The Allocation of Consideration and Allocation and Recovery of Basis in Transactions Involving Corporate Stock or Securities; Correction, 9575-9577 [E9-4657]
Download as PDF
<![CDATA[
Federal Register / Vol. 74, No. 42 / Thursday, March 5, 2009 / Proposed Rules
example, name, address, etc.)
voluntarily submitted by the commenter
may be publicly accessible. Do not
submit confidential business
information or otherwise sensitive or
protected information. NOAA will
accept anonymous comments (enter
N/A in the required fields if you wish
to remain anonymous). Attachments to
electronic comments will be accepted in
Microsoft Word, Excel, Wordperfect, or
Adobe PDF file formats only.
DEPARTMENT OF THE TREASURY
FOR FURTHER INFORMATION CONTACT:
David A. Score, Superintendent, Florida
Keys National Marine Sanctuary, 33
East Quay Road, Key West, FL 33040.
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to notice of proposed
rulemaking.
SUPPLEMENTARY INFORMATION:
Need for Correction
In the preamble of the proposed rule,
NOAA incorrectly stated that the U.S.
Coast Guard regulation Rule 27e
specified a minimum distance of 100
yards between vessels and ‘‘divers
down’’ flags. In fact, only the applicable
Florida Statute specifies the 100-yard
minimum distance requirement (Section
327.331 FS). In order to be consistent
with the regulations issued by the State
of Florida and consistent in both state
and federal waters of the sanctuary,
NOAA proposes to change our
regulations from ‘‘100 feet’’ in 922.163
(a)(5)(iii)(C) to ‘‘100 yards.’’ Requiring a
uniform minimum distance in both state
and federal waters simplifies the
sanctuary regulations, and therefore
improves compliance for sanctuary
users and enforcement of a single
regulation. The regulation allows both
diving and vessel operations to occur in
relatively the same area without
conflict. A consistent regulation also
allows for better public education
programs. NOAA is preparing an
environmental assessment pursuant to
the National Environmental Policy Act
to analyze the impacts associated with
this modification to the Florida Keys
National Marine Sanctuary regulations.
Request for Comments
dwashington3 on PROD1PC60 with PROPOSALS
NOAA reopens the public comment
period on the proposed rule to make
technical corrections and amendments
to the FKNMS regulations.
Internal Revenue Service
26 CFR Part 1
[REG–143686–07]
RIN 1545–BH35
The Allocation of Consideration and
Allocation and Recovery of Basis in
Transactions Involving Corporate
Stock or Securities; Correction
SUMMARY: This document contains a
correction to a notice of proposed
rulemaking (REG–143686–07) that was
published in the Federal Register on
Wednesday, January 21, 2009 (74 FR
3509) providing guidance regarding the
recovery of stock basis in distributions
under section 301 and transactions that
are treated as dividends to which
section 301 applies, as well as guidance
regarding the determination of gain and
the basis of stock or securities received
in exchange for, or with respect to, stock
or securities in certain transactions. The
proposed regulations affect shareholders
and security holders of corporations.
These proposed regulations are
necessary to provide such shareholders
and security holders with guidance
regarding the allocation and recovery of
basis on distributions of property.
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations
under sections 301, 302, and 304,
Theresa Kolish, (202) 622–7530;
concerning the proposed regulations
under sections 351, 354, 355, 356, 358,
368, 1001, and 1016, Rebecca O. Burch,
(202) 622–7550; concerning the
proposed regulations under section 861,
Jeffrey L. Parry, (202) 622–4476 (not
toll-free numbers).
SUPPLEMENTARY INFORMATION:
9575
143686–07), which was the subject of
FR Doc. E9–1100, is corrected as
follows:
1. On page 3509, column 2, in the
preamble, under the caption SUMMARY,
line 3, the language ‘‘301, 302, 304, 351,
354, 356, 358, 368,’’ is corrected to read
‘‘301, 302, 304, 351, 354, 355, 356, 358,
368,’’.
2. On page 3509, column 3, in the
preamble, under the caption FOR
FURTHER INFORMATION CONTACT, line 5,
the language ‘‘under sections 351, 354,
356, 358, 368,’’ is corrected to read
‘‘under sections 351, 354, 355, 356, 358,
368,’’.
3. On page 3510, column 1, in the
preamble, under the paragraph heading
‘‘Explanation of Provisions’’, second
paragraph, line 6, the language ‘‘lead to
the possibility of variant’’ is corrected to
read ‘‘led to the possibility of variant’’.
4. On page 3510, column 1, in the
preamble, under the paragraph heading
‘‘Explanation of Provisions’’, second
paragraph, line 5 from the bottom of the
paragraph, the language ‘‘was needed
reconsidered. See REG–’’ is corrected to
read ‘‘needed reconsideration. See
REG–’’.
5. On page 3510, column 2, in the
preamble, under the paragraph heading
‘‘Explanation of Provisions’’, second
paragraph of the column, line 2, the
language ‘‘that a share of stock is the
basic unit of’’ is corrected to read ‘‘that
a share of stock is a basic unit of’’.
