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###### Department of the Treasury

###### Internal Revenue Service

          - 26 CFR Part 1
          - [TD 9170]
          - RIN 1545-BD99

# AGENCY:

Internal Revenue Service (IRS), Treasury.

# ACTION:

Correcting amendment.

# SUMMARY:

                        This document corrects temporary regulations (TD 9170) that were published in the                         **Federal Register**                         on Wednesday, December 22, 2004 (69 FR 76612), that provide guidance concerning the applicability of section 1374 to S corporations that acquire assets in carryover basis transactions from C corporations on or after December 27, 1994, and to certain corporations that terminate S                               ( print page 5045)                            corporation status and later elect again to become S corporations.                    

# DATES:

This document is effective on December 22, 2004.

# FOR FURTHER INFORMATION CONTACT:

Stephen R. Cleary, (202) 622-7750 (not a toll-free number).

# SUPPLEMENTARY INFORMATION:

## Background

The final and temporary regulations (TD 9170) that is the subject of this correction are under 1374 of the Internal Revenue Code.

## Need for Correction

As published, the final and temporary regulations (TD 9170) contains an error that may prove to be misleading and are in need of clarification.

# List of Subjects in 26 CFR Parts 1

      - Income Tax
      - 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 * * *

2. In § 1.1374-8T, the section heading, and paragraphs (a)(1) and (a)(2) are revised to read as follows: 

§ 1.1374-8T 1374(d)(8) 

(a)(1) (Reserved) For further guidance see § 1.1374-8(a).

(2) Section 1374(d)(8) applies to any § 1.1374(d)(8) transaction, as defined in paragraph (a)(1) of this section, that occurs on or after December 27, 1994, without regard to the date of the corporation's election to be an S corporation under section 1362.

* * * * *

Cynthia E. Grigsby, 

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

[FR Doc. 05-1734 Filed 1-31-05; 8:45 am]

BILLING CODE 4830-01-P