Opções de ações que acionam o evento

De outros.

Última atualização: 22 de dezembro de 2017.

Essas interpretações substituem as interpretações do Formulário 8-K no Manual de Interpretações Telefônicas Publicamente Disponíveis de julho de 1997, as Perguntas Freqüentes sobre o Uso de Medidas Financeiras Não-GAAP de 13 de junho de 2003 e as Perguntas Mais Freqüentes do Formulário 8-K de 22 de novembro de 2004 . Algumas das interpretações incluídas aqui foram originalmente publicadas nas fontes mencionadas acima e foram revisadas em alguns casos. A data entre parênteses após cada interpretação é a data mais recente de publicação ou revisão.

PERGUNTAS E RESPOSTAS DE APLICABILIDADE GERAL.

Seção 101. Formulário 8-K - Orientação Geral.

Questão 101.01.

Pergunta: Se um evento desencadeador especificado em um dos itens do Formulário 8-K ocorrer dentro de quatro dias úteis antes da apresentação de um relatório periódico pelo registrante, o registrante poderá divulgar o evento em seu relatório periódico em vez de em um Formulário 8-K separado? Em caso afirmativo, em qual item do relatório periódico o evento deveria ser divulgado? O item 5 da Parte II do Formulário 10-Q e o Item 9B do Formulário 10-K parecem estar limitados a eventos que deviam ser divulgados durante o período coberto por esses relatórios.

Resposta: Sim, um evento desencadeador ocorrendo dentro de quatro dias úteis antes da apresentação de um relatório periódico pelo registrante pode ser divulgado nesse relatório periódico, exceto para arquivamentos que devem ser feitos sob o Item 4.01 do Formulário 8-K, Alterações no Contador Certificador do Registrante e Item 4.02 do Formulário 8-K, Não Confiança nas Demonstrações Financeiras Anteriores ou Relatórios de Auditoria Relacionados ou Revisão Intermediária Concluída. O registrante pode divulgar eventos desencadeantes, além dos itens 4.01 e 4.02, no relatório periódico sob o Item 5 da Parte II do Formulário 10-Q ou Item 9B do Formulário 10-K, conforme aplicável. Todos os eventos Item 4.01 e Item 4.02 devem ser relatados no Formulário 8-K. É claro que as emendas aos Formulários 8-K previamente arquivados devem ser arquivadas em um Formulário 8-K / A. Veja também o Exchange Act Form 8-K na Questão 106.04 sobre a capacidade de confiar no Item 2.02 do Formulário 8-K. [2 de abril de 2008]

Questão 101.02.

Pergunta: Alguns itens do Formulário 8-K são acionados pelo evento especificado que ocorre em relação ao “registrante” (como itens 1.01, 1.02, 2.03, 2.04). Outros itens do Formulário 8-K referem-se também a subsidiárias de propriedade majoritária (como Item 2.01). Os registrantes devem interpretar todos os itens do Formulário 8-K como aplicando o evento desencadeador ao registrante e às subsidiárias, além dos itens que obviamente se aplicam apenas no nível do registrante, como alterações nos diretores e principais executivos?

Resposta: sim. Eventos de desencadeamento se aplicam a registrantes e subsidiárias. Por exemplo, a entrada de uma subsidiária em um contrato definitivo de curso não ordinário que seja relevante para o registrante é relatável sob o Item 1.01 e a rescisão de tal contrato é relatada no Item 1.02. Da mesma forma, a divulgação do Item 2.03 é desencadeada por obrigações definitivas ou acordos fora do balanço do registrante e / ou de suas subsidiárias que são relevantes para o registrante. [2 de abril de 2008]

Questão 101.03.

Pergunta: A Instrução Geral E para o Formulário 8-K exige que uma cópia do relatório seja arquivada em cada bolsa onde os valores mobiliários do registrante estão listados. O termo “troca”, como usado na instrução, refere-se apenas a trocas domésticas?

Resposta: sim. O termo “troca”, como usado na instrução, refere-se apenas a trocas domésticas e, portanto, os relatórios do Formulário 8-K precisam ser fornecidos apenas a trocas domésticas. [2 de abril de 2008]

Questão 101.04.

Pergunta: Se um Formulário 8-K contiver demonstrações financeiras anuais auditadas que sejam uma versão revisada das demonstrações financeiras previamente arquivadas na Comissão e tenham sido revisadas para refletir os efeitos de certos eventos subseqüentes, tais como operações descontinuadas, uma mudança em segmentos reportáveis ​​ou uma mudança no princípio de contabilidade, em seguida, sob o Item 601 (b) (101) (i) do Regulamento SK, o arquivador deve apresentar um arquivo de dados interativo com o Formulário 8-K para essas demonstrações financeiras anuais auditadas revisadas. O parágrafo 6 (a) da Instrução Geral C do Formulário 6-K contém um requisito similar. O item 601 (b) (101) (ii) do Regulamento SK e o parágrafo 6 (b) da Instrução Geral C do Formulário 6-K permitem que um arquivador envie voluntariamente um arquivo de dados interativo com um Formulário 8-K ou 6 K, respectivamente , sob condições especificadas. É permitido a um arquivador submeter voluntariamente um arquivo de dados interativo com um Formulário 8-K ou 6-K para outras demonstrações financeiras que podem ser incluídas no Formulário 8-K ou 6-K, mas para o qual não é necessário um arquivo de dados interativo para ser submetido? Por exemplo, se o Formulário 6-K contiver demonstrações financeiras intermediárias que não sejam de acordo com o requisito de atualização de nove meses do Item 8.A.5 do Formulário 20-F?

Resposta: Sim, caso o declarante cumpra com o Item 601 (b) (101) (ii) do Regulamento S-K e o parágrafo 6 (b) da Instrução Geral C do Formulário 6-K, conforme o caso. [Set. 14, 2009]

Questão 101.05.

Pergunta: Se um arquivador for solicitado a enviar um arquivo de dados interativo com um formulário diferente de um Formulário 8-K ou 6-K, o arquivador poderá atender a esse requisito enviando o arquivo de dados interativo com um Formulário 8-K ou 6-K. ?

Resposta: Não. Se um arquivador não enviar um arquivo de dados interativo com um formulário conforme necessário, o arquivador deverá alterar o formulário para incluir o arquivo de dados interativo. [Set. 14, 2009]

Seção 102. Item 1.01 Entrada em um contrato definitivo material.

Questão 102.01.

Pergunta: Se um contrato que não era relevante no momento em que o registrante entrou nele se tornar material em uma data posterior, o registrante deve arquivar um Item 1.01 Formulário 8-K no momento em que o contrato se tornar relevante?

Resposta: Não. Se um contrato se tornar material para o registrante, mas não foi relevante para o registrante quando ele entrou em, ou emendou, o contrato, o registrante não precisa arquivar um Formulário 8-K no Item 1.01. Em qualquer caso, o registrante deve arquivar o contrato como um anexo ao relatório periódico relativo ao período de relatório no qual o contrato se tornou relevante se, a qualquer momento durante esse período, o contrato fosse relevante para o registrante. A esse respeito, o registrante aplicaria os requisitos do Item 601 do Regulamento S-K para determinar se o contrato deve ser apresentado com o relatório periódico. [2 de abril de 2008]

Questão 102.02.

Pergunta: Uma agência de colocação ou contrato de subscrição é um contrato definitivo relevante para os fins do Item 1.01? Em caso afirmativo, o requisito de divulgar as partes do contrato exige a divulgação do nome do agente de colocação ou do subscritor? Essa divulgação tornaria o porto seguro da definição de uma “oferta” incluída na Norma 135c do Securities Act não disponível para o arquivamento do Formulário 8-K?

Resposta: O registrante deve determinar se os contratos específicos são materiais usando padrões estabelecidos de materialidade e com referência à Instrução 1 ao Item 1.01. Se o registrante determinar que tal acordo exige o arquivamento sob o Item 1.01, ele pode, como no Item 3.02, omitir a identidade dos subscritores da divulgação no Formulário 8-K para permanecer dentro do porto seguro da Regra 135c. [2 de abril de 2008]

Questão 102.03.

Pergunta: Um acordo definitivo material deve ser resumido no corpo do Formulário 8-K se for apresentado como uma exibição para o Formulário 8-K?

Resposta: sim. O item 1.01 exige “uma breve descrição dos termos e condições materiais do acordo ou emenda que são relevantes para o registrante”. Portanto, a incorporação por referência do contrato real não satisfaria este requisito de divulgação. Em alguns casos, o acordo pode ser tão breve que pode fazer sentido divulgar todos os termos do acordo no corpo do Formulário 8-K. [2 de abril de 2008]

Seção 103. Item 1.02 Rescisão de um contrato definitivo material.

Questão 103.01.

Pergunta: Um contrato definitivo relevante tem uma cláusula de aviso prévio que requer 180 dias de aviso prévio para ser rescindido. A contraparte entrega ao registante um aviso de rescisão antecipado por escrito. Mesmo que o registrante pretenda negociar com a contraparte e acreditar de boa fé que o acordo não será terminado, o Item 1.02, Formulário 8-K, é exigido quando o registrante receber a notificação de término antecipada apropriada?

Resposta: sim. Embora a Instrução 1 ao Item 1.02 observe que nenhuma divulgação é necessária somente em razão desse item durante negociações ou discussões referentes à rescisão de um contrato definitivo relevante, a menos que e até que o contrato tenha sido rescindido, e a Instrução 2 indica que nenhuma divulgação é necessária se o registrante Acredita de boa fé que o acordo definitivo relevante não foi rescindido, a Instrução 2 esclarece que, uma vez recebida a notificação de rescisão de acordo com os termos do contrato, o Formulário 8-K é necessário, apesar dos esforços contínuos do registrante para negociar um acordo. continuação do contrato. [2 de abril de 2008]

Questão 103.02.

Pergunta: Um contrato definitivo material expira automaticamente em 30 de junho de 200X, mas continua por períodos sucessivos de um ano até o próximo 30 de junho, a menos que uma parte envie um aviso de não renovação durante um período de 30 dias seis meses antes da renovação automática. - em outras palavras, janeiro. A não renovação deste tipo de contrato através do envio do aviso em janeiro acionou a divulgação do item 1.02?

Resposta: sim. O evento desencadeador é o envio do aviso em janeiro, não o término do acordo em 30 de junho. No entanto, a renovação automática de acordo com os termos do contrato (em outras palavras, quando nenhum aviso de não renovação for enviado) não acionará o arquivamento de um Item 1.01 Formulário 8-K. [2 de abril de 2008]

Questão 103.03.

Pergunta: Um contrato definitivo material expira em 30 de junho de 200X. Ele prevê que qualquer uma das partes pode renovar o contrato por mais um ano que termine em 30 de junho se enviar um aviso de renovação para a outra parte em janeiro, e a outra parte não rejeitar essa notificação em fevereiro. Se nenhuma das partes enviar um aviso de renovação durante o mês de janeiro, o que significa que o contrato será encerrado em 30 de junho, é necessário o preenchimento do item 1.02 do Formulário 8-K?

Resposta: Não. Isso seria um término na data de término declarada do contrato que não aciona um arquivamento do Item 1.02. Se uma parte enviar um aviso de renovação que não seja rejeitado, será necessário um Item 1.01 Formulário 8-K. Tal registro seria acionado pela passagem do prazo de rejeição em 28 de fevereiro, e não pelo envio do aviso de renovação em janeiro. [2 de abril de 2008]

Artigo 104. Item 1.03 Falência ou Falência.

Seção 105. Item 2.01 Conclusão da Aquisição ou Disposição de Ativos.

Seção 106. Item 2.02 Resultados das Operações e Condição Financeira.

Questão 106.01.

Pergunta: O item 2.02 do Formulário 8-K contém uma isenção condicional de seu requisito de fornecer um Formulário 8-K onde as informações sobre ganhos são apresentadas oralmente, telefonicamente, por webcast, por transmissão ou por meios similares. Entre outras condições, a empresa deve fornecer em seu site quaisquer informações financeiras e outras informações estatísticas contidas na apresentação, juntamente com quaisquer informações que seriam exigidas pela Regra G. Um arquivo de áudio do webcast inicial satisfaria essa condição à isenção?

Resposta: Sim, desde que: (1) o arquivo de áudio contenha todas as informações financeiras e estatísticas relevantes incluídas na apresentação que não tenha sido divulgada anteriormente e (2) os investidores possam acessá-lo e reproduzi-lo no site da empresa. Alternativamente, os slides ou uma apresentação similar publicada no website no momento da apresentação contendo as informações financeiras e outras informações estatísticas necessárias, anteriormente não divulgadas, satisfariam a condição. Em cada caso, a empresa deve fornecer todas as informações financeiras e outras informações estatísticas anteriormente não divulgadas, incluindo informações fornecidas em conexão com quaisquer perguntas e respostas. O regulamento FD também pode impor requisitos de divulgação nessas circunstâncias. [Jan. 11, 2010]

Questão 106.02.

Pergunta: Uma empresa emite seu release de resultados após o fechamento do mercado e realiza uma teleconferência devidamente divulgada para discutir seus ganhos duas horas depois. Essa teleconferência contém informações relevantes, anteriormente não divulgadas, do tipo descrito no item 2.02 do Formulário 8-K. Devido a esse período, a empresa não pode fornecer sua liberação de lucros em um Formulário 8-K antes de sua teleconferência. Consequentemente, a empresa não pode contar com a isenção do requisito de fornecer as informações da teleconferência em um Formulário 8-K. O que a empresa deve registrar em relação à sua teleconferência?

Resposta: A empresa deve fornecer o material, previamente não-público, financeiro e outras informações estatísticas necessárias para ser fornecido no Item 2.02 do Formulário 8-K como uma exibição para um Formulário 8-K e satisfazer os outros requisitos do Item 2.02 do Formulário 8-K. Uma transcrição da parte da teleconferência ou slides ou uma apresentação similar, incluindo tais informações, satisfará este requisito. Em cada caso, todo material, anteriormente não divulgado, financeiro e outras informações estatísticas, incluindo aquelas fornecidas em conexão com quaisquer perguntas e respostas, devem ser fornecidas. [Jan. 11, 2010]

Questão 106.03.

Pergunta: O item 2.02 do Formulário 8-K contém uma isenção condicional de seu requisito de fornecer um Formulário 8-K onde as informações sobre ganhos são apresentadas oralmente, telefonicamente, por webcast, por transmissão ou por meios similares. Entre outras condições, a empresa deve fornecer em seu site qualquer material financeiro e outras informações estatísticas não divulgadas anteriormente e contidas na apresentação, juntamente com qualquer informação que seria exigida pela Regra G. Quando todas essas informações devem aparecer na empresa? local na rede Internet?

Resposta: As informações necessárias devem aparecer no site da empresa no momento em que a apresentação oral é feita. No caso de informações que não são fornecidas em uma apresentação em si, mas que são divulgadas inesperadamente em conexão com a sessão de perguntas e respostas que fazia parte dessa apresentação oral, as informações devem ser postadas no site da empresa imediatamente após a apresentação. divulgado. Quaisquer requisitos do Regulamento FD também devem ser satisfeitos. Um webcast da apresentação oral seria suficiente para atender a esse requisito. [Jan. 11, 2010]

Questão 106.04.

Pergunta: A empresa X registra seus resultados trimestrais como uma apresentação para seu Formulário 10-Q na manhã de quarta-feira, antes de realizar sua teleconferência de resultados na tarde de quarta-feira. Supondo que todas as outras condições do Item 2.02 (b) sejam atendidas, a companhia pode confiar na isenção para sua teleconferência, mesmo que ela também não forneça a divulgação de resultados em um Item 2.02 Formulário 8-K?

Resposta: sim. O arquivamento da distribuição de lucros da empresa X como uma apresentação ao seu Formulário 10-Q, em vez de em um Item 2.02 Formulário 8-K, antes da teleconferência ocorrer, não impediria a confiança na isenção para a teleconferência. [Jan. 11, 2010]

Questão 106.05.

Pergunta: A falha de uma empresa em fornecer à Comissão o Formulário 8-K exigido pelo Item 2.02 de maneira oportuna afeta a elegibilidade da empresa para usar o Formulário S-3?

Resposta: Não. O formulário S-3 exige que a empresa tenha arquivado "de maneira oportuna todos os relatórios que devem ser arquivados em doze meses e em qualquer parte de um mês imediatamente anterior ao arquivamento da declaração de registro". Como o Item 2.02, Formulário 8-K, é fornecido à Comissão, em vez de ser apresentado à Comissão, a falha em fornecer tal Formulário 8-K em tempo hábil não afetaria a elegibilidade de uma empresa para usar o Formulário S-3. Embora não afete a elegibilidade do Formulário S-3 de uma empresa, a falha no cumprimento do Item 2.02 do Formulário 8-K seria, obviamente, uma violação da Seção 13 (a) do Exchange Act e das regras relacionadas. [Jan. 11, 2010]

Questão 106.06.

Pergunta: A empresa A emite um comunicado à imprensa anunciando seus resultados das operações para um trimestre fiscal recém-concluído, incluindo seus ganhos ajustados esperados (uma medida financeira não-GAAP) para o período fiscal. Este comunicado de imprensa estaria sujeito ao item 2.02 do formulário 8-K?

Resposta: Sim, porque contém informações relevantes e não públicas sobre seus resultados operacionais durante um período fiscal concluído. A faixa de lucro ajustada apresentada estaria sujeita aos requisitos do item 2.02 aplicáveis ​​às medidas financeiras não-GAAP. [Jan. 11, 2010]

Questão 106.07.

Pergunta: Um registrante reporta ganhos "preliminares" e resultados de operações para um período trimestral completo, e alguns desses valores podem até ser estimativas. Ao emitir este release preliminar de resultados, o registrante deve cumprir todos os requisitos e instruções do item 2.02 do Formulário 8-K?

Resposta: sim. [24 de abril de 2009]

Seção 107. Item 2.03 Criação de uma obrigação financeira direta sob um arranjo não registrado no balanço de um registrante.

Questão 107.01.

Pergunta: A Instrução 2 ao Item 2.03 declara que, se o registrante não for uma parte da transação que cria a obrigação contingente decorrente do acordo fora do balanço, o período de quatro dias úteis começa no “início de” (1) o quarto negócio um dia após a criação ou a emissão da obrigação contingente e (2) o dia em que um diretor executivo tomar conhecimento. Como um registrante pode divulgar algo do qual não está ciente?

Resposta: Um registrante deve manter a divulgação e os controles e procedimentos internos projetados para garantir que as informações que devem ser divulgadas pelo emissor nos relatórios arquivados no Exchange Act, incluindo os relatórios atuais no Formulário 8-K, sejam registradas, processadas e resumidas. e relatado dentro dos prazos exigidos. A Instrução 2 ao Item 2.03 prevê quatro dias úteis adicionais como um período de “graça”, dada a natureza do requisito. [2 de abril de 2008]

Questão 107.02.

Pergunta: Se um registrante tiver uma emissão de dívida de longo prazo em uma colocação privada que esteja vencendo, e a substituir ou reembolsar com outra emissão de dívida de longo prazo do mesmo valor de principal e com termos similares em outra colocação privada, é um Formulário 8-K deve ser apresentado no item 2.03?

Resposta: O item 2.03 exige a divulgação de uma obrigação financeira direta que seja relevante para o registrante. A materialidade é uma determinação de fatos e circunstâncias. Se a obrigação financeira é um refinanciamento em termos similares é um desses fatos; o montante da obrigação é outro. Dependendo de outros factos e circunstâncias (incluindo, mas não se limitando a, fatores como o impacto atual em covenants, liquidez e capacidade de dívida e outros requisitos de dívida), um registante poderá concluir que uma obrigação financeira nesta situação não é material. [2 de abril de 2008]

Seção 108. Item 2.04 Acionando Eventos que Aceleram ou Aumentam uma Obrigação Financeira Direta ou uma Obrigação em um Acordo Fora do Balanço Patrimonial.

