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###### Department of the Treasury

###### Internal Revenue Service 

          - 26 CFR Part 1 
          - [TD 9444] 
          - RIN 1545-BI42 

# AGENCY:

Internal Revenue Service (IRS), Treasury. 

# ACTION:

Correcting amendment. 

# 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. 

      ( print page 10175)    

# 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. 

# 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 amendment: 

# 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 1.367(a)-9T is amended by revising the paragraph of (b)(1) as follows:                     

§ 1.367(a)-9T 

* * * * *

(b) * * * 

(1) The gain realized by the United States person with respect to the transferred stock in connection with the deemed section 351 exchange exceeds; 

* * * * *

Guy Traynor, 

Acting Chief, Publications and Regulations Branch, Legal Processing Division,  Associate Chief Counsel,  (Procedure and Administration).

 [FR Doc. E9-4995 Filed 3-9-09; 8:45 am] 

BILLING CODE 4830-01-P