3104 Federal Register / Vol. 79, No. 12 / Friday, January 17, 2014 / Rules and Regulations 

However, the acquisition results in a loss of 

control described in § 1.7874–1(c)(2) because 

P does not hold, in the aggregate, directly or 

indirectly, more than 50% of the shares of FA 

stock (by vote or value) of R, FA, or DT after 

the acquisition. Accordingly, the FA stock 

held by R would be included in the 

denominator of the ownership fraction under 

§ 1.7874–1(c)(1). Nevertheless, the FA stock 

held by R is excluded from the denominator 

of the ownership fraction under paragraphs 

(b) and (h) of this section. Thus, the 

ownership fraction is 49/49. 

(iii) Alternative facts. The facts are the 

same as in paragraph (i) of this Example 8, 

except that, in exchange for 51 shares of FA 

stock, R transfers marketable securities 

(within the meaning of paragraph (i)(6) of 

this section) with a value equal to that of 16 

shares of FA stock and qualified property 

(within the meaning of paragraph (i)(7) of 

this section) with a value equal to that of 35 

shares of FA stock. Accordingly, 16 of the 51 

shares of FA stock transferred to R constitute 

disqualified stock described in paragraph 

(c)(1) of this section by reason of paragraph 

(c)(1)(i) of this section, and 35 of such shares 

do not constitute disqualified stock. 

Paragraph (c)(2) of this section does not 

reduce the amount of disqualified stock 

described in paragraph (c)(1)(i) of this section 

because the transfer of FA stock in exchange 

for the marketable securities increases the 

fair market value of the assets of FA by the 

fair market value of the marketable securities 

transferred. Therefore, under paragraph (b) of 

this section, 16 of the 51 shares of FA stock 

transferred to R are not included in the 

denominator of the ownership fraction. 

Although 16 of the 51 shares of FA stock that 

are transferred to R are excluded from the 

denominator of the ownership fraction, 

under paragraph (h) of this section, all 51 of 

R’s shares of FA stock are taken into account 

for purposes of determining whether P or R 

is a member of the expanded affiliated group 

that includes FA. Because P holds 49% of the 

shares of FA stock (49/100), it is not a 

member of the expanded affiliated group that 

includes FA, and its FA stock is included in 

both the numerator and the denominator of 

the ownership fraction. Because R holds 51% 

of the shares of FA stock (51/100), it is a 

member of the expanded affiliated group that 

includes FA and, before taking into account 

§ 1.7874–1(c), its FA stock is excluded from 

the numerator and denominator of the 

ownership fraction under section 

7874(c)(2)(A) and § 1.7874–1(b). However, 

the acquisition results in a loss of control 

described in § 1.7874–1(c)(2) because P does 

not hold, in the aggregate, directly or 

indirectly, more than 50% of the shares of FA 

stock (by vote or value) of R, FA, or DT after 

the acquisition. Accordingly, the 51 shares of 

FA stock held by R would be included in the 

denominator of the ownership fraction under 

§ 1.7874–1(c)(1). Nevertheless, the 16 shares 

of FA stock that constitute disqualified stock 

are excluded from the denominator of the 

ownership fraction under paragraphs (b) and 

(h) of this section. In addition, the 35 shares 

of FA stock received by R that do not 

constitute disqualified stock are included in 

the denominator. Thus, the ownership 

fraction is 49/84. 

(k) Effective/applicability dates—(1) 

General rule. Except to the extent 

provided in paragraph (k)(2) of this 

section, this section applies to 

acquisitions completed on or after 

September 17, 2009. 

(2) Transitional rules. For acquisitions 

completed on or after September 17, 

2009, but before January 16, 2014, 

except as provided in paragraph (k)(3) of 

this section, this section shall be 

applied with the following 

modifications: 

(i) Nonqualified property does not 

include property described in paragraph 

(i)(7)(iii) of this section. 

(ii) A transfer is limited to an issuance 

of stock of the foreign acquiring 

corporation. 

(iii) The determination of whether 

stock of the foreign acquiring 

corporation is described in paragraph 

(c)(1) of this section is made without 

regard to paragraphs (c)(1)(ii), (c)(2), and 

(e) of this section. 

(iv) Paragraphs (d) and (h) of this 

section do not apply. 

(3) Election. A taxpayer may elect to 

apply paragraphs (a) through (j) of this 

section to acquisitions completed on or 

after September 17, 2009, but before 

January 16, 2014, if the taxpayer applies 

those paragraphs consistently to all 

acquisitions completed before such 

date. The election is made by applying 

paragraphs (a) through (j) of this section 

to all such acquisitions on a timely filed 

original return (including extensions) or 

an amended return filed no later than 

six months after January 16, 2014. A 

separate statement or form evidencing 

the election need not be filed. 

(l) Expiration date. The applicability 

of this section expires on January 13, 

2017. 