Questão 108.01.

Pergunta: É exigido um Item 2.04 Formulário 8-K se todas as condições necessárias para um evento que desencadeie a aceleração ou um aumento em uma obrigação financeira direta sob um contrato tenham ocorrido, mas a contraparte não tenha declarado ou fornecido aviso de inadimplência?

Resposta: Depende de como o acordo é escrito. Se, como é frequentemente o caso, tal declaração ou aviso é necessário antes do aumento ou da aceleração da obrigação, então o Item 2.04 não é acionado. Se tal declaração ou aviso não for necessário e o aumento ou aceleração for acionado automaticamente na ocorrência de um evento sem declaração ou aviso e as conseqüências do evento forem relevantes para o registrante, a divulgação é requerida no Item 2.04. [2 de abril de 2008]

Seção 109. Item 2.05 Custos Associados a Atividades de Saída ou Descarte.

Questão 109.01.

Pergunta: Os custos associados a uma atividade de saída limitam-se àqueles abordados na Declaração de Normas Contábeis Financeiras do FASB No. 146, Contabilização de Custos Associados a Atividades de Saída ou Alienação (SFAS 146)?

Resposta: Não. O SFAS 146 aborda certos custos associados a uma atividade de saída. O parágrafo 2 da SFAS 146 estabelece que tais custos incluem, mas não estão limitados a, aqueles custos cobertos pelo SFAS. Outros custos que podem precisar ser divulgados de acordo com o Item 2.05 do Formulário 8-K são tratados pelas Declarações do FASB sobre as Normas de Contabilidade Financeira nº 87, 88, 106 e 112. [2 de abril de 2008]

Questão 109.02.

Pergunta: Se um registrante, em conexão com uma atividade de saída, estiver rescindindo funcionários, ele deve arquivar o Formulário 8-K quando o registrante se comprometer com o plano, ou pode esperar até que tenha informado seus funcionários?

Resposta: O item 2.05 foi geralmente consistente com o SFAS 146. O SFAS 146 declara que, se um registrante está rescindindo funcionários como parte de um plano para sair de uma atividade, ele não precisa divulgar o compromisso com o plano até que informe os funcionários afetados. . Da mesma forma, um Formulário 8-K não precisa ser arquivado até que esses funcionários tenham sido informados. Veja os parágrafos 8, 20 e 21 do SFAS 146. [2 de abril de 2008]

Seção 110. Item 2.06 Deficiências do material.

Questão 110.01.

Pergunta: A Instrução ao Item 2.06 do Formulário 8-K indica que um arquivamento não é necessário se uma conclusão de redução no valor recuperável for feita “em conexão com” a preparação, revisão ou auditoria de demonstrações financeiras exigidas para serem incluídas no próximo relatório periódico devido a ser arquivado sob o Exchange Act, o relatório periódico é arquivado em uma base oportuna e tal conclusão é divulgada no relatório. Se uma conclusão de imparidade for feita num momento que coincida, mas não esteja em ligação com, a preparação, revisão ou auditoria de demonstrações financeiras que devam ser incluídas no próximo relatório periódico a ser apresentado ao abrigo do Exchange Act, é um Item. 2.06 Formulário 8-K requerido?

Resposta: Não. Se a conclusão de imparidade coincidir com a preparação, revisão ou auditoria de demonstrações financeiras que devam ser incluídas no próximo relatório periódico devendo ser apresentado ao abrigo do Exchange Act e as outras condições da Instrução para o Item 2.06 estiverem satisfeitas, arquivamento não seria necessário sob o Item 2.06. [16 de maio de 2013]

Questão 110.02.

Pergunta: A reavaliação de um ativo fiscal diferido (“DTA”) para incorporar os efeitos de taxas de imposto recém-promulgadas ou outras disposições da Lei de Cortes e Empregos Tributários (“Lei”) acionam uma obrigação de arquivar sob o Item 2.06 do Formulário 8-K?

Resposta: Não, a nova medição de um DTA para refletir o impacto de uma alteração na taxa de imposto ou nas leis fiscais não é um prejuízo no Tópico 740 do ASC. No entanto, a promulgação de novas taxas ou leis fiscais poderia ter implicações para demonstrações financeiras, incluindo se é mais provável que o DTA seja realizado. Conforme discutido no Staff Accounting Bulletin No. 118 (22 de dezembro de 2017), um registrante que ainda não concluiu sua contabilização para certos efeitos do imposto de renda da Lei no momento em que o registrante emitir suas demonstrações financeiras para o período que inclui 22 de dezembro , 2017 (a data da promulgação da lei) pode aplicar uma abordagem de “período de mensuração” para atender ao Tópico 740 do ASC. Registrantes que empregam a abordagem do “período de mensuração” conforme contemplado pelo SAB 118 que concluem que um impairment ocorreu devido a mudanças resultantes de A promulgação da Lei pode basear-se na Instrução do Item 2.06 e divulgar a redução ao valor recuperável, ou um valor provisório com relação a essa possível perda de valor, em seu próximo relatório periódico. [22 de dezembro de 2017]

Seção 111. Item 3.01 Aviso de exclusão ou falha em satisfazer uma regra ou norma de listagem contínua; Transferência de Listagem.

Seção 112. Item 3.02 Venda Não Registrada de Títulos Patrimoniais.

Questão 112.01.

Pergunta: A concessão de opções de compra de ações de acordo com um plano de opção de compra de ações para funcionários exige divulgação no Item 3.02 do Formulário 8-K?

Resposta: Se a outorga de opções de ações de acordo com um plano de opção de compra de ações não constitui uma “venda” ou uma “oferta de venda” na Securities Act Section 2 (a) (3), a concessão não precisa ser relatada no Item 3.02 do Formulário 8-K. Ver, por exemplo, Millennium Pharmaceuticals, Inc. (21 de maio de 1998). [2 de abril de 2008]

Questão 112.02.

Pergunta: Se um registrante vender, em uma transação não registrada, ações de uma classe de títulos patrimoniais que não estejam atualmente em circulação, o limite de volume sob o Item 3.02 do Formulário 8-K será excedido por essa venda?

Resposta: sim. Como tal, nessas circunstâncias, um requisito de arquivamento do Item 3.02 Formulário 8-K seria acionado. [2 de abril de 2008]

Seção 113. Item 3.03 Modificação de Material aos Direitos dos Titulares de Valores Mobiliários.

Seção 114. Item 4.01 Mudanças no contador de certificação do registrante.

Questão 114.01.

Pergunta: Se um contabilista principal renunciar, declina a sua candidatura ou é demitido porque o seu registo no PCAOB foi revogado, caso o registante divulgue este facto quando apresentar o Item 4.01 Formulário 8-K para relatar uma alteração no contabilista ?

Resposta: sim. A divulgação da revogação do registro do contador no PCAOB é necessária para entender a divulgação exigida com relação à renúncia do ex-contador, a não reeleição ou a demissão. [Jan. 14, 2011]

Questão 114.02.

Pergunta: Um registrante contrata um novo contador principal relacionado de alguma maneira ao antigo contador principal (por exemplo, as empresas são afiliadas ou são firmas-membro da mesma rede), mas o novo principal contador é uma entidade legal separada e é separado registrado com o PCAOB. O registrante deve arquivar um Item 4.01 Formulário 8-K para relatar uma mudança no contador de certificação?

Resposta: sim. Como o novo contador principal é uma entidade legal diferente do ex-contador principal e é registrado separadamente no PCAOB, há uma mudança no contador de certificação, que deve ser informada no Item 4.01 Form 8 K. [Jan. 14, 2011]

Questão 114.03.

Pergunta: Se o principal contador de um registrante firmar uma combinação de negócios com outra firma de contabilidade, o registrante deve arquivar um Item 4.01 Formulário 8-K para relatar uma alteração no contador de certificação?

Resposta: Se um Item 4.01 Formulário 8-K é necessário dependerá de como a combinação é estruturada e de outros fatos e circunstâncias. As firmas de contabilidade que entram em combinações de negócios são encorajadas a discutir suas transações com o Escritório de Contador Chefe da Divisão. [Jan. 14, 2011]

Artigo 115. Item 4.02 Não Confiança em Demonstrações Financeiras Anteriores ou Relatórios de Auditoria Relacionados ou Revisão Intercalar Completa.

Questão 115.01.

Pergunta: Se um registrante tomou medidas apropriadas para evitar a confiança nas demonstrações financeiras e também apresentou um Formulário 8-K no Item 4.02 (a), o registrante deve arquivar um segundo Formulário 8-K no Item 4.02 (b) se É avisado separadamente ou recebe uma notificação do auditor de que o auditor chegou à mesma conclusão?

Resposta: Não. Se o registrante relatou que a confiança não deve ser depositada nas demonstrações financeiras anteriormente emitidas devido a um erro em tais demonstrações financeiras, o emissor não precisa apresentar um segundo Formulário 8-K para indicar que o auditor também concluiu que a confiança futura não deve ser colocada em seu relatório de auditoria, a menos que a conclusão do auditor esteja relacionada a um erro ou assunto diferente daquele que desencadeou o registro do registrante sob o Item 4.02 (a). [2 de abril de 2008]

Questão 115.02.

Pergunta: O Item 4.02 exige o arquivamento de um Formulário 8-K se uma empresa concluir que quaisquer demonstrações financeiras previamente emitidas não devem mais ser consideradas devido a um erro em tais demonstrações contábeis, conforme abordado na Declaração de Normas de Contabilidade Financeira do FASB. 154, Alterações Contábeis e Correções de Erros, aplicam-se a informações financeiras pro forma?

Resposta: Não. O requisito do item 4.02 não se aplica a informações financeiras pro forma. Se for detectado um erro nas informações financeiras pro forma, uma alteração no formulário contendo essas informações pode ser necessária para corrigir o erro. [2 de abril de 2008]

Questão 115.03.

Pergunta: Um arquivador deve fornecer divulgações sob o Item 4.02 (a) do Formulário 8-K quando descobre um erro material em seu Arquivo Interativo de Dados, enquanto as demonstrações financeiras nas quais elas se baseiam não contêm erro e podem continuar a ser invocadas ?

Resposta: Não. O item 4.02 (a) exige um Formulário 8-K apenas quando o declarante determina que as demonstrações financeiras anteriormente emitidas não devam mais ser consideradas devido a um erro nessas demonstrações financeiras. Se um arquivador quiser fornecer voluntariamente divulgação de confidencialidade semelhante ao Item 4.02 (a), referente somente aos dados interativos, ele poderá fazê-lo no Item 7.01 ou no Item 8.01 do Formulário 8-K. Em qualquer caso, se um arquivador encontrar um erro material em seu Arquivo Interativo de Dados, ele deverá arquivar uma emenda para corrigir o erro. Além disso, assim que um arquivador tomar conhecimento do erro em seu Arquivo Interativo de Dados, ele deve corrigir o erro imediatamente para que o Arquivo Interativo de Dados seja qualificado para o tratamento modificado de acordo com as leis federais de valores mobiliários fornecidas pela Regra 406T do Regulamento S-T. [29 de maio de 2009]

Seção 116. Item 5.01 Alterações no controle do registrante.

Seção 117. Item 5.02 Partida de Diretores ou Certos Diretores; Eleição dos Diretores; Nomeação de alguns oficiais; Acordos Compensatórios de Determinados Oficiais.

Questão 117.01.

Pergunta: Quando é a obrigação de relatar um evento especificado no Item 5.02 (b) do Formulário 8-K acionado? O Formulário 8-K arquivado para relatar um evento Item 5.02 (b) divulga a data efetiva da renúncia ou outro evento?

Resposta: Com relação a qualquer renúncia, aposentadoria ou recusa de se candidatar a reeleição conforme item 5.02 (b), exceto nas situações de política de governança corporativa abordadas na questão 117.15, a obrigação de comunicação do formulário 8-K é acionada por um aviso de uma decisão de demissão, aposentadoria ou recusa de reeleição feita pelo conselheiro, independentemente de a renúncia, a aposentadoria ou a recusa de se reeleger ser condicional ou estar sujeita à aceitação. . A divulgação deve especificar a data efetiva da renúncia ou aposentadoria. No caso de uma recusa em se candidatar à reeleição, o registrante deve divulgar quando a eleição em questão ocorrerá, por exemplo, na próxima reunião anual da registrante. Nenhuma divulgação é exigida apenas por motivo do Item 5.02 (b) das discussões ou consideração de renúncia, aposentadoria ou recusa de reeleição. Se comunicações representam discussão ou consideração, por um lado, ou notificação de uma decisão, por outro lado, é uma determinação de fatos e circunstâncias. Um registrante deve garantir que possui controles e procedimentos de divulgação apropriados - por exemplo, uma política da diretoria que todos os diretores devem fornecer tal notificação diretamente ao secretário corporativo - para determinar quando um aviso de renúncia, aposentadoria ou recusa foi comunicado à o registante. [26 de junho de 2008]

Questão 117.02.

Pergunta: O item 5.02 (b) do Formulário 8-K exige divulgação atual quando qualquer diretor executivo nomeado se aposentar, renunciar ou for demitido dessa posição. Since status as a named executive officer is determined based on the level of total compensation under Item 402(a)(3) of Regulation S-K, does this mean that disclosure on Form 8-K is triggered when the person is no longer required to be included in the Summary Compensation Table because of the executive officer’s level of total compensation?

Answer: No. Under Instruction 4 to Item 5.02, the term “named executive officer” refers to those executive officers for whom disclosure under Item 402(c) of Regulation S-K was required in the most recent Commission filing. A Form 8-K is triggered under Item 5.02(b) when one of those officers retires, resigns or is terminated from the position that the executive officer is listed as holding in the most recent filing including executive compensation disclosure under Item 402(c) of Regulation S-K. [April 2, 2008]

Question 117.03.

Question: A registrant’s principal operating officer has his duties and responsibilities as principal operating officer removed and reassigned to other personnel in the organization; however, the person remains employed by the registrant, and the person’s title remains the same. Is the registrant required to file a Form 8-K under Item 5.02 to report the principal operating officer’s termination?

Resposta: sim. The term “termination” includes situations where an officer identified in Item 5.02 has been demoted or has had his or her duties and responsibilities removed such that he or she no longer functions in the position of that officer. [April 2, 2008]

Question 117.04.

Question: If a registrant decides not to nominate a director for re-election at its next annual meeting, is a Form 8-K required?

Answer: No. That situation is not covered under the phrase “is removed.” However, if the director, upon receiving notice from the registrant that it does not intend to nominate him or her for re-election, then resigns his or her position as a director, then a Form 8-K would be required pursuant to Item 5.02. If the director tells the registrant that he or she refuses to stand for re-election, a Form 8-K is required because the director has communicated a “refusal to stand for re-election,” whether or not in response to an offer by the registrant to be nominated. [April 2, 2008]

Question 117.05.

Question: If a registrant appoints a new executive officer, it may delay disclosure until it makes a public announcement of the event under the Instruction to Item 5.02(c). If the new executive officer were simultaneously appointed to the board of directors of the registrant, would the registrant have to disclose such appointment pursuant to Item 5.02(d) within four business days following such appointment, even if that date is before the public announcement of the officer’s appointment?

Answer: No. In these circumstances, disclosures under paragraph (d) of Item 5.02 may be delayed to the time of public announcement consistent with Item 5.02(c). Similarly, any disclosure required under paragraph (e) of Item 5.02 may be delayed to the time of public announcement consistent with Item 5.02(c). [April 2, 2008]

Question 117.06.

Question: If the registrant does not consider its principal accounting officer an executive officer for purposes of Items 401 or 404 of Regulation S-K, must the registrant make all of the disclosures required by Item 5.02(c)(2) of Form 8-K?

Resposta: sim. All of the information required by Item 5.02(c)(2) regarding specified newly appointed officers, including a registrant’s principal accounting officer, is required to be reported on Form 8-K even if the information was not required to be disclosed in the Form 10-K because the position does not fall within the definition of an executive officer for purposes of Items 401 or 404 of Regulation S-K. [April 2, 2008]

Question 117.07.

Question: If a director is elected to the board of directors other than by a vote of security holders at a meeting, but the director’s term will begin on a later date, when is the reporting requirement under Item 5.02(d) of Form 8-K triggered?

Answer: The reporting requirement is triggered as of the date of the director’s election to the board. The Item 5.02(d) Form 8-K should disclose the date on which the director’s term begins. [April 2, 2008]

Question 117.08.

Question: The board of directors of the registrant adopts a material equity compensation plan in which named executive officers are eligible to participate. No awards have been made under the plan. Does board adoption of the plan trigger disclosure under Item 5.02(e)? Does the fact that adoption of the plan is subject to shareholder approval affect the timing of disclosure under Item 5.02(e)?

Answer: Adoption by the registrant’s board of directors of a material equity compensation plan in which named executive officers are eligible to participate requires current disclosure pursuant to Item 5.02(e) of Form 8-K. Where the registrant’s board adopts a compensation plan subject to shareholder approval, the obligation to file a Form 8-K pursuant to Item 5.02(e) is triggered upon receipt of shareholder approval of the plan. Similarly, if a reportable plan amendment or stock option grant is adopted subject to shareholder approval, the obligation to file a Form 8-K pursuant to Item 5.02 is triggered upon receipt of shareholder approval of the plan amendment or grant. [April 2, 2008]

Question 117.09.

Question: The board of directors of the registrant adopts a material cash bonus plan under which named executive officers participate. No specific performance criteria, performance goals or bonus opportunities have been communicated to plan participants. Does the adoption of such a plan require disclosure pursuant to Item 5.02(e) of Form 8-K?

Resposta: sim. Moreover, if the plan is adopted and is also subject to shareholder approval, the receipt of shareholder approval – and not the plan’s adoption – triggers the obligation to file a Form 8-K pursuant to Item 5.02(e). [April 2, 2008]

Question 117.10.

Question: After the adoption of a material cash bonus plan has been disclosed in an Item 5.02(e) Form 8-K, the board of directors sets specific performance goals and business criteria for named executive officers during the performance period. Does this action require disclosure pursuant to Item 5.02(e) of Form 8-K if the specific performance goals and business criteria set for the performance period are materially consistent with the previously disclosed terms of the plan?

Answer: No. In reliance on Instruction 2 to Item 5.02(e), the registrant is not required to file an Item 5.02(e) Form 8-K to report this action if the specific performance goals and business criteria set for the performance period are materially consistent with the previously disclosed terms of the plan, for example if the specific goals and criteria are among the previously disclosed performance goals and business criteria (such as EBITDA, return on equity or other applicable measure) that the plan may apply or has applied. [April 2, 2008]

Question 117.11.

Question: A registrant pays out a material cash award pursuant to a cash bonus plan for which disclosure previously was filed consistent with Exchange Act Form 8-K Questions 117.09 and 117.10. Does payment of the award require disclosure pursuant to Item 5.02(e) of Form 8-K?

Answer: Disclosure under Item 5.02(e) depends on the circumstances relating to the payment of the cash award. If the registrant pays out a cash award upon determining that the performance criteria have been satisfied, pursuant to Instruction 2 to Item 5.02(e), a Form 8-K reporting such a payment would not be required under Item 5.02(e) because the payment was materially consistent with the previously disclosed terms of the plan. However, if the registrant exercised discretion to pay the bonus even though the specified performance criteria were not satisfied, a Form 8-K reporting such a payment would be required under Item 5.02(e) because the payment was not materially consistent with the previously disclosed terms of the plan, even if the plan provided for the exercise of such discretion. [April 2, 2008]

Question 117.12.

Question: If an Item 5.02(e) Form 8-K is filed to disclose an annual non-equity incentive plan award, does the disclosure have to include the specific target levels?

