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, 10174-10175 [E9-4995]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 74, Number 45 (Tuesday, March 10, 2009)]
[Rules and Regulations]
[Pages 10174-10175]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-4995]


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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: Correcting amendment.

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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.

[[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

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

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


Sec.  1.367(a)-9T  Treatment of deemed section 351 exchanges pursuant 
to section 304(a)(1) (temporary).

* * * * *
    (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