■ Par. 4. Section 1.7874–5T is added to 

read as follows: 

§ 1.7874–5T Effect of certain transfers of 

stock related to the acquisition (temporary). 

(a) General rule. Stock of a foreign 

corporation that is described in section 

7874(a)(2)(B)(ii) shall not cease to be so 

described as a result of any subsequent 

transfer of the stock by the former 

shareholder (within the meaning of 

§ 1.7874–2(b)(2)) or former partner 

(within the meaning of § 1.7874–2(b)(3)) 

that received such stock, even if the 

subsequent transfer is related to the 

acquisition described in section 

7874(a)(2)(B)(i). 

(b) Example. The rule of this section 

is illustrated by the following example: 

Example. (i) Facts. Individual A wholly 

owns DT, a domestic corporation. FA, a 

newly formed foreign corporation, acquires 

all of the stock of DT from Individual A in 

exchange solely for 100 shares of FA stock. 

Pursuant to a binding commitment that was 

entered into in connection with FA’s 

acquisition of the DT stock, Individual A 

sells 25 shares of FA stock to B, an unrelated 

person, in exchange for cash. For federal 

income tax purposes, the form of the steps of 

the transaction is respected. 

(ii) Analysis. Under § 1.7874–2(f)(1), the 

100 shares of FA stock received by Individual 

A are stock of a foreign corporation (FA) that 

is held by reason of holding stock in a 

domestic corporation (DT). Accordingly, 

such stock is described in section 

7874(a)(2)(B)(ii). Under paragraph (a) of this 

section, all 100 shares of FA stock retain their 

status as being described in section 

7874(a)(2)(B)(ii), even though Individual A 

sells 25 of the 100 shares in connection with 

the acquisition described in section 

7874(a)(2)(B)(i) pursuant to the binding 

commitment. Therefore, all 100 of the shares 

of FA stock are included in both the 

numerator and denominator of the ownership 

fraction (as defined in § 1.7874–4T(i)(9)). 

(c) Effective/applicability dates. This 

section applies to acquisitions that are 

completed on or after January 16, 2014. 

(d) Expiration date. The applicability 

of this section expires on January 13, 

2017. 

John Dalrymple, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: December 30, 2013. 

Mark J. Mazur, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2014–00899 Filed 1–16–14; 8:45 am] 

BILLING CODE 4830–01–P 

FEDERAL MINE SAFETY AND HEALTH 

REVIEW COMMISSION 

29 CFR Part 2700 

Procedural Rules To Permit Parties To 

File and Serve Documents 

Electronically; Correction 

AGENCY: Federal Mine Safety and Health 

Review Commission. 

ACTION: Interim rule with request for 

comments; correction. 

SUMMARY: The Federal Mine Safety and 

Health Review Commission is correcting 

an interim rule that appeared in the 

Federal Register of December 23, 2013 

(78 FR 77354). The correction adds a 

conforming change indicating that only 

original documents need be filed 

pursuant to § 2700.75. 

DATES: Effective January 22, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Michael A. McCord, General Counsel, 

Office of the General Counsel, Federal 

Mine Safety and Health Review 

Commission, at (202) 434–9935 or 

mmccord@fmshrc.gov. 


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Federal Register / Vol. 79, No. 12 / Friday, January 17, 2014 / Rules and Regulations 3105 

SUPPLEMENTARY INFORMATION: In FR Doc. 

2013–29842 appearing on page 77354 in 

the Federal Register of Monday, 

December 23, 2013, the following 

corrections are made: 

§ 2700.75 [Corrected] 

■ 1. On page 77359, in the second 

column, in § 2700.75 Briefs, correct 

instruction 13 and amendments to 

§ 2700.75 to read as follows: 

■ 13. Section 2700.75 is amended by 

revising paragraphs (f) and (g) to read as 

follows: 

§ 2700.75 Briefs. 

* * * * * 

(f) Motion for leave to exceed page 

limit. A motion requesting leave to 

exceed the page limit for a brief shall be 

received not less than 3 days prior to the 

date the brief is due to be filed, shall 

state the total number of pages 

proposed, and shall comply with 

§ 2700.10. Filing of a motion requesting 

an extension of page limit is effective 

upon receipt. The motion and any 

statement in opposition shall include 

proof of service on all parties by a 

means of delivery no less expeditious 

than that used for filing the motion, 

except that if service by electronic 

transmission (email) is impossible, the 

filing party must serve in person, by 

third party commercial carrier, or by 

facsimile transmission, resulting in 

same-day delivery. 

(g) Number of copies. Unless 

otherwise ordered or stated in this part, 

only the original of a document shall be 

filed. 

* * * * * 

Dated: January 13, 2014. 

Mary Lu Jordan, 

Chairman, Federal Mine Safety and Health 

Review Commission. 

