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[Federal Register: November 5, 2009 (Volume 74, Number 213)]
[Rules and Regulations]               
[Page 57251-57252]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05no09-6]                         

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9465]
RIN 1545-BF71

 
Determination of Interest Expense Deduction of Foreign 
Corporations; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

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SUMMARY: This document contains corrections to final regulations (TD 
9465) that were published in the Federal Register on Monday, September 
28, 2009 (74 FR 49315) concerning the determination of the interest 
expense deduction of foreign corporations engaged in a trade or 
business within the United States. These final regulations conform the 
interest expense rules to recent U.S. Income Tax Treaty agreements and 
adopt other changes to improve compliance.

DATES: This correction is effective on November 5, 2009], and is 
applicable on September 28, 2009.

FOR FURTHER INFORMATION CONTACT: Anthony J. Marra, (202) 622-3870 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9465) that are the subject of this 
document are under sections 882 and 884 of the Internal Revenue Code.

Need for Correction

    As published, the final regulations (TD 9465) contain errors that 
may prove

[[Page 57252]]

to be misleading and are in need of clarification.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

0
Accordingly, 26 CFR part 1 is corrected by making the following 
correcting amendments:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *

0
Par. 2. Section 1.882-5 is amended by revising the first sentence of 
paragraph (f)(1) to read as follows:

Sec.  1.882-5  Determination of interest deduction.

* * * * *
    (f) Effective/applicability date. (1) This section is applicable 
for taxable years ending on or after August 15, 2009. * * *
* * * * *

0
Par. 3. Section 1.884-1 is amended by revising the fifth sentence of 
paragraph (e)(5) Example 2. (i) to read as follows:

Sec.  1.884-1  Branch profits tax.

* * * * *
    (e) * * *
    (5) * * *
    Example 2. (i) * * * As a result of the election, assuming A's 
U.S. assets and U.S. liabilities would otherwise have remained 
constant, A's U.S. net equity as of the close of 2007 will increase 
by the amount of the decrease in liabilities ($60) from $200 to $260 
and its ECEP will be reduced to zero. * * *
* * * * *

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. E9-26274 Filed 11-4-09; 8:45 am]

BILLING CODE 4830-01-P

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