Unknown. Final regulations

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--- schema: federal-register doc_type: fedreg source_file: FR-2019-07-15.xml --- 84 135 Monday, July 15, 2019 Contents Agriculture Agriculture Department See Economic Research Service See Forest Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 33733-33735 2019-14919 2019-14920 2019-14923 2019-14997 AIRFORCE Air Force Department NOTICES Intent To Grant a Partially Exclusive Patent License, 33758 2019-14949 Army Army Department RULES Repeal of Obsolete Acquisition Regulation:

Government Property, 33708 2019-14970 Required Sources of Supplies and Services, 33706-33707 2019-14966 Small Business and Small Disadvantaged Business Concerns, 33707-33708 2019-14972 Solicitation Provisions and Contract Clauses, 33708-33709 2019-14969 NOTICES Update to the October 24, 2016 Military Freight Traffic Unified Rules Publication NO. 1, 33758-33759 2019-14964 Centers Medicare Centers for Medicare & Medicaid Services PROPOSED RULES Medicaid Program: Methods for Assuring Access to Covered Medicaid Services—Rescission, 33722-33732 2019-14943 Civil Rights Civil Rights Commission NOTICES Meetings:

Minnesota Advisory Committee, 33737-33738 2019-14961 Coast Guard Coast Guard RULES Safety Zones: Annual Events Requiring Safety Zones in the Captain of the Port, Lake Michigan Zone—Corn Festival Fireworks, 33693-33694 2019-14921 PROPOSED RULES Safety Zone: Fireworks Displays; Patapsco River, Inner Harbor, Baltimore, MD, 33713-33715 2019-14981 Commerce Commerce Department See Foreign-Trade Zones Board See International Trade Administration See National Oceanic and Atmospheric Administration Comptroller Comptroller of the Currency NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: General Reporting and Recordkeeping Requirements by Savings Associations, 33810-33811 2019-14939 Defense Acquisition Defense Acquisition Regulations System NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Defense Federal Acquisition Regulation Supplement; Quality Assurance, 33759 2019-14942 Defense Department Defense Department See Air Force Department See Army Department See Defense Acquisition Regulations System NOTICES Meetings:

Board of Regents, Uniformed Services University of the Health Sciences, 33759-33760 2019-14948 Economic Research Economic Research Service NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals, 33735-33737 2019-14937 Education Department Education Department See National Assessment Governing Board NOTICES Applications for New Awards: Technical Assistance and Dissemination To Improve Services and Results for Children With Disabilities—Planning Grants for Increasing Instructional Time and Reducing Administrative Burdens, 33762-33767 2019-14890 Energy Department Energy Department See Federal Energy Regulatory Commission Environmental Protection Environmental Protection Agency RULES Air Quality State Implementation Plans;

Approvals and Promulgations: Idaho; Regional Haze Progress Report, 33697-33699 2019-14988 Revision of Sheboygan County, WI, Nonattainment Designation for the 1997 and 2008 Ozone Standards and Clean Data Determination for the 2008 Ozone Standards, 33699-33703 2019-14990 Tolerance Exemption: Acrylamide-Sodium Acrylamidomethylpropanesulfonate Copolymer, 33703-33706 2019-14522 PROPOSED RULES Federal Implementation Plan for Managing Air Emissions From True Minor Sources in Indian Country:

Oil and Natural Gas Production and Natural Gas Processing Segments of the Oil and Natural Gas Sector, 33715-33721 2019-14885 National Oil and Hazardous Substances Pollution Contingency Plan National Priorities List, 33721-33722 2019-14880 NOTICES Privacy Act; Systems of Records, 33770-33771 2019-14984 Federal Aviation Federal Aviation Administration PROPOSED RULES Airworthiness Directives: The Boeing Company Airplanes, 33710-33712 2019-14901 NOTICES Environmental Impact Statements;

