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August 2002 Plain Language Regulations

Treatment of Self Charged Items
Limitations on Passive Activity Losses and Credits - Treatment of Self-charged Items of Income and Expense; These final regulations provide guidance on the treatment of self-charged items of income and expense under section 469 of the Internal Revenue Code. The regulations recharacterize a percentage of certain portfolio income and expense as passive income and expense (self-charged items) when a taxpayer engages in a lending transaction with a partnership or an S corporation (passthrough entity) in which the taxpayer owns a direct or indirect interest and the loan proceeds are used in a passive activity. Similar rules apply to lending transactions between two identically owned passthrough entities. TD 9013. Published August 21, 2002.
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Identifying Number of Tax Return Preparer
These final Regulations allow income tax return preparers to use a number other than their social security number when identifying themselves on returns they prepare. The IRS may prescribe this alternative number in forms, instructions, or other appropriate guidance. These regulations apply to tax returns or claims for refund filed after December 31, 1999. TD 9014. Published August 14, 2002.
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Exclusions From Gross Income
Exclusions From Gross Income of Foreign Corporations; These proposed regulations explain when a foreign corporation engaged in the international operation of a ship or ships or aircraft may exclude its U. S. source income from gross income for U. S. Federal income tax purposes. The rule applies if such a corporation is organized in a foreign country that grants an equivalent exemption to corporations organized in the United States, and the foreign corporation satisfies certain ownership requirements. REG-208280-86 and REG-136311-01.Published August 2, 2002. Corrected September 16, 2002
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Reporting of Deposit Interest to Nonresidents
Reporting of Deposit Interest to Nonresident Aliens; These proposed regulations withdrawal previously published proposed regulations and provide guidance on the reporting requirements for interest on deposits maintained at U.S. offices of certain financial institutions and paid to nonresident aliens that are residents of certain specified countries. REG-133254-02 and REG-126100-00. Published August 2, 2002.
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Clarification of Entity Classification Rules
These final regulations address the applicability of the elective federal tax classification regime under section 7701 (the check-the-box regulations) to business entities wholly owned by a foreign government and to wholly owned nonblank entities of foreign banks. They also provide that the term “entity” for purposes of section 892(a)(2)(B) includes a partnership. TD 9012. Published August 1, 2002.
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Dual Consolidated Loss Recapture Events
These proposed regulations under section 1503(d) relate to events that require the recapture of dual consolidated losses. They are issued to facilitate compliance by taxpayers with the dual consolidated loss provisions. The proposed regulations generally provide that certain events will not require recapture of a dual consolidated loss and require the reporting of certain information. They also propose certain changes to the current regulations. REG-106879-00. Published August 1, 2002.
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Page Last Reviewed or Updated: 17-Aug-2012