Answer: The registrant is not required to provide disclosure pursuant to Item 5.02(e) of target levels with respect to specific quantitative or qualitative performance related-factors, or any other factors or criteria involving confidential trade secrets or confidential commercial or financial information, the disclosure of which would result in competitive harm for the registrant. This position is consistent with the treatment of similar information under Instruction 4 to Item 402(b) of Regulation S-K and Instruction 2 to Item 402(e)(1) of Regulation S-K. [April 24, 2009]

Question 117.13.

Question: If a previously-disclosed employment agreement provides that the principal executive officer is entitled to receive a cash bonus in an amount determined by the compensation committee in its discretion, would an Item 5.02(e) Form 8-K be required when the committee makes an ad hoc determination of the amount of the principal executive officer’s bonus at the end of the first year that the contract is in effect? Would an Item 5.02(e) Form 8-K be required if the committee makes an ad hoc determination of the amount of the CEO’s bonus at the end of the second year in which the contract is in effect?

Answer: No. In both cases, no Item 5.02(e) Form 8-K would be required to report the discretionary bonus amount. Disclosure regarding material information about the bonus should be included in the registrant’s Compensation Discussion and Analysis and related disclosures under Item 402 of Regulation S-K. [April 2, 2008]

Question 117.14.

Question: A registrant intends to terminate an executive compensation plan. Item 5.02(e) requires that material amendments or modifications of compensatory arrangements be disclosed on Form 8-K. Does this item require disclosure of plan terminations?

Resposta: sim. A termination should be disclosed if it constitutes a material amendment or modification of the executive compensation plan. Release No. 33-8732A stated that “[i]nstead of being required to be disclosed based on the general requirements with regard to material definitive agreements in Item 1.01 and Item 1.02 of Form 8-K, employment compensation arrangements will now be covered under Item 5.02 of Form 8-K, as amended.” [April 2, 2008]

Question 117.15.

Question: If a company has a corporate governance policy that requires a director to tender her resignation from the board of directors upon the occurrence of an event — such as reaching mandatory retirement age, changing jobs or failing to receive a majority of votes cast for election of directors at the annual meeting of shareholders — when must a company file a Form 8-K under Item 5.02(b)?

Answer: Under these circumstances, in which a director tenders her resignation only because she is required to do so in order to comply with a corporate governance policy, the company must file a Form 8-K under Item 5.02(b) within four business days of the board's decision to accept the director's tender of resignation. If the board does not accept the director's tender of resignation — and thus, the director remains on the board — the company should consider informing shareholders as to whether and to what extent corporate governance policies are being followed and enforced. [June 26, 2008]

Question 117.16.

Question: A registrant appoints a new director, triggering the obligation to file a Form 8-K pursuant to Item 5.02(d). The newly appointed director enters into the standard compensatory and other agreements and arrangements that the company provides its non-employee directors ( e. g. , an equity award, annual cash compensation and an indemnification agreement). Pursuant to Item 5.02(d)(5), must the Form 8-K describe these compensatory and other agreements and arrangements?

Resposta: sim. Item 5.02(d)(5) requires a brief description of the newly appointed director's compensatory and other agreements and arrangements, even if they are consistent with the registrant's previously disclosed standard agreements and arrangements for non-employee directors. In lieu of describing any material plan, contract or arrangement to which the director is a party or in which he or she participates, (but not material amendments or grants or awards or modifications thereto), the registrant may cross-reference the description of such plan, contract or arrangement from the Item 402 disclosure in the company's most recent annual report on Form 10-K or proxy statement. [May 29, 2009]

Section 118. Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.

Question 118.01.

Question: Does the restatement of a registrant’s articles of incorporation, without any substantive amendments to those articles or any requirement to be approved by security holders, trigger a Form 8-K filing requirement?

Answer: No. An Item 5.03 Form 8-K is not required to be filed when the registrant is merely restating its articles of incorporation ( e. g. , a restatement that merely consolidates previous amendments without any substantive changes to the articles of incorporation). However, the Division staff recommends that a registrant refile its complete articles of incorporation, if restated, in its next periodic report for ease of reference by investors. [April 2, 2008]

Section 119. Item 5.04 Temporary Suspension of Trading Under Registrant’s Employee Benefit Plans.

Question 119.01.

Question: Is a Form 8-K filing required for the notice of any time period that constitutes a "blackout period" for purposes of the notice requirements under ERISA, without regard to whether it is also a "blackout period" for purposes of Section 306(a) of the Sarbanes-Oxley Act of 2002 and Regulation BTR?

Answer: No. Item 5.04 applies only to a notice of a "blackout period" under Section 306(a) of Sarbanes-Oxley and Regulation BTR. [May 29, 2009]

Section 120. Item 5.05 Amendments to the Registrant’s Code of Ethics, or Waiver of a Provision of the Code of Ethics.

Section 121. Item 5.06 Change in Shell Company Status.

Section 121A. Item 5.07 Submission of Matters to a Vote of Security Holders.

Question 121A.01.

Question: How should an issuer calculate the four business day filing period for an Item 5.07 Form 8-K?

Answer: Pursuant to Instruction 1 to Item 5.07, the date on which the shareholder meeting ends is the triggering event for an Item 5.07 Form 8-K. Day one of the four-business day filing period is the day after the date on which the shareholder meeting ends. For example, if the meeting ends on Tuesday, day one would be Wednesday, and the four-business day filing period would end on Monday. [Feb. 16, 2010]

Question 121A.02.

Question: Does the Item 5.07(b) requirement to report the number of shareholder votes cast for, against or withheld with respect to a matter apply only to matters voted upon at a meeting that involves the election of directors?

Answer: No. This reporting obligation applies with respect to any matter submitted to a vote of security holders, through the solicitation of proxies or otherwise. [June 4, 2010]

Question 121A.03.

Question: Item 5.07(b) requires disclosure of the number of votes cast for, against or withheld, as well as the number of abstentions and broker non-votes, as to each matter submitted to a vote of security holders. With respect to the advisory vote on the frequency of shareholder advisory votes on executive compensation, Item 5.07(b) requires disclosure of the number of votes cast for each of the one, two and three year frequency options, as well as the number of abstentions. Are companies also required to state the number of broker non-votes with respect to the frequency of shareholder advisory votes on executive compensation?

Answer: No. Item 5.07(b) does not require disclosure of the number of broker non-votes with respect to the advisory vote on the frequency of shareholder advisory votes on executive compensation. If a company believes this information would be useful for investors, then it may disclose such information under Item 5.07(b). [July 8, 2011]

Question 121A.04.

Question: May an issuer disclose its decision as to how frequently it will include a shareholder advisory vote on executive compensation in its proxy materials in a periodic report instead of an Item 5.07 Form 8-K, pursuant to General Instruction B.3 to Form 8-K?

Resposta: sim. Pursuant to General Instruction B.3, an issuer may report Item 5.07 Form 8-K information in a periodic report that is filed on or before the date that an Item 5.07 Form 8-K would otherwise be due. If the issuer reports its annual meeting voting results in a Form 10-Q or Form 10-K, it may file a new Item 5.07 Form 8-K, rather than an amended Form 10-Q or Form 10-K, to report its decision as to how frequently it will include a shareholder advisory vote on executive compensation in its proxy materials. However, if the issuer reports its annual meeting voting results in an Item 5.07(b) Form 8-K and also intends to report its frequency decision in a Form 8-K, then, as required by Item 5.07(d), that Form 8-K must be filed as an amendment to the Item 5.07(b) Form 8-K - using submission type 8-K/A - and not as a new Form 8-K. [July 8, 2011]

Section 122. Item 6.01 ABS Information and Computational Material.

Section 123. Item 6.02 Change of Servicer or Trustee.

Section 124. Item 6.03 Change in Credit Enhancement or Other External Support.

Section 125. Item 6.04 Failure to Make a Required Distribution.

Section 126. Item 6.05 Securities Act Updating Disclosure.

Section 127. Item 7.01 Regulation FD Disclosure.

Section 128. Item 8.01 Other Events.

Section 129. Item 9.01 Financial Statements and Exhibits.

Question 129.01.

Question: Is the automatic 71-day extension of time in Item 9.01 of Form 8-K available with respect to dispositions?

Answer: No. The automatic 71-day extension of time in Item 9.01 of Form 8-K is available only with respect to acquisitions, not dispositions. The Division’s Office of the Chief Accountant will continue to address questions regarding dispositions on a case-by-case basis. [April 2, 2008]

INTERPRETIVE RESPONSES REGARDING PARTICULAR SITUATIONS.

Section 201. Form 8-K – General Guidance.

Section 202. Item 1.01 Entry into a Material Definitive Agreement.

202.01 If an Item 1.01 Form 8-K filing requirement is triggered in early April for a registrant with a calendar year fiscal year ( i. e. , after the end of the registrant’s first quarter but before the registrant is required to file its Form 10-Q for that quarter), and the registrant timely files the Item 1.01 Form 8-K but does not file the agreement (to which the Item 1.01 Form 8-K relates) as an exhibit to that Form 8-K, the registrant is required to file the agreement as an exhibit to its second quarter Form 10-Q. The disclosure requirement under Item 1.01 of Form 8-K does not alter the existing requirements for the filing of exhibits under Item 601 of Regulation S-K. [April 10, 2008]

Section 203. Item 1.02 Termination of a Material Definitive Agreement.

Section 204. Item 1.03 Bankruptcy or Receivership.

Section 205. Item 2.01 Completion of Acquisition or Disposition of Assets.

205.01 Item 2.01 of Form 8-K, which calls for disclosure of the acquisition or disposition of a significant amount of assets, does not require disclosure of the execution of a contract to acquire or dispose of the assets. Disclosure under Item 2.01 is specifically required only when such an acquisition or disposition is consummated. Nevertheless, the filing of a Form 8-K reporting the execution of a contract for the acquisition or disposition of assets may be required earlier by Item 1.01 of Form 8-K if the registrant has entered into a material definitive agreement not made in the ordinary course of business of the registrant (or an amendment of such agreement that is material). Even if Item 1.01 and Item 2.01 do not require disclosure, if the registrant deems the contract to be of importance to security holders, then the registrant may voluntarily disclose it pursuant to Item 8.01. The financial statement requirement of Item 9.01 is triggered by Item 2.01, but is not triggered by Item 1.01 or 8.01. [April 2, 2008]

205.02 The purchase by a reporting company of a minority stock interest in a business from an independent third party (which is accounted for under the cost method) would not require the filing of the financial statements of that business with any Form 8-K filed to report the transaction, so long as that minority position did not result in the reporting company’s control of the assets. [April 2, 2008]

205.03 A wholly-owned subsidiary acquires a significant amount of assets from its parent. Both the subsidiary and the parent are reporting companies. The term “any person” found in Instruction 1 to Item 2.01 of Form 8-K refers to the company that has the obligation to file the report. Therefore, while Instruction 1 would not require a filing by the parent, the subsidiary would be required to file the report. [April 2, 2008]

205.04 An indefinite closing of a portion of a company’s restaurant facilities, coupled with a write-down of its assets in excess of 10 percent, constitutes an “other disposition” for purposes of Instruction 2 to Item 2.01 of Form 8-K, and thus requires the filing of a Form 8-K report. [April 2, 2008]

205.05 Paragraph (iii) of Instruction 1 to Item 2.01 of Form 8-K indicates that a Form 8-K filing is not required to report the redemption or acquisition of securities from the public, or the sale or other disposition of securities to the public, by the issuer of such securities or by a wholly-owned subsidiary of that issuer. This instruction does not apply to the sale of a subsidiary’s equity, because the subsidiary would not be wholly-owned after the transaction is completed. [April 2, 2008]

Section 206. Item 2.02 Results of Operations and Financial Condition.

206.01 Item 2.02(b) provides that a Form 8-K is not required to report the disclosure of material nonpublic information that is disclosed orally, telephonically, by webcast, broadcast or similar means if, among other things, that presentation is complementary to and initially occurs within 48 hours following a related written announcement or release that has been furnished on an Item 2.02 Form 8-K. This 48-hour safe harbor is construed literally and is not the equivalent of two business or calendar days. [April 2, 2008]

Section 207. Item 2.03 Creation of a Direct Financial Obligation under an Off-Balance Sheet Arrangement of a Registrant.

Section 208. Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

208.01 A voluntary redemption of convertible notes by a registrant is not a triggering event for purposes of Item 2.04 of Form 8-K. [April 2, 2008]

208.02 A company disagrees with the legitimacy of a notice of default and brings the matter to arbitration, pursuant to its rights under the terms of the applicable loan agreement. The matter is pending with an arbitrator. Notwithstanding its good faith belief that no event of default has taken place and the fact that the arbitrator has yet to rule on the legitimacy of the event of default, the notice of default is a triggering event under Item 2.04. When the company files the Form 8-K, it may include a discussion of the basis for its belief that no event of default has occurred. [April 2, 2008]

Section 209. Item 2.05 Costs Associated with Exit or Disposal Activities.

209.01 An Item 2.05 Form 8-K filing requirement is triggered when a registrant’s board or board committee, or the registrant’s officer(s) authorized to take such action if board action is not required, commits the registrant to a “plan of termination” that meets the description of such a plan in paragraph 8 of SFAS No. 146, under which material charges will be incurred under generally accepted accounting principles applicable to the registrant under the plan. The “plan of termination” need not fall within an “exit activity,” as defined in SFAS No. 146, or otherwise constitute an “exit or disposal plan” (or part of one), to trigger an Item 2.05 Form 8-K filing requirement. [April 2, 2008]

Section 210. Item 2.06 Material Impairments.

Section 211. Item 3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

211.01 A registrant’s common stock is traded on the OTC Bulletin Board, which is not an automated inter-dealer quotation system of a registered national securities association, and is not otherwise traded on an exchange. The registrant has applied to list its common stock on the American Stock Exchange. In this instance, an Item 3.01 Form 8-K filing requirement is not triggered upon the registrant’s application for listing on the American Stock Exchange, or upon the approval of the application. [April 2, 2008]

Section 212. Item 3.02 Unregistered Sales of Equity Securities.

212.01 An Item 3.02 Form 8-K filing requirement is triggered when a registrant enters into an agreement enforceable against the registrant to issue unregistered equity securities to a third party in exchange for services and the applicable volume threshold is exceeded. [April 2, 2008]

212.02 If an Exchange Act reporting, wholly-owned subsidiary receives an additional equity investment from its Exchange Act reporting parent and the volume threshold under Item 3.02 of Form 8-K is exceeded, the wholly-owned subsidiary is required to file an Item 3.02 Form 8-K to report the additional equity investment, regardless of whether the wholly-owned subsidiary meets the conditions for the filing of abbreviated periodic reports under General Instruction H of Form 10-Q and General Instruction I of Form 10-K. [April 2, 2008]

212.03 An Item 3.02 Form 8-K filing requirement is triggered upon an unregistered sale of warrants to purchase equity securities (or an unregistered sale of options outside a stock option plan), if the volume threshold under Item 3.02 is exceeded, or upon an unregistered sale of convertible notes (convertible into equity securities), if the volume threshold under Item 3.02 of the underlying equity security issuable upon conversion is exceeded. Pursuant to Item 701(e) of Regulation S-K, the registrant must disclose the terms of, as applicable, the exercise of the warrants or the options or the conversion of the convertible notes in the Item 3.02 Form 8-K. If the Item 3.02 Form 8-K that discloses the initial sale of the warrants, the options, or the convertible notes also discloses the maximum amount of the underlying securities that may be issued through, as applicable, the exercise of the warrants or the options or the conversion of the convertible notes, then a subsequent Item 3.02 Form 8-K filing requirement is not triggered upon the exercise of the warrants or the options or the conversion of the notes. [April 2, 2008]

Section 213. Item 3.03 Material Modifications to Rights of Security Holders.

213.01 Upon adoption of a shareholder rights plan, a registrant undertook to make a dividend of a preferred share purchase right for each outstanding share of common stock. The Plan was adopted by the board on August 9. The certificate of designation related to the preferred share purchase right was filed with the state on August 25. The dividend, not yet declared, will occur only upon certain change in control events. Under Item 3.03(b) of Form 8-K, the triggering event related to the plan occurs not upon adoption of the plan or upon filing of the certificate of designation with the state, but rather upon the issuance of the dividend. The rights of the holders of the registered common stock are not materially limited or qualified until the issuance of, in this case, the preferred share purchase rights. The preferred share purchase rights are not issued until the dividend is declared and the rights are distributed. Although the registrant is not required to file an Item 3.03 Form 8-K until the issuance of the dividend, the registrant must file an Item 1.01 Form 8-K when it enters into the shareholder rights plan if the plan constitutes a material definitive agreement not made in the ordinary course of business. [April 2, 2008]

Section 214. Item 4.01 Changes in Registrant’s Certifying Accountant.

214.01 Item 4.01 of Form 8-K requires an issuer to report a change in its certifying accountant. The item also requires that the issuer request the former accountant to furnish a letter stating whether the former accountant agrees with the issuer’s statements concerning the reasons for the change. Where the former accountant declines to provide such a letter, the issuer should indicate that fact in the Form 8-K. [April 2, 2008]

214.02 Item 4.01 of Form 8-K requires a registrant to report changes in its certifying accountant. The company must file the report on a Form 8-K and must file any required amendments to the report on a Form 8-K/A. It is not sufficient to report the event in a periodic report. See Exchange Act Form 8-K Question 101.01. [April 2, 2008]

Section 215. Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.

215.01 Item 4.02 of Form 8-K requires an issuer to report a decision that its past financial statements should no longer be relied upon. The company must file the report on a Form 8-K and file any required amendments on a Form 8-K/A. It is not sufficient to report the event in a periodic report. See Exchange Act Form 8-K Question 101.01. [April 2, 2008]

Section 216. Item 5.01 Changes in Control of Registrant.

Section 217. Item 5.02 Departure of Certain Directors or Certain Officers; Eleição dos Diretores; Nomeação de alguns oficiais; Acordos Compensatórios de Determinados Oficiais.

