22480 Federal Register / Vol. 77, No. 73 / Monday, April 16, 2012 / Rules and Regulations 

[FR Doc. 2012–8967 Filed 4–13–12; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9562] 

RIN 1545–BH77 

Conduit Financing Arrangements; 

Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correcting amendment. 

SUMMARY: This document contains a 

correction to final regulations (TD 9562) 

that were published in the Federal 

Register on Friday, December 9, 2011 

(76 FR 76895) providing guidance on 

conduit financing arrangements. The 

final regulations apply to multiple-party 

financing arrangements that are effected 

through disregarded entities, and are 

necessary in order to determine which 

of those arrangements should be 

recharacterized as a conduit financing 

arrangement. 

DATES: This correction is effective on 

April 16, 2012 and is applicable on 

December 9, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Quyen P. Huynh, (202) 622–3880 (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulation (TD 9562) that is 

the subject of this correction is under 

section 881 of the Internal Revenue 

Code. 

Need for Correction 

As published, TD 9562 contains errors 

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 

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 * * * 

§ 1.881–3 [Amended] 

■ Par. 2. For each entry in the table in 

the ‘‘Section’’ column, remove the 

language in the ‘‘Remove’’ column and 

add in its place the language in the 

‘‘Add’’ column as set forth below: 

Section Remove Add 

Last sentence of paragraph (a)(2)(i)(A) ......................................................................... Examples 1, 2, 3 ................ Examples 1, 2, 3 and 4. 

Last sentence of paragraph (a)(2)(i)(B) ......................................................................... Examples 4 and 5 .............. Examples 5 and 6. 

Last sentence of paragraph (a)(3)(ii)(E)(2)(ii) ............................................................... Example 6 .......................... Example 7. 

Last sentence of paragraph (a)(4)(ii)(B) ........................................................................ Examples 7 and 8 .............. Examples 8 and 9. 

Last sentence of paragraph (b)(1) ................................................................................. Examples 11 and 12 .......... Examples 12 and 13. 

Last sentence of paragraph (b)(2)(i) ............................................................................. Examples 13, 14 and 15 .... Examples 14, 15 and 16. 

Last sentence of paragraph (b)(2)(iii) ............................................................................ Example 16 ........................ Example 17. 

Last sentence of paragraph (b)(2)(iv) ............................................................................ Example 17 ........................ Example 18. 

Last sentence of paragraph (b)(3)(i) ............................................................................. Examples 21, 22 and 23 .... Examples 22, 23 and 24. 

Last sentence of paragraph (d)(1)(i) ............................................................................. Example 24 ........................ Example 25. 

Next to last sentence of paragraph (d)(1)(ii)(A) ............................................................ Example 25 ........................ Example 26. 

Paragraph (e), Example 21, paragraph (i) .................................................................... Example 19 ........................ Example 20. 

Paragraph (e), Example 21, paragraph (ii) ................................................................... Example 20 ........................ Example 21. 

Paragraph (e), Example 23, paragraph (i) .................................................................... Example 21 ........................ Example 22. 

Paragraph (e), Example 24, paragraph (i) .................................................................... Example 21 ........................ Example 22. 

Treena V. Garrett, 

Federal Register Liaison, Publications and 

Regulations Branch, Legal Processing 

Division, Associate Chief Counsel, (Procedure 

and Administration). 

[FR Doc. 2012–8993 Filed 4–13–12; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9583] 

RIN 1545–BI92 

Guidance Under Section 267(f); 

Deferral of Loss on Transactions 

Between Members of a Controlled 

Group 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations concerning the deferral of 

losses on the sale or exchange of 

property between members of a 

controlled group and provides guidance 

as to the time for taking into account 

those losses. These regulations affect 

corporations that are members of a 

controlled group. 

DATES: Effective Date: These regulations 

are effective on April 16, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Amie Colwell Breslow (202) 622–7530 

(not a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background 

Section 267(a)(1) provides that no 

deduction shall be allowed for any loss 

on the sale or exchange of property 

between certain related persons. Section 

267(f)(2) contains an exception for a loss 

on the sale or exchange of property 

between members of a controlled group. 

For this purpose, ‘‘controlled group’’ 

has the meaning given to such term in 

section 1563(a) except that ‘‘more than 

50 percent’’ is substituted for ‘‘at least 

80 percent’’ each place it appears. In the 

case of a sale or exchange of loss 

property between members of a 

controlled group, the loss is deferred 

rather than disallowed. Under section 

267(f)(2)(B), the loss is deferred until the 

property is transferred outside of the 

controlled group and there would be 

recognition of loss under consolidated 

return principles or until such other 

time as may be prescribed in 

regulations. 

The regulations under section 267(f) 

provide that the timing principles for 

intercompany sales or exchanges 

between members of a consolidated 

group (see generally § 1.1502–13(c)(2)) 

apply to sales or exchanges of property 


emcdonald on DSK29S0YB1PROD with RULES