SECTION 3. AMENDED

APPLICABILITY DATE

The Treasury Department and the IRS intend to amend §§1.861-9T, 1.9855, 1.987-11, 1.988-1, 1.988-4, and 1.989(a)-1 of the 2016 final regulations and §§1.987-2 and 1.987-4 of the 2019 final regulations to apply to taxable years beginning on or after the first day of the first taxable year following December 7, 2020 (the amended applicability date). Thus, following the amendments

described in this notice, for a taxpayer whose first taxable year after December 7, 2020, begins on January 1, 2021, the 2016 final regulations and §§1.987-2(c) (9), 1.987-4(c)(2), and 1.987-4(f) of the 2019 final regulations would apply for the taxable year beginning on January 1, 2021. The related temporary regulations, which expire on December 6, 2019, will not become applicable. After the related temporary regulations expire, the amended applicability date will apply for purposes of the related proposed regulations.

A taxpayer may choose to apply the 2016 final regulations, the related temporary regulations (if applicable), the related proposed regulations, and §§1.987-2(c) (9), 1.987-4(c)(2), and 1.987-4(f) of the 2019 final regulations to a taxable year beginning after December 7, 2016 and before the amended applicability date provided the taxpayer consistently applies those regulations to such taxable years with respect to all section 987 QBUs directly or indirectly owned by the taxpayer on the transition date as well as all section 987 QBUs directly or indirectly owned on the transition date by members that file a consolidated return with the taxpayer or by any controlled foreign corporation, as defined in section 957, in which a member owns more than 50 percent of the voting power or stock value, as determined under section 958(a).