Document Headings

                    Document headings vary by document type but may contain                    the following:                  
                -                       the agency or agencies that issued and signed a document                    
                -                       the number of the CFR title and the number of each part                      the document amends, proposes to amend, or is directly                      related to                    
                -                       the agency docket number / agency internal file number                    
                -                       the RIN which identifies each regulatory action listed in                      the Unified Agenda of Federal Regulatory and Deregulatory                      Actions                    

                    See the                                          Document Drafting Handbook                                        for more details.                  

###### Department of the Treasury

###### Internal Revenue Service

          - 26 CFR Part 1
          - [TD 9567]
          - RIN 1545-BK17

# AGENCY:

Internal Revenue Service (IRS), Treasury.

# ACTION:

Correcting amendment.

# SUMMARY:

                        This document contains corrections to final regulations (TD 9567), which were published in the                         **Federal Register**                         on Monday, December 19, 2011, relating to the reporting of specified foreign financial assets.                    

# DATES:

*Effective date:*                         This correction is effective February 21, 2012, and is applicable beginning December 19, 2011.                    

# FOR FURTHER INFORMATION CONTACT:

Joseph S. Henderson, (202) 622-3880 (not a toll-free number).

# SUPPLEMENTARY INFORMATION:

## Background

The final regulations that are the subject of these corrections are under section 6038 of the Internal Revenue Code.

## Need for Correction

As published on December 19, 2011 (76 FR 78561), final regulation (TD 9567), contains errors which may prove to be misleading and are in need of clarification.

# List of Subjects in 26 CFR Part 1

      - Income taxes
      - Reporting and recordkeeping requirements

Accordingly, 26 CFR part 1 is corrected by making the following correcting 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 * * *

# PART 1—[CORRECTED]

**Par. 2.**                         Section 1.6038D-2T is amended by:                    

1. Revising the last sentence of paragraph (b)(3). 

2. Revising, in paragraph (d), the subject heading and fifth sentence of paragraph (2)(i) in the *Example.*

The revisions read as follows:

§ 1.6038D-2T 

* * * * *

(b) * * *

(3) * * * See § 1.6038D-5T(f) for rules to determine the maximum value of an interest in a foreign trust or estate.

* * * * *

(d) * * *

*Example.*                             * * *                        

(2) * * *

                            (i)                             *Married specified individuals filing separate annual returns.*                             * * * See § 1.6038D-5T(b) regarding the maximum value of a jointly owned and specified foreign financial asset to be reported by a specified person, including a married specified individual, that is a joint owner of an asset. * * *                        

* * * * *

**Par. 3.**                         Section 1.6038D-4T is amended by revising paragraph (a)(9) to read as follows:                    

§ 1.6038D-4T 

(a) * * *

(9) The foreign currency exchange rate and, if the source of such rate is other than as described in § 1.6038D-5T(c)(1), the source of the rate used to determine the specified foreign financial asset's U.S. dollar value, including maximum value; and

* * * * *

**Par. 4.**                         Section 1.6038D-5T is amended by revising paragraph (c)(1).                    

§ 1.6038D-5T 

* * * * *

(c) * * *

                            (1)                             *In general.*                             Except as provided in paragraph (c)(2) of this section, the U.S. Treasury Department's Financial Management Service foreign currency exchange rate is to be used to convert the value of a specified foreign financial asset into U.S. dollars for purposes of determining the aggregate value of specified foreign financial assets in which a specified person has an interest and determining the maximum value of a specified foreign financial asset.                        

* * * * *

**Par. 5.**                         Section 1.6038D-7T is amended by revising paragraphs (a)(1)(i)(C) and (b) introductory text to read as follows:                    

§ 1.6038D-7T 

(a) * * *

(1) * * *

(i) * * *

(C) Form 8621, “Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund”;

* * * * *

                            (b)                             *Owner of certain trusts.*                             A specified person that is treated as an owner of any portion of a domestic trust under sections 671 through 678 is not required to file Form 8938 to report any specified foreign financial asset held by the trust if the trust is—                        

* * * * *

Guy R. Traynor,

Federal Register Liaison, Legal Processing Division, Publication and Regulations Br., Procedure & Administration.

[FR Doc. 2012-3935 Filed 2-17-12; 8:45 am]

BILLING CODE 4830-01-P