217.01 Item 5.02(a) of Form 8-K requires registrants to describe the circumstances of a director’s resignation when he or she resigned “because of a disagreement with the registrant… on any matter related to the registrant’s operations, policies or practices.” A disagreement with the process chosen by the Chairman and other board members to address a director’s alleged violation of a company’s policy regarding unauthorized public disclosures and the board’s related decision to ask the director to resign is a disagreement on matters “related to the registrant’s operations, policies or practices.” See In the Matter of Hewlett Packard Company, Release 34-55801 (May 23, 2007). [April 2, 2008]

217.02 When a principal financial officer temporarily turns his or her duties over to another person, a company must file a Form 8-K under Item 5.02(b) to report that the original principal financial officer has temporarily stepped down and under Item 5.02(c) to report that the replacement principal financial officer has been appointed. If the original principal financial officer returns to the position, then the company must file a Form 8-K under Item 5.02(b) to report the departure of the temporary principal financial officer and under Item 5.02(c) to report the “re-appointment” of the original principal financial officer. [April 2, 2008]

217.03 A director who is designated by an issuer’s majority shareholder gives notice that he will resign if the majority shareholder sells its entire holdings of issuer stock. This notice triggers an obligation to file an Item 5.02(b) Form 8-K, which should state clearly the nature of the contingency and the extent to which the resigning director can control occurrence of the contingency. [April 2, 2008]

217.04 Item 5.02(b) of Form 8-K does not require a registrant to report the death of a director or listed officer. [April 2, 2008]

217.05 If, pursuant to a contractual provision in a named executive officer’s employment contract or otherwise, the registrant must notify the named executive officer of the termination of his or her employment a specified number of days prior to the date on which the named executive officer’s employment would end, an Item 5.02(b) Form 8-K filing requirement is triggered on the date the registrant notifies the named executive officer of his or her termination, not on the date the named executive officer’s employment actually ends. [April 2, 2008]

217.06 A registrant appoints a new principal accounting officer, which triggers an Item 5.02(c) Form 8-K filing requirement. The registrant can decide to delay the filing of the Item 5.02(c) Form 8-K until it makes a public announcement of the appointment of the new principal accounting officer, pursuant to the Instruction to paragraph (c) of Item 5.02. The new principal accounting officer replaces the old principal accounting officer, who retired, resigned, or was terminated from that position. The retirement, resignation, or termination of the old principal accounting officer triggers an Item 5.02(b) Form 8-K filing requirement. The registrant may not delay the filing of the Item 5.02(b) Form 8-K until the filing of the Form 5.02(c) Form 8-K. Rather, the Item 5.02(b) Form 8-K filing obligation is triggered by the old principal accounting officer’s notice of a decision to retire or resign or by the notice of termination, whether or not such notice is written. [April 2, 2008]

217.07 A director was appointed by board vote and, at the same time, named to the audit committee. Both the appointment of the director to the board and the committee assignment were disclosed under Item 5.02(d) of Form 8-K. Three months later, the board rotates committee assignments, and the new director is moved from the audit committee to the compensation committee. No new Form 8-K or amendment to the Item 5.02(d) Form 8-K is required by Instruction 2 to Item 5.02 in this situation, provided that the change in committee assignment was not contemplated at the time of the director’s initial election to the board and appointment to the audit committee. [April 2, 2008]

217.08 In the past, a named executive officer entered into an employment agreement that will, pursuant to its terms, expire after two years. The employment agreement automatically extends for an additional two-year term, unless the registrant or the named executive officer affirmatively gives notice that it is not renewing the agreement. The automatic renewal of the employment agreement ( i. e. , when the original two-year term of the employment agreement expires and neither party gives notice that it does not wish to renew the agreement) does not trigger an Item 5.02(e) Form 8-K filing requirement. [April 2, 2008]

217.09 Foreign private issuers that satisfy the Item 402 of Regulation S-K disclosure requirement by providing compensation disclosure in accordance with Item 402(a)(1) should refer to Instruction 4 to Item 5.02 to determine who is a “named executive officer.” The named executive officers will be those individuals for whom disclosure was provided in the last Securities Act or Exchange Act filing pursuant to Item 6.B or 6.E.2 of Form 20-F. [April 2, 2008]

Section 218. Item 5.03 Amendments to Articles of Incorporation or Bylaws; Changes in Fiscal Year.

218.01 Release No. 34-26589, which significantly amended Rule 15d-10, states that “[a] change from a fiscal year ending as of the last day of the month to a 52-53 week fiscal year commencing within seven days of the month end (or from a 52-53 week to a month end) is not deemed a change in fiscal year for purposes of reporting subject to Rule 13a-10 or 15d-10 if the new fiscal year commences with the end of the old fiscal year. In such cases, a transition report would not be required. Either the old or new fiscal year could, therefore, be as short as 359 days, or as long as 371 days (372 in a leap year).” While a transition report would not be required in such a situation, an Item 5.03(b) Form 8-K would have to be filed to report the change in fiscal year-end. [April 2, 2008]

Section 219. Item 5.04 Temporary Suspension of Trading Under Registrant’s Employee Benefit Plans.

Section 220. Item 5.05 Amendments to the Registrant’s Code of Ethics, or Waiver of a Provision of the Code of Ethics.

Section 221. Item 5.06 Change in Shell Company Status.

Section 222. Item 6.01 ABS Information and Computational Material.

Section 223. Item 6.02 Change of Servicer or Trustee.

Section 224. Item 6.03 Change in Credit Enhancement or Other External Support.

Section 225. Item 6.04 Failure to Make a Required Distribution.

Section 226. Item 6.05 Securities Act Updating Disclosure.

Section 227. Item 7.01 Regulation FD Disclosure.

Section 228. Item 8.01 Other Events.

Section 229. Item 9.01 Financial Statements and Exhibits.

229.01 Item 20.D. of Industry Guide 5 requires, inter alia , an undertaking to file every three months post-effective amendments containing financial statements of acquired properties. Even if the automatic 71-day extension of time to file the financial statements for an acquired property is applicable to a Form 8-K, this extension does not apply to the Guide 5 post-effective amendment. Accordingly, the post-effective amendment must be filed when required by Item 20 of Guide 5, and must contain the required financial statements. This is the same position as that taken before the Form 8-K extensions were made automatic. [April 2, 2008]

229.02 During the pendency of a 71-day extension applicable to a Form 8-K, Securities Act offerings may not be made except as provided in the Instruction to Item 9.01 of Form 8-K. The Division staff has been asked whether this provision applies to real estate limited partnership offerings, thus prohibiting sales from being made until financial statements for properties acquired during the offering period have been filed (even when the quarterly post-effective amendment is not yet due). The amendment to Form 8-K was not intended to change the procedure established in Item 20.D. of Guide 5. Accordingly, when properties are acquired during the offering period, the registrant may continue sales activities notwithstanding the pendency of an 8-K extension, so long as the quarterly post-effective amendments containing the financial statements are filed when required. [April 2, 2008]

229.03 The Instruction to Item 9.01 of Form 8-K addresses the status of transactions in securities registered under the Securities Act and Rule 144 sales during the pendency of an extension, but does not address the status of such sales after a denial of a request for waiver of financial statements. This question will be dealt with on a case-by-case basis. [April 2, 2008]

229.04 Item 17(b)(7) of Form S-4 states generally that the financial statements of acquired companies that were not previously Exchange Act reporting companies need be audited only to the extent practicable, unless the Form S-4 prospectus is to be used for resales by any person deemed an underwriter within the meaning of Rule 145(c), in which case such financial statements must be audited. The Division staff was asked whether a resale pursuant to Rule 145(d), in lieu of the Form S-4 prospectus, would require the financial statements to be audited. The Division staff noted that Rule 145(d) is not included in the Instruction to Item 9.01 of Form 8-K regarding sales pursuant to Rule 144 during the 71-day extension period for filing financial statements. As the audited financial statements for the acquired company would be required pursuant to Item 9.01 of Form 8-K, a resale pursuant to Rule 145(d) would not be permitted until they are filed. [April 2, 2008]

Trigger Trade.

DEFINITION of 'Trade Trigger'

A trade trigger is any type of event that triggers a security or a set of securities to trade. A trade trigger is usually a market condition, such as a rise or fall in the price of an index or security, that triggers a sequence of trades. Trade triggers are used to automate certain types of trades, such as the selling of shares when the price reaches a certain level.

BREAKING DOWN 'Trade Trigger'

Trade triggers help traders automate their entry and exit strategies. Often times, trade triggers refer to contingent – or one triggers other (OTO) – orders involving both a primary and secondary order. When the first order executes, the second order is triggered automatically and becomes active for execution depending on any further conditions. Trade triggers may also be used to place individual trades based on the price or external factors.

Trade Trigger Example.

Suppose that a trader wants to create a covered call position. The trader may place a limit order to buy 100 shares of stock and, if the trade executes, sell a call option against the stock that was just purchased. By using trade triggers, the trader doesn’t have to worry about watching for the first order before manually placing the second trade. The trader can be confident that both orders were placed at the right prices.

Traders may also want to use the proceeds from a sale to make a purchase. For example, a trader may place a limit order to close out an option position and setup a trade trigger to use the proceeds to purchase a different option contract. The trader doesn’t have to worry about the timing of the second trade and can instead focus on identifying new opportunities.

Finally, trade triggers may be used to add a leg to a strategy. For example, a trader may place a limit order to buy a put and have a contingent limit order to sell a put. This strategy can help traders create a complex option strategy without executing individual trades, which reduces the risk of placing the wrong trades or waiting too long to open or modify a trade.

Risks to Consider.

Trade triggers may be helpful in automating entry and exit strategies, but traders should exercise caution when using them. After all, it’s easy for traders to forget about positions created more than a day ago and the execution of old trading ideas can lead to losses.

Traders should be sure to revisit any open trade triggers at the end each day and consider only using day-long orders for setting up these strategies rather than good-til-canceled or other longer order types.

The Bottom Line.

Trade triggers automate the process of buying and selling securities based on a set of criteria. Often times, traders will use trade triggers to place compound orders that rely on a series of conditions to be met. Traders should ensure that their trade triggers remain relevant over time.

Triggering Event.

What is a 'Triggering Event'

1. A tangible or intangible barrier or occurrence that, once breached or met, causes another event to occur. Triggering events are written into contracts to prevent or ensure that after a given occurrence, the terms of the original agreement are abandoned or changed to suit the party that included the triggering event in the agreement.

BREAKING DOWN 'Triggering Event'

1. It is common for banks to issue debt at a given interest rate on certain terms. For example, one of the bank's terms could be that the borrowing party does not incur any more debt for the term of the loan. Should the borrower incur more debt - the triggering event - the bank may foreclose on the loan or increase the original rate of interest accordingly.

Options, Warrants, Phantom Stock, Restricted Stock and Strip Rights . Oh, My!

By Cliff Ennico.

"We are starting up a technology company and want to know the right way to compensate our technicians, developers and others who will be helping us grow the business.

"We don't want to give them equity at this time because we don't know how committed they will be to the business going forward. But we do want them to share in the growth of the company if it's successful.

"We've done some research online, and it's all pretty overwhelming. Can you put together a simple checklist of the different ways we can incentivize our key players?"

My motto has always been, "No challenge too great; no fee too low." So here goes .

You have basically five options (other than cash, of course) when compensating sweat equity players in a startup company.

Estoque restrito. By giving your sweat equity team restricted stock, you are giving them actual shares in the company, but with a number of strings attached:

—The shares must be nonvoting — you don't want these people having the right to second guess your management decisions, or be invited to attend formal meetings of shareholders;

—the shares must vest over a period of up to three years; e.

—even after a person's shares have vested, you must have the right to buy them back at book value or other some highly discounted price if the sweat equity player leaves the company after the shares have vested (this is commonly called a "clawback" provision).

Opções de ações. By granting options to your sweat equity players, you enable them to buy stock in your company down the road at a highly discounted (bargain) price.

First, you put a value on what your company is worth today. Since you are just starting out, this will be an extremely small number, for example one penny ($.01) per share. You then grant each sweat equity player the option to purchase X number of shares — say, 10,000 shares — at that price (so $100 in total) when the shares vest one, two or three years after the date of grant.

As the company grows in value, holders of options will exercise them by purchasing shares for the original option price ($.01 per share). So if your company is now worth one dollar ($1.00) per share, and the option holder exercises all 10,000 of his or her options, he or she is getting $10,000 worth of stock for a purchase price of $100. Não é um mau negócio.

The tax laws governing stock options are quite complicated; holders may have to pay income taxes on the capital gain they realize when exercising their options, or later on when they sell their shares.

Warrants. Warrants work exactly the same way as options, except that they are granted to outside investors in the company, not employees. While there is no law against granting options to investors and warrants to employees, it's best to honor tradition when putting names on these things to avoid confusing people.

Estoque Fantasma. A phantom stock plan (or phantom equity for an LLC) works like a stock option except that the sweat equity player receives cash instead of stock in the company.

In a phantom stock plan, you set up a book account giving each participant a number of credits, each credit having a value equal to one share of your company's stock on the date the credit is booked. As the company grows, you value the company each year, and pay to each player cash in an amount equal to the difference between the value of his credits on that date and the value of his credits the preceding year.

Strip Rights. A strip right gives the player the right to receive, in cash, a percentage of the net proceeds of any merger, acquisition or sale of the company in the future. Strip right holders have no right to dividends or distributions of cash until the event triggering a cash payout occurs.

When considering these methods, here are the tradeoffs:

—"Restricted stock" gives holders actual ownership of your company — even holders of nonvoting stock have legal rights, and if things don't work out you will have to buy back the holders' shares;

—"stock options" defer ownership in your company to a future time, but holders of options will eventually become shareholders if your company is successful — also, options can have negative tax consequences to the people that hold them, and you may have to indemnify option holders against those consequences;

—holders of "phantom stock" never become owners of your company, but you must pay someone to value your company each year and pay cash to participants in the plan;

—holders of "strip rights" never become owners of your company, but you must compensate them in cash if a merger, acquisition, or other triggering event occurs — because strip rights (usually) never expire, you may need to keep them on your books for much longer periods than options or phantom stock.

Melhorando os Resultados Fiscais para sua Opção de Compra de Ações ou Restricted Stock Grant, Parte 2.

Na primeira parte desta série de três partes, discutimos os quatro principais impostos relevantes para os indivíduos. Agora, aplicaremos esse conhecimento para mostrar quais impostos seriam incorridos em cinco situações comuns enfrentadas por funcionários que trabalham para empresas apoiadas por capital de risco.

1: Angel Investment ou Founder Stock.

Para muitas empresas iniciantes, o primeiro dinheiro vem de investidores anjos ou dos próprios fundadores em troca de ações preferenciais e ordinárias, respectivamente. Em troca de dinheiro, os investidores (talvez por meio de uma sociedade limitada) e os fundadores recebem ações. O ganho de capital que detém o relógio começa com a compra dessas ações e pára após a alienação da ação. O acionista obtém um ganho de longo prazo se ela mantiver suas ações por mais de um ano e um ganho de curto prazo se ela o detiver por menos. Embora esteja além do escopo desta discussão, o imposto sobre ganhos de capital pode ser reduzido se o investimento se qualificar como ações qualificadas para pequenas empresas (QSBS).

2: Opções de ações da empresa privada.

Os funcionários de empresas privadas geralmente recebem um dos dois tipos de opções de ações, que são taxadas de maneira muito diferente:

Opções de ações de incentivo.

As opções de ações de incentivo (ISOs) geralmente são concedidas apenas aos funcionários mais antigos. Eles são chamados de opções de ações de incentivo porque se você mantiver as ações por pelo menos dois anos a partir da data da concessão e pelo menos um ano da data do exercício, receberá tratamento de ganhos de capital a longo prazo quando vender (potencialmente um 19,6% redução da taxa federal se você estiver na maior taxa de imposto de renda comum marginal).

A AMT em ISOs é às vezes chamada de imposto fictício porque, no ano de exercício, você pode pagar impostos, apesar do fato de não ter vendido nenhuma ação ou recebido dinheiro para ajudar a pagar o imposto.

Após o recebimento de uma concessão da ISO, não há evento tributável; da mesma forma, após o exercício (compra) ainda não há evento tributável para fins fiscais regulares. No entanto, após o exercício, você deve adicionar o spread entre o preço de exercício e o valor atual de mercado justo do estoque à sua receita para calcular seu imposto mínimo alternativo potencial (AMT). Isso pode ou não fazer com que você incorra na AMT, como explicamos na Parte 1 desta série. A AMT em ISOs é às vezes chamada de imposto fictício porque, no ano de exercício, você pode pagar impostos, apesar do fato de não ter vendido nenhuma ação ou recebido dinheiro para ajudar a pagar o imposto.

A boa notícia é que, se você realmente pagar a AMT como resultado do exercício da ISO, sua declaração de imposto gerará um crédito de imposto, que será transferido para exercícios fiscais futuros. Em qualquer ano futuro em que seu imposto regular exceda seu imposto mínimo provisório, você pode recuperar seu crédito fiscal. O momento mais provável para que isso aconteça é no ano em que você vender as ações ISO exercidas, supondo que você as mantenha por tempo suficiente para se qualificar para ganhos de capital de longo prazo.

Se você decidir vender seus ISOs ou se for forçado a (se, por exemplo, sua empresa for adquirida) antes de atender aos requisitos de manutenção de um e dois anos, então acionará uma disposição desqualificadora e será taxada taxas de rendimento ordinárias. Isso pode ficar um pouco complicado se o seu exercício e venda ocorrer em dois anos fiscais diferentes - mas basta dizer que o spread no momento do exercício será tratado como renda ordinária. Essa renda será informada a você como salário extra em seu holerite, mas não terá retenções.

Opções de ações não qualificadas.

As opções de ações não qualificadas (NQSOs) são normalmente concedidas a funcionários de estágio posterior e de nível mais alto em empresas privadas. Você só pode conceder até US $ 100.000 do valor ISO em um ano, portanto, subvenções acima de US $ 100.000 devem estar na forma de NQSOs e, normalmente, apenas funcionários de escalão superior recebem doações desse valor. Os empregadores podem gostar de emitir NQSOs para funcionários de estágio posterior porque eles oferecem certas deduções fiscais corporativas que os ISOs não oferecem.

Embora os ISOs não tenham requisitos de retenção, alguns funcionários podem optar por vender uma parte de seus ISOs após o exercício (acionando uma disposição desqualificante para essa parte), para que eles tenham dinheiro para pagar a AMT no vencimento.

Na época da concessão do NQSO, não há evento tributável; mas, com o exercício da opção, o spread entre o preço de exercício e o valor de mercado atual é informado como receita ordinária e aparece nos contracheques dos empregados com rendimentos associados e retenção de imposto sobre a folha de pagamento. Se a empresa ainda é privada e não há mercado para as ações, o empregado pode ser solicitado a escrever um cheque para a empresa para cobrir não só o preço de exercício, mas também as retenções fiscais.

Se, por outro lado, você estiver em um estágio inicial muito inicial - e não tiver spread ou spread mínimo durante o exercício - outra estratégia poderia ser exercitar e manter seus NQSOs, depois manter as ações por mais de um ano após o exercício. Nesse caso, você receberá tratamento de ganhos de capital a longo prazo e a apreciação após o exercício.

(Você também pode estar interessado em ler o nosso post "Três maneiras de evitar problemas fiscais quando você exercita opções" para mais discussão e alguns cenários hipotéticos envolvendo ISOs e NQSOs.)

3: Empresa Pública Venda no Mesmo Dia das Opções.

Para muitos funcionários de empresas públicas que não exerceram suas opções anteriormente, pode fazer sentido fazer uma venda no mesmo dia se houver um spread substancial entre o preço de exercício e o preço de negociação atual de suas ações. Isso significa que eles efetivamente exercem sua opção e imediatamente vendem as ações subjacentes no mercado aberto, deixando-as com os recursos da venda reduzidos pelo seu preço de exercício e retenções fiscais aplicáveis. Observe que, seja este um ISO ou um NQSO, a venda resulta em receita ordinária. Uma diferença importante a ser observada é que os NQSOs têm retenções de imposto de renda e folha de pagamento, enquanto os ISOs não têm nenhum. Portanto, os funcionários que exercem e vendem imediatamente ISOs precisarão fazer um pagamento de imposto estimado trimestralmente sobre seu ganho antes de seu pedido de imposto de final de ano.

4: Empresa de utilidade pública e venda para cobrir.

Em vez de vender todas as ações conforme descrito no exemplo de venda no mesmo dia, alguns funcionários podem optar por vender apenas ações suficientes para cobrir as retenções de imposto de renda e de folha de pagamento, de forma que eles fiquem com uma parte das ações. Os ganhos de capital que detêm o relógio começam então com essas ações e a valorização futura está sujeita a tratamento de ganhos de capital a longo ou curto prazo.

Embora os ISOs não tenham requisitos de retenção, alguns funcionários podem optar por vender uma parte de seus ISOs após o exercício (acionando uma disposição desqualificante para essa parte), para que eles tenham dinheiro para pagar a AMT no vencimento. Eles podem, então, manter o restante de suas ações com o objetivo de obter tratamento de ganhos de capital de longo prazo, conforme descrito acima.

5: Unidades de Ações Restritas.