6. On page 3511, column 2, in the
preamble, under the paragraph heading
‘‘C. Dividend Equivalent Reorganization
Exchanges’’, first paragraph of the
column, line 7 from the bottom of the
paragraph, the language ‘‘of stock solely
for nonqualifying’’ is corrected to read
‘‘of stock solely for qualifying’’.
§ 1.301–2
[Corrected]
The correction notice that is the
subject of this document is under
sections 301, 302, 304, 351, 354, 355,
356, 358, 368, 861, 1001, 1016, and 1374
of the Internal Revenue Code.
7. On page 3513, column 3, § 1.301–
2(a) Example.(i), last line of the column,
the language ‘‘$25 (Block 1) and 75 were
acquired on Date’’ is corrected to read
‘‘$25 (block 1) and 75 were acquired on
Date’’.
8. On page 3514, column 1, § 1.301–
2(a) Example.(i), first line of the column,
the language ‘‘2 for $175 (Block 2). On
December 31, when’’ is corrected to read
‘‘2 for $175 (block 2). On December 31,
when’’.
Background
Need for Correction
§ 1.302–5
Daniel J. Basta,
Director, Office of National Marine
Sanctuaries.
[FR Doc. E9–4569 Filed 3–4–09; 8:45 am]
As published, the notice of proposed
rulemaking (REG–143686–07) contains
errors that may prove to be misleading
and are in need of clarification.
BILLING CODE 3510–22–M
Correction of Publication
9. On page 3514, column 1, § 1.302–
5(a)(3)(i), line 4 from the bottom of the
column, the language ‘‘treated as loss. If
all the shares of the’’ is corrected to read
‘‘treated as a loss. If all the shares of
the’’.
10. On page 3515, column 1, § 1.302–
5(e) Example 2.(ii), last line, the
Accordingly, the publication of the
notice of proposed rulemaking (REG–
VerDate Nov<24>2008
16:34 Mar 04, 2009
Jkt 217001
PO 00000
Frm 00003
Fmt 4702
Sfmt 4702
E:\FR\FM\05MRP1.SGM
[Corrected]
05MRP1
9576
Federal Register / Vol. 74, No. 42 / Thursday, March 5, 2009 / Proposed Rules
language ‘‘5(a)(3)(ii)).’’ is corrected to
read ‘‘5(a)(4)).’’.
11. On page 3515, column 1, § 1.302–
5(e) Example 3.(ii), line 2 from the
bottom of the column, the language
‘‘shares of common stock. Therefore, the
only’’ is corrected to read ‘‘shares of
preferred stock. Therefore, the only’’.
12. On page 3515, column 2, § 1.302–
5(e) Example 4.(i), last line, the language
‘‘stock of Y.’’ is corrected to read ‘‘stock
of Corporation Y.’’.
13. On page 3515, column 2, § 1.302–
5(e) Example 4.(ii), line 4, the language
‘‘deferred loss on a disposition of the’’
is corrected to read ‘‘deferred loss on the
disposition of the’’.
dwashington3 on PROD1PC60 with PROPOSALS
§ 1.304–2
13:12 Mar 04, 2009
§ 1.351–2
Jkt 217001
[Corrected]
21. On page 3517, column 2, § 1.351–
2(b) Example., line 11, the language ‘‘to
C. Gain, but not loss, is recognized by
D.’’ is corrected to read ‘‘by C. Gain, but
not loss, is recognized by D.’’.
22. On page 3517, column 2, § 1.351–
2(b) Example., line 9 from the bottom of
the paragraph, the language ‘‘of $100 (B)
$30 cash and 30 shares of stock’’ is
corrected to read ‘‘of $100); (B) $30 cash
and 30 shares of stock’’.
§ 1.355–1
[Corrected]
14. On page 3515, column 3, § 1.304–
2(a), the language ‘‘In general’’ is
corrected to read ‘‘In general—’’.
15. On page 3515, column 3, § 1.304–
2(a)(1), lines 1 through 3 from the
bottom of the paragraph, the language
‘‘302(a) or 303 does not apply. For the
amount constituting a dividend in such
cases, see § 1.304–6.’’ is corrected to
read ‘‘302(a) or 303 does not apply.’’.
16. On page 3515, column 3, § 1.304–
2(a)(3), line 2 from the bottom of the
paragraph, the language ‘‘transferors
basis in the stock of the’’ is corrected to
read ‘‘transferor’s basis in the stock of
the’’.
17. On page 3516, column 1, § 1.304–
2(c), line 2, the language ‘‘examples in
this section, each of’’ is corrected to
read ‘‘examples in this section, each’’.
18. On page 3516, column 2, § 1.304–
2(c) Example 3.(i), line 4, the language
‘‘common) and then acquired all of the’’
is corrected to read ‘‘common stock) and
then acquired all of the’’.
19. On page 3516, column 3, § 1.304–
2(c) Example 3.(i), first line of the
column, the language ‘‘common stock
for $100). Only corporation Y’’ is
corrected to read ‘‘common stock for
$100). Only Corporation Y’’.