[FR Doc. 2014–00831 Filed 1–16–14; 8:45 am] 

BILLING CODE 6735–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2012–0880] 

RIN 1625–AAOO 

Safety Zone; Houma Navigation Canal, 

Mile Marker 35.5 to 36.5, and Gulf 

Intracoastal Waterway, Mile Marker 

59.0 to 60.0, West of Harvey Locks, 

Bank to Bank; Houma, Terrebonne 

Parish, LA 

AGENCY: Coast Guard, DHS. 

ACTION: Interim rule and request for 

comments. 

SUMMARY: The Coast Guard is 

establishing a safety zone in the Houma 

Navigation Canal, from Mile Marker 

35.5 to 36.5, and in the Gulf Intracoastal 

Waterway (GIWW), from Mile Marker 

59.0 to 60.0, West of Harvey Locks, bank 

to bank, during the completion of 

construction and repair work on the 

HWY 661 Swing Bridge, Terrebonne 

Parish, LA. Restrictions under this 

safety zone will be enforced 

intermittently as necessary to protect 

persons and property from hazards 

associated with the construction and 

repair operations on the Highway 661 

Swing Bridge. 

DATES: This rule is effective without 

actual notice January 17, 2014 through 

July 1, 2014. For purposes of 

enforcement, actual notice will be used 

from the date the rule was signed, 

December 13, 2013 until January 17, 

2014. 

Comments and related material must 

be received by the Coast Guard on or 

before February 18, 2014. 

ADDRESSES: Documents mentioned in 

this preamble are part of Docket Number 

USCG–2012–0880. To view documents 

mentioned in this preamble as being 

available in the docket, go to http://

www.regulations.gov, type the docket 

number in the ‘‘SEARCH’’ box and click 

‘‘SEARCH.’’ Click on ‘‘Open Docket 

Folder’’ on the line associated with this 

rulemaking. You may also visit the 

Docket Management Facility in Room 

W12–140 on the ground floor of the 

Department of Transportation West 

Building, 1200 New Jersey Avenue SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

You may submit comments, identified 

by docket number, using any one of the 

following methods: 

(1) Federal eRulemaking Portal: 

http://www.regulations.gov. 

(2) Fax: (202) 493–2251. 

(3) Mail or Delivery: Docket 

Management Facility (M–30), U.S. 

Department of Transportation, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue SE., 

Washington, DC 20590–0001. Deliveries 

accepted between 9 a.m. and 5 p.m., 

Monday through Friday, except federal 

holidays. The telephone number is 202– 

366–9329. 

See the ‘‘Public Participation and 

Request for Comments’’ portion of the 

SUPPLEMENTARY INFORMATION section 

below for further instructions on 

submitting comments. To avoid 

duplication, please use only one of 

these three methods. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

email MST1 Isaac Chavalia, U.S. Coast 

Guard; telephone (985) 850–6456, email 

Isaac.J.Chavalia@uscg.mil. If you have 

questions on viewing or submitting 

material to the docket, call Cheryl 

Collins, Program Manager, Docket 

Operations, telephone (202) 366–9826. 

SUPPLEMENTARY INFORMATION: 

Table of Acronyms 

GIWW Gulf Intracoastal Waterway 

COTP Captain of the Port 

DHS Department of Homeland Security 

FR Federal Register 

NPRM Notice of Proposed Rulemaking 

A. Public Participation and Request for 

Comments 

We encourage you to participate in 

this rulemaking by submitting 

comments and related materials. All 

comments received will be posted 

without change to http://

www.regulations.gov and will include 

any personal information you have 

provided. 

1. Submitting Comments 

If you submit a comment, please 

include the docket number for this 

rulemaking, indicate the specific section 

of this document to which each 

comment applies, and provide a reason 

for each suggestion or recommendation. 

You may submit your comments and 

material online at http://

www.regulations.gov, or by fax, mail, or 

hand delivery, but please use only one 

of these means. If you submit a 

comment online, it will be considered 

received by the Coast Guard when you 

successfully transmit the comment. If 

you fax, hand deliver, or mail your 

comment, it will be considered as 

having been received by the Coast 

Guard when it is received at the Docket 

Management Facility. We recommend 

that you include your name and a 

mailing address, an email address, or a 

telephone number in the body of your 

document so that we can contact you if 

we have questions regarding your 

submission. 

To submit your comment online, go to 

http://www.regulations.gov, type the 

docket number in the ‘‘SEARCH’’ box 

and click ‘‘SEARCH.’’ Click on ‘‘Submit 

a Comment’’ on the line associated with 

this rulemaking 

If you submit your comments by mail 

or hand delivery, submit them in an 

unbound format, no larger than 81⁄2 by 

11 inches, suitable for copying and 

electronic filing. If you submit 

comments by mail and would like to 

know that they reached the Facility, 

please enclose a stamped, self-addressed 


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