Section 7872.—Treatment — Internal Revenue Bulletin 2003-36

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of September 2003. See Rev. Rul. 2003-101, page 513.

However, other personnel from the IRS and Treasury Department participated in its development.

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Adoption of Amendments to the Regulations

Accordingly, 26 CFR parts 1 and 602 are amended as follows:

PART 1—INCOME TAXES

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

Authority: 26 U.S.C. 7805 * * * Par. 2. Section 1.6038–3, paragraphs (j) and (l) are revised to read as follows:

§1.6038–3 Information returns required of certain United States persons with respect to controlled foreign partnerships (CFPs).

- - - (j) Overlap with section 6031 . A partner may be required to file Form 8865 under this section and the foreign partnership in which it is a partner may also be required to file a Form 1065 or Form 1065–B under section 6031(e) for the same partnership tax year. For cases where a United States person is a controlling fifty-percent partner or a controlling ten-percent partner with respect to a foreign partnership,

and that foreign partnership completes and files Form 1065 or Form 1065–B, the instructions for Form 8865 will specify the filing requirements that address this overlap in reporting obligations.

- - - (l) Effective date . Except as otherwise provided, this section shall apply for tax years of a foreign partnership ending on or after December 31, 2000. For tax years of a foreign partnership ending before December 23, 2002, see §1.6038–3(j) in effect prior to the amendments made by T.D. 9033 (see 26 CFR part 1 revised April 1, 2002).

§1.6038–3T [Removed]

Par. 3. Section 1.6038–3T is removed.

PART 602—OMB CONTROL NUMBERS UNDER PAPERWORK REDUCTION ACT

Par. 4. The authority citation for part 602 continues to read as follows: Authority: 26 U.S.C. 7805.

§602.101 [Amended]

Par. 5. In §602.101, paragraph (b) is amended by removing the entry “§1.6038–3T …… ..1545–1617” from the table.

2003-36 I.R.B. 516 September 8, 2003