70550 Federal Register / Vol. 69, No. 234 / Tuesday, December 7, 2004 / Rules and Regulations 

PART 53—FOUNDATION AND SIMILAR 

EXCISE TAXES

■ Par. 12. The authority citation for part 

53 continues to read as follows:

Authority: 26 U.S.C. 7805.

PART 55—EXCISE TAX ON REAL 

ESTATE INVESTMENT TRUSTS AND 

REGULATED INVESTMENT 

COMPANIES

■ Par. 13. The first sentence of the 

authority citation for part 55 is revised to 

read as follows:

Authority: 26 U.S.C. 6001, 6011, 6071, 

6091, and 7805. * * *

PART 156—EXCISE TAX ON 

GREENMAIL

■ Par. 14. The authority citation for part 

156 is revised to read as follows:

Authority: 26 U.S.C. 6001, 6011, 6061, 

6071, 6091, 6161, and 7805.

■ Par. 15. In the list below, for each 

section indicated in the left column, 

remove the language in the middle 

column and add the language in the right 

column in its place:

Section Remove Add 

1.6081–2(f), first sentence district director, including the Assistant Commissioner (International), or the director of a 

service center.

Commissioner. 

1.6081–4(c), first sentence district director, including the Assistant Commissioner (International), or the director of a 

service center.

Commissioner. 

1.6081–5(a)(1) 1.6031–1(e)(2) ................................................. 1.6031(a)–1(e)(2) 

1.6081–6(d), first sentence district director, including the Assistant Commissioner (International), or the director of a 

service center.

Commissioner. 

1.6081–7(d), first sentence district director, including the Assistant Commissioner (International), or the director of a 

service center.

Commissioner. 

25.6081–1, second sentence district director or director of the service center.Commissioner. 

31.6081(a)–1(b), first sentence district director or director of a service center Commissioner. 

53.6081–1(a), first sentence District directors and directors of service centers are.The Commissioner is 

53.6081–1(b), first sentence to the district director or director of the service 

center with whom the return is to be filed.

in accordance with the instructions to the extension request form 

55.6081–1, first sentence District directors and directors of service centers are.The Commissioner is 

156.6081–1(a), first sentence District directors and directors of service centers are.The Commissioner is 

156.6081–1(b), first sentence to the district director or director of the service 

center with whom the return is to be filed.

in accordance with the instructions to the extension form. 

PART 301—PROCEDURE AND 

ADMINISTRATION

■ Par. 16. The authority citation for part 

301 continues to read as follows:

Authority: 26 U.S.C. 7805 * * *

§ 301.6651–1 [Amended]

■ Par. 17. Section 301.6651–1(c)(4) 

introductory text is amended by 

removing the language ‘‘or (b)’’, 

removing paragraph (c)(4)(i), and 

redesignating paragraphs (c)(4)(ii) and 

(c)(4)(iii) as paragraphs (c)(4)(i) and 

(c)(4)(ii), respectively.

PART 602—OMB CONTROL NUMBERS 

UNDER THE PAPERWORK 

REDUCTION ACT

■ Par. 18. The authority citation for part 

602 continues to read as follows:

Authority: 26 U.S.C. 7805.

■ Par. 19. In § 602.101, paragraph (b) is 

amended by removing the entries for 

§§ 1.6081–8T and 1.6081–9T from the 

table.

Approved: November 23, 2004. 

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement.

Gregory Jenner, 

Acting Assistant Secretary of the Treasury.

[FR Doc. 04–26837 Filed 12–6–04; 8:45 am] 

BILLING CODE 4830–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service 

26 CFR Parts 1 and 602

[TD 9144] 

RIN 1545–BA75

Statutory Options; Correction

AGENCY: Internal Revenue Service (IRS), 

Treasury.

ACTION: Correcting amendment.

SUMMARY: This document corrects final 

regulations (TD 9144) that were 

published in the Federal Register on 

Monday, August 3, 2004 (69 FR 46401) 

and corrected on Monday, October 18, 

2004 (69 FR 61309). The final 

regulations relate to statutory options.

DATES: This document is effective on 

August 3, 2004.

FOR FURTHER INFORMATION CONTACT:

Erinn Madden, (202) 622–6030 (not a 

toll-free number).

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations (TD 9144) that 

are the subject of these corrections are 

under sections 421, 422, and 424 of the 

Internal Revenue Code. 

Need for Correction 

As published, the final regulations 

(TD 9144) contain errors that may prove 

to be misleading and are in need of 

clarification.

Federal Register / Vol. 69, No. 234 / Tuesday, December 7, 2004 / Rules and Regulations 70551

List of Subjects 

26 CFR Part 1

Income taxes, Reporting and 

recordkeeping requirements. 

26 CFR Part 602

Reporting and recordkeeping 

requirements.

Correction of Publication

■ Accordingly, 26 CFR Parts 1 and 602 

is corrected by making the following 

correcting amendments:

PART 1—INCOME TAXES

■ Paragraph 1. The authority citation for 

part 1 and continues to read in part as 

follows:

Authority: 26 U.S.C. 7805 * * *

§ 1.421–1 [Corrected]

■ 1. Section 1.421–1(j)(2), the second 

sentence is amended by removing the 

language ‘‘the REG–122917–02 or this 

section.’’ and adding the language ‘‘REG–

122917–02 or this section.’’ in its place.

