# Prop. Treas. Reg. § 1.707-9: Effective dates and transitional rules.

Proposed regulation, not in force. REG-105346-03, 80 FR 43652, published 2015-07-23 <https://www.federalregister.gov/documents/2015/07/23/2015-17828/disguised-payments-for-services>. Interprets 26 U.S.C. § 707.

Par. 5. Section 1.707-9 is amended by: a. Redesignating paragraph (b) as paragraph (c); b. Redesignating paragraph (a) as paragraph (b); and c. Adding new paragraph (a). The addition reads as follows:

(a) Section 1.707-2 —(1) In general. Section 1.707-2 applies to all arrangements entered into or modified after the date of publication of the Treasury decision adopting that section as final regulations in the Federal Register . To the extent that an arrangement permits a service provider to waive all or a portion of its fee for any period subsequent to the date the arrangement is created, then the arrangement is modified for purposes of this paragraph on the date or dates that the fee is waived.

(2) Arrangements entered into or modified before final regulations are published in theFederal Register . In the case of any arrangement entered into or modified that occurs on or before final regulations are published in the Federal Register , the determination of whether the arrangement is a disguised fee for services under section 707(a)(2)(A) is to be made on the basis of the statute and the guidance provided regarding that provision in the legislative history of section 73 of the Tax Reform Act of 1984 (Pub. L. 98-369, 98 Stat. 494). See H.R. Rep. No. 861, 98th Cong., 2d Sess. 859-2 (1984); S. Prt. No. 169 (Vol. I), 98th Cong., 2d Sess. 223-32 (1984); H.R. Rep. No. 432 (Pt. 2), 98th Cong., 2d Sess. 1216-21 (1984).

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