SECTION 12. — Internal Revenue Bulletin 2002-46

Statute or Regulation Act Postponed 2. Sec. 482 and Treas. Reg. A claim for § 1.482–1(j)(2) otherwise

Sec. 482 and Treas. Reg. A claim for retroactive application of the final section 482 regulations, § 1.482–1(j)(2) otherwise effective only for taxable years beginning after October 6, 1994, must

be filed prior to the expiration of the statute of limitations for the year for which retroactive application is sought. 3. Sec. 482 and Treas. Reg. A participant in a cost-sharing arrangement must provide documentation § 1.482–7(j)(2) regarding the arrangement, as well as documentation specified in Treas. Reg.

Sec. 482 and Treas. Reg. A participant in a cost-sharing arrangement must provide documentation § 1.482–7(j)(2) regarding the arrangement, as well as documentation specified in Treas. Reg.

§§ 1.482–7(b)(4) and 1.482–7(c)(1), within 30 days of a request by the IRS. 4. Treas. Reg. Liabilities of a foreign corporation that is not a bank must be entered on a set § 1.882–5(d)(2)(ii)(A)(2) of books at a time reasonably contemporaneous with the time the liabilities are

Treas. Reg. Liabilities of a foreign corporation that is not a bank must be entered on a set § 1.882–5(d)(2)(ii)(A)(2) of books at a time reasonably contemporaneous with the time the liabilities are

incurred. 5. Treas. Reg. Liabilities of foreign corporations that are engaged in a banking business must § 1.882–5(d)(2)(iii)(A)(1) be entered on a set of books relating to an activity that produces ECI before the

Treas. Reg. Liabilities of foreign corporations that are engaged in a banking business must § 1.882–5(d)(2)(iii)(A)(1) be entered on a set of books relating to an activity that produces ECI before the

close of the day on which the liability is incurred. 6. Treas. Reg. Requirement that marketable securities be identified on the books of a U.S. § 1.884–2T(b)(3)(i) trade or business within 30 days of the date an equivalent amount of U.S.

Treas. Reg. Requirement that marketable securities be identified on the books of a U.S. § 1.884–2T(b)(3)(i) trade or business within 30 days of the date an equivalent amount of U.S.

assets ceases to be U.S. assets. This requirement applies when a taxpayer has elected to be treated as remaining engaged in a U.S. trade or business for branch profits tax purposes. 7. Treas. Reg. Requirement that a foreign corporation which identifies liabilities as giving rise § 1.884–4(b)(3)(ii)(B) to U.S. branch interest, send a statement to the recipients of such interest within

Treas. Reg. Requirement that a foreign corporation which identifies liabilities as giving rise § 1.884–4(b)(3)(ii)(B) to U.S. branch interest, send a statement to the recipients of such interest within

two months of the end of the calendar year in which the interest was paid, stating that such interest was U.S. source income (if the corporation did not make a return pursuant to section 6049 with respect to the interest payment). 8. Sec. 922(a)(1)(E) and Treas. Reg. The FSC must appoint a new non-U.S. resident director within 30 days of the § 1.922–1(j) (Q&A–19) date of death, resignation, or removal of the former director, in the event that

Sec. 922(a)(1)(E) and Treas. Reg. The FSC must appoint a new non-U.S. resident director within 30 days of the § 1.922–1(j) (Q&A–19) date of death, resignation, or removal of the former director, in the event that

the sole non-U.S. resident director of a FSC dies, resigns, or is removed. 9. Sec. 924(b)(2)(B) and Treas. Reg. A taxpayer must execute an agreement regarding unequal apportionment at a § 1.924(a)–1T(j)(2)(i) time when at least 12 months remain in the period of limitations (including

Sec. 924(b)(2)(B) and Treas. Reg. A taxpayer must execute an agreement regarding unequal apportionment at a § 1.924(a)–1T(j)(2)(i) time when at least 12 months remain in the period of limitations (including

extensions) for assessment of tax with respect to each shareholder of the small FSC in order to apportion unequally among shareholders of a small FSC the $5 million foreign trading gross receipts used to determine exempt foreign trade income. 10. Sec. 924(c)(2) and Treas. Reg. The FSC must open a new qualifying foreign bank account within 30 days of § 1.924(c)–1(c)(4) the date of termination of the original bank account, if a FSC’s qualifying

Sec. 924(c)(2) and Treas. Reg. The FSC must open a new qualifying foreign bank account within 30 days of § 1.924(c)–1(c)(4) the date of termination of the original bank account, if a FSC’s qualifying

foreign bank account terminates during the taxable year due to circumstances beyond the control of the FSC. 11. Sec. 924(c)(3) and Treas. Reg. The FSC must transfer funds from its foreign bank account to its U.S. bank § 1.924(c)–1(d)(1) account, equal to the dividends, salaries or fees disbursed, and such transfer

Sec. 924(c)(3) and Treas. Reg. The FSC must transfer funds from its foreign bank account to its U.S. bank § 1.924(c)–1(d)(1) account, equal to the dividends, salaries or fees disbursed, and such transfer

must take place within 12 months of the date of the original disbursement from the U.S. bank account, if dividends, salaries, or fees are disbursed from a FSC’s U.S. bank account. 12. Sec. 924(c)(3) and Treas. Reg. The FSC must reimburse from its own bank account any dividends or other § 1.924(c)–1(d)(2) expenses that are paid by a related person, on or before the due date (including

Sec. 924(c)(3) and Treas. Reg. The FSC must reimburse from its own bank account any dividends or other § 1.924(c)–1(d)(2) expenses that are paid by a related person, on or before the due date (including

extensions) of the FSC’s tax return for the taxable year to which the reimbursement relates. 13. Sec. 924(c)(3) and Treas. Reg. If the Commissioner determines that the taxpayer acted in good faith, the § 1.924(c)–1(d)(3) taxpayer may comply with the reimbursement requirement by reimbursing the

If the Commissioner determines that the taxpayer acted in good faith, the taxpayer may comply with the reimbursement requirement by reimbursing the funds within 90 days of the date of the Commissioner’s determination, notwithstanding a taxpayer’s failure to meet the return-filing-date reimbursement deadline in Treas. Reg. § 1.924(c)–1(d)(2).

2002–46 I.R.B. 863 November 18, 2002