20. On page 3516, column 3, § 1.304–
2(c) Example 3.(ii), lines 4 through 11
from the bottom of the paragraph, the
language ‘‘other 2 blocks of corporation
Y shares. After the redemption
transaction, all of Corporation W’s
shares in corporation Y, including the
deemed shares that are redeemed, are
treated as exchanged in a
recapitalization described in
section368(a)(1)(E). As a result,
corporation W will have 100 shares in
corporation Y, 50 shares’’ is corrected to
read ‘‘other 2 blocks of Corporation Y
shares. After the redemption
transaction, all of Corporation W’s
shares in Corporation Y, including the
deemed shares that are redeemed, are
treated as exchanged in a
VerDate Nov<24>2008
recapitalization described in section
368(a)(1)(E). As a result, Corporation W
will have 100 shares in Corporation Y,
50 shares’’.
[Corrected]
23. On page 3518, column 2, § 1.355–
1(e)(2), line 13, the language ‘‘section
356 or both sections 355 and 356’’ is
corrected to read ‘‘section 356, or both
sections 355 and 356’’.
§ 1.356–1
[Corrected]
24. On page 3518, column 3, § 1.356–
1(d) Example 3.(i), lines 3 through 7, the
language ‘‘on Date 1 for $3 each (Block
1) and 10 shares of stock of Corporation
X on Date 2 for $9 each (Block 2). On
Date 3, Corporation Y acquires the
assets of Corporation X in a
reorganization under section
368(a)(1)(A).’’ is corrected to read ‘‘on
Date 1 for $3 each (block 1) and 10
shares of stock of Corporation X on Date
2 for $9 each (block 2). On Date 3,
Corporation Y acquires the assets of
Corporation X in a reorganization
described in section368(a)(1)(A).’’.
25. On page 3518, column 3, § 1.356–
1(d) Example 3.(ii), lines 14 through 18,
the language ‘‘exchange of the Block 1
shares of Corporation X stock, $50 of
which is recognized under section 356
and paragraph (a) of this section, and J
realizes a gain of $10 on the exchange
of the Block 2 shares of Corporation X
stock,’’ is corrected to read ‘‘exchange of
the block 1 shares of Corporation X
stock, $50 of which is recognized under
section 356 and paragraph (a) of this
section, and J realizes a gain of $10 on
the exchange of the block 2 shares of
Corporation X stock,’’.
26. On page 3518, column 3, § 1.356–
1(d) Example 4.(i), lines 5 through 7, the
language ‘‘exchange for J’s Block 1
shares of stock of Corporation X and
$100 of cash in exchange for J’s Block
2 shares of stock of corporation X.’’ is
corrected to read ‘‘ exchange for J’s
block 1 shares of stock of Corporation X
and $100 of cash in exchange for J’s
block 2 shares of stock of Corporation
X.’’.
27. On page 3518, column 3, § 1.356–
1(d) Example 4.(ii), lines 4 through 12,
PO 00000
Frm 00004
Fmt 4702
Sfmt 4702
the language ‘‘Corporation Y in
exchange for J’s Block 1 shares of stock
of Corporation X and $100 of cash in
exchange for J’s Block 2 shares of stock
of Corporation X and such terms are
economically reasonable, such terms
control. J realizes a gain of $70 on the
exchange of the Block 1 shares of stock,
none of which is recognized under
section 354. J realizes a gain of $10 on
the exchange of the Block 2’’ is
corrected to read ‘‘Corporation Y in
exchange for J’s block 1 shares of stock
of Corporation X and $100 of cash in
exchange for J’s block 2 shares of stock
of Corporation X and such terms are
economically reasonable, such terms
control. J realizes a gain of $70 on the
exchange of the block 1 shares of stock,
none of which is recognized under
section 354. J realizes a gain of $10 on
the exchange of the block 2’’.
§ 1.358–1
[Corrected]
28. On page 3519, column 2, § 1.358–
1(d) Example., line 11, the language
‘‘the distribution of a dividend. A’s
ratable’’ is corrected to read ‘‘a
distribution of a dividend. A’s ratable’’.
§ 1.358–2
[Corrected]
29. On page 3519, column 3, § 1.358–
2(a)(1), line 4, the language
‘‘distribution to which section 354, 355’’
is corrected to read ‘‘distribution to
which section 354, 355,’’.
30. On page 3519, column 3, § 1.358–
2(b), line 6, the language ‘‘section 354,
355 or 356, the following’’ is corrected
to read ‘‘section 354, 355, or 356, the
following’’.
31. On page 3521, column 3, § 1.358–
2(g)(2), line 4, the language ‘‘section 351
applies stock or stock and’’ is corrected
to read ‘‘section 351 applies, stock or
stock and’’.
32. On page 3522, column 1, § 1.358–
2(i) Example 1.(i), line 6, the language
‘‘of Corporation X in a reorganization
under’’ is corrected to read ‘‘of
Corporation X in a reorganization
described in’’.
