Guidance Regarding Deferred Discharge of Indebtedness Income of Corporations and Deferred Original Issue Discount Deductions; Correction, 48607 [2013-19225]
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Federal Register / Vol. 78, No. 154 / Friday, August 9, 2013 / Rules and Regulations
result of an election under section
108(i). In addition, these regulations
provide rules applicable to all taxpayers
regarding deferred OID deductions
under section 108(i) as a result of a
reacquisition of an applicable debt
instrument by an issuer or related party.
DATES: This correction is effective on
August 9, 2013 and is applicable on or
after July 2, 2013.
FOR FURTHER INFORMATION CONTACT:
Robert M. Rhyne, at (202) 622–7790 (not
a toll free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations and removal of
temporary regulations (TD 9622) that are
the subject of this correction are under
section 108(i) of the Internal Revenue
Code.
Need for Correction
As published, the final regulations
and removal of temporary regulations
(TD 9622) contains errors that may
prove to be misleading and are in need
of clarification.
Par. 3. Section 1.108(i)–1 is amended
by revising the third and fourth
sentences of paragraph (b)(2)(iii)(D), and
the fifth and seventh sentences of
paragraph (c) Example 3 (ii) to read as
follows:
■
§ 1.108(i)–1 Deferred discharge of
indebtedness income and deferred original
issue discount deductions of C
corporations.
*
*
*
*
*
(b) * * *
(2) * * *
(iii) * * *
(D) * * * Appropriate adjustments
must be made to take into account any
issuances or redemptions of stock, or
similar transactions, occurring during
the taxable year of distribution or any of
the preceding three taxable years. If the
electing corporation has a short taxable
year for the year of the distribution or
for any of the preceding three taxable
years, the amounts are determined on an
annualized basis. * * *
*
*
*
*
*
(c) * * *
Example 3. * * *
(ii) * * * However, under paragraph
(b)(2)(iii)(A) of this section, S’s distribution
to P is an impairment transaction and the net
value acceleration rule is applied with
respect to the assets, liabilities, and deferred
items of P (S’s successor). * * *
Accordingly, under the net value acceleration
rule of paragraph (b)(2)(iii)(A) of this section,
S is required to take into account its $400 of
deferred COD income immediately before the
distribution, unless value is restored to P
pursuant to paragraph (b)(2)(iii)(C) of this
section.
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 amendments:
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 1.108(i)–0 is amended
by revising paragraph (b) to read as
follows:
■
§ 1.108(i)–0 Definitions and effective/
applicability dates.
*
*
*
*
Martin V. Franks,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel (Procedure and Administration).
[FR Doc. 2013–19227 Filed 8–8–13; 8:45 am]
BILLING CODE 4830–01–P
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*
*
*
*
*
(b) Effective/Applicability dates—(1)
In general. The rules of this section,
§ 1.108(i)–1, and § 1.108(i)–2, apply on
or after July 2, 2013, to reacquisitions of
applicable debt instruments in taxable
years ending after December 31, 2008. In
addition, the rules of § 1.108(i)–3 apply
on or after July 2, 2013, to debt
instruments issued after December 31,
2008, in connection with reacquisitions
of applicable debt instruments in
taxable years ending after December 31,
2008.
(2) Prior periods. For rules applying
before July 2, 2013, see § 1.108(i)–0T,
§ 1.108(i)–1T, § 1.108(i)–2T, and
§ 1.108(i)–3T, as contained in 26 CFR
part 1, revised April 1, 2013.
VerDate Mar<15>2010
14:49 Aug 08, 2013
Jkt 229001
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602
[TD 9622]
RIN 1545–BI96
Guidance Regarding Deferred
Discharge of Indebtedness Income of
Corporations and Deferred Original
Issue Discount Deductions; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations and removal of
temporary regulations; correction.
