sent 

electronically, via the Federal 

eRulemaking Portal at 

www.regulations.gov (IRS REG–100861– 

15). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the regulations, Suzanne M. 

Walsh, (202) 317–4908; concerning 

submissions of comments, 

Oluwafunmilayo Taylor, (202) 317–5179 

(not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Provisions 

Temporary regulations in the Rules 

and Regulations section of this issue of 

the Federal Register contain 

amendments to the Income Tax 

Regulations (26 CFR part 1) which 

provide guidance relating to the 

allocation by a partnership of foreign 

income taxes. The text of those 

regulations also serves as the text of 

these proposed regulations. The 

preamble to the temporary regulations 

explains the temporary regulations and 

these proposed regulations. The 

regulations affect partnerships and their 

partners. 

Special Analyses 

Certain IRS regulations, including this 

one, are exempt from the requirements 

of Executive Order 12866, as 

supplemented and reaffirmed by 

Executive Order 13563. Therefore, a 

regulatory assessment is not required. It 

has also been determined that section 

553(b) of the Administrative Procedure 

Act (5 U.S.C. chapter 5) does not apply 

to these regulations, and because the 

regulations do not impose a collection 

of information on small entities, the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6) does not apply. Pursuant to 

section 7805(f), these regulations have 

been submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on its 

impact on small business. 

Comments and Requests for Public 

Hearing 

Before these proposed regulations are 

adopted as final regulations, 

consideration will be given to any 

comments that are submitted timely to 

the IRS as prescribed in this preamble 

under ADDRESSES. The Treasury 

Department and the IRS request 

comments on all aspects of the proposed 

rules. All comments will be available at 

www.regulations.gov or upon request. A 

public hearing will be scheduled if 

requested in writing by any person that 

timely submits comments. If a public 

hearing is scheduled, notice of the date, 

time, and place for the public hearing 

will be published in the Federal 

Register. 

Drafting Information 

The principal author of these 

regulations is Suzanne M. Walsh of the 

Office of Associate Chief Counsel 

(International). However, other 

personnel from the IRS and the Treasury 

Department participated in their 

development. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR part 1 is 

proposed to be amended as follows: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation for 

part 1 continues to read in part as 

follows: 

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

■ Par. 2. Section 1.704–1 is amended as 

follows: 

■ 1. In paragraph (b)(0): 

■ i. Add an entry for § 1.704– 

1(b)(1)(ii)(b)(1). 

■ ii. Revise the entries for 

(b)(4)(viii)(c)(1) through (4) and 

(b)(4)(viii)(d)(1). 

■ 2. Revise paragraphs (b)(1)(ii)(b)(1), 

(b)(1)(ii)(b)(3)(B), (b)(4)(viii)(a)(1), 

(b)(4)(viii)(c)(1), (b)(4)(viii)(c)(2)(ii) and 

(iii), (b)(4)(viii)(c)(3) and (4), 

(b)(4)(viii)(d)(1), and Example 25 of 

paragraph (b)(5). 

■ 3. Add Examples 36 and 37 to 

paragraph (b)(5). 

The revisions read as follows: 

§ 1.704–1 Partner’s distributive share. 

* * * * * 

(b) * * * 

(0) [The text of the proposed 

amendments to § 1.704–1(b)(0) is the 

same as the text of § 1.704–1T(b)(0) 

published elsewhere in this issue of the 

Federal Register.] 

(1) * * * 

(ii) * * * 

(b) Rules relating to foreign tax 

expenditures. (1) [The text of the 

proposed amendments to § 1.704– 

1(b)(1)(ii)(b)(1) is the same as the text of 

§ 1.704–1T(b)(1)(ii)(b)(1) published 

elsewhere in this issue of the Federal 

Register.] 

* * * * * 

(3) * * * 

(B) [The text of the proposed 

amendments to § 1.704– 

1(b)(1)(ii)(b)(3)(B) is the same as the text 

of § 1.704–1T(b)(1)(ii)(b)(3)(B) published 

elsewhere in this issue of the Federal 

Register.] 

* * * * * 

(4) * * * 

(viii) * * * 

(a) * * * 

(1) [The text of the proposed 

amendments to § 1.704– 

1(b)(4)(viii)(a)(1) is the same as the text 

of § 1.704–1T(b)(4)(viii)(a)(1) published 

elsewhere in this issue of the Federal 

Register.] 

* * * * * 

(c) Income to which CFTEs relate. (1) 

[The text of the proposed amendments 

to § 1.704–1(b)(4)(viii)(c)(1) is the same 

as the text of § 1.704–1T(b)(4)(viii)(c)(1) 

published elsewhere in this issue of the 

Federal Register.] 

(2) * * * 

(ii) [The text of the proposed 

amendments to § 1.704– 


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Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / Proposed Rules 5967 

1(b)(4)(viii)(c)(2)(ii) is the same as the 

text of § 1.704–1T(b)(4)(viii)(c)(2)(ii) 

published elsewhere in this issue of the 

Federal Register.] 

(iii) [The text of the proposed 

amendments to § 1.704– 

1(b)(4)(viii)(c)(2)(iii) is the same as the 

text of § 1.704–1T(b)(4)(viii)(c)(2)(iii) 

published elsewhere in this issue of the 

Federal Register.] 

(3) [The text of the proposed 

amendments to § 1.704– 

1(b)(4)(viii)(c)(3) is the same as the text 

of § 1.704–1T(b)(4)(viii)(c)(3) published 

elsewhere in this issue of the Federal 

Register.] 

