Source: https://www.irs.gov/irb/2011-09_IRB
Timestamp: 2020-04-06 14:22:10
Document Index: 28288635

Matched Legal Cases: ['§1', '§1', 'art 1', '§1', '§1', '§ 430', '§ 417', '§ 417', '§ 1']

Internal Revenue Bulletin: 2011-9 | Internal Revenue Service
Internal Revenue Bulletin: 2011-9
T.D. 9514
Notice 2011-13
Announcement 2011-12
Announcement 2011-17
T.D. 9514 T.D. 9514
Final regulations under section 1221(b)(3) of the Code provide the time and manner rules for electing to treat the sale or exchange of a musical composition or a copyright in a musical work created by the taxpayer (or received by the taxpayer from the composition or work’s creator in a transferred basis transaction) as the sale or exchange of a capital asset.
Announcement 2011-14 Announcement 2011-14
This announcement advises the public that expenses for breast pumps and supplies that assist lactation may be deducted as medical expenses or reimbursed under a flexible spending arrangement or similar plan.
Notice 2011-13 Notice 2011-13
Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates. This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in February 2011; the 24-month average segment rates; the funding transitional segment rates applicable for February 2011; and the minimum present value transitional rates for January 2011.
Announcement 2011-17 Announcement 2011-17
The IRS has revoked its determination that Arid Lands Project of North Haven, ME; Christian Credit Counselors International, Inc., of Santa Ana, CA; Consumer Credit Protection Agency, Inc., of Tampa, FL; Falls Consumer Credit Management, Inc., of Akron, OH; Falls Consumer Credit Management, Inc., of Saint Clairsville, OH; Gullahorn Family Supporting Organization of Naples, FL; International Vision, Inc., of Washington, DC; Riverview Athletic Association, Inc., of Omaha, NE; Rising Stars Community Services, Inc., of Houston, TX; RFD Communications, Inc., of Omaha, NE; Revive Credit Counseling, Inc., of Santa Monica, CA; Neighborcare International, Inc., of Fairfield Grade, TN; Mexican American Research Center of Austin, TX; Modern Day Veterans 304 Chapter of Licking, MO; Modern Day Veterans 203 Chapter of Marble Hill, MO; Care of Crow Wing County of Brainerd, MN; Northwest Conservation Stewardship Fund of Seattle, WA; and Panhandle Land Conservancy, Inc., of Destin, FL, qualify as organizations described in sections 501(c)(3) and 170(c)(2) of the Code.
Announcement 2011-12 Announcement 2011-12
This announcement contains a correction to final regulations (T.D. 9391, 2008-1 C.B. 945) providing rules under section 937(b) of the Code for determining whether income is derived from sources within a U.S. possession or territory specified in section 937(a)(1) (generally referred to in this preamble as a “territory”) and whether income is effectively connected with the conduct of a trade or business within a territory as well as providing guidance under section 932 and other provisions related to the territories.
Robinson Knife Manufacturing Company and Subsidiaries v. Commissioner,[1]
600 F.3d 121 (2d Cir. 2010),
rev’g T.C. Memo 2009-9
[1] Nonacquiesces to whether sales-based royalties that taxpayer paid for the right to use trademarks on the kitchen tools that it manufactures and sells are production costs “allocable to property produced” (inventory) within the meaning of Treas. Reg. §1.263A-1(e).
This document contains a final regulation that provides the time and manner rules for electing to treat the sale or exchange of a musical composition or a copyright in a musical work created by the taxpayer (or received by the taxpayer from the composition or work’s creator in a transferred basis transaction) as the sale or exchange of a capital asset. The regulation reflects changes to the law made by the Tax Increase Prevention and Reconciliation Act of 2005 and the Tax Relief and Health Care Act of 2006. The regulation affects taxpayers who elect to treat gain or loss from such a sale or exchange as capital gain or loss.
Effective Date: This regulation is effective on February 7, 2011.
Applicability Date: For date of applicability, see §1.1221-3(d).
Jamie Kim, (202) 622-4950 (not a toll-free number).