AGENCY:
PO 00000
Frm 00009
Fmt 4700
Sfmt 9990
48607
This document contains
corrections to final regulations and
removal of temporary regulations (TD
9622) that were published in the
Federal Register on Wednesday, July 3,
2013 (78 FR 39984). The final
regulations provide necessary guidance
regarding the accelerated inclusion of
deferred discharge of indebtedness (also
known as cancellation of debt (COD))
income (deferred COD income) and the
accelerated deduction of deferred
original issue discount (OID) (deferred
OID deductions) under section
108(i)(5)(D) (acceleration rules), and the
calculation of earnings and profits as a
result of an election under section
108(i). In addition, these regulations
provide rules applicable to all taxpayers
regarding deferred OID deductions
under section 108(i) as a result of a
reacquisition of an applicable debt
instrument by an issuer or related party.
SUMMARY:
This correction is effective on
August 9, 2013 and applicable on or
after July 2, 2013.
DATES:
FOR FURTHER INFORMATION CONTACT:
Robert M. Rhyne, at (202) 622–7790 (not
a toll free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations and removal of
temporary regulations (TD 9622) that are
the subject of this correction are under
section 108(i) of the Internal Revenue
Code.
Need for Correction
As published, the final regulations
and removal of temporary regulations
(TD 9622) contains errors that may
prove to be misleading and are in need
of clarification.
Correction of Publication
Accordingly, the final regulations and
removal of temporary regulations (TD
9622), that are the subject of FR Doc.
2013–15881, are corrected as follows:
1. On page 39986, column 2, in the
preamble, under the paragraph heading
‘‘Special Analyses’’, lines 19 and 20, the
language ‘‘and the deduction of deferred
original issue discount that is
otherwise’’ is corrected to read ‘‘and the
deduction of deferred OID that is
otherwise’’.
Martin V. Franks,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, (Procedure and Administration).
[FR Doc. 2013–19225 Filed 8–8–13; 8:45 am]
BILLING CODE 4830–01–P
E:\FR\FM\09AUR1.SGM
09AUR1
]]>Agencies
[Federal Register Volume 78, Number 154 (Friday, August 9, 2013)]
[Rules and Regulations]
[Page 48607]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-19225]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602
[TD 9622]
RIN 1545-BI96
Guidance Regarding Deferred Discharge of Indebtedness Income of
Corporations and Deferred Original Issue Discount Deductions;
Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations and removal of temporary regulations;
correction.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to final regulations and
removal of temporary regulations (TD 9622) that were published in the
Federal Register on Wednesday, July 3, 2013 (78 FR 39984). The final
regulations provide necessary guidance regarding the accelerated
inclusion of deferred discharge of indebtedness (also known as
cancellation of debt (COD)) income (deferred COD income) and the
accelerated deduction of deferred original issue discount (OID)
(deferred OID deductions) under section 108(i)(5)(D) (acceleration
rules), and the calculation of earnings and profits as a result of an
election under section 108(i). In addition, these regulations provide
rules applicable to all taxpayers regarding deferred OID deductions
under section 108(i) as a result of a reacquisition of an applicable
debt instrument by an issuer or related party.
DATES: This correction is effective on August 9, 2013 and applicable on
or after July 2, 2013.
FOR FURTHER INFORMATION CONTACT: Robert M. Rhyne, at (202) 622-7790
(not a toll free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations and removal of temporary regulations (TD
9622) that are the subject of this correction are under section 108(i)
of the Internal Revenue Code.
Need for Correction
As published, the final regulations and removal of temporary
regulations (TD 9622) contains errors that may prove to be misleading
and are in need of clarification.
Correction of Publication
Accordingly, the final regulations and removal of temporary
regulations (TD 9622), that are the subject of FR Doc. 2013-15881, are
corrected as follows:
1. On page 39986, column 2, in the preamble, under the paragraph
heading ``Special Analyses'', lines 19 and 20, the language ``and the
deduction of deferred original issue discount that is otherwise'' is
corrected to read ``and the deduction of deferred OID that is
otherwise''.
Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2013-19225 Filed 8-8-13; 8:45 am]
BILLING CODE 4830-01-P