Os funcionários que ingressam em empresas privadas de estágio avançado ou empresas públicas geralmente recebem unidades de estoque restritas (RSUs) em vez de, ou além de, concessões de opções. As RSUs são concedidas com um cronograma de aquisição de direitos, geralmente de quatro anos com um período de um ano. O valor das ações torna-se tributável como receita ordinária ao empregado quando as restrições caducarem e as ações se tornarem livremente negociáveis. Essa receita é então informada no próximo salário do empregado e os impostos associados à renda e folha de pagamento são retidos. Nesse momento, o empregado possui as ações e pode mantê-las ou vendê-las. Observe que a empresa normalmente escolherá satisfazer a exigência de retenção retendo uma parte das ações adquiridas e entregando as ações líquidas a uma conta controlada pelo empregado. (Para obter detalhes adicionais sobre RSUs, consulte "Como as opções de ações e as RSUs diferem?")

Independentemente da decisão de vender ou manter as ações líquidas no momento da aquisição, o funcionário já pagou imposto de renda ordinário sobre o valor das ações no vesting e somente a valorização futura das ações estará sujeita a ganhos de capital de curto ou longo prazo tratamento. Por esse motivo, a maioria dos funcionários opta por vender as ações e diversificar as receitas. Se você detém as ações (e algumas optam por fazer isso), é como receber um bônus em dinheiro de sua empresa e, em seguida, optar por investir todo o bônus (após impostos retidos) de volta nas ações da empresa. (Para obter mais detalhes sobre esse problema, consulte "Gerenciar RSUs adquiridas como bônus em dinheiro e considerar a venda".)

O que está à frente na parte 3.

Na Parte 3, nossa postagem final nesta série, apresentaremos tudo que discutimos juntos e forneceremos estratégias de impostos que podem ser aplicadas para ajudar você a lidar com suas opções de ações ou RSUs de maneira eficiente. (E, novamente, caso você tenha perdido, aqui está um link para a Parte 1 da série)

Toby Johnston CPA, CFP é um parceiro da Moss Adams LLP Wealth Services Practice.

Ele pode ser alcançado em toby. johnston em mossadams.

O material que aparece nesta comunicação é apenas para fins informativos e não deve ser interpretado como aconselhamento ou opinião jurídica, contábil ou tributária fornecida pela Moss Adams LLP. Esta informação não tem a intenção de criar, e o recebimento não constitui, um relacionamento legal, incluindo, mas não limitado a, um relacionamento contador-cliente. Embora esses materiais tenham sido preparados por profissionais, o usuário não deve substituí-los por serviços profissionais e deve procurar orientação de um consultor independente antes de agir sobre qualquer informação apresentada. Moss Adams LLP não assume nenhuma obrigação de fornecer notificações de alterações na legislação tributária ou outros fatores que possam afetar as informações fornecidas. A Wealthfront não representa de forma alguma que os resultados aqui descritos resultarão em qualquer consequência tributária específica. A Wealthfront não assume nenhuma responsabilidade pelas conseqüências fiscais para qualquer investidor de qualquer transação.

Sobre o autor.

Toby Johnston CPA, CFP é um parceiro da Moss Adams LLP Wealth Services Practice.

Confira os serviços da Wealthfront. Nós apoiamos conta tributável, IRAs,

401 (k) rollovers e 529 planos de poupança universitários.

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Te dando uma vantagem.

O Wealthfront é baseado na filosofia de que o investimento passivo é a chave para o sucesso a longo prazo. Mas sempre tentamos ir além para ajudar seu portfólio a ter melhor desempenho.

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Acreditamos que, para ser um verdadeiro consultor automatizado, você precisa prestar todos os serviços que você recebe de um consultor financeiro tradicional de alto nível: gerenciamento de investimentos, planejamento e soluções de finanças pessoais. Então, ao escolher o conselheiro automatizado ideal, você precisa entender a amplitude & # 8212; e qualidade & # 8212; da solução de cada provedor.

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Internal Revenue Bulletin: 2012-9.

February 27, 2012.

Highlights of This Issue.

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

INCOME TAX.

REG-109369-10 REG-109369-10.

Proposed regulations under section 469 of the Code provide guidance regarding the definition of an “interest in a limited partnership as a limited partner” for purposes of determining whether a taxpayer materially participates in an activity.

Notice 2012-13 Notice 2012-13.

This notice provides guidance for employers that seek to claim the Work Opportunity Tax Credit (WOTC) for hiring veterans. The notice also provides information on alternative methods for filing Form 8850 with the Department of Labor/Designated Local Agencies. Announcement 2002-44 supplemented.

Notice 2012-15 Notice 2012-15.

This notice addresses the application of section 367 of the Code to transfers of stock subject to section 304.

EMPLOYEE PLANS.

Notice 2012-16 Notice 2012-16.

Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates. This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in February 2012; the 24-month average segment rates; the funding transitional segment rates applicable for February 2012; and the minimum present value transitional rates for January 2012.

EMPLOYMENT TAX.

Notice 2012-13 Notice 2012-13.

This notice provides guidance for employers that seek to claim the Work Opportunity Tax Credit (WOTC) for hiring veterans. The notice also provides information on alternative methods for filing Form 8850 with the Department of Labor/Designated Local Agencies. Announcement 2002-44 supplemented.

EXCISE TAX.

Notice 2012-17 Notice 2012-17.

This notice answers to frequently asked questions from employers regarding certain provisions of the Patient Protection and Affordable Care Act, specifically the provisions dealing with automatic enrollment, employer shared responsibility and waiting periods.

The IRS Mission.

Provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.

Introdução.

The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general interest. It is published weekly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin contents are compiled semiannually into Cumulative Bulletins, which are sold on a single-copy basis.

It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published.

Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements.

Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Legislation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rulings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Secretary (Enforcement).

Part IV.—Items of General Interest. This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period.

Part III. Administrative, Procedural, and Miscellaneous.

Notice 2012-13.

Work Opportunity Tax Credit.

This notice provides guidance on Returning Heroes and Wounded Warriors Work Opportunity Tax Credits, included as § 261 of the VOW to Hire Heroes Act of 2011, Tit. II, subtitle D, of Pub. L. No. 112-056 (Act), enacted on November 21, 2011. Section 261 of the Act amended §§ 51, 52, and 3111 of the Internal Revenue Code to provide a credit for hiring certain qualified veterans. This notice also provides employers who hire qualified veterans additional time beyond the 28-day deadline in § 51(d)(13) for submitting Form 8850, Pre-screening Notice and Certification Request for the Work Opportunity Credit, to Designated Local Agencies (DLAs)

This notice provides additional guidance on electronic signature and electronic submission of Form 8850 and also informs all employers that the Internal Revenue Service (IRS) will allow the signature and submission of Form 8850 by facsimile to DLAs that choose to accept such submissions.

This notice also requests comments on alternative methods for certification of a veteran as a qualified veteran described in clause (ii)(II), (iii), or (iv) of § 51(d)(3)(A),

II. FUNDO.

Section 51 provides for a Work Opportunity Tax Credit (WOTC) for employers who hire individuals who are members of targeted groups. An employer must obtain certification that an individual is a targeted group member before the employer may claim the credit. Certification of an individual’s targeted group status is obtained from a DLA. A DLA is a State employment security agency established in accordance with 29 U. S.C. §§ 49-49n. An employer must submit Form 8850 to the DLA not later than the 28 th day after the individual begins work for the employer.

The WOTC applies to certain wages paid or incurred by employers with respect to a member of a targeted group. Prior to enactment of the Act, § 51(c)(4)(B) provided that wages paid or incurred with respect to an individual who begins work for the employer after December 31, 2011, are not taken into account for purposes of the WOTC. Thus, the credit is not available with respect to wages for persons who begin work after December 31, 2011, other than qualified veterans. The Act extended the credit only with respect to qualified veterans who begin work for the employer on or before December 31, 2012.

The Act amends § 51(d)(3) to add two new categories to the qualified veteran targeted group. Under new § 51(d)(3)(A)(iii) and (iv), a qualified veteran is a veteran certified as having aggregate periods of unemployment of at least 4 weeks but less than 6 months in the year prior to being hired or certified as having aggregate periods of unemployment of 6 months or more in the year prior to being hired.

The amount of wages that an employer may take into account in computing the credit differs for the various categories of qualified veterans. The Act amends § 51(b)(3), which provides the amount of qualified wages that an employer may take into account in calculating the WOTC. Section 51(b)(3), as amended, provides that the amount of qualified wages taken into account is limited to $6,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(i) (a veteran certified as being a member of a family receiving assistance under a supplemental nutrition assistance program under the Food and Nutrition Act of 2008 for at least a 3-month period ending during the 12-month period ending on the hiring date) and subsection (d)(3)(A)(iii) (a veteran certified as having aggregate periods of unemployment of at least 4 weeks but less than 6 months in the year prior to being hired); $12,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(I) (a disabled veteran who is certified as having a hiring date which is not more than 1 year after discharge or release from active duty); $14,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(iv) (a veteran certified as having aggregate periods of unemployment of 6 months or more in the year prior to being hired); and $24,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)(II) (a disabled veteran who is certified as having aggregate periods of unemployment of 6 months or more in the year prior to being hired).

The Act amends § 51(d)(13)(D) to provide that a veteran will be treated as being certified as having the requisite aggregate period of unemployment by the DLA if the veteran is certified as being in receipt of unemployment compensation for the applicable period. The Act also allows the Secretary of the Treasury to provide, at the Secretary’s discretion, alternative methods for certification of a veteran as a qualified veteran described in clause (ii)(II), (iii), or (iv) of § 51(d)(3)(A).

The Act amends § 51(c)(4)(B) to extend the credit and allow an employer to claim the WOTC for qualified wages paid or incurred by the employer to a qualified veteran who begins work on or before December 31, 2012.

The Act also amends § 52 and § 3111 to make a credit available to “qualified tax-exempt organizations” that hire qualified veterans for which the WOTC would have been allowable under § 51 if the organization were not a qualified tax-exempt organization. Specifically, the Act adds new § 3111(e), which permits qualified tax-exempt organizations that hire qualified veterans on or after November 22, 2011, to claim a credit against the employer share of social security tax imposed under § 3111(a).

The credit under § 3111(e)(1) is a credit against the tax imposed by § 3111(a) on wages paid by the qualified tax-exempt organization with respect to employment of all employees of the organization during the applicable period. Section 3111(e)(4) defines the “applicable period” as the 1-year period beginning with the day the qualified veteran begins work for the organization. The amount of the credit under § 3111(e) equals the amount of the credit determined under § 51 (after application of the modifications under § 3111(e)(3)) with respect to wages paid to the qualified veteran during the applicable period. However, under § 3111(e)(2), the aggregate amount allowed as a credit under § 3111(e) for all qualified veterans for any period with respect to which tax is imposed under § 3111(a) cannot exceed the amount of the employer social security tax imposed by § 3111(a) on all wages paid by the employer during such period.

As indicated above, the amount of the credit under § 3111(e) is determined under § 51 but is subject to modifications under § 3111(e)(3). Specifically, § 3111(e)(3) modifies the amount of the credit available to the qualified tax-exempt organization to 16.25 percent (rather than 25 percent) of the qualified first-year wages for the applicable period if the veteran performs less than 400 hours but at least 120 hours of service, or 26 percent (rather than 40 percent) of the qualified first-year wages for the applicable period if the veteran performs at least 400 hours of service for the qualified tax-exempt organization. Further, to calculate the amount of the credit, the qualified tax-exempt organization only takes into account the wages paid to a qualified veteran for services in furtherance of activities related to the purpose or function constituting the basis of the organization’s exemption under § 501. For example, wages for services in an unrelated trade or business (as defined in § 513) are not counted for purposes of the credit. Although wages are defined for purposes of the WOTC under § 51 as wages under the Federal Unemployment Tax Act, for purposes of the credit available to qualified tax-exempt organizations under § 3111(e), the term “wages” refers to wages under the Federal Insurance Contributions Act.

New § 3111(e)(5)(A) defines “qualified tax-exempt organization” as an employer that is an organization described in § 501(c) and exempt from taxation under § 501(a). Accordingly, an employer that is an agency or instrumentality of the federal government, or of a state, local, or Indian tribal government, is not a qualified tax-exempt organization unless it is an organization described in § 501(c) that is exempt from tax under § 501(a).

The requirements for certification under § 51, as amended by the Act, apply to qualified tax-exempt organizations as well as to taxable employers. Accordingly, a qualified tax-exempt organization must obtain certification, as required under § 51, that an individual is a qualified veteran before it may claim the credit. The transition relief, guidance on filing Forms 8850 with electronic signatures, and allowance of signature and submission of Form 8850 by facsimile provided for in this notice apply to all employers, including qualified tax-exempt organizations.

III TRANSITION RELIEF.

Section 51(d)(13)(A) provides that an individual shall not be treated as a member of a targeted group unless (1) on or before the day the individual begins work, the employer obtains certification from the DLA that the individual is a member of a targeted group; or (2) the employer completes a pre-screening notice (Form 8850) on or before the day the individual is offered employment and submits such notice to the DLA to request certification not later than 28 days after the individual begins work. Because the credit, as amended, became effective on the day after enactment, the Treasury Department and the IRS believe it is appropriate to provide employers with additional time to file Form 8850 with a DLA. Accordingly, any employer who hires any qualified veteran described in § 51(d)(3) on or after November 22, 2011, and before May 22, 2012, will be considered to satisfy the requirements of § 51(d)(13)(A)(ii) if the employer submits the completed pre-screening notice to the DLA to request certification not later than June 19, 2012.

IV. FILING OF FORM 8850 WITH ELECTRONIC SIGNATURES.

Before any employer may claim the WOTC for hiring any member of a targeted group (or, for qualified tax-exempt organizations, the § 3111(e) credit for hiring a qualified veteran), that individual must be certified by the DLA as a member of a targeted group. Section 51(d)(13)(A)(ii)(II) requires that, not later than the 28 th day after the individual begins work for the employer, the employer submit a notice, signed by the employer and the individual under penalties of perjury, to the DLA as part of a written request for certification. For purposes of this Section IV, “employer” refers to any employer required to submit a Form 8850 in order to obtain the WOTC under § 51 or the equivalent credit under § 3111(e), or an authorized representative of such an employer.

Employers may submit Form 8850 to the DLA electronically if the employer’s system satisfies the requirements in Ann. 2002-44, 2002-1 C. B. 809. This notice makes available to employers two alternative methods of certification using electronic signatures in addition to the electronic submission of Form 8850 as provided in Ann. 2002-44. The alternative methods are available to any employer required to submit a Form 8850 in order to obtain the WOTC for any member of any targeted group under § 51 or the equivalent credit under § 3111(e).

First, an employer may print out a paper copy of the Form 8850 that was signed electronically by both the applicant and the employer in accordance with the requirements of Ann. 2002-44, and transmit that paper copy to the DLA (by mail or by facsimile following the rules in Section V of this notice).

Second, an employer may file Form 8850 using a method under which the applicant signs electronically but the employer signs in ink. More specifically, the applicant signs Form 8850 electronically and the Form 8850 is transmitted electronically to the employer in accordance with the requirements detailed below. Once received and printed out, the paper copy of the Form 8850 shows “signed electronically” in the field for the applicant’s signature. The employer signs that paper copy of that Form 8850 in ink, complying with the signature and jurat requirements on Form 8850 and the Form 8850 instructions for the paper copy of Form 8850, and transmits that paper copy to the DLA (by mail or by facsimile following the rules in Section V of this notice). Under this second alternative method, the employer must satisfy all five of the following requirements with respect to the Form 8850 that is electronically signed by the applicant:

(i) In General . The electronic system must ensure that the information received is the information sent, and it must document all occasions of access that result in the transmission of a Form 8850. In addition, the design and operation of the electronic system, including access procedures, must make it reasonably certain that the applicant signing the Form 8850, accessing the system, and submitting the Form 8850 is the applicant identified in the form.

(ii) Same Information as Paper Form 8850 . The electronically signed Form 8850 must provide the DLA with exactly the same information as the paper Form 8850.

(iii) Jurat and Signature Requirements . The Form 8850 must be signed electronically by the applicant under penalties of perjury.

(A) Jurat . The jurat (perjury statement) must contain the language that appears on the paper Form 8850 for the applicant. The electronic system must inform the applicant that he or she must make the declaration contained in the jurat and that the declaration is made by signing the Form 8850. The instructions and the language of the jurat must immediately follow the information provided by the applicant, and must immediately precede the applicant’s electronic signature.

(B) Electronic Signature . The electronic signature must (1) identify the applicant whose name is on the Form 8850 and the employer submitting the Form 8850, and (2) authenticate and verify the form. For this purpose, the terms “authenticate” and “verify” have the same meaning as they do when applied to a written signature on a paper Form 8850. An electronic signature can be in any form that satisfies the foregoing requirements.

(iv) Copies of Form 8850 . The employer must be able to supply and, upon request by the IRS, the employer must supply (1) a paper copy of the Form 8850 submitted to the DLA, and (2) a statement that, to the best of the employer’s knowledge, the Form 8850 was submitted by the employer with respect to the named applicant. The paper copy of the electronically signed Form 8850 must provide exactly the same information as, but need not be a facsimile of, the paper Form 8850.

(v) Retention of Forms 8850 by the DLAs and Employers . Forms 8850 with an applicant’s electronic signature have the same status as paper Forms 8850. Therefore, guidance that applies to paper Forms 8850 also applies to these Forms 8850. For example, as is the case for paper Forms 8850, electronic Forms 8850 are required to be retained by employers under their established record-keeping systems. For further information, see Rev. Proc. 98-25, 1998-1 C. B. 689, on information regarding the retention of records within an Automatic Data Processing System.

V. ALTERNATIVE METHOD OF FILING OR SIGNING FORM 8850—FILING OR SIGNING BY FACSIMILE.

In addition to the electronic signature method of filing Form 8850 described in Section IV, the IRS will also allow the facsimile transmission of applicant and employer signatures on a Form 8850 if the applicable DLA accepts Form 8850 via facsimile, the applicant and employer intend the signatures on the faxed copy to be their signatures for purposes of the document, and the requirements of paragraphs (1) and (2) below are satisfied:

(1) Same Information as Paper Form 8850. The facsimile submission is a reproduction of Form 8850 that provides the DLA with exactly the same information as the paper Form 8850.

(2) Signature and Transmission Requirements. The Form 8850 is signed by the applicant and the employer, under penalties of perjury, and transmitted to the DLA in the following manner:

(i) An original Form 8850 is completed in paper copy and then signed in ink by the applicant;

(ii) The original Form 8850, signed by the applicant, is delivered to the employer either in person or by facsimile;

(iii) The employer signs in ink either the paper copy of Form 8850 that was signed by the applicant or the facsimile of that paper copy; e.

(iv) The employer mails or faxes the signed Form 8850 to the DLA within the time prescribed by § 51(d)(13)(A)(ii) (or within the period authorized under Section III of this notice).

For purposes of this Section V, “employer” refers to any employer required to submit a Form 8850 in order to obtain the WOTC for any member of any targeted group under § 51 or the equivalent credit under § 3111(e), or an authorized representative of such an employer.

VI. GUIDANCE FOR TAX-EXEMPT ORGANIZATIONS.

Qualified tax-exempt organizations entitled to a credit under § 3111(e) must use Form 5884-C, Work Opportunity Credit for Qualified Tax-Exempt Organizations Hiring Qualified Veterans , to claim the credit. Although the credit under § 3111(e) is applied against the employer social security tax liability for the employment tax period in which the credit is claimed, the liability reported on the qualified tax-exempt organization’s employment tax return ( e. g. , Form 941) is not reduced when that return is filed. Rather, the IRS will process Form 5884-C separately and refund the amount properly claimed on Form 5884-C to the qualified tax-exempt organization, subject to the limit of the amount of employer social security tax liability for the period in which the credit is claimed. Because Form 5884-C will generally not be processed simultaneously with the qualified tax-exempt organization’s employment tax return, it is recommended that qualified tax-exempt organizations not reduce their required deposits in anticipation of any credit. A qualified tax-exempt organization that reduces its required employment tax deposits in anticipation of a credit under § 3111(e) may receive a system-generated notice; however, the balance due, including any related penalties and interest, resulting from the reduction in deposits to reflect the credit under § 3111(e), will be abated when the credit is applied, generally without any taxpayer action.