This document contains an amendment to the Income Tax Regulations (26 CFR part 1). On February 8, 2008, a temporary regulation (T.D. 9379, 2008-1 C.B. 715) was published in the Federal Register (73 FR 7464) that provided the time and manner rules for electing capital asset treatment for certain self-created musical works. A notice of proposed rulemaking (REG-153589-06, 2008-1 C.B. 730) cross-referencing the temporary regulation also was published in the Federal Register (73 FR 7503) on February 8, 2008. No comments in response to the notice of proposed rulemaking or requests to hold a public hearing were received, and no hearing was held. This Treasury decision adopts the proposed regulation with minor changes and removes the temporary regulation.
Section 1221(a) of the Internal Revenue Code (Code) generally provides that capital assets include all property held by a taxpayer with certain specified exclusions. Section 1221(a)(1) excludes from the definition of a capital asset inventory property or property held by a taxpayer primarily for sale to customers in the ordinary course of the taxpayer’s trade or business. Section 1221(a)(3) excludes from the definition of a capital asset certain property — a copyright; a literary, musical, or artistic composition; a letter or memorandum; or similar property — held by a taxpayer whose personal efforts created the property (or held by a taxpayer whose basis in the property is determined by reference to the basis of such property in the hands of the taxpayer whose personal efforts created the property).
Section 1221(b)(3) of the Code, added by section 204 of the Tax Increase Prevention and Reconciliation Act of 2005, Public Law 109-222 (120 Stat. 345 (2005)), and amended by section 412 of the Tax Relief and Health Care Act of 2006, Public Law 109-432 (120 Stat. 2922 (2006)), provides that, at the election of a taxpayer, the section 1221(a)(1) and (a)(3) exclusions from capital asset status will not apply to a musical composition or a copyright in a musical work sold or exchanged by a taxpayer described in section 1221(a)(3). Thus, if a taxpayer who owns a musical composition or copyright in a musical work created by the taxpayer (or transferred to the taxpayer by the composition or work’s creator in a transferred basis transaction) elects the application of this provision, gain or loss from the sale or exchange of the musical composition or copyright is treated as capital gain or loss.
§1.1221-3 Time and manner for electing capital asset treatment for certain self-created musical works.
(a) Description. Section 1221(b)(3) allows an electing taxpayer to treat the sale or exchange of a musical composition or a copyright in a musical work created by the taxpayer’s personal efforts (or having a basis determined by reference to the basis of such property in the hands of a taxpayer whose personal efforts created such property) as the sale or exchange of a capital asset. As a consequence, gain or loss from the sale or exchange is treated as capital gain or loss.
(b) Time and manner for making the election. An election described in this section is made separately for each musical composition (or copyright in a musical work) sold or exchanged during the taxable year. An election must be made on or before the due date (including extensions) of the income tax return for the taxable year of the sale or exchange. The election is made on Schedule D, "Capital Gains and Losses,” of the appropriate income tax form (for example, Form 1040, "U.S. Individual Income Tax Return;" Form 1065, "U.S. Return of Partnership Income;" Form 1120, "U.S. Corporation Income Tax Return") by treating the sale or exchange as the sale or exchange of a capital asset, in accordance with the form and its instructions.
(c) Revocability of election. The election described in this section is revocable with the consent of the Commissioner. To seek consent to revoke the election, a taxpayer must submit a request for a letter ruling under the applicable administrative procedures. Alternatively, an automatic extension of 6 months from the due date of the taxpayer’s income tax return (excluding extensions) is granted to revoke the election, provided the taxpayer timely filed the taxpayer’s income tax return and, within this 6-month extension period, the taxpayer files an amended income tax return that treats the sale or exchange as the sale or exchange of property that is not a capital asset.
§1.1221-3T [Removed]
Approved January 28, 2011.
(Filed by the Office of the Federal Register on February 4, 2011, 8:45 a.m., and published in the issue of the Federal Register for February 7, 2011, 76 F.R. 6553)
The composite corporate bond rate for January 2011 is 5.57 percent. Pursuant to Notice 2004-34, the Service has determined this rate as the average of the monthly yields for the included corporate bond indices for that month.
