[Federal Register Volume 74, Number 45 (Tuesday, March 10, 2009)]
[Rules and Regulations]
[Page 10174]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-4997]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9444]
RIN 1545-BI42


Application of Section 367 to a Section 351 Exchange Resulting 
From a Transaction Described in Section 304(a)(1); Treatment of Gain 
Recognized Under Section 301(c)(3) for Purposes of Section 1248; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final and temporary regulations.

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SUMMARY: This document contains a correction to final and temporary 
regulations (TD 9444) that were published in the Federal Register on 
Wednesday, February 11, 2009, under sections 367(a), 367(b) and 1248(a) 
of the Internal Revenue Code. The final regulations under section 367 
revise existing final regulations and add cross-references. The final 
regulations under section 1248 update an effective/applicability date. 
The temporary regulations under section 367(a) and (b) revise existing 
final regulations concerning transfers of stock to a foreign 
corporation that are described in section 351 by reason of section 
304(a)(1). The temporary regulations under section 1248(a) provide 
that, for purposes of section 1248(a), gain recognized by a shareholder 
under section 301(c)(3) in connection with the receipt of a 
distribution of property from a foreign corporation with respect to its 
stock shall be treated as gain from the sale or exchange of the stock 
of such foreign corporation. The temporary regulations affect certain 
persons that transfer stock to a foreign corporation in a transaction 
described in section 304(a)(1), or certain persons that recognize gain 
under section 301(c)(3) in connection with the receipt of a 
distribution of property from a foreign corporation with respect to its 
stock.

DATES: This correction is effective March 10, 2009, and is applicable 
on February 11, 2009.

FOR FURTHER INFORMATION CONTACT: Sean W. Mullaney, (202) 622-3860 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final and temporary regulations that are the subject of this 
document are under sections 367 and 1248 of the Internal Revenue Code.

Need for Correction

    As published Wednesday, February 11, 2009 (74 FR 6824), final and 
temporary regulations (TD 9444) contains an error that may prove to be 
misleading and is in need of clarification.

Correction of Publication

    Accordingly, the publication of the final and temporary regulations 
(TD 9444), which was the subject of FR Doc. E9-2835, is corrected as 
follows:
    On page 6825, column 2, in the preamble, under the paragraph 
heading ``A. Modified Application of Section 367(a) to Deemed Section 
351 Exchanges'', first paragraph of the column, fourth line from the 
bottom of the paragraph, the language ``recognized $100x gain under 
section'' is corrected to read ``recognize $100x gain under section''.

Guy Traynor,
Acting Chief, Publications and Regulations Branch, Legal Processing 
Division, Associate Chief Counsel, (Procedure and Administration).
 [FR Doc. E9-4997 Filed 3-9-09; 8:45 am]
BILLING CODE 4830-01-P