Form 5884-C is filed separately and should not be attached to any other return filed by the qualified tax-exempt organization. Form 5884-C should be filed after the qualified tax-exempt organization files its employment tax return for the tax period for which the credit is claimed and in accordance with the Form 5884-C instructions. Form 5884-C can be filed immediately after the qualified tax-exempt organization files its employment tax return and it must be filed within 2 years from the date the tax reported on the employment tax return was paid, or 3 years from the date the employment tax return was filed, whichever is later.

The qualified tax-exempt organization using Form 5884-C must calculate the cumulative credit to which the qualified tax-exempt organization is entitled under § 3111(e) for all qualified veterans hired on or after November 22, 2011. The qualified tax-exempt organization must reduce the cumulative credit by any credits claimed on any Forms 5884-C filed for prior tax periods. The amount refunded will be limited to the amount of employer social security tax reported on the employment tax return filed by the qualified tax-exempt organization for the employment tax period for which the credit is claimed. Any excess credit ( i. e. , any credit that exceeds the employer social security tax for the period the credit is claimed) may be carried forward and will be included in the qualified tax-exempt organization’s cumulative calculation on Form 5884-C filed for a subsequent tax period to the extent provided in the instructions to Form 5884-C.

VII. REQUEST FOR COMMENTS.

The Treasury Department and the IRS request comments on alternative methods for certification of a veteran as a qualified veteran described in § 51(d)(3) in addition to the methods of signing and filing electronically or by facsimile described in this notice. In particular, comments related to certification of a veteran as a qualified veteran described in clause (ii)(II), (iii), or (iv) of § 51(d)(3)(A) are requested. Comments are also requested on alternative methods of filing Form 8850. Comments must be submitted by April 12, 2012. All materials submitted will be available for public inspection and copying. Comments should be submitted to Internal Revenue Service, CC:PA:LPD:RU (Notice 2012-13), Room 5203, PO Box 7604, Ben Franklin Station, Washington, DC 20224. Submissions may also be hand-delivered Monday through Friday between the hours of 8 a. m. and 4 p. m. to the Courier’s Desk, 1111 Constitution Avenue, NW, Washington, DC 20224, Attn: CC:PA:LPD:RU (Notice 2012-13), Room 5203. Submissions may also be sent electronically via the internet to the following email address: Noticements@irscounsel. treas. gov. Include the notice number (Notice 2012-13) in the subject line.

VIII. EFFECT ON OTHER DOCUMENTS.

This notice supplements Ann. 2002-44, 2002-1 C. B. 809.

EFFECTIVE DATE.

Amendments made to § 51, § 52, and § 3111 by the Act are effective for individuals who begin work for the employer on or after November 22, 2011. As described in Section III, any employer who hires any qualified veteran described in § 51(d)(3) on or after November 22, 2011, and before May 22, 2012, will be considered to satisfy the requirements of § 51(d)(13)(A)(ii) if the employer submits the completed pre-screening notice to the DLA to request certification not later than June 19, 2012. The alternative methods of signing and filing Forms 8850, as described in Sections IV and V, are effective for Forms 8850 filed with a DLA on or after March 10, 2012.

DRAFTING INFORMATION.

The principal authors of this notice are Robin Ehrenberg and Ligeia Donis of the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). For further information on the submission of comments or the comments submitted, contact Regina Johnson at (202) 622-7180 (not a toll-free number). For further information regarding the WOTC for qualified veterans, electronic filing, and facsimile submissions, contact Ms. Ehrenberg at (202) 622-6080 (not a toll-free number). For further information on how to claim the WOTC on behalf of tax-exempt organizations, contact Ligeia Donis at (202) 622-6040 (not a toll-free number).

Notice 2012-15.

Application of Section 367 to Section 304 Transactions.

SECTION 1. OVERVIEW.

This notice provides guidance under section 367(a) and (b) of the Internal Revenue Code (Code) in the case of certain transfers of stock to foreign corporations in exchange for property under section 304. The Internal Revenue Service (IRS) and the Department of the Treasury (Treasury Department) will amend the regulations under section 367 to incorporate the guidance described in this notice. The amendments to the regulations will apply to transfers occurring on or after February 10, 2012.

SECTION 2. BACKGROUND.

.01 Section 367(a)

Section 367(a)(1) generally provides that if a United States person transfers property to a foreign corporation in an exchange described in section 332, 351, 354, 356, or 361, the foreign corporation shall not be considered a corporation for purposes of determining the extent to which the United States person recognizes gain on such transfer. Section 367(a)(2) and (3) provide specific exceptions to the general rule, and the Secretary has authority under section 367(a)(6) to promulgate regulations providing exceptions for other transfers.

Section 1.367(a)-3 provides exceptions to the general rule of section 367(a)(1) for certain transfers by a U. S. person of stock or securities to a foreign corporation. In some cases, these exceptions require the U. S. person to file a gain recognition agreement (GRA) and other related documents under the provisions of § 1.367(a)-8 (GRA regulations). The GRA regulations were revised in 2009 (T. D. 9446, 2009-1 C. B. 607) to provide further guidance, including examples addressing when a GRA needs to be filed, when it will be triggered, and when exceptions to these triggering events apply. The triggering event exceptions address distributions in redemption of stock, including by reason of the application of section 304(a)(1). See § 1.367(a)-8(n)(1) and (q)(2), Example 14 . The GRA regulations also include a general exception that, under certain circumstances, applies to dispositions or other events not otherwise specifically excepted. See § 1.367(a)-8(k)(14).

.02 Section 367(b)

Section 367(b)(1) provides that in the case of an exchange described in section 332, 351, 354, 355, 356, or 361 in connection with which there is no transfer of property described in section 367(a)(1), a foreign corporation shall be considered to be a corporation except to the extent provided in regulations prescribed by the Secretary which are necessary or appropriate to prevent the avoidance of Federal income taxes. Section 367(b)(2) provides that the regulations prescribed pursuant to section 367(b)(1) shall include (but shall not be limited to) regulations dealing with the sale or exchange of stock or securities in a foreign corporation by a United States person, including regulations providing the circumstances under which gain is recognized or deferred, amounts are included in gross income as a dividend, adjustments are made to earnings and profits, or adjustments are made to the basis of stock or securities.

Regulations under section 367(b) generally provide that if the potential application of section 1248 cannot be preserved following the acquisition of the stock or assets of a foreign corporation (foreign acquired corporation) by another foreign corporation in an exchange subject to section 367(b), including an exchange described in section 351, then certain exchanging shareholders of the foreign acquired corporation must include in income as a dividend the section 1248 amount (as defined in § 1.367(b)-2(c)) attributable to the stock of the foreign acquired corporation. See § 1.367(b)-4(b).

.03 Section 304.

Section 304(a)(1) generally provides that, for purposes of sections 302 and 303, if one or more persons are in control of each of two corporations and in return for property one of the corporations (the acquiring corporation) acquires stock in the other corporation (the issuing corporation) from the person (or persons) so in control, then such property shall be treated as a distribution in redemption of the stock of the acquiring corporation. To the extent section 301 applies to the distribution, the transferor and the acquiring corporation are treated as if (1) the transferor transferred the stock of the issuing corporation to the acquiring corporation in exchange for stock of the acquiring corporation in a transaction to which section 351(a) applies, and (2) the acquiring corporation then redeemed the stock it is deemed to have issued in the transaction.

.04 Application of Section 367 to Section 304 Transactions.

On February 21, 2006, the IRS and the Treasury Department issued final regulations (T. D. 9250, 2006-1 C. B. 588) providing that section 367(a) and (b) shall not apply to certain transfers of stock of a foreign or domestic corporation to a foreign acquiring corporation to which section 351 applies (deemed section 351 exchange) by reason of section 304(a)(1) (2006 regulations).

The preamble to the 2006 regulations stated that the policies underlying section 367(a) and (b) are preserved even if a deemed section 351 exchange is not subject to section 367(a) and (b) because generally the income recognized by the transferor in the transaction (dividend income, capital gain, or both) should equal or exceed the built-in gain in the transferred stock. The preamble further explained that the application of section 367 to deemed section 351 exchanges results in complexity and uncertainty.

Comments were received, however, stating that the transferor may not recognize income equal to or greater than the built-in gain in the transferred stock if, under section 301(c)(2), the transferor is permitted to recover the basis of shares of the foreign acquiring corporation held before (and after) the transaction. In response to these comments, temporary regulations were published on February 11, 2009 (T. D. 9444, 2009-1 C. B. 603) (2009 regulations), which modified the treatment of section 304 transactions provided by the 2006 regulations. The 2009 regulations retain the general rule that the deemed section 351 exchange will not be a transfer to a foreign corporation subject to section 367(a). However, the 2009 regulations provide an exception if a U. S. person reduces its basis under section 301(c)(2), in whole or in part, in its stock of the foreign acquiring corporation other than the stock deemed issued to the U. S. person in the deemed section 351 exchange. In such case, the U. S. person recognizes gain under section 367(a)(1) equal to the amount by which the gain realized by the U. S. person exceeds the amount of the distribution that is treated as a dividend under section 301(c)(1) and included in gross income of the U. S. person. Furthermore, the 2009 regulations provide that a U. S. person cannot avoid such gain by entering into a GRA.

The 2009 regulations made similar revisions to the 2006 regulations under section 367(b). Specifically, the 2009 regulations provide that § 1.367(b)-4(b) applies to a deemed section 351 exchange only to the extent the distribution received by the exchanging shareholder in redemption of the stock deemed issued by the foreign acquiring corporation is applied against and reduces, pursuant to section 301(c)(2), the basis of stock of the foreign acquiring corporation held by the exchanging shareholder other than the stock deemed issued to the exchanging shareholder in the deemed section 351 exchange.

.05 Section 1248(a)

Section 1248(a) generally provides that if a U. S. person that satisfies certain ownership requirements sells or exchanges stock in a controlled foreign corporation (or a foreign corporation that was a controlled foreign corporation within the past five years), then the gain recognized on the sale or exchange is included in gross income of such person as a dividend to the extent of the earnings and profits of the foreign corporation (and in certain cases, earnings and profits of foreign subsidiaries of such foreign corporation) that are attributable to such stock. The 2009 regulations provide that for purposes of section 1248(a), gain recognized by a shareholder under section 301(c)(3) in connection with a distribution of property by a foreign corporation with respect to its stock is treated as gain from the sale or exchange of stock of such corporation.

SECTION 3. REVISED APPROACH TO SECTION 304 TRANSACTIONS.

After consideration of the comments received and the underlying policies of section 367(a) and (b), the IRS and the Treasury Department believe that the amount of income taken into account as a result of a section 304 distribution generally should not affect the application of section 367 to the deemed section 351 exchange. Furthermore, in the case of a transfer of stock by a U. S. person to a foreign corporation, the revised GRA regulations should substantially reduce the complexity and uncertainty resulting from the filing of a GRA in connection with a deemed section 351 exchange. Accordingly, the IRS and the Treasury Department believe it is appropriate to revise the approach to the interaction of sections 367 and 304 under the 2006 regulations and 2009 regulations by providing that section 367(a) and (b) apply fully to the deemed section 351 exchange.

SECTION 4. APPLICATION OF SECTION 367 TO SECTION 304 TRANSACTIONS.

The IRS and the Treasury Department will amend the section 367 regulations to provide that the section 351 exchange that is deemed to occur in a section 304 transaction is subject to section 367(a) and (b) in the manner described below.

.01 Application of Section 367(a)

To the extent that, pursuant to section 304(a)(1), a U. S. person is treated as transferring stock of a domestic or foreign corporation to a foreign corporation (foreign acquiring corporation) in a deemed section 351 exchange, the transfer is subject to section 367(a) and the regulations thereunder, including the exceptions described in § 1.367(a)-3(b)(1) and (c)(1), as applicable. Thus, a transferor in a section 304 transaction that is a U. S. person may, in certain cases, be permitted to enter into a GRA pursuant to § 1.367(a)-8 to avoid the recognition of gain under section 367(a)(1).

If the U. S. person (referred to in the GRA regulations as the U. S. transferor) enters into a GRA with respect to a deemed section 351 exchange, the deemed redemption of the stock of the foreign acquiring corporation deemed issued to the U. S. person pursuant to section 304(a)(1) constitutes a disposition of the transferee foreign corporation stock under § 1.367(a)-8. See § 1.367(a)-8(b)(1)(iii) and (n)(1). As a result, the deemed redemption is generally treated as a triggering event within the meaning of § 1.367(a)-8(j). However, consistent with the redemption rules provided in § 1.367(a)-8(n)(1), the redemption will not be treated as a triggering event if the U. S. person that transfers the stock in the deemed section 351 exchange (or a U. S. person that is treated as a successor U. S. transferor as a result of the deemed redemption) enters into a new GRA that includes appropriate provisions to account for the redemption, provided the principles of § 1.367(a)-8(k)(14)(ii) and (iii) are satisfied. Generally, the requirement to file an initial GRA for the deemed section 351 exchange and a new GRA by reason of the deemed redemption will be satisfied if the U. S. person that transfers the stock in the deemed section 351 exchange files a single GRA with respect to the entire section 304 transaction. See § 1.367(a)-8(d)(2)(ii).

.02 Application of Section 367(b)

To the extent that, pursuant to section 304(a)(1), a foreign corporation (foreign acquiring corporation) acquires the stock of a foreign corporation in a deemed section 351 exchange, such exchange is subject to section 367(b) and the regulations thereunder, including § 1.367(b)-4. Thus, for example, if a deemed section 351 exchange results in the loss of status as a section 1248 shareholder as provided in § 1.367(b)-4(b)(1)(i), the exchanging shareholder must include in income as a deemed dividend the section 1248 amount attributable to the foreign stock that is transferred in the deemed section 351 exchange.

.03 Example.

Example . (i) Facts . USP, a domestic corporation, owns all of the outstanding stock of FT and FA, each a foreign corporation. USP’s tax basis in the FT stock is $50x, and the FT stock has a fair market value of $100x. The section 1248 amount (within the meaning of § 1.367(b)-2(c)) with respect to the FT stock is $10x. FA has earnings and profits of $200x, all of which are available for distribution taking into account section 304(b)(5). In a transaction to which section 304(a)(1) applies, USP transfers all of its FT stock to FA in exchange for $100x cash.

(ii) Application of section 304(a)(1) . Under section 304(a)(1), USP and FA are treated as if USP transferred its FT stock to FA in a section 351(a) exchange solely for FA stock, and then FA redeemed its deemed issued stock in exchange for the cash. The redemption of the FA stock deemed issued by FA to USP is treated as a distribution to which section 301 applies. The entire distribution is treated under section 301(c)(1) as a dividend (as defined in section 316) out of the earnings and profits of FA.

(iii) Application of section 367(a) . Under section 4.01 of this notice, § 1.367(a)-3(b) applies to USP’s transfer of the FT stock to FA in exchange for FA stock. As a result, USP recognizes gain on the transfer under section 367(a)(1) unless USP enters into a GRA with respect to the transfer pursuant to § 1.367(a)-3(b)(1)(ii) and § 1.367(a)-8. However, the deemed redemption by FA of the stock it is deemed to issue to USP would constitute a triggering event with respect to such GRA as described in § 1.367(a)-8(j). The redemption will not constitute a triggering event, however, if USP enters into a new GRA that includes appropriate provisions to account for the redemption and that is consistent with the principles of § 1.367(a)-8(k)(14)(ii) and (iii). After the redemption, USP owns at least 5% of the total voting power and the total value of the outstanding stock of FA. Thus, if USP enters into a new GRA that satisfies the requirements of § 1.367(a)-8(k)(14)(iii), the deemed redemption will not constitute a triggering event. In this case, the requirement that an initial GRA be filed for the deemed section 351 exchange and a new GRA be filed by reason of the deemed redemption will be satisfied if USP files a single GRA pursuant to § 1.367(a)-8(d)(2)(ii).

(iv) Application of section 367(b) . Under section 4.02 of this notice, § 1.367(b)-4 applies to USP’s transfer of the FT stock to FA in exchange for FA stock. Under § 1.367(b)-2(a) and (b), USP is a section 1248 shareholder with respect to FT, a controlled foreign corporation, immediately before the exchange. Section 1.367(b)-4(b)(1)(i) does not apply to require USP to include in income the $10x section 1248 amount with respect to the FT stock because each of FA and FT is a controlled foreign corporation as to which USP is a section 1248 shareholder immediately after the exchange.

SECTION 5. FINALIZATION OF THE 2009 REGULATIONS UNDER SECTION 1248.

The IRS and the Treasury Department will finalize the portions of the 2009 regulations that address the application of section 1248 to gain recognized with respect to stock upon distributions, including gain under section 301(c)(3), in separate published guidance effective February 10, 2009.

SECTION 6. EFFECTIVE DATE.

The regulations described in this notice shall apply to section 304 transactions occurring on or after February 10, 2012. Pending the issuance of the regulations described in this notice, the IRS will not challenge reasonable interpretations of the application of section 367(a) and (b) to deemed section 351 exchanges and related deemed redemptions completed on or after February 10, 2012, including reasonable interpretations of the GRA rules as applied to such deemed section 351 exchanges and deemed redemptions under the principles of § 1.367(a)-8(k)(14)(ii) and (iii).

SECTION 7. COMMENTS.

The IRS and the Treasury Department request comments on the regulations to be issued under this notice.

SECTION 8. PAPERWORK REDUCTION ACT.

The collections of information in this notice were previously reviewed and approved by the Office of Management and Budget in connection with Treasury Decision 9446 in accordance with the Paperwork Reduction Act of 1995 (44 U. S.C. 3507(d)) under control number 1545-2056.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information, unless the collection of information displays a valid control number.

The collections of information are in sections 4.01 and 4.02 of this notice. Responses to the collections of information are required to avoid recognizing gain under section 367, including under an existing gain recognition agreement, and to facilitate electronic filing. The likely respondents are large corporations.

The estimated burden will change as follows:

The estimated total annual reporting burden will increase by 100 hours.

The estimated annual burden per respondent remains 2 hours. The estimated number of respondents will increase by 50.

The estimated annual frequency of responses remains once per year.

Books and records relating to these collections of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U. S.C. 6103.

SECTION 9. DRAFTING INFORMATION.

The principal author of this notice is Ryan A. Bowen of the Office of Associate Chief Counsel (International). However, other personnel from the IRS and the Treasury Department participated in its development. For further information regarding this notice, contact Mr. Bowen at (202) 622-3860 (not a toll-free call).

Notice 2012-16.

Update for Weighted Average Interest Rates, Yield Curves, and Segment Rates.

This notice provides guidance as to the corporate bond weighted average interest rate and the permissible range of interest rates specified under § 412(b)(5)(B)(ii)(II) of the Internal Revenue Code as in effect for plan years beginning before 2008. It also provides guidance on the corporate bond monthly yield curve (and the corresponding spot segment rates), and the 24-month average segment rates under § 430(h)(2). In addition, this notice provides guidance as to the interest rate on 30-year Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning before 2008, the 30-year Treasury weighted average rate under § 431(c)(6)(E)(ii)(I), and the minimum present value segment rates under § 417(e)(3)(D) as in effect for plan years beginning after 2007.

CORPORATE BOND WEIGHTED AVERAGE INTEREST RATE.

Sections 412(b)(5)(B)(ii) and 412(l)(7)(C)(i), as amended by the Pension Funding Equity Act of 2004 and by the Pension Protection Act of 2006 (PPA), provide that the interest rates used to calculate current liability and to determine the required contribution under § 412(l) for plan years beginning in 2004 through 2007 must be within a permissible range based on the weighted average of the rates of interest on amounts invested conservatively in long term investment grade corporate bonds during the 4-year period ending on the last day before the beginning of the plan year.