February 2011 6.10 5.49 6.10
Notice 2007-81, 2007-2 C.B. 899, provides guidelines for determining the monthly corporate bond yield curve, and the 24-month average corporate bond segment rates used to compute the target normal cost and the funding target. Pursuant to Notice 2007-81, the monthly corporate bond yield curve derived from January 2011 data is in Table I at the end of this notice. The spot first, second, and third segment rates for the month of January 2011 are, respectively, 1.93, 5.25, and 6.42. The three 24-month average corporate bond segment rates applicable for February 2011 are as follows:
2.81 5.76 6.46
The transitional rule of § 430(h)(2)(G) does not apply to plan years beginning after December 31, 2009. Therefore, for a plan year beginning after 2009 with a lookback month to February 2011, the funding segment rates are the three 24-month average corporate bond segment rates applicable for February 2011, listed above without blending for any transitional period.
The rate of interest on 30-year Treasury securities for January 2011 is 4.52 percent. The Service has determined this rate as the average of the daily determinations of yield on the 30-year Treasury bond maturing in November 2040.
February 2011 4.27 3.84 4.48
Generally for plan years beginning after December 31, 2007, the applicable interest rates under § 417(e)(3)(D) are segment rates computed without regard to a 24-month average. For plan years beginning in 2008 through 2011, the applicable interest rates are the monthly spot segment rates blended with the applicable rate under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning in 2007. Notice 2007-81 provides guidelines for determining the minimum present value segment rates. Pursuant to that notice, the minimum present value transitional segment rates determined for January 2011, taking into account the January 2011 30-year Treasury rate of 4.52 stated above, are as follows:
2010 2.97 4.96 5.66
2011 2.45 5.10 6.04
Monthly Yield Curve for January 2011
Derived from January 2011 Data
0.5 0.52 20.5 6.04 40.5 6.46 60.5 6.61 80.5 6.68
1.0 0.81 21.0 6.06 41.0 6.47 61.0 6.61 81.0 6.68
1.5 1.11 21.5 6.08 41.5 6.47 61.5 6.61 81.5 6.69
2.0 1.43 22.0 6.10 42.0 6.48 62.0 6.62 82.0 6.69
2.5 1.77 22.5 6.11 42.5 6.48 62.5 6.62 82.5 6.69
3.0 2.11 23.0 6.13 43.0 6.49 63.0 6.62 83.0 6.69
3.5 2.44 23.5 6.15 43.5 6.49 63.5 6.62 83.5 6.69
4.0 2.76 24.0 6.16 44.0 6.50 64.0 6.63 84.0 6.69
4.5 3.06 24.5 6.18 44.5 6.50 64.5 6.63 84.5 6.69
5.0 3.33 25.0 6.19 45.0 6.51 65.0 6.63 85.0 6.70
5.5 3.58 25.5 6.20 45.5 6.51 65.5 6.63 85.5 6.70
6.0 3.81 26.0 6.22 46.0 6.52 66.0 6.63 86.0 6.70
6.5 4.01 26.5 6.23 46.5 6.52 66.5 6.64 86.5 6.70
7.0 4.20 27.0 6.24 47.0 6.52 67.0 6.64 87.0 6.70
7.5 4.37 27.5 6.25 47.5 6.53 67.5 6.64 87.5 6.70
8.0 4.52 28.0 6.27 48.0 6.53 68.0 6.64 88.0 6.70
8.5 4.66 28.5 6.28 48.5 6.54 68.5 6.64 88.5 6.70
9.0 4.79 29.0 6.29 49.0 6.54 69.0 6.65 89.0 6.70
9.5 4.91 29.5 6.30 49.5 6.54 69.5 6.65 89.5 6.71
10.0 5.02 30.0 6.31 50.0 6.55 70.0 6.65 90.0 6.71
10.5 5.12 30.5 6.32 50.5 6.55 70.5 6.65 90.5 6.71
11.0 5.21 31.0 6.33 51.0 6.55 71.0 6.65 91.0 6.71
11.5 5.30 31.5 6.34 51.5 6.56 71.5 6.66 91.5 6.71
12.0 5.37 32.0 6.35 52.0 6.56 72.0 6.66 92.0 6.71
12.5 5.44 32.5 6.35 52.5 6.56 72.5 6.66 92.5 6.71
13.0 5.51 33.0 6.36 53.0 6.57 73.0 6.66 93.0 6.71
13.5 5.56 33.5 6.37 53.5 6.57 73.5 6.66 93.5 6.71
