[Federal Register Volume 86, Number 115 (Thursday, June 17, 2021)]
[Rules and Regulations]
[Pages 32185-32186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-12550]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9942]
RIN 1545-BP53


Small Business Taxpayer Exceptions Under Sections 263A, 448, 460 
and 471; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

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SUMMARY: This document contains corrections to the final regulations 
Treasury Decision 9942, that were published in the Federal Register on 
Tuesday, January 5, 2021. The final regulations implemented legislative 
changes that simplify the application of certain tax accounting 
provisions for eligible businesses with average annual gross receipts 
that do not exceed $25,000,000, adjusted for inflation.

DATES: These corrections are effective on June 17, 2021. For dates of 
applicability, see Sec. Sec.  1.263A-1(a)(2)(i), 1.263A-1(m)(6), 
1.263A-2(g)(4), 1.263A-3(f)(2), 1.263A-4(g)(2), 1.263A-7(a)(4)(ii), 
1.381(c)(5)-1(f), 1.446-1(c)(3), 1.448-2(h), 1.448-3(h), 1.460-1(h)(3), 
1.460-3(d), 1.460-4(i), 1.460-6(k), and 1.471-1(c).

FOR FURTHER INFORMATION CONTACT: Concerning Sec. Sec.  1.460-1 through 
1.460-6, Innessa Glazman, (202) 317-7006; concerning all other 
regulations in this document, Anna Gleysteen, (202) 317-7007.

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9942) that are the subject of this 
correction are issued under sections 263A, 448, 460, and 471 of the 
Internal Revenue Code.

Need for Correction

    As published on January 5, 2021 (86 FR 254), the final regulations 
(TD 9942) contain errors that need to be corrected. In addition, a 
correction to Example 1 in Sec.  1.263A-4(a)(5)(iii) is being made to 
conform to the statutory amendments made to section 263A by section 
13102 of Public Law 115-97 (131 Stat. 2054), commonly referred to as 
the Tax Cuts and Jobs Act.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

    Accordingly, 26 CFR part 1 is corrected by making the following 
correcting amendments:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

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


0
Par. 2. Section 1.263A-0 is amended by adding the entries for Sec.  
1.263A-1(m)(1) through (5) to read as follows:


Sec.  1.263A-0  Outline of regulations under section 263A.

* * * * *


Sec.  1.263A-1  Uniform Capitalization of Costs

* * * * *
    (m) * * *
    (1) In general.
    (2) Mixed service costs; self-constructed tangible personal 
property produced on a routine and repetitive basis.
    (3) Costs allocable to property sold; indirect costs; licensing and 
franchise costs.
    (4) Materials and supplies.
    (5) Definitions of section 471 costs and additional section 263A 
costs.
* * * * *

[[Page 32186]]

Sec.  1.263A-4  [Amended]

0
Par. 3. Section 1.263A-4 is amended by:
0
1. Removing the language ``(a)(4)'' from the first sentence of 
paragraph (a)(1) and adding ``(a)(5)'' in its place,
0
2. Adding the language ``(a)(3)'' to the first sentence of paragraph 
(a)(4), after the language ``(a)(2),'',
0
3. Removing the language ``(a)(4)'' from paragraph (a)(5)(iii) and 
adding ``(a)(5)'' in its place, and
0
4. Removing the last sentence of paragraph (a)(5)(iii) Example 1.

0
Par. 4. Section 1.263A-15 is amended by adding paragraph (a)(5) to read 
as follows:


Sec.  1.263A-15  Effective dates, transitional rules, and anti-abuse 
rule.

    (a) * * *
    (5) The last sentence of each of Sec.  1.263A-8(a)(1) and Sec.  
1.263A-9(e)(2) apply to taxable years beginning on or after January 5, 
2021. However, for a taxable year beginning after December 31, 2017, 
and before January 5, 2021, a taxpayer may apply the last sentence of 
each of Sec.  1.263A-8(a)(1) and Sec.  1.263A-9(e)(2), provided that 
the taxpayer follows all the applicable rules contained in the 
regulations under section 263A for such taxable year and all subsequent 
taxable years.
* * * * *


Sec.  1.448-2  [Amended]

0
Par. 5. Section 1.448-2 is amended by removing the language ``(g)(3)'' 
from the sixth sentence of paragraph (g)(1) and adding ``(g)'' in its 
place.
0
Par. 6. Section 1.460-0 is amended by revising the entry for Sec.  
1.460-3(b)(3) and adding entry (b)(3)(iii) to read as follows:


Sec.  1.460-0  Outline of regulations under section 460.

* * * * *


Sec.  1.460-3  Long-term construction contracts.

* * * * *
    (b) * * *
    (3) Gross receipts test.
* * * * *
    (iii) Method of accounting.
* * * * *


Sec.  1.460-3  [Amended]

0
Par. 7. Section 1.460-3 is amended by removing the language ``Example'' 
from the heading of paragraph (b)(3)((ii)(D) and adding ``Examples'' in 
its place.

0
Par. 8. Section 1.460-6 is amended by revising the second sentence of 
paragraph (c)(3)(vi) to read as follows:


Sec.  1.460-6  Look-back method.

* * * * *
    (c) * * *
    (3) * * *
    (vi) * * * Thus, the taxes, if any, imposed under sections 55 and 
59A (relating to alternative and base erosion minimum tax, 
respectively) must be taken into account.* * *
* * * * *

Crystal Pemberton,
Senior Federal Register Liaison, Legal Processing Division, Associate 
Chief Counsel, (Procedure and Administration).
[FR Doc. 2021-12550 Filed 6-16-21; 8:45 am]
BILLING CODE 4830-01-P