33. On page 3522, column 1, § 1.358–
2(i) Example 1.(ii), line 2 from the
bottom of the paragraph, the language
‘‘of corporation Y stock have a basis of
$1.50’’ is corrected to read ‘‘of
Corporation Y stock have a basis of
$1.50’’.
34. On page 3522, column 1, § 1.358–
2(i) Example 2.(i), line 5 from the
bottom of the column, the language
‘‘shares of corporation Y stock. Again, J
is not’’ is corrected to read ‘‘shares of
Corporation Y stock. Again, J is not’’.
35. On page 3522, column 2, § 1.358–
2(i) Example 3.(i), line 10, the language
‘‘a reorganization under section
368(a)(1)(E).’’ is corrected to read ‘‘a
E:\FR\FM\05MRP1.SGM
05MRP1
dwashington3 on PROD1PC60 with PROPOSALS
Federal Register / Vol. 74, No. 42 / Thursday, March 5, 2009 / Proposed Rules
reorganization described in section
368(a)(1)(E).’’.
36. On page 3522, column 3, § 1.358–
2(i) Example 5.(ii), line 10, the language
‘‘is not dividend equivalent, such
terms’’ is corrected to read ‘‘does not
have the effect of a dividend, such
terms’’.
37. On page 3523, column 1, § 1.358–
2(i) Example 6.(i), line 8, the language
‘‘reorganization under section
368(a)(1)(A).’’ is corrected to read
‘‘reorganization described in section
368(a)(1)(A).’’.
38. On page 3523, column 1, § 1.358–
2(i) Example 7.(i), line 6, the language
‘‘of Corporation X in a reorganization
under’’ is corrected to read ‘‘of
Corporation X in a reorganization
described in’’.
39. On page 3523, column 2, § 1.358–
2(i) Example 8.(ii), line 5, the language
‘‘liability of J, the rules of paragraph (g)
this’’ is corrected to read ‘‘liability of J,
the rules of paragraph (g) of this’’.
40. On page 3523, column 2, § 1.358–
2(i) Example 9.(i), lines 9 through 11,
the language ‘‘Corporation X in a
reorganization under section
368(a)(1)(D). Pursuant to the terms of
the plan of reorganization, J surrenders
J’s’’ is corrected to read ‘‘Corporation X
in a reorganization described in section
368(a)(1)(D). Pursuant to the terms of
the plan of reorganization, J
surrenders’’.
41. On page 3523, column 2, § 1.358–
2(i) Example 9.(ii), line 5 from the
bottom of the column, the language
‘‘recapitalized in a reorganization
under’’ is corrected to read
‘‘recapitalized in a reorganization
described in’’.
42. On page 3523, column 3, § 1.358–
2(i) Example 10.(i), lines 12 thru 14, the
language ‘‘Corporation X in a
reorganization under section
368(a)(1)(D). Pursuant to the terms of
the plan of reorganization, J surrenders
J’s’’ is corrected to read ‘‘Corporation X
in a reorganization described in section
368(a)(1)(D). Pursuant to the terms of
the plan of reorganization, J
surrenders’’.
43. On page 3523, column 3, § 1.358–
2(i) Example 10.(ii), line 10 from the
bottom of the column, the language ‘‘be
recapitalized in a reorganization under’’
is corrected to read ‘‘be recapitalized in
a reorganization described in’’.
44. On page 3524, column 2, § 1.358–
2(i) Example 13.(i), line 9, the language
‘‘reorganization under section
368(a)(1)(A).’’ is corrected to read
‘‘reorganization described in section
368(a)(1)(A).’’.
45. On page 3524, column 3, § 1.358–
2(i) Example 14.(i), line 9, the language
‘‘reorganization under section
VerDate Nov<24>2008
13:12 Mar 04, 2009
Jkt 217001
368(a)(1)(A),’’ is corrected to read
‘‘reorganization described in section
368(a)(1)(A),’’.
46. On page 3525, column 1, § 1.358–
2(i) Example 15.(ii), line 3 from the
bottom of the paragraph, the language
‘‘each has a basis of $6 and is treated as
having’’ is corrected to read ‘‘each has
a basis of $5 and is treated as having’’.
47. On page 3525, column 1, § 1.358–
2(i) Example 16.(i), line 4, the language
‘‘Shares of Corporation Y in an
exchange to’’ is corrected to read
‘‘Shares of Corporation Y stock in an
exchange to’’.
48. On page 3525, column 1, § 1.358–
2(i) Example 17.(i), line 2, the language
‘‘Facts. The facts are the same as
Example 1,’’ is corrected to read ‘‘Facts.
The facts are the same as Example 16,’’.
§ 1.358–6
[Corrected]
49. On page 3525, column 2, § 1.358–
6(f)(3), line 4 from the bottom of the
paragraph, the language ‘‘1 revised April
1, 2008 for the year’’ is corrected to read
‘‘1 revised April 1 for the year’’.