Notice 2004-34, 2004-1 C. B. 848, provides guidelines for determining the corporate bond weighted average interest rate and the resulting permissible range of interest rates used to calculate current liability. That notice establishes that the corporate bond weighted average is based on the monthly composite corporate bond rate derived from designated corporate bond indices. The methodology for determining the monthly composite corporate bond rate as set forth in Notice 2004-34 continues to apply in determining that rate. See Notice 2006-75, 2006-2 C. B. 366.

The composite corporate bond rate for January 2012 is 4.56 percent. Pursuant to Notice 2004-34, the Service has determined this rate as the average of the monthly yields for the included corporate bond indices for that month.

The following corporate bond weighted average interest rate was determined for plan years beginning in the month shown below.

YIELD CURVE AND SEGMENT RATES.

Generally for plan years beginning after 2007 (except for delayed effective dates for certain plans under sections 104, 105, and 106 of PPA), § 430 of the Code specifies the minimum funding requirements that apply to single employer plans pursuant to § 412. Section 430(h)(2) specifies the interest rates that must be used to determine a plan’s target normal cost and funding target. Under this provision, present value is generally determined using three 24-month average interest rates (“segment rates”), each of which applies to cash flows during specified periods. However, an election may be made under § 430(h)(2)(D)(ii) to use the monthly yield curve in place of the segment rates. Section 430(h)(2)G) set forth a transitional rule applicable to plan years beginning in 2008 and 2009 under which the segment rates were blended with the corporate bond weighted average described above, including an election under § 430(h)(2)(G)(iv) for an employer to use the segment rates without the transitional rule.

Notice 2007-81, 2007-2 C. B. 899, provides guidelines for determining the monthly corporate bond yield curve, and the 24-month average corporate bond segment rates used to compute the target normal cost and the funding target. Pursuant to Notice 2007-81, the monthly corporate bond yield curve derived from January 2012 data is in Table I at the end of this notice. The spot first, second, and third segment rates for the month of January 2012 are, respectively, 1.84, 4.36, and 5.19. The three 24-month average corporate bond segment rates applicable for February 2012 are as follows:

The transitional rule of § 430(h)(2)(G) does not apply to plan years beginning after December 31, 2009. Therefore, for a plan year beginning after 2009 with a lookback month to February 2012, the funding segment rates are the three 24-month average corporate bond segment rates applicable for February 2012, listed above without blending for any transitional period.

30-YEAR TREASURY SECURITIES INTEREST RATES.

Section 417(e)(3)(A)(ii)(II) (prior to amendment by PPA) defines the applicable interest rate, which must be used for purposes of determining the minimum present value of a participant’s benefit under § 417(e)(1) and (2), as the annual rate of interest on 30-year Treasury securities for the month before the date of distribution or such other time as the Secretary may by regulations prescribe. Section 1.417(e)-1(d)(3) of the Income Tax Regulations provides that the applicable interest rate for a month is the annual rate of interest on 30-year Treasury securities as specified by the Commissioner for that month in revenue rulings, notices or other guidance published in the Internal Revenue Bulletin.

The rate of interest on 30-year Treasury securities for January 2012 is 3.03 percent. The Service has determined this rate as the average of the daily determinations of yield on the 30-year Treasury bond maturing in November 2041.

Generally for plan years beginning after 2007, § 431 specifies the minimum funding requirements that apply to multiemployer plans pursuant to § 412. Section 431(c)(6)(B) specifies a minimum amount for the full-funding limitation described in section 431(c)(6)(A), based on the plan’s current liability. Section 431(c)(6)(E)(ii)(I) provides that the interest rate used to calculate current liability for this purpose must be no more than 5 percent above and no more than 10 percent below the weighted average of the rates of interest on 30-year Treasury securities during the four-year period ending on the last day before the beginning of the plan year. Notice 88-73, 1988-2 C. B. 383, provides guidelines for determining the weighted average interest rate. The following rates were determined for plan years beginning in the month shown below.

MINIMUM PRESENT VALUE SEGMENT RATES.

Generally for plan years beginning after December 31, 2007, the applicable interest rates under § 417(e)(3)(D) are segment rates computed without regard to a 24-month average. For plan years beginning in 2008 through 2011, the applicable interest rates are the monthly spot segment rates blended with the applicable rate under § 417(e)(3)(A)(ii)(II) as in effect for plan years beginning in 2007. Notice 2007-81 provides guidelines for determining the minimum present value segment rates. Pursuant to that notice, the minimum present value transitional segment rates determined for January 2012, taking into account the January 2012 30-year Treasury rate of 3.03 stated above, are as follows:

DRAFTING INFORMATION.

The principal author of this notice is Tony Montanaro of the Employee Plans, Tax Exempt and Government Entities Division. Mr. Montanaro may be e-mailed at RetirementPlanQuestions@irs. gov .

Derived from January 2012 Data.

Notice 2012-17.

Frequently-Asked-Questions From Employers Regarding Automatic Enrollment, Employer Shared Responsibility, and Waiting Periods.

INTRODUÇÃO.

Many provisions of the Patient Protection and Affordable Care Act (Affordable Care Act) that become effective beginning in 2014 are designed to expand access to affordable health coverage. These include provisions for automatic enrollment of full-time employees in an employer’s health plan, shared responsibility of employers regarding health coverage, coverage to be offered through State-based Affordable Insurance Exchanges (Exchanges), premium tax credits to assist individuals in purchasing coverage through Exchanges, and other related provisions. The Departments of Labor, Health and Human Services, and the Treasury (the Departments) are working together to develop regulations and other administrative guidance that will respond to questions and assist stakeholders with implementation.

This notice, which is being issued in substantially identical form by the other two Departments, provides information on questions from employers and other stakeholders regarding the provisions of the Affordable Care Act governing automatic enrollment, employer shared responsibility, and the 90-day limitation on waiting periods. Also outlined below are various approaches that the Departments are considering proposing in future regulations or other guidance. Comments and input are welcome on all intended proposals below.

FUNDO.

Automatic Enrollment.

Section 18A of the Fair Labor Standards Act (FLSA), as added by section 1511 of the Affordable Care Act, directs an employer to which the FLSA applies, and that has more than 200 full-time employees, to automatically enroll new full-time employees in one of the employer’s health benefits plans (subject to any waiting period authorized by law), and to continue the enrollment of current employees in a health benefits plan offered through the employer. Section 18A further requires adequate notice and the opportunity for an employee to opt out of any coverage in which the employee was automatically enrolled.

On December 22, 2010, the Departments issued frequently asked questions (FAQ) on section 18A of the FLSA, which noted that the statute provides that employer compliance with the automatic enrollment provisions of section 18A shall be carried out “[i]n accordance with regulations promulgated by the Secretary [of Labor].” [1] That FAQ also stated that it is the view of the Department of Labor that, until such regulations are issued, employers are not required to comply with section 18A. Finally, the FAQ indicated that the Department of Labor intends to complete this rulemaking by 2014.

Employer Shared Responsibility.

The employer shared responsibility provisions, contained in section 4980H of the Internal Revenue Code (Code), provide that an applicable large employer (for this purpose, an employer with 50 or more full-time equivalent employees) could be subject to an assessable payment if any full-time employee is certified to receive an applicable premium tax credit or cost-sharing reduction payment. Generally, this may occur where either:

(1) The employer does not offer to its full-time employees (and their dependents) the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan; ou.

(2) The employer offers its full-time employees (and their dependents) the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan that either is unaffordable relative to an employee’s household income or does not provide minimum value.

For purposes of section 4980H, a “full-time employee” is an employee who is employed on average at least 30 hours per week.

The Treasury Department and the Internal Revenue Service (IRS) have requested and received comments on a number of issues and potential approaches to interpreting and applying the employer shared responsibility provisions. In particular, IRS Notice 2011-36, 2011-21 I. R.B. 792 [2] , described and requested comments on a possible approach that would use a “look-back/stability period safe harbor” method that employers might use in determining whether current employees (those who are not newly-hired or transferred) are full-time employees for purposes of the employer shared responsibility provisions. Comments were also requested on potential rules for determining full-time status of new employees and employees who move into full-time status mid-year.

In addition, Treasury and the IRS have described (in IRS Notice 2011-73, 2011-40 I. R.B. 474) [3] , a safe harbor allowing employers, for purposes of determining whether they owe an assessable payment under section 4980H(b), to use an employee’s Form W-2 wages (as reported in Box 1) instead of household income in determining whether coverage offered is affordable. Treasury and the IRS requested and received comments on the safe harbor.

90-Day Limitation on Waiting Periods.

Public Health Service (PHS) Act section 2708, as added by the Affordable Care Act, provides that, in plan years beginning on or after January 1, 2014, a group health plan or group health insurance issuer shall not apply any waiting period that exceeds 90 days. [4] PHS Act section 2704(b)(4), ERISA section 701(b)(4), and Code section 9801(b)(4) define a waiting period to be the period that must pass with respect to the individual before the individual is eligible to be covered for benefits under the terms of the plan. In previous regulations, the Departments defined a waiting period to mean the period that must pass before coverage for an employee or dependent who is otherwise eligible to enroll under the terms of a group health plan can become effective. [5] Unlike Code section 4980H, PHS Act section 2708 does not distinguish between full-time and part-time employees.

In addition to requesting comments on the employer shared responsibility provisions, IRS Notice 2011-36 requested comments on behalf of the Departments regarding the 90-day waiting period limitation under PHS Act section 2708, including how rules relating to the potential look-back/stability period safe harbor method for determining the number of full-time employees under Code section 4980H should be coordinated with the 90-day waiting period limitation.

DISCUSSION.

The following questions and answers respond to inquiries the Departments are receiving regarding automatic enrollment, employer shared responsibility, and the 90-day limitation on waiting periods. As discussed above, the questions and answers below provide information and identify various approaches that the Departments are considering proposing in future regulations or other guidance. Guidance that employers may rely upon with respect to the issues addressed below will be provided with sufficient lead time for employers to comply. Comments are requested on these approaches.

Q1 What is the current timeline for issuing guidance on automatic enrollment under FLSA section 18A?

A1. The Department of Labor has been working with stakeholders to ensure that it has the necessary information and data to develop regulations relating to automatic enrollment, and is sensitive to stakeholder concerns regarding the need for adequate time to comply with any regulations that are ultimately issued. In addition, the Department of Labor is aware of the need to coordinate the work it will be undertaking to develop guidance relating to automatic enrollment with the guidance being developed regarding other related Affordable Care Act provisions, including the employer shared responsibility provision and the 90-day limitation on waiting periods, described above.

In view of the need for coordinated guidance and a smooth implementation process, including an applicability date that gives employers sufficient time to comply, the Department of Labor has concluded that its automatic enrollment guidance will not be ready to take effect by 2014. It remains the Department of Labor’s view that, until final regulations under FLSA section 18A are issued and become applicable, employers are not required to comply with FLSA section 18A.

Q2 Do Treasury and the IRS intend to issue proposed regulations or other guidance permitting employers to use an employee’s W-2 wages as a safe harbor in determining the affordability of employer coverage, as outlined in IRS Notice 2011-73?

A2. Sim. As described in Notice 2011-73, Treasury and the IRS intend to issue proposed regulations or other guidance permitting employers to use an employee’s Form W-2 wages (as reported in Box 1) as a safe harbor in determining the affordability of employer coverage.

Q3 Do Treasury and the IRS intend to issue proposed regulations or other guidance addressing how the employer shared responsibility provisions under Code section 4980H and the 90-day waiting period limitation under PHS Act section 2708 are coordinated?

A3 Sim. Treasury and the IRS intend to issue proposed regulations or other guidance under Code section 4980H (which imposes shared responsibility on large employers with respect to coverage of full-time employees). That guidance is expected to address the intersection of the Code section 4980H rules and the PHS Act section 2708 rules applicable to the 90-day waiting period limitation and will be coordinated with upcoming tri-Department proposed rules under PHS Act section 2708 (discussed below). Treasury and the IRS are mindful of employers’ requests for safe harbors and simplicity and will seek to accommodate those requests to the extent feasible and consistent with the terms of the statute.

The upcoming guidance is expected to provide that, at least for the first three months following an employee’s date of hire, an employer that sponsors a group health plan will not, by reason of failing to offer coverage to the employee under its plan during that three-month period, be subject to the employer responsibility payment under Code section 4980H.

Q4 For purposes of determining whether an employee (other than a newly-hired employee) is a full-time employee for purposes of Code section 4980H, do Treasury and the IRS intend to issue proposed regulations or other guidance allowing employers to use a look-back/stability period safe harbor, based on the approach outlined in IRS Notice 2011-36?

A4 Sim. Having reviewed the comments in response to IRS Notice 2011-36, Treasury and the IRS intend to issue proposed regulations or other guidance that would allow employers to use a “look-back/stability period safe harbor” method based on the approach outlined in the notice for purposes of determining whether an employee (other than a newly-hired employee) is a full-time employee. Accordingly, it is anticipated that the guidance will allow look-back and stability periods not exceeding 12 months.

For a description of anticipated guidance regarding newly-hired employees, see Q&A-5.

Q5 For purposes of determining whether a newly-hired employee is a full-time employee, do Treasury and the IRS intend to issue proposed regulations or other guidance under Code section 4980H?

A5. Sim. Treasury and the IRS also intend to issue proposed regulations or other guidance that will address how to determine whether a newly-hired employee is a full-time employee for purposes of Code section 4980H.

As stated in Q&A-3, the upcoming guidance is expected to provide that, at least for the first three months following an employee’s date of hire, an employer that sponsors a group health plan will not, by reason of failing to offer coverage to the employee under its plan during that three-month period, be subject to the employer responsibility payment under Code section 4980H. The guidance is also expected to provide that, in certain circumstances, employers have six months to determine whether a newly-hired employee is a full-time employee for purposes of section 4980H and will not be subject to a section 4980H payment during that six-month period with respect to that employee. Treasury and the IRS intend to propose an approach under which the period of time that an employer will have to determine whether a newly-hired employee is a full-time employee (within the meaning of section 4980H) will depend upon whether, based on the facts and circumstances, (a) the employee is reasonably expected as of the time of hire to work an average of 30 or more hours per week on an annual basis and (b) the employee’s first three months of employment are reasonably viewed, as of the end of that period, as representative of the average hours the employee is expected to work on an annual basis.

Specifically, it is intended that the upcoming proposed regulations or other guidance would provide, for purposes of section 4980H, that:

If a newly-hired employee is reasonably expected to work full-time on an annual basis and does work full-time during the first three months of employment, the employee must be offered coverage under the employer’s group health plan as of the end of that period in order to avoid the possibility that the employer would be subject to a section 4980H payment after the end of that three-month period.

If, based on the facts and circumstances as of the time of hire, it cannot reasonably be determined that a newly-hired employee is expected to work full-time, the following rules will apply for purposes of determining whether the newly-hired employee is considered a full-time employee in applying section 4980H with respect to the employer’s group health plan:

If the employee works full-time during the first three months of employment, and the employee’s hours during that period are reasonably viewed, as of the end of that period, as representative of the average hours the employee is expected to work on an annual basis, the employee will first be considered a full-time employee for purposes of section 4980H as of the end of that three-month period. (If the employee works part-time during the first three months of employment, then no section 4980H penalty applies during the first or second three-month period.)

If the employee works full-time during the first three months of employment, but the employee’s hours during that period are reasonably viewed, as of the end of that period, as not representative of the average hours the employee is expected to work on an annual basis, the plan is permitted an additional three-month period to determine the employee’s status, and no section 4980H payment would be required with respect to that employee during the first or second three-month periods. (If the employee works part-time during the second three months of employment, then no section 4980H penalty applies during the first, second, or third three-month period.)

This policy describes the applicability of a potential section 4980H payment with respect to newly-hired employees. Forthcoming guidance is expected also to coordinate the rules for newly-hired employees with those applicable to other employees (including employees who are transferred from one employment classification or status to another).

The following examples illustrate the intended approach described above:

Example 1: Newly-hired employee expected to work full time.

Facts: Employer D, an applicable large employer ( i. e. , an employer with at least 50 full-time equivalent employees), hires Employee X as a computer programmer on December 1. Employee X is expected to work full-time on an annual basis and does work full-time for the months of December, January, and February. Employer D offers health coverage to its full-time workers (and their dependents).

Conclusion: Employee X must be able to enroll in coverage beginning in March or the employer potentially would be subject to a section 4980H payment. However, failure to offer coverage to Employee X during the first three months (December-February) would not subject Employer D to a potential section 4980H payment.

Example 2: Newly-hired employee who seasonally works full-time.

Facts: Same as Example 1 except that Employer D hires Employee Y as a salesperson who is expected to work full-time during the holiday season and part-time the rest of the year. Employee Y works an average of 35 hours per week in December, January, and February and 20 hours per week in March, April, and May.

Conclusion: If, based on the facts and circumstances at the end of the period, the three-month period of December through February is reasonably viewed as not representative of the average hours Employee Y is reasonably expected to work on an annual basis, Employer D may use a second three-month period (March-May) as a look-back period. Failure to offer coverage under Employer D’s group health plan to Employee Y during the first (December-February) and the second (March-May) three-month periods would not subject Employer D to a potential section 4980H payment. (Failure to offer coverage to Employee Y for June also would not subject Employer D to a potential section 4980H payment because Employee Y was determined to be part-time during the March-May look-back period.)

Q6 When PHS Act section 2708 (which imposes a 90-day limitation on waiting periods) becomes effective in 2014, will it require an employer to offer coverage to part-time employees or to any other particular category of employees?

A6. No. Many employers make distinctions in eligibility for coverage based on full-time or part-time status, as defined by the employer’s group health plan (which may differ from the standard under Code section 4980H). PHS Act section 2708 does not require the employer to offer coverage to any particular employee or class of employees, including part-time employees. PHS Act section 2708 merely prohibits requiring an otherwise eligible employee to wait more than 90 days before coverage is effective. Furthermore, nothing in the Affordable Care Act penalizes small employers for choosing not to offer coverage to any employee, or large employers for choosing to limit their offer of coverage to full-time employees, as defined in the employer shared responsibility provisions.

Q7. How do the Departments intend to address the application of the 90-day waiting period limitation in PHS Act section 2708 to an offer of coverage by an employer?

A7. Having reviewed the comments in response to IRS Notice 2011-36, the Departments intend to retain, for purposes of PHS Act section 2708, the definition in existing regulations that the 90-day waiting period begins when an employee is otherwise eligible for coverage under the terms of the group health plan. This is the definition of waiting period used for purposes of Title XXVII of the PHS Act, Part 7 of ERISA, and chapter 100 of the Code. [6] Under this approach, if a plan were to provide that full-time employees are eligible for coverage without satisfying any other condition, and an employee were hired as a full-time employee, the waiting period (if the employer were to choose to impose one) for that employee would begin on the date of hire and could not exceed 90 days. Consistent with PHS Act section 2708, eligibility conditions that are based solely on the lapse of a time period would be permissible for no more than 90 days.

Other conditions for eligibility under the terms of a group health plan would generally be permissible under PHS Act section 2708, unless the condition is designed to avoid compliance with the 90-day waiting period limitation. For example, eligibility conditions such as full-time status, a bona fide job category, or receipt of a license would be permissible.

The upcoming guidance under section 2708 is also expected to address situations in which, under the terms of an employer’s plan, employees (or certain classes of employees) are eligible for coverage once they complete a specified cumulative number of hours of service within a specified period (such as 12 months). It is anticipated that, under the upcoming guidance, such eligibility conditions will not be treated as designed to avoid compliance with the 90-day waiting period limitation so long as the required cumulative hours of service do not exceed a number of hours to be specified in that guidance.