(4) [The text of the proposed 

amendments to § 1.704– 

1(b)(4)(viii)(c)(4) is the same as the text 

of § 1.704–1T(b)(4)(viii)(c)(4) published 

elsewhere in this issue of the Federal 

Register.] 

* * * * * 

(d) Allocation and apportionment of 

CFTEs to CFTE categories. (1) [The text 

of the proposed amendments to § 1.704– 

1(b)(4)(viii)(d)(1) is the same as the text 

of § 1.704–1T(b)(4)(viii)(d)(1) published 

elsewhere in this issue of the Federal 

Register.] 

* * * * * 

(5) * * * 

Example 25. [The text of the proposed 

amendments to § 1.704–1(b)(5) Example 

24 is the same as the text of § 1.704– 

1T(b)(5) Example 25 published 

elsewhere in this issue of the Federal 

Register.] 

* * * * * 

Example 36. [The text of the proposed 

amendments to § 1.704–1(b)(5) Example 36 is 

the same as the text of § 1.704–1T(b)(5) 

Example 36 published elsewhere in this 

issue of the Federal Register.] 

Example 37. [The text of the proposed 

amendments to § 1.704–1(b)(5) Example 37 is 

the same as the text of § 1.704–1T(b)(5) 

Example 37 published elsewhere in this 

issue of the Federal Register.] 

* * * * * 

John Dalrymple, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 2016–01948 Filed 2–3–16; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 100 

[Docket Number USCG–2015–1108] 

RIN 1625–AA08 

Special Local Regulation, Daytona 

Beach Grand Prix of the Seas; Atlantic 

Ocean, Daytona Beach, FL 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard proposes to 

establish a special local regulation on 

the waters of the Atlantic Ocean east of 

Daytona Beach, Florida during the 

Daytona Beach Grand Prix of the Seas, 

a series of high-speed personal 

watercraft boat races. This action is 

necessary to provide for the safety of life 

on the navigable waters surrounding the 

event. This special local regulation will 

be enforced daily 8 a.m. to 5 p.m., from 

April 22 through April 24, 2016. This 

proposed rulemaking would prohibit 

persons and vessels from being in the 

regulated area unless authorized by the 

Captain of the Port (COTP) Jacksonville 

or a designated representative. We 

invite your comments on this proposed 

rulemaking. 

DATES: Comments and related material 

must be received by the Coast Guard on 

or before March 7, 2016. 

ADDRESSES: You may submit comments 

identified by docket number USCG– 

2015–1108 using the Federal 

eRulemaking Portal at http://

www.regulations.gov. See the ‘‘Public 

Participation and Request for 

Comments’’ portion of the 

SUPPLEMENTARY INFORMATION section for 

further instructions on submitting 

comments. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions about this proposed 

rulemaking, call or email Lieutenant 

Allan Storm, Sector Jacksonville, 

Waterways Management Division, U.S. 

Coast Guard; telephone (904) 564–7563, 

email Allan.H.Storm@uscg.mil. 

SUPPLEMENTARY INFORMATION: 

I. Table of Abbreviations 

CFR Code of Federal Regulations 

DHS Department of Homeland Security 

E.O. Executive order 

FR Federal Register 

NPRM Notice of proposed rulemaking 

Pub. L. Public Law 

§ Section 

U.S.C. United States Code 

II. Background, Purpose, and Legal 

Basis 

On December 7, 2015, Powerboat P1– 

USA, LLC notified the Coast Guard that 

it will be conducting a series of high 

speed boat races in the Atlantic Ocean, 

offshore from Daytona Beach, FL from 

April 22 through 24, 2016. The COTP 

Jacksonville has determined that the 

potential hazards associated with the 

high speed boat races necessitate the 

establishment of a special local 

regulation. 

The purpose of this rulemaking is to 

ensure the safety of life on the navigable 

waters of the United States by 

prohibiting all vessels and persons not 

participating in the event from entering 

the regulated area. The Coast Guard 

proposes this rulemaking under 

authority in 33 U.S.C. 1233. 

III. Discussion of Proposed Rule 

The COTP proposes to establish a 

special local regulation for the Daytona 

Beach Grand Prix of the Seas, a series 

of high-speed personal watercraft boat 

races. The regulated area includes the 

waters of the Atlantic Ocean offshore 

from Daytona Beach, Florida and will be 

enforced daily 8 a.m. to 5 p.m., from 

April 22 through April 24, 2016. 

Approximately 90 high-speed personal 

watercraft are anticipated to participate 

in the races. The regulated area would 

encompass an approximated offshore 

area that is 1,350 yards wide that 

extends from 600 yards south of the 

Daytona Beach pier to 1,900 yards north 

of the pier. No vessel or person would 

be permitted to enter the regulated area 

without obtaining permission from the 

COTP or a designated representative. 

The regulatory text we are proposing 

appears at the end of this document. 

IV. Regulatory Analyses 

We developed this proposed rule after 

considering numerous statutes and 

Executive orders (E.O.s) related to 

rulemaking. Below, we summarize our 

analyses based on a number of these 

statutes and E.O.s, and we discuss First 

Amendment rights of protestors. 

A. Regulatory Planning and Review 

E.O.s 12866 and 13563 direct agencies 

to assess the costs and benefits of 

available regulatory alternatives and, if 

regulation is necessary, to select 

regulatory approaches that maximize 

net benefits. E.O. 13563 emphasizes the 

importance of quantifying both costs 

and benefits, of reducing costs, of 

harmonizing rules, and of promoting 

flexibility. This NPRM has not been 

designated a ‘‘significant regulatory 

action,’’ under E.O. 12866. Accordingly, 


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