Availability, etc.: O'Hare Modernization Environmental Impact Statement for the Proposed Interim Fly Quiet, 33799-33800 2019-14827 Federal Deposit Federal Deposit Insurance Corporation NOTICES Meetings: Advisory Committee on Community Banking, 33771 2019-14987 Federal Energy Federal Energy Regulatory Commission NOTICES Application: Public Utility District No. 1 of Pend Oreille County, WA, 33769-33770 2019-14927 Combined Filings, 33767, 33769 2019-14924 2019-14925 Permit Application:

ECOsponsible, LLC, 33768-33769 2019-14928 Request Under Blanket Authorization: Sabal Trail Transmission, LLC, 33767-33768 2019-14926 Federal Motor Federal Motor Carrier Safety Administration NOTICES Qualification of Drivers; Exemption Applications: Epilepsy and Seizure Disorders, 33800-33801, 33804-33810 2019-14968 2019-14974 2019-14976 2019-14977 2019-14979 Vision, 33801-33804 2019-14967 Federal Reserve Federal Reserve System NOTICES Change in Bank Control: Acquisitions of Shares of a Bank or Bank Holding Company, 33771-33772 2019-14957 Formations of, Acquisitions by, and Mergers of Bank Holding Companies, 33772 2019-14959 Federal Retirement Federal Retirement Thrift Investment Board NOTICES Meetings;

Sunshine Act, 33772 2019-15130 Foreign Assets Foreign Assets Control Office NOTICES Blocking or Unblocking of Persons and Properties, 33811-33812 2019-14889 2019-14917 Foreign Trade Foreign-Trade Zones Board NOTICES Authorization of Production Activity: Detroit Bikes LLC, Foreign-Trade Zone 70, Detroit, MI, 33738 2019-14958 Offshore Energy Services, Inc., Foreign-Trade Zone 124, Gramercy, LA, 33738 2019-14962 Puerto Rico Steel Products Corp., Foreign-Trade Zone 163, Ponce, PR, 33738 2019-14960 Forest Forest Service NOTICES Boundary Establishment:

Whychus Creek National Wild and Scenic River, Deschutes National Forest, Deschutes County, OR, 33737 2019-14993 Geological Geological Survey NOTICES Agency Information Collection Activities; Proposals, Submissions, and Approvals: Nonindigenous Aquatic Species Sighting Reporting Form and Alert Registration Form, 33776-33777 2019-14916 Health and Human Health and Human Services Department See Centers for Medicare & Medicaid Services See Health Resources and Services Administration See National Institutes of Health Health Resources Health Resources and Services Administration NOTICES Request for Nominations:

Advisory Council on Blood Stem Cell Transplantation, 33772-33773 2019-14941 Homeland Homeland Security Department See Coast Guard Interior Interior Department See Geological Survey See National Park Service Internal Revenue Internal Revenue Service RULES Regulations Regarding Advance Payments for Goods and Long-Term Contracts, 33691-33692 2019-14947 International Trade Adm International Trade Administration NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews:

Glycine From the People's Republic of China, 33754-33755 2019-14952 Initiation of Administrative Reviews, 33739-33754 2019-14951 Determination of Sales at Less Than Fair Value: Acetone From Belgium, the Republic of Korea, and the Republic of South Africa, 33739 2019-14953 International Trade Com International Trade Commission NOTICES Antidumping or Countervailing Duty Investigations, Orders, or Reviews: Polyethylene Terephthalate Sheet From Korea, Mexico, and Oman, 33785-33786 2019-14915 Utility Scale Wind Towers from Canada, Indonesia, Korea, and Vietnam, 33784-33785 2019-14982 Legal Legal Services Corporation NOTICES Meetings;