§ 1.861–12
[Corrected]
50. On page 3525, column 3, § 1.861–
12(c)(2)(vi), lines 1 through 3, the
language ‘‘Adjustments in respect of
redeemed stock for taxpayers using the
tax book value method. Solely for’’ is
corrected to read ‘‘Adjustments in
respect of redeemed stock for taxpayers
using the tax book value method. Solely
for’’.
51. On page 3525, column 3, § 1.861–
12(c)(2)(vi), lines 13 through 15, the
language ‘‘taken into account under
§ 1.302–5(a)(3) as of the close of the
redeemed shareholder’s taxable year
(unrecovered’’ is corrected to read
‘‘taken into account under § 1.302–5 as
of the close of the redeemed
shareholder’s taxable year (deferred’’.
52. On page 3525, column 3, § 1.861–
12(c)(2)(vi), line 4 from the bottom of
the column, the language ‘‘unrecovered
loss (and allocated among’’ is corrected
to read ‘‘deferred loss (and allocated
among’’.
§ 1.1001–6
[Corrected]
53. On page 3526, column 2,
§ 1.1001–6(c), line 10 from the top of the
column, the language ‘‘still
unliquidated. Solely for purposes of’’ is
corrected to read ‘‘still unliquidated
investment. Solely for purposes of’’.
LaNita Van Dyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, (Procedure and Administration).
[FR Doc. E9–4657 Filed 3–4–09; 8:45 am]
BILLING CODE 4830–01–P
PO 00000
Frm 00005
Fmt 4702
Sfmt 4702
9577
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–144615–02]
RIN 1545–BI47
Section 482: Methods To Determine
Taxable Income in Connection With a
Cost Sharing Arrangement; Correction
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to notice of proposed
rulemaking by cross-reference to
temporary regulations.
SUMMARY: This document contains
corrections to a notice of proposed
rulemaking by cross-reference to
temporary regulations (REG–144615–02)
that was published in the Federal
Register on Monday, January 5, 2009
providing further guidance and
clarification regarding methods under
section 482 to determine taxable income
in connection with a cost sharing
arrangement in order to address issues
that have arisen in administering the
current regulations. These temporary
regulations potentially affect controlled
taxpayers within the meaning of section
482 that enter into cost sharing
arrangements as defined therein.
FOR FURTHER INFORMATION CONTACT:
Kenneth P. Christman, (202) 435–5265
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The correction notice that is the
subject of this document is under
section 482 of the Internal Revenue
Code.
Need for Correction
As published, the notice of proposed
rulemaking by cross-reference to
temporary regulations (REG–144615–02)
published January 5, 2009 (74 FR 236),
contains errors that may prove to be
misleading and are in need of
clarification.
Correction of Publication
Accordingly, the publication of the
notice of proposed rulemaking by crossreference to temporary regulations
(REG–144615–02), which was the
subject of FR Doc. E8–30712, is
corrected as follows:
1. On page 236, in the document
headings, under the caption ACTION:, the
language ‘‘Notice of proposed
rulemaking by cross-reference to
temporary regulations, notice of
proposed rulemaking, and notice of
E:\FR\FM\05MRP1.SGM
05MRP1
]]>Agencies
[Federal Register Volume 74, Number 42 (Thursday, March 5, 2009)]
[Proposed Rules]
[Pages 9575-9577]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-4657]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-143686-07]
RIN 1545-BH35
The Allocation of Consideration and Allocation and Recovery of
Basis in Transactions Involving Corporate Stock or Securities;
Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correction to notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This document contains a correction to a notice of proposed
rulemaking (REG-143686-07) that was published in the Federal Register
on Wednesday, January 21, 2009 (74 FR 3509) providing guidance
regarding the recovery of stock basis in distributions under section
301 and transactions that are treated as dividends to which section 301
applies, as well as guidance regarding the determination of gain and
the basis of stock or securities received in exchange for, or with
respect to, stock or securities in certain transactions. The proposed
regulations affect shareholders and security holders of corporations.
These proposed regulations are necessary to provide such shareholders
and security holders with guidance regarding the allocation and
recovery of basis on distributions of property.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations
under sections 301, 302, and 304, Theresa Kolish, (202) 622-7530;
concerning the proposed regulations under sections 351, 354, 355, 356,
358, 368, 1001, and 1016, Rebecca O. Burch, (202) 622-7550; concerning
the proposed regulations under section 861, Jeffrey L. Parry, (202)
622-4476 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
The correction notice that is the subject of this document is under
sections 301, 302, 304, 351, 354, 355, 356, 358, 368, 861, 1001, 1016,
and 1374 of the Internal Revenue Code.
Need for Correction
As published, the notice of proposed rulemaking (REG-143686-07)
contains errors that may prove to be misleading and are in need of
clarification.
Correction of Publication
Accordingly, the publication of the notice of proposed rulemaking
(REG-143686-07), which was the subject of FR Doc. E9-1100, is corrected
as follows:
1. On page 3509, column 2, in the preamble, under the caption
SUMMARY, line 3, the language ``301, 302, 304, 351, 354, 356, 358,
368,'' is corrected to read ``301, 302, 304, 351, 354, 355, 356, 358,
368,''.
