14678 Federal Register / Vol. 72, No. 60 / Thursday, March 29, 2007 / Rules and Regulations 

notwithstanding the provisions of any 

administrative procedures that preclude 

a taxpayer from requesting the advance 

consent of the Commissioner to change 

a method of accounting that is required 

to be made pursuant to a published 

automatic change procedure, for its first 

taxable year ending on or after August 

2, 2005, a taxpayer may request the 

advance consent of the Commissioner to 

change its method of accounting to 

comply with paragraph (b)(2)(i)(D) of 

this section, provided the taxpayer 

follows the administrative procedures, 

as modified by paragraphs (e)(2) through 

(5) of this section, for obtaining the 

advance consent of the Commissioner 

(for further guidance, for example, see 

Rev. Proc. 97–27 (1997–1 CB 680), as 

modified and amplified by Rev. Proc. 

2002–19 (2002–1 CB 696), as amplified 

and clarified by Rev. Proc. 2002–54 

(2002–2 CB 432), and 

§ 601.601(d)(2)(ii)(b) of this chapter). 

For the taxpayer’s second and 

subsequent taxable years ending on or 

after August 2, 2005, requests to secure 

the consent of the Commissioner must 

be made under the administrative 

procedures, as modified by paragraphs 

(e)(3) and (4) of this section, for 

obtaining the Commissioner’s advance 

consent to a change in accounting 

method. 

(2) Scope limitations. Any limitations 

on obtaining the automatic consent or 

advance consent of the Commissioner 

do not apply to a taxpayer seeking to 

change its method of accounting to 

comply with paragraph (b)(2)(i)(D) of 

this section for its first taxable year 

ending on or after August 2, 2005. 

(3) Audit protection. A taxpayer that 

changes its method of accounting in 

accordance with this paragraph (e) to 

comply with paragraph (b)(2)(i)(D) of 

this section does not receive audit 

protection if its method of accounting 

for additional section 263A costs is an 

issue under consideration at the time 

the application is filed with the national 

office. 

(4) Section 481(a) adjustment. A 

change in method of accounting to 

conform to paragraph (b)(2)(i)(D) of this 

section requires a section 481(a) 

adjustment. The section 481(a) 

adjustment period is two taxable years 

for a net positive adjustment for an 

accounting method change that is made 

to conform to paragraph (b)(2)(i)(D) of 

this section. 

(5) Time for requesting change. 

Notwithstanding the provisions of 

§ 1.446–1(e)(3)(i) and any contrary 

administrative procedure, a taxpayer 

may submit a request for advance 

consent to change its method of 

accounting to comply with paragraph 

(b)(2)(i)D) of this section for its first 

taxable year ending on or after August 

2, 2005, on or before the date that is 30 

days after the end of the taxable year for 

which the change is requested. 

(f) Effective date. Paragraphs 

(b)(2)(i)(D), (e), and (f) of this section 

apply for taxable years ending on or 

after August 2, 2005. 

§ 1.263A–2T [Removed] 

■ Par. 5. Section 1.263A–2T is removed. 

Kevin M. Brown, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: March 20, 2007. 

Eric Solomon, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. E7–5732 Filed 3–28–07; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9313] 

RIN 1545–BG29 

Corporate Reorganizations; Additional 

Guidance on Distributions Under 

Sections 368(a)(1)(D) and 354(b)(1)(B); 

Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correcting amendment. 

SUMMARY: This document contains 

correction to temporary regulations (TD 

9313) that were published in the 

Federal Register on Thursday, March 1, 

2007 (72 FR 9262) providing guidance 

regarding the qualification of certain 

transactions as reorganizations 

described in section 368(a)(1)(D) where 

no stock and/or securities of the 

acquiring corporation are issued and 

distributed in the transaction. 

DATES: This amendment is effective 

March 29, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Bruce A. Decker at (202) 622–7550 (not 

a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

The temporary regulations that are the 

subjects of this correction are under 

section 368 of the Internal Revenue 

Code. 

Need for Correction 

As published, temporary regulations 

(TD 9313) contain an error that may 

prove to be misleading and is in need 

of clarification. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Correction of Publication 

■ Accordingly, 26 CFR part 1 is 

corrected by making the following 

amendments: 

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 1.368–2T is amended 

by revising paragraph (l)(2)(iv) to read as 

follows: 

§ 1.368–2T Definition of terms (temporary). 

* * * * * 

(l) * * * 

(2) * * * 

(iv) Exception. This paragraph (l)(2) of 

this section does not apply to a 

transaction otherwise described in 

§ 1.358–6(b)(2) or section 368(a)(1)(G) by 

reason of section 368(a)(2)(D). 

* * * * * 

LaNita Van Dyke, 

Chief, Publications and Regulations Branch, 

Legal Processing Division, Associate Chief 

Counsel, (Procedure and Administration). 

[FR Doc. E7–5603 Filed 3–28–07; 8:45 am] 

BILLING CODE 4830–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R05–OAR–2006–0774; FRL–8284–5] 

Approval and Promulgation of Air 

Quality Implementation Plans; Indiana 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Direct final rule. 

SUMMARY: The EPA is approving 

revisions to Indiana’s State 

Implementation Plan (SIP) submitted on 

August 25, 2006, revising its existing 

emission reporting rule to be consistent 

with the emission statement program 

requirements for stationary sources in 

the Clean Air Act (CAA). The rationale 

for approval and other information are 

provided in this rulemaking action. 

DATES: This direct final rule will be 

effective May 29, 2007, unless EPA 

receives adverse comments by April 30, 

2007. If adverse comments are received, 

EPA will publish a timely withdrawal of 


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