Sunshine Act, 33786 2019-15020 Assesment National Assessment Governing Board NOTICES Meetings, 33760-33762 2019-14904 National Credit National Credit Union Administration NOTICES Meetings; Sunshine Act, 33787 2019-15093 National Institute National Institutes of Health NOTICES Meetings: Eunice Kennedy Shriver National Institute of Child Health and Human Development, 33776 2019-14910 National Cancer Institute, 33774 2019-14905 National Eye Institute, 33775 2019-14906 National Institute of Allergy and Infectious Diseases, 33775-33776 2019-14908 2019-14909 National Institute of Diabetes and Digestive and Kidney Diseases, 33773-33776 2019-14911 2019-14912 National Institute on Aging, 33773 2019-14907 National Institute on Alcohol Abuse and Alcoholism, 33774 2019-14999 National Oceanic National Oceanic and Atmospheric Administration PROPOSED RULES Findings on the Active Candidate Status of the Proposed Designation of Wisconsin-Lake Michigan National Marine Sanctuary, 33712-33713 2019-14922 NOTICES Meetings:

Fisheries of the Gulf of Mexico and South Atlantic; Southeast Data, Assessment, and Review, 33755-33756 2019-14895 Fisheries of the South Atlantic; Southeast Data, Assessment, and Review, 33755 2019-14900 Mid-Atlantic Fishery Management Council, 33758 2019-14898 Ocean Exploration Advisory Board, 33757 2019-14978 Pacific Fishery Management Council, 33756-33757 2019-14899 South Atlantic Fishery Management Council, 33757-33758 2019-14897 National Park National Park Service NOTICES Inventory Completion:

Oregon State Parks and Recreation Department, Salem, OR and Oregon State University, NAGPRA Office, Corvallis, OR, 33777-33779 2019-14932 U.S. Department of the Interior, Bureau of Reclamation, Nebraska-Kansas Area Office, McCook, NE, and History Nebraska (formerly the Nebraska State Historical Society), Lincoln, NE, 33779-33784 2019-14933 2019-14934 University of Louisville, Louisville, KY, 33781-33782 2019-14931 National Science National Science Foundation NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals, 33787 2019-14914 Nuclear Regulatory Nuclear Regulatory Commission PROPOSED RULES Measurement Standards Used at U.S. Nuclear Power Plants; Correction, 33710 2019-14896 NOTICES Meetings; Sunshine Act, 33787-33788 2019-15097 Pension Benefit Pension Benefit Guaranty Corporation RULES Benefits Payable in Terminated Single-Employer Plans: Interest Assumptions for Paying Benefits, 33692-33693 2019-14793 Postal Regulatory Postal Regulatory Commission NOTICES New Postal Products, 33788 2019-14971 Presidential Documents Presidential Documents EXECUTIVE ORDERS Health and Medical Care:

Kidney Disease; Effort To Advance Treatment and Prevention (EO 13879), 33815-33819 2019-15159 Securities Securities and Exchange Commission NOTICES Self-Regulatory Organizations; Proposed Rule Changes: BOX Exchange, LLC, 33788-33796 2019-14891 2019-14892 NYSE American, LLC, 33796-33798 2019-14894 Surface Transportation Surface Transportation Board NOTICES Abandonment Exemption: BNSF Railway Co. in Los Angeles County, CA, 33798 2019-14944 Trade Representative Trade Representative, Office of United States NOTICES Fiscal Year 2020 Tariff-Rate Quota Allocations for Raw Cane Sugar, Refined and Specialty Sugar, and Sugar-Containing Products, 33798-33799 2019-14938 Transportation Department Transportation Department See Federal Aviation Administration See Federal Motor Carrier Safety Administration Treasury Treasury Department See Comptroller of the Currency See Foreign Assets Control Office See Internal Revenue Service Veteran Affairs Veterans Affairs Department RULES Approval Criteria for Rates Charged for Community Residential Care, 33694-33697 2019-14918 NOTICES Agency Information Collection Activities;

Proposals, Submissions, and Approvals: Loan Service Report, 33812 2019-14940 Meetings: National Research Advisory Council, 33812-33813 2019-14903 Separate Parts In This Issue Part II Presidential Documents, 33815-33819 2019-15159 Reader Aids Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws. To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription. 84 135 Monday, July 15, 2019 Rules and Regulations DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Parts 1 and 602 [TD 9870] RIN 1545-BO66 Regulations Regarding Advance Payments for Goods and Long-Term Contracts AGENCY:

Internal Revenue Service (IRS), Treasury. ACTION: Final regulations. SUMMARY: This document contains final regulations that streamline IRS regulations by removing regulations that are no longer necessary after the enactment of recent tax legislation. Specifically, these final regulations remove existing regulations regarding advance payments for goods and long-term contracts. These final regulations affect accrual method taxpayers who receive advance payments for goods, including those for inventoriable goods.