2. On page 3509, column 3, in the preamble, under the caption FOR
FURTHER INFORMATION CONTACT, line 5, the language ``under sections 351,
354, 356, 358, 368,'' is corrected to read ``under sections 351, 354,
355, 356, 358, 368,''.
3. On page 3510, column 1, in the preamble, under the paragraph
heading ``Explanation of Provisions'', second paragraph, line 6, the
language ``lead to the possibility of variant'' is corrected to read
``led to the possibility of variant''.
4. On page 3510, column 1, in the preamble, under the paragraph
heading ``Explanation of Provisions'', second paragraph, line 5 from
the bottom of the paragraph, the language ``was needed reconsidered.
See REG-'' is corrected to read ``needed reconsideration. See REG-''.
5. On page 3510, column 2, in the preamble, under the paragraph
heading ``Explanation of Provisions'', second paragraph of the column,
line 2, the language ``that a share of stock is the basic unit of'' is
corrected to read ``that a share of stock is a basic unit of''.
6. On page 3511, column 2, in the preamble, under the paragraph
heading ``C. Dividend Equivalent Reorganization Exchanges'', first
paragraph of the column, line 7 from the bottom of the paragraph, the
language ``of stock solely for nonqualifying'' is corrected to read
``of stock solely for qualifying''.
Sec. 1.301-2 [Corrected]
7. On page 3513, column 3, Sec. 1.301-2(a) Example.(i), last line
of the column, the language ``$25 (Block 1) and 75 were acquired on
Date'' is corrected to read ``$25 (block 1) and 75 were acquired on
Date''.
8. On page 3514, column 1, Sec. 1.301-2(a) Example.(i), first line
of the column, the language ``2 for $175 (Block 2). On December 31,
when'' is corrected to read ``2 for $175 (block 2). On December 31,
when''.
Sec. 1.302-5 [Corrected]
9. On page 3514, column 1, Sec. 1.302-5(a)(3)(i), line 4 from the
bottom of the column, the language ``treated as loss. If all the shares
of the'' is corrected to read ``treated as a loss. If all the shares of
the''.
10. On page 3515, column 1, Sec. 1.302-5(e) Example 2.(ii), last
line, the
[[Page 9576]]
language ``5(a)(3)(ii)).'' is corrected to read ``5(a)(4)).''.
11. On page 3515, column 1, Sec. 1.302-5(e) Example 3.(ii), line 2
from the bottom of the column, the language ``shares of common stock.
Therefore, the only'' is corrected to read ``shares of preferred stock.
Therefore, the only''.
12. On page 3515, column 2, Sec. 1.302-5(e) Example 4.(i), last
line, the language ``stock of Y.'' is corrected to read ``stock of
Corporation Y.''.
13. On page 3515, column 2, Sec. 1.302-5(e) Example 4.(ii), line
4, the language ``deferred loss on a disposition of the'' is corrected
to read ``deferred loss on the disposition of the''.
Sec. 1.304-2 [Corrected]
14. On page 3515, column 3, Sec. 1.304-2(a), the language ``In
general'' is corrected to read ``In general--''.
15. On page 3515, column 3, Sec. 1.304-2(a)(1), lines 1 through 3
from the bottom of the paragraph, the language ``302(a) or 303 does not
apply. For the amount constituting a dividend in such cases, see Sec.
1.304-6.'' is corrected to read ``302(a) or 303 does not apply.''.
16. On page 3515, column 3, Sec. 1.304-2(a)(3), line 2 from the
bottom of the paragraph, the language ``transferors basis in the stock
of the'' is corrected to read ``transferor's basis in the stock of
the''.
17. On page 3516, column 1, Sec. 1.304-2(c), line 2, the language
``examples in this section, each of'' is corrected to read ``examples
in this section, each''.
18. On page 3516, column 2, Sec. 1.304-2(c) Example 3.(i), line 4,
the language ``common) and then acquired all of the'' is corrected to
read ``common stock) and then acquired all of the''.
19. On page 3516, column 3, Sec. 1.304-2(c) Example 3.(i), first
line of the column, the language ``common stock for $100). Only
corporation Y'' is corrected to read ``common stock for $100). Only
Corporation Y''.
20. On page 3516, column 3, Sec. 1.304-2(c) Example 3.(ii), lines
4 through 11 from the bottom of the paragraph, the language ``other 2
blocks of corporation Y shares. After the redemption transaction, all
of Corporation W's shares in corporation Y, including the deemed shares
that are redeemed, are treated as exchanged in a recapitalization
described in section368(a)(1)(E). As a result, corporation W will have
100 shares in corporation Y, 50 shares'' is corrected to read ``other 2
blocks of Corporation Y shares. After the redemption transaction, all
of Corporation W's shares in Corporation Y, including the deemed shares
that are redeemed, are treated as exchanged in a recapitalization
described in section 368(a)(1)(E). As a result, Corporation W will have
100 shares in Corporation Y, 50 shares''.