§ 1.421–2 [Corrected]

■ 2. Section 1.421–2(f)(2), the second 

sentence is amended by removing the 

language ‘‘corporation at least 6 months 

after August 3, 2004, taxpayers may rely 

on either the REG–122917–02 or 

section.’’ and adding the language 

‘‘corporation occurring at least 6 months 

after August 3, 2004, taxpayers may rely 

on either REG–122917–02 or this 

section.’’ in its place.

§ 1.422–1 [Corrected]

■ 3. Section 1.422–1(b)(3), Example 2, 

the fourth sentence is amended by 

removing the language ‘‘consequences of 

the disposition and the holding period 

for capital gain purposes begin on the 

vesting date, six months after exercise.’’

and adding the language ‘‘consequences 

of the disposition, and the holding 

period for capital gain purposes begins 

on the vesting date, six months after 

exercise.’’ in its place.

§ 1.422–4 [Corrected]

■ 4. Section 1.422–4(d), Example 5 (iii), 

the last sentence is amended by 

removing the language ‘‘it is treated as a 

nonstatutory options in its entirety.’’ and 

adding the language ‘‘it is treated as a 

nonstatutory option in its entirety.’’ in its 

place.

§ 1.422–5 [Corrected]

■ 5. Section 1.422–5(e), Example 2, the 

fourth sentence is amended by removing 

the language ‘‘Under the rules of 

paragraph (b)(2) and (b)(3) of this 

section,’’ and adding the language 

‘‘Under the rules of paragraphs (b)(2) and 

(b)(3) of this section,’’ in its place.

■ 6. Section 1.422–5(f)(2), the second 

sentence is amended by removing the 

language ‘‘taxpayers may rely on either 

the REG–122917–02 or this section.’’ and 

adding the language ‘‘taxpayers may rely 

on either REG–122917–02 or this 

section.’’ in its place.

■ 7.Section 1.424–1 is amended by:

■ 1. Revising the sixth and seventh 

sentences in paragraph (a)(10), Example 

8.

■ 2. Adding a comma after the word 

‘‘Thus’’ in the second sentence of 

paragraph(e)(4)(viii).

The revision reads as follows:

§ 1.424–1 Definitions and special rules 

applicable to statutory options. 

(a) * * *

(10) * * *

Example 8. * * * Based on these facts, a 

new option to purchase 200 shares of Y at an 

option price of $25 per share could be 

granted to E in complete substitution of E’s 

old option. In the alternative, it would also 

be permissible in connection with the spin 

off, to grant E a new option to purchase 100 

shares of Y, at an option price of $25 per 

share, and for E to retain an option to 

purchase 100 shares of X under the old 

option, with the option price adjusted to $25.

* * * * *

■ 8. Section 1.424–1(g)(2), the second 

sentence is amended by removing the 

language ‘‘on either the REG–122917–02 

or this section.’’ and adding the language 

‘‘on either REG–122917–02 or this 

section.’’ in its place.

PART 602—OMB CONTROL NUMBERS 

UNDER THE PAPERWORK 

REDUCTION ACT

■ Par. 2. The authority citation for part 

602 continues to read as follows:

Authority: 26 U.S.C. 7805.

§ 602.101 [Corrected]

■ 9. Section 602.101(b) is amended by 

adding the entry ‘‘1.422–1–1545–0820’’

to the table in numerical order.

Cynthia E. Grigsby, 

Acting Chief, Publications and Regulations 

Branch, Legal Processing Division, Associate 

Chief Counsel, (Procedures and 

Administration).

[FR Doc. 04–26745 Filed 12–6–04; 8:45 am] 

BILLING CODE 4830–01–P

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 100

[CGD05–04–212] 

RIN 1625–AA08

Special Local Regulations for Marine 

Events; Approaches to Annapolis 

Harbor, Spa Creek and Severn River, 

Annapolis, MD

AGENCY: Coast Guard, DHS.

ACTION: Notice of implementation of 

regulation. 

SUMMARY: The Coast Guard is 

implementing the special local 

regulations at 33 CFR 100.511 during 

the Eastport Yacht Club Lights Parade, 

a marine event to be held December 11, 

2004, on the waters of Spa Creek and 

the Severn River at Annapolis, 

Maryland. These special local 

regulations are necessary to control 

vessel traffic due to the confined nature 

of the waterway and expected vessel 

congestion during the event. The effect 

will be to restrict general navigation in 

the regulated area for the safety of event 

participants, spectators and vessels 

transiting the event area.

DATES: 33 CFR 100.511 will be enforced 

from 4:45 p.m. to 9:15 p.m. on 

December 11, 2004.

FOR FURTHER INFORMATION CONTACT:

Ronald Houck, Marine Events 

Coordinator, Commander, Coast Guard 

Activities Baltimore, 2401 Hawkins 

Point Road, Baltimore, MD 21226–1971, 

(410) 576–2513.

SUPPLEMENTARY INFORMATION: The 

Eastport Yacht Club will sponsor a 

lighted boat parade on the waters of Spa 

Creek and the Severn River at 

Annapolis, Maryland. The event will 

consist of approximately 75 boats 

traveling at slow speed along two 

separate parade routes in Annapolis 

Harbor. The participating boats will 

range in length from 10 to 90 feet, and 

each will be decorated with holiday 

lights. In order to ensure the safety of 

participants, spectators and transiting 

vessels, 33 CFR 100.511 will be 

enforced for the duration of the event. 

Under the provisions of 33 CFR 100.511, 

vessels may not enter the regulated area 

without permission from the Coast 

Guard Patrol Commander. Spectator 

vessels may anchor outside the 

regulated area but may not block a 

navigable channel. Because these 

restrictions will be in effect for a limited 

period, they should not result in a