DATES: *Effective date:* These regulations are effective on July 15, 2019. *Applicability date:* These regulations apply for taxable years ending on or after July 15, 2019. FOR FURTHER INFORMATION CONTACT: Charles Gorham,

(202)317-5091, or Joanna L. Trebat,

(202)317-6890. SUPPLEMENTARY INFORMATION: Background This document contains amendments to the Income Tax Regulations (26 CFR parts 1 and 602), under section 451 of the Internal Revenue Code

(Code)relating to the treatment of advance payments for goods and long-term contracts. On October 15, 2018, the Department of the Treasury (Treasury Department) and the IRS published a notice of proposed rulemaking (REG-104872-18) in the **Federal Register** (83 FR 51904) containing proposed regulations under section 451 of the Code (proposed regulations). The Treasury Department and the IRS received no written or electronic comments responding to the proposed regulations. Accordingly, no public hearing was held on the proposed regulations. This Treasury Decision adopts the proposed regulations without modification. Explanation of Provisions These final regulations remove § 1.451-5, and its cross-references, relating to the treatment of advance payments for goods and long-term contracts under section 451. Section 1.451-5 generally allowed accrual method taxpayers to defer the inclusion of income for advance payments for goods until the taxable year in which they were properly included in income under the taxpayer's method of accounting for federal income tax purposes if that method resulted in the advance payments being included in gross income no later than when the advance payments were recognized in gross receipts under the taxpayer's method of accounting for financial reporting purposes. Section 13221 of “the Tax Cuts and Jobs Act (TCJA),” Public Law 115-97 (2017), amended section 451 by redesignating section 451(b) through

(i)as

(d)through

(k)and adding new subsections

(b)and (c). New section 451(c) generally requires an accrual method taxpayer that receives any advance payment described in section 451(c)(4) during the taxable year to include the advance payment in income in the taxable year of receipt or make an election to:

(1)Include any portion of the advance payment in income in the taxable year of receipt to the extent required under new section 451(b); and

(2)include the remaining portion of the advance payment in income in the following taxable year. New section 451(c) and its election to defer advance payments override the deferral method provided by § 1.451-5. *See* H.R. Rep. No. 115-466, at 429 n.880

(2017)(Conf. Rep.). Accordingly, these final regulations remove § 1.451-5 and its cross references. Removing § 1.451-5 ensures that the new deferral rules of section 451(c) apply uniformly and consistently to all taxpayers and simplifies tax administration. The rules of section 446 regarding changes in methods of accounting apply to taxpayers changing a method of accounting for advance payments from a method described in § 1.451-5 to another method of accounting. Effective/Applicability Date These final regulations apply for taxable years ending on or after July 15, 2019. Special Analyses This regulation is not subject to review under section 6(b) of Executive Order 12866 pursuant to the Memorandum of Agreement (April 11, 2018) between the Department of the Treasury and the Office of Management and Budget regarding review of tax regulations. Because the regulations do not impose a collection of information on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the Code, the notice of proposed rulemaking preceding this final rule was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business and no comments were received. Unfunded Mandates Reform Act Section 202 of the Unfunded Mandates Reform Act of 1995