Sec. 1.351-2 [Corrected]
21. On page 3517, column 2, Sec. 1.351-2(b) Example., line 11, the
language ``to C. Gain, but not loss, is recognized by D.'' is corrected
to read ``by C. Gain, but not loss, is recognized by D.''.
22. On page 3517, column 2, Sec. 1.351-2(b) Example., line 9 from
the bottom of the paragraph, the language ``of $100 (B) $30 cash and 30
shares of stock'' is corrected to read ``of $100); (B) $30 cash and 30
shares of stock''.
Sec. 1.355-1 [Corrected]
23. On page 3518, column 2, Sec. 1.355-1(e)(2), line 13, the
language ``section 356 or both sections 355 and 356'' is corrected to
read ``section 356, or both sections 355 and 356''.
Sec. 1.356-1 [Corrected]
24. On page 3518, column 3, Sec. 1.356-1(d) Example 3.(i), lines 3
through 7, the language ``on Date 1 for $3 each (Block 1) and 10 shares
of stock of Corporation X on Date 2 for $9 each (Block 2). On Date 3,
Corporation Y acquires the assets of Corporation X in a reorganization
under section 368(a)(1)(A).'' is corrected to read ``on Date 1 for $3
each (block 1) and 10 shares of stock of Corporation X on Date 2 for $9
each (block 2). On Date 3, Corporation Y acquires the assets of
Corporation X in a reorganization described in section368(a)(1)(A).''.
25. On page 3518, column 3, Sec. 1.356-1(d) Example 3.(ii), lines
14 through 18, the language ``exchange of the Block 1 shares of
Corporation X stock, $50 of which is recognized under section 356 and
paragraph (a) of this section, and J realizes a gain of $10 on the
exchange of the Block 2 shares of Corporation X stock,'' is corrected
to read ``exchange of the block 1 shares of Corporation X stock, $50 of
which is recognized under section 356 and paragraph (a) of this
section, and J realizes a gain of $10 on the exchange of the block 2
shares of Corporation X stock,''.
26. On page 3518, column 3, Sec. 1.356-1(d) Example 4.(i), lines 5
through 7, the language ``exchange for J's Block 1 shares of stock of
Corporation X and $100 of cash in exchange for J's Block 2 shares of
stock of corporation X.'' is corrected to read `` exchange for J's
block 1 shares of stock of Corporation X and $100 of cash in exchange
for J's block 2 shares of stock of Corporation X.''.
27. On page 3518, column 3, Sec. 1.356-1(d) Example 4.(ii), lines
4 through 12, the language ``Corporation Y in exchange for J's Block 1
shares of stock of Corporation X and $100 of cash in exchange for J's
Block 2 shares of stock of Corporation X and such terms are
economically reasonable, such terms control. J realizes a gain of $70
on the exchange of the Block 1 shares of stock, none of which is
recognized under section 354. J realizes a gain of $10 on the exchange
of the Block 2'' is corrected to read ``Corporation Y in exchange for
J's block 1 shares of stock of Corporation X and $100 of cash in
exchange for J's block 2 shares of stock of Corporation X and such
terms are economically reasonable, such terms control. J realizes a
gain of $70 on the exchange of the block 1 shares of stock, none of
which is recognized under section 354. J realizes a gain of $10 on the
exchange of the block 2''.
Sec. 1.358-1 [Corrected]
28. On page 3519, column 2, Sec. 1.358-1(d) Example., line 11, the
language ``the distribution of a dividend. A's ratable'' is corrected
to read ``a distribution of a dividend. A's ratable''.
Sec. 1.358-2 [Corrected]
29. On page 3519, column 3, Sec. 1.358-2(a)(1), line 4, the
language ``distribution to which section 354, 355'' is corrected to
read ``distribution to which section 354, 355,''.
30. On page 3519, column 3, Sec. 1.358-2(b), line 6, the language
``section 354, 355 or 356, the following'' is corrected to read
``section 354, 355, or 356, the following''.
31. On page 3521, column 3, Sec. 1.358-2(g)(2), line 4, the
language ``section 351 applies stock or stock and'' is corrected to
read ``section 351 applies, stock or stock and''.
32. On page 3522, column 1, Sec. 1.358-2(i) Example 1.(i), line 6,
the language ``of Corporation X in a reorganization under'' is
corrected to read ``of Corporation X in a reorganization described
in''.
33. On page 3522, column 1, Sec. 1.358-2(i) Example 1.(ii), line 2
from the bottom of the paragraph, the language ``of corporation Y stock
have a basis of $1.50'' is corrected to read ``of Corporation Y stock
have a basis of $1.50''.
34. On page 3522, column 1, Sec. 1.358-2(i) Example 2.(i), line 5
from the bottom of the column, the language ``shares of corporation Y
stock. Again, J is not'' is corrected to read ``shares of Corporation Y
stock. Again, J is not''.
35. On page 3522, column 2, Sec. 1.358-2(i) Example 3.(i), line
10, the language ``a reorganization under section 368(a)(1)(E).'' is
corrected to read ``a
[[Page 9577]]
reorganization described in section 368(a)(1)(E).''.