Comments are requested on how this possible approach would apply to plans that credit hours of service from multiple different employers and plans that use hours banks.

Example 3: Employee ineligible under terms of plan by reason of job classification.

Facts: Same as Example 1 except that Employer D’s plan does not cover computer programmers.

Conclusion: Unlike Code section 4980H, in which the determination of full-time status is governed by a statutory standard (working an average of 30 hours per week), the waiting period limitation under PHS Act 2708 applies only to employees who are otherwise eligible under the terms of the plan. Because Employee X is excluded under the plan’s eligibility criteria, and the plan’s terms are not designed to avoid compliance with PHS Act section 2708, the plan’s eligibility provision does not violate PHS Act section 2708.

Example 4: Part-time employee, hours of service requirement.

Facts: Employer E hires Employee Z to work 20 hours per week. Employer E’s plan requires part-time employees to complete 750 hours of service in order to participate. Solely for purposes of illustration in this example, it is assumed that upcoming guidance under PHS Act section 2708 permits plans to require part-time employees to complete up to, but no more than, 750 hours of service in order to participate.

Conclusion: Part-time employees who work 20 hours per week will complete 750 hours of service in 37 1 / 2 weeks or just under 9 months. The waiting period under PHS Act section 2708 begins when Employee Z satisfies the cumulative service requirement, thereby becoming eligible (but for the waiting period) for coverage under the plan. Employer E must provide coverage to Employee Z no later than 90 days after Employee Z completes 750 hours of service, which is about one year after Employee Z is hired and begins working part-time. (No Code section 4980H payment applies because Employee Z is part-time.)

REQUEST FOR COMMENTS.

Comments are requested by April 9, 2012. WARNING: Do not include any personally identifiable information (such as name, address, or other contact information) or confidential business information that you do not want publicly disclosed. All comments are posted on the Internet as received, and can be retrieved by most Internet search engines. Comments may be submitted anonymously. Comments will be shared by the Departments.

Comments may be sent electronically to: e-ohpsca-er. ebsa@dol. gov . Alternatively, comments may be sent via mail or hand delivery to: Office of Health Plan Standards and Compliance Assistance, Employee Benefits Security Administration, Room N-5653, U. S. Department of Labor, 200 Constitution Avenue, NW, Washington, DC 20210.

PARA MAIS INFORMAÇÕES.

The Departments have coordinated on the information contained in this notice and are publishing substantively identical issuances. Questions concerning the information contained herein may be directed to the Department of Labor’s Office of Health Plan Standards and Compliance Assistance at 202-693-8335; the Internal Revenue Service at 202-927-9639; or the Department of Health and Human Services at 410-786-1565 or phig@cms. hhs. gov . Additional information for employers regarding the Affordable Care Act is available at healthcare. gov and dol. gov/ebsa/healthreform .

[1] Available at: dol. gov/ebsa/faqs/faq-aca5.html .

[2] Available at: irs. gov/pub/irs-drop/n-11-36.pdf .

[3] Available at: irs. gov/pub/irs-drop/n-11-73.pdf .

[4] The Affordable Care Act also added section 715(a)(1) to the Employee Retirement Income Security Act (ERISA) and section 9815(a)(1) to the Code to incorporate various provisions of the PHS Act into the Code and ERISA, including the provisions of section 2708 of the PHS Act.

[5] 26 CFR 54.9801-3(a)(3)(iii), 29 CFR 2590.701-3(a)(3)(iii), 45 CFR 146.111(a)(3)(iii).

[6] 26 CFR 54.9801-3(a)(3)(iii), 29 CFR 2590.701-3(a)(3)(iii), 45 CFR 146.111(a)(3)(iii).

Part IV. Items of General Interest.

REG-109369-10.

Notice of Proposed Rulemaking Passive Activity Losses and Credits Limited.

Internal Revenue Service (IRS), Treasury.

Notice of proposed rulemaking.

This document contains proposed regulations regarding the definition of an “interest in a limited partnership as a limited partner” for purposes of determining whether a taxpayer materially participates in an activity under section 469 of the Internal Revenue Code (Code). These proposed regulations affect individuals who are partners in partnerships.

Written or electronic comments and requests for a public hearing must be received by February 27, 2012.

Send submissions to: CC:PA:LPD:PR (REG-109369-10), room 5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand-delivered Monday through Friday between the hours of 8 a. m. and 4 p. m. to: CC:PA:LPD:PR (REG-109369-10), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC, or sent electronically, via the Federal eRulemaking Portal at regulations. gov/ (IRS REG-109369-10).

FOR FURTHER INFORMATION CONTACT:

Concerning the proposed regulations, Michala Irons, (202) 622-3050; concerning submissions of comments and requests for public hearing, Oluwafunmilayo Taylor, (202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Fundo.

Section 469(a)(1) limits the ability of certain taxpayers to deduct losses from passive activities. Section 469(b) permits passive losses disallowed in one year to be carried over to the next year. Section 469(c)(1) provides that a passive activity means any activity which involves the conduct of any trade or business, and in which the taxpayer does not materially participate. Section 469(h)(1) provides that a taxpayer shall be treated as materially participating in an activity only if the taxpayer is involved in the operations of the activity on a basis which is regular, continuous, and substantial. The Treasury Department and the IRS promulgated temporary regulations under section 469 in 1988. See T. D. 8175, 1998-1 C. B. 191, 53 FR 5686 (February 25, 1988). Section 1.469-5T(a) provides that an individual taxpayer shall be treated as materially participating in an activity for the taxable year if and only if:

(1) The individual participates in the activity for more than 500 hours during such year;

(2) The individual’s participation in the activity for the taxable year constitutes substantially all of the participation in such activity of all individuals (including individuals who are not owners of interests in the activity) for such year;

(3) The individual participates in the activity for more than 100 hours during the taxable year, and such individual’s participation in the activity for the taxable year is not less than the participation in the activity of any other individual (including individuals who are not owners of interests in the activity) for such year;

(4) The activity is a significant participation activity (within the meaning of §1.469-5T(c)) for the taxable year, and the individual’s aggregate participation in all significant participation activities during such year exceeds 500 hours;

(5) The individual materially participated in the activity (determined without regard to §1.469-5T(a)(5)) for any five taxable years (whether or not consecutive) during the ten taxable years that immediately precede the taxable year;

(6) The activity is a personal service activity (within the meaning of §1.469-5T(d)), and the individual materially participated in the activity for any three taxable years (whether or not consecutive) preceding the taxable year; ou.

(7) Based on all of the facts and circumstances (taking into account the rules in §1.469-5T(b)), the individual participates in the activity on a regular, continuous, and substantial basis during such year.

Section 469(h)(2) presumptively treats losses from interests in limited partnerships as passive. Section 469(h)(2) provides that, except as provided in regulations, no interest in a limited partnership as a limited partner shall be treated as an interest with respect to which a taxpayer materially participates. Section 1.469-5T(e)(2) permits an individual taxpayer to establish material participation in a limited partnership but constrains the individual taxpayer to only three of the seven regulatory tests in §1.469-5T(a), (§1.469-5T(a)(1), (a)(5), or (a)(6)).

Section 1.469-5T(e)(3)(i) generally provides that a partnership interest shall be treated as a limited partnership interest if (A) such interest is either designated as a limited partnership interest in the limited partnership agreement or the certificate of limited partnership, without regard to whether the liability of the holder of such interest for obligations of the partnership is limited under applicable State law; or (B) the liability of the holder of such interest for obligations of the partnership is limited, under the law of the State in which the partnership is organized, to a determinable fixed amount (for example, the sum of the holder’s capital contributions to the partnership and contractual obligations to make additional capital contributions to the partnership). However, even if the interest is characterized as a limited partnership interest under §1.469-5T(e)(3)(i), an exception under §1.469-5T(e)(3)(ii) applies if the individual is a general partner in the partnership at all times during the partnership’s taxable year ending with or within the individual’s taxable year (or portion of the partnership’s taxable year during which the individual (directly or indirectly) owns such limited partnership interest) (the “general partner exception”). If the general partner exception applies, the limited partnership interest will not be treated as such for the year in which the individual taxpayer is a general partner in the partnership. This allows the individual taxpayer to demonstrate material participation through any of the seven regulatory tests in §1.469-5T(a).

Courts have concluded, in certain instances, that the holder of a limited liability company (LLC) interest is not treated as holding an interest in a limited partnership as a limited partner for purposes of applying the section 469 material participation tests. In Gregg v. U. S. , 186 F. Supp.2d 1123 (D. Or. 2000), an Oregon district court concluded that, in the absence of regulations to the effect that an LLC member should be treated as a limited partner, the limited partner exception in section 469(h)(2) was not applicable to LLC members. In Garnett v. Comm’r , 132 T. C. 368 (2009), the Tax Court found that the taxpayers’ ownership interests in limited liability partnerships and LLCs were not interests in limited partnerships because their interests fit within the general partner exception in §1.469-5T(e)(3)(ii). Shortly thereafter, in Thompson v. U. S. , 87 Fed. Cl. 728 (2009), the Court of Federal Claims concluded that the regulations under section 469(h)(2) require the taxpayer’s ownership interest to be in a partnership under State law rather than a partnership under Federal income tax law. Accordingly, because an LLC member is not a limited partner under State law, the court concluded that section 469(h)(2) did not apply to an LLC member. Most recently, the Tax Court in Newell v. Comm’r , T. C. Memo. 2010-23, concluded that section 469(h)(2) did not apply to the managing member of an LLC and that the member fell within the general partner exception in §1.469-5T(e)(3)(ii). On April 5, 2010, the IRS issued an Action on Decision acquiescing in the result only in Thompson v. U. S. , AOD 2010-02, 2010-14 I. R.B. 515.

Explanation of Provisions.

The proposed regulations provide that an interest in an entity will be treated as an interest in a limited partnership under section 469(h)(2) if (A) the entity in which such interest is held is classified as a partnership for Federal income tax purposes under §301.7701-3; and (B) the holder of such interest does not have rights to manage the entity at all times during the entity’s taxable year under the law of the jurisdiction in which the entity was organized and under the governing agreement. Rights to manage include the power to bind the entity. The proposed regulations provide rules concerning an interest in a limited partnership based on the purposes for which section 469 was enacted, and the manner in which the provision is structured and operates within the Code. Accordingly, the rules concerning an interest in a limited partnership in the proposed regulations are provided solely for purposes of section 469 and no inference is intended that the same rules would apply for any other provisions of the Code requiring a distinction between a general partner and a limited partner.

In Garnett v. Comm’r , supra , the Tax Court noted that Congress enacted section 469(h)(2) to address the limitations on a limited partner’s ability to participate in the control of the partnership’s business. Under the Uniform Limited Partnership Act of 1916, limited partners could lose their limited liability protection if they participated in the control of the partnership. The regulations under section 469(h)(2) were drafted with these constraints in mind. Today, many states have adopted a variation of the Revised Uniform Limited Partnership Act of 1985 (RULPA). Under RULPA, limited partners may participate in the management and control of the partnership without losing their limited liability. As a consequence, limited partners under RULPA are now more akin to general partners and LLC members with respect to their rights in the management of the entity. Under the Uniform Limited Liability Company Act of 1996, LLC members of member-managed LLCs do not lose their limited liability by participating in the management and conduct of the company’s business. In Newell v. Comm’r , supra , the Tax Court noted that the managing member of the LLC at issue managed the day-to-day operations of the LLC and was the “substantial equivalent” of a general partner. Recognizing that the original presumptions regarding the limitations on a limited partner’s participation in the activities of the entity are no longer valid today, and also recognizing the emergence of LLCs, the proposed regulations eliminate the current regulations’ reliance on limited liability for purposes of determining whether an interest is an interest in a limited partnership as a limited partner under section 469(h)(2) and instead adopt an approach that relies on the individual partner’s right to participate in the management of the entity.

The regulations are proposed to apply to taxable years beginning on or after the date of publication of the Treasury decision adopting these regulations as final regulations in the Federal Register .

Special Analyses.

It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in Executive Order 12866, as supplemented by Executive Order 13563. Therefore, a regulatory assessment is not required. It has also been determined that section 553(b) of the Administrative Procedure Act (5 U. S.C. chapter 5) does not apply to this regulation, and because the regulation does 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, these regulations will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business.

Comments and Requests Public Hearing.

Before these proposed regulations are adopted as final regulations, consideration will be given to any written (a signed original and eight (8) copies) or electronic comments that are submitted timely to the IRS. All comments will be available for public inspection and copying. A public hearing will be scheduled if requested in writing by any person that timely submits written comments. If a public hearing is scheduled, notice of the date, time, and place for the public hearing will be published in the Federal Register .

Drafting Information.

The principal author of these proposed regulations is Michala Irons, Office of the Associate Chief Counsel (Passthroughs and Special Industries). However, other personnel from the Treasury Department and the IRS participated in their development.

Proposed Amendments to the Regulations.

Accordingly, 26 CFR part 1 is proposed to be 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 1.469-0 is amended by:

1. Revising the entries for §1.469-5(a), (b), (c), (d), and (e).

2. Removing the entries for §1.469-5T(e)(1), (e)(2), and (e)(3).

The revisions read as follows:

§1.469-0 Table of contents .

§1.469-5 Material participation .

(a) through (d) [Reserved].

(e) Treatment of an interest in a limited partnership as a limited partner.

(3) Interest in a limited partnership as a limited partner.

(ii) Individual holding an interest other than an interest in a limited partnership as a limited partner.

(4) Effective/applicability date.

Par. 3. In §1.469-5, paragraphs (a), (b), (c), (d), and (e) are revised to read as follows:

§1.469-5 Material Participation .

(a) through (d) [Reserved].

(e) Treatment of an interest in a limited partnership as a limited partner —(1) In general . Except as otherwise provided in this paragraph (e), an individual shall not be treated as materially participating in any activity in which the individual owns an interest in a limited partnership as a limited partner (as defined in paragraph (e)(3)(i) of this section) for purposes of applying section 469 and the regulations thereunder to—

(i) The individual’s share of any income, gain, loss, deduction, or credit from such activity that is attributable to an interest in a limited partnership as a limited partner; e.

(ii) Any gain or loss from such activity recognized upon a sale or exchange of such an interest.

(2) Exceptions . Paragraph (e)(1) of this section shall not apply to an individual’s share of income, gain, loss, deduction, and credit for a taxable year from any activity in which the individual would be treated as materially participating for the taxable year under paragraphs (a)(1), (a)(5), or (a)(6) of §1.469-5T if the individual did not own an interest in a limited partnership as a limited partner (as defined in paragraph (e)(3)(i) of this section) for such taxable year.

(3) Interest in a limited partnership as a limited partner —(i) In general . Except as provided in paragraph (e)(3)(ii) of this section, for purposes of section 469(h)(2) and this paragraph (e), an interest in an entity shall be treated as an interest in a limited partnership as a limited partner if—

(A) The entity in which such interest is held is classified as a partnership for Federal income tax purposes under §301.7701-3; e.

(B) The holder of such interest does not have rights to manage the entity at all times during the entity’s taxable year under the law of the jurisdiction in which the entity is organized and under the governing agreement.

(ii) Individual holding an interest other than an interest in a limited partnership as a limited partner . An individual shall not be treated as holding an interest in a limited partnership as a limited partner for the individual’s taxable year if such individual also holds an interest in the partnership that is not an interest in a limited partnership as a limited partner (as defined in paragraph (e)(3)(i) of this section), such as a state-law general partnership interest, at all times during the entity’s taxable year ending with or within the individual’s taxable year (or the portion of the entity’s taxable year during which the individual (directly or indirectly) owns such interest in a limited partnership as a limited partner).

(4) Effective/applicability date . This section applies to taxable years beginning on or after the date of publication of the Treasury decision adopting these rules as a final regulation in the Federal Register .

Par. 4. Section 1.469-5T paragraph (e) is revised to read as follows:

§1.469-5T Material Participation (Temporary) .

(e) Treatment of Limited Partners . [Reserved]. See §1.469-5(e) for rules relating to this paragraph (e).

Par. 5. Section 1.469-9 paragraph (f)(1) is revised to read as follows:

§1.469-9 Rules for certain rental real estate activities .

(f) Limited partnership interests in rental real estate activities —(1) In general . If a taxpayer elects under paragraph (g) of this section to treat all interests in rental real estate as a single rental real estate activity, and at least one interest in rental real estate is held by the taxpayer as an interest in a limited partnership as a limited partner (within the meaning of §1.469-5(e)(3)), the combined rental real estate activity of the taxpayer will be treated as an interest in a limited partnership as a limited partner for purposes of determining material participation. Accordingly, the taxpayer will not be treated under this section as materially participating in the combined rental real estate activity unless the taxpayer materially participates in the activity under the tests listed in §1.469-5(e)(2) (dealing with the tests for determining the material participation of a limited partner).

Steven T. Miller ,

Deputy Commissioner for.

Services and Enforcement.

(Filed by the Office of the Federal Register on November 25, 2011, 8:45 a. m., and published in the issue of the Federal Register for November 28, 2011, 76 F. R. 72875)

Definition of Terms and Abbreviations.

Definition of Terms.

Amplified describes a situation where no change is being made in a prior published position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus, if an earlier ruling held that a principle applied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare with modified , below).

Clarified is used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confusion. It is not used where a position in a prior ruling is being changed.

Distinguished describes a situation where a ruling mentions a previously published ruling and points out an essential difference between them.

Modified is used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling is modified because it corrects a published position. (Compare with amplified and clarified , above).

Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. This term is most commonly used in a ruling that lists previously published rulings that are obsoleted because of changes in laws or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted.

Revoked describes situations where the position in the previously published ruling is not correct and the correct position is being stated in a new ruling.

Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a period of time in separate rulings. If the new ruling does more than restate the substance of a prior ruling, a combination of terms is used. For example, modified and superseded describes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case, the previously published ruling is first modified and then, as modified, is superseded.

Supplemented is used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rulings in the series.

Suspended is used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study.

Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the effect:

Abreviaturas

The following abbreviations in current use and formerly used will appear in material published in the Bulletin.

B. T.A. — Board of Tax Appeals.

C. B. — Cumulative Bulletin.

CFR — Code of Federal Regulations.

DC — Dummy Corporation.

Del. Order — Delegation Order.

DISC — Domestic International Sales Corporation.

ERISA — Employee Retirement Income Security Act.

FC — Foreign Country.

FICA — Federal Insurance Contributions Act.

FISC — Foreign International Sales Company.

FPH — Foreign Personal Holding Company.

FUTA — Federal Unemployment Tax Act.

FX — Foreign corporation.

G. C.M. — Chief Counsel’s Memorandum.

GP — General Partner.

IC — Insurance Company.

I. R.B. — Internal Revenue Bulletin.

LP — Limited Partner.

P — Parent Corporation.

PHC — Personal Holding Company.

PO — Possession of the U. S.

PTE — Prohibited Transaction Exemption.

REIT — Real Estate Investment Trust.

Rev. Proc. — Revenue Procedure.

Rev. Rul. — Revenue Ruling.

S. P.R. — Statement of Procedural Rules.

Stat. — Statutes at Large.

T — Target Corporation.

T. D. — Treasury Decision.

T. I.R. — Technical Information Release.

U. S.C. — United States Code.

Numerical Finding List.

Numerical Finding List.

A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2011-27 through 2011-52 is in Internal Revenue Bulletin 2011-52, dated December 27, 2011.

Bulletins 2012-1 through 2012-9.

Effect of Current Actions on Previously Published Items.

Finding List of Current Actions on Previously Published Items.

A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2011-27 through 2011-52 is in Internal Revenue Bulletin 2011-52, dated December 27, 2011.

Bulletins 2012-1 through 2012-9.

How to get the Internal Revenue Bulletin.

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