(UMRA)requires that agencies assess anticipated costs and benefits and take certain other actions before issuing a final rule that includes any Federal mandate that may result in expenditures in any one year by a state, local, or tribal government, in the aggregate, or by the private sector, of $100 million in 1995 dollars, updated annually for inflation. In 2018, that threshold is approximately $150 million. This rule does not include any Federal mandate that may result in expenditures by state, local, or tribal governments, or by the private sector in excess of that threshold. Executive Order 13132: Federalism Executive Order 13132 (entitled “Federalism”) prohibits an agency from publishing any rule that has federalism implications if the rule either imposes substantial direct compliance costs on state and local governments, and is not required by statute, or preempts state law, unless the agency meets the consultation and funding requirements of section 6 of the Executive Order. This rule does not have federalism implications and does not impose substantial direct compliance costs on state and local governments or preempt state law within the meaning of the Executive Order. Drafting Information The principal author of these final regulations is Joanna L. Trebat, Office of the Associate Chief Counsel (Income Tax and Accounting). Other personnel from the IRS and Treasury Department participated in their development. List of Subjects 26 CFR Part 1 Income taxes, Reporting and recordkeeping requirements. 26 CFR Part 602 Reporting and recordkeeping requirements. 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 1.381(c)(4)-1 is amended by revising the second sentence of paragraph (b)(2) to read as follows: § 1.381(c)(4)-1 Method of accounting.

(b)* * *

(2)* * * The installment method under section 453, the mark-to-market method under section 475, the amortization of bond premium under section 171, the percentage of completion method under section 460, the recurring item exception of § 1.461-5, and the income deferral method under section 455 are examples of special methods of accounting. * * * **Par. 3.** Section 1.382-7 is amended by revising the third sentence of paragraph

(a)to read as follows: § 1.382-7 Built in gains and losses.

(a)* * * Examples to which this paragraph

(a)will apply include, but are not limited to, income received prior to the change date that is deferred under section 455 or Rev. Proc. 2004-34 (2004-1 CB 991 (June 1, 2004)) (or any successor revenue procedure) (see § 601.601(d)(2)(ii)(b)). § 1.451-5 [Removed] **Par. 4.** Section 1.451-5 is removed. § 1.861-18 [Amended] **Par. 5.** Section 1.861-18 is amended in paragraph (i)(4) by: 1. Removing *Example 2* ; 2. Designating *Examples 1* and *3* as paragraphs (i)(4)(i) and (ii), respectively; and 3. In the heading for newly designated paragraph (i)(4)(ii), removing “3” and adding “2” in its place. § 1.6655-0 [Amended] **Par. 6.** Section 1.6655-0 is amended by removing the entries for § 1.6655-2(f)(3)(i) and (f)(3)(i)(A) and redesignating the entry for § 1.6655-2(f)(3)(i)(B) as § 1.6655-2(f)(3)(i). § 1.6655-2 [Amended] **Par. 7.** Section 1.6655-2 is amended by removing the paragraph (f)(3)(i) heading and paragraph (f)(3)(i)(A) and redesignating (f)(3)(i)(B) as (f)(3)(i). **Par. 8.** Section 1.6655-6 is amended in paragraph

(c)by: 1. Revising the heading and introductory text; 2. Removing *Example 1* ; 3. Designating *Example 2* as paragraph (c)(1) and revising the heading of newly designated paragraph (c)(1); and 4. Adding reserved paragraph (c)(2). The revisions read as follows: § 1.6655-6 Methods of accounting.

(c)*Example.* The following example illustrates the rules of this section:

(1)*Example.* * * * PART 602—OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT **Par. 9.** Add an authority citation for part 602 to read as follows: Authority: 26 U.S.C. 7805. § 602.101 [Amended] **Par. 10.** Section 602.101 is amended by removing the entry for § 1.451-5 in the table in paragraph

(b)and by removing the parenthetical authority citation at the end of the section. Kirsten Wielobob, Deputy Commissioner for Services and Enforcement. Approved: June 27, 2019. David J. Kautter, Assistant Secretary of the Treasury (Tax Policy). [FR Doc. 2019-14947 Filed 7-11-19; 4:15 pm]

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