36. On page 3522, column 3, Sec. 1.358-2(i) Example 5.(ii), line
10, the language ``is not dividend equivalent, such terms'' is
corrected to read ``does not have the effect of a dividend, such
terms''.
37. On page 3523, column 1, Sec. 1.358-2(i) Example 6.(i), line 8,
the language ``reorganization under section 368(a)(1)(A).'' is
corrected to read ``reorganization described in section
368(a)(1)(A).''.
38. On page 3523, column 1, Sec. 1.358-2(i) Example 7.(i), line 6,
the language ``of Corporation X in a reorganization under'' is
corrected to read ``of Corporation X in a reorganization described
in''.
39. On page 3523, column 2, Sec. 1.358-2(i) Example 8.(ii), line
5, the language ``liability of J, the rules of paragraph (g) this'' is
corrected to read ``liability of J, the rules of paragraph (g) of
this''.
40. On page 3523, column 2, Sec. 1.358-2(i) Example 9.(i), lines 9
through 11, the language ``Corporation X in a reorganization under
section 368(a)(1)(D). Pursuant to the terms of the plan of
reorganization, J surrenders J's'' is corrected to read ``Corporation X
in a reorganization described in section 368(a)(1)(D). Pursuant to the
terms of the plan of reorganization, J surrenders''.
41. On page 3523, column 2, Sec. 1.358-2(i) Example 9.(ii), line 5
from the bottom of the column, the language ``recapitalized in a
reorganization under'' is corrected to read ``recapitalized in a
reorganization described in''.
42. On page 3523, column 3, Sec. 1.358-2(i) Example 10.(i), lines
12 thru 14, the language ``Corporation X in a reorganization under
section 368(a)(1)(D). Pursuant to the terms of the plan of
reorganization, J surrenders J's'' is corrected to read ``Corporation X
in a reorganization described in section 368(a)(1)(D). Pursuant to the
terms of the plan of reorganization, J surrenders''.
43. On page 3523, column 3, Sec. 1.358-2(i) Example 10.(ii), line
10 from the bottom of the column, the language ``be recapitalized in a
reorganization under'' is corrected to read ``be recapitalized in a
reorganization described in''.
44. On page 3524, column 2, Sec. 1.358-2(i) Example 13.(i), line
9, the language ``reorganization under section 368(a)(1)(A).'' is
corrected to read ``reorganization described in section
368(a)(1)(A).''.
45. On page 3524, column 3, Sec. 1.358-2(i) Example 14.(i), line
9, the language ``reorganization under section 368(a)(1)(A),'' is
corrected to read ``reorganization described in section
368(a)(1)(A),''.
46. On page 3525, column 1, Sec. 1.358-2(i) Example 15.(ii), line
3 from the bottom of the paragraph, the language ``each has a basis of
$6 and is treated as having'' is corrected to read ``each has a basis
of $5 and is treated as having''.
47. On page 3525, column 1, Sec. 1.358-2(i) Example 16.(i), line
4, the language ``Shares of Corporation Y in an exchange to'' is
corrected to read ``Shares of Corporation Y stock in an exchange to''.
48. On page 3525, column 1, Sec. 1.358-2(i) Example 17.(i), line
2, the language ``Facts. The facts are the same as Example 1,'' is
corrected to read ``Facts. The facts are the same as Example 16,''.
Sec. 1.358-6 [Corrected]
49. On page 3525, column 2, Sec. 1.358-6(f)(3), line 4 from the
bottom of the paragraph, the language ``1 revised April 1, 2008 for the
year'' is corrected to read ``1 revised April 1 for the year''.
Sec. 1.861-12 [Corrected]
50. On page 3525, column 3, Sec. 1.861-12(c)(2)(vi), lines 1
through 3, the language ``Adjustments in respect of redeemed stock for
taxpayers using the tax book value method. Solely for'' is corrected to
read ``Adjustments in respect of redeemed stock for taxpayers using the
tax book value method. Solely for''.
51. On page 3525, column 3, Sec. 1.861-12(c)(2)(vi), lines 13
through 15, the language ``taken into account under Sec. 1.302-5(a)(3)
as of the close of the redeemed shareholder's taxable year
(unrecovered'' is corrected to read ``taken into account under Sec.
1.302-5 as of the close of the redeemed shareholder's taxable year
(deferred''.
52. On page 3525, column 3, Sec. 1.861-12(c)(2)(vi), line 4 from
the bottom of the column, the language ``unrecovered loss (and
allocated among'' is corrected to read ``deferred loss (and allocated
among''.
Sec. 1.1001-6 [Corrected]
53. On page 3526, column 2, Sec. 1.1001-6(c), line 10 from the top
of the column, the language ``still unliquidated. Solely for purposes
of'' is corrected to read ``still unliquidated investment. Solely for
purposes of''.
LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. E9-4657 Filed 3-4-09; 8:45 am]
BILLING CODE 4830-01-P