14.0 5.62 34.0 6.38 54.0 6.57 74.0 6.66 94.0 6.72
14.5 5.67 34.5 6.39 54.5 6.58 74.5 6.67 94.5 6.72
15.0 5.71 35.0 6.39 55.0 6.58 75.0 6.67 95.0 6.72
15.5 5.75 35.5 6.40 55.5 6.58 75.5 6.67 95.5 6.72
16.0 5.79 36.0 6.41 56.0 6.59 76.0 6.67 96.0 6.72
16.5 5.83 36.5 6.41 56.5 6.59 76.5 6.67 96.5 6.72
17.0 5.86 37.0 6.42 57.0 6.59 77.0 6.67 97.0 6.72
17.5 5.89 37.5 6.43 57.5 6.59 77.5 6.67 97.5 6.72
18.0 5.92 38.0 6.43 58.0 6.60 78.0 6.68 98.0 6.72
18.5 5.95 38.5 6.44 58.5 6.60 78.5 6.68 98.5 6.72
19.0 5.97 39.0 6.45 59.0 6.60 79.0 6.68 99.0 6.72
19.5 6.00 39.5 6.45 59.5 6.60 79.5 6.68 99.5 6.73
20.0 6.02 40.0 6.46 60.0 6.61 80.0 6.68 100.0 6.73
This document contains a correction to final regulations (T.D. 9391, 2008-1 C.B. 945) that were published in the Federal Register on Wednesday, April 9, 2008 (73 FR 19350) providing rules under section 937(b) of the Internal Revenue Code for determining whether income is derived from sources within a U.S. possession or territory specified in section 937(a)(1) (generally referred to in this preamble as a “territory”) and whether income is effectively connected with the conduct of a trade or business within a territory as well as providing guidance under section 932 and other provisions related to the territories.
As published, final regulations (T.D. 9391) contain an error that may prove to be misleading and is in need of clarification.
Par. 2. Section 1.932-1 is amended by revising paragraph (e)(1) to read as follows:
§ 1.932-1 Coordination of United States and Virgin Islands income taxes.
(Filed by the Office of the Federal Register on January 24, 2011, 8:45 a.m., and published in the issue of the Federal Register for January 25, 2011, 76 F.R. 4244)
If on the other hand a suit for declaratory judgment has been timely filed, contributions from individuals and organizations described in section 170(c)(2) that are otherwise allowable will continue to be deductible. Protection under section 7428(c) would begin on February 28, 2011 and would end on the date the court first determines that the organization is not described in section 170(c)(2) as more particularly set forth in section 7428(c)(1). For individual contributors, the maximum deduction protected is $1,000, with a husband and wife treated as one contributor. This benefit is not extended to any individual, in whole or in part, for the acts or omissions of the organization that were the basis for revocation.
Arid Lands Project North Haven ME
Christian Credit Counselors International, Inc. Santa Ana CA
Consumer Credit Protection Agency, Inc. Tampa FL
Falls Consumer Credit Management, Inc. Akron OH
Falls Consumer Credit Management, Inc. Saint Clairsville OH
International Vision, Inc. Washington D.C.
Riverview Athletic Association, Inc. Omaha NE
Rising Stars Community Services, Inc. Houston TX
RFD Communications, Inc. Omaha NE
Revive Credit Counseling, Inc. Santa Monica CA
Neighborcare International, Inc. Fairfield Grade TN
Mexican American Research Center Austin TX
Modern Day Veterans 304 Chapter Licking MO
Modern Day Veterans 203 Chapter Marble Hill MO
Care of Crow Wing County Brainerd MN
Panhandle Land Conservancy, Inc. Destin FL
Bulletins 2011-1 through 2011-9
2011-12 2011-9 I.R.B. 2011-9
2011-14 2011-9 I.R.B. 2011-9
2011-17 2011-9 I.R.B. 2011-9
2011-13 2011-9 I.R.B. 2011-9
9514 2011-9 I.R.B. 2011-9
9391 Corrected by Ann. 2011-12 2011-9 I.R.B. 2011-9