[Federal Register Volume 59, Number 14 (Friday, January 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1427]


[[Page Unknown]]

[Federal Register: January 21, 1994]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[T.D. 8482]
RIN 1545-AQ90

 

Capitalization and Inclusion in Inventory of Certain Costs; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

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SUMMARY: This document contains corrections to final regulations (T.D. 
8482) which were published in the Federal Register for Monday, August 
9, 1993 (58 FR 42198). The final regulations relate to accounting for 
costs incurred in producing property and acquiring property for resale.

EFFECTIVE DATE: January 1, 1994.

FOR FURTHER INFORMATION CONTACT: Ellen McElroy, (202) 622-4970 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of these corrections are 
under section 263A of the Internal Revenue Code.

Need for Correction

    As published, T.D. 8482 contains errors which may prove to be 
misleading and is in need of clarification.

Correction of Publication

    Accordingly, the publication of final regulations (T.D. 8482), 
which was the subject of FR Doc. 93-18130, is corrected as follows:
    1. On page 42198, column 3, the language in the preamble under the 
heading ``Paperwork Reduction Act'', is corrected to read as follows:
    ``The collections of information contained in these final 
regulations have been reviewed and approved by the Office of Management 
and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 
3504(h)) under control number 1545-0987. The estimated annual burden 
per respondent varies from 0.5 hour to 2 hours, depending on individual 
circumstances, with an estimated average of 1 hour. The estimated 
annual burden per recordkeeper varies from 8 hours to 10 hours, 
depending on individual circumstances, with an estimated average of 9 
hours.
    These estimates are approximations of the average time expected to 
be necessary for a collection of information. They are based on such 
information as is available to the Internal Revenue Service. Individual 
respondents/recordkeepers may require more or less time, depending on 
their particular circumstances.
    Comments concerning the accuracy of this burden estimate and 
suggestions for reducing this burden should be directed to the Internal 
Revenue Service, Attn: IRS Reports Clearance Officer PC:FP, Washington, 
DC 20224, and to the Office of Management and Budget, Attention: Desk 
Officer for the Department of the Treasury, Office of Information and 
Regulatory Affairs, Washington, DC 20503.''.
    2. On page 42202, column 2, in the preamble under the heading ``B. 
Definition of Tangible Personal Property'', the first full paragraph of 
the column, line 6, the language ``the Statement of Procedural Rules), 
that'' is corrected to read ``this chapter), that''.
    3. On page 42207, column 1, in instructional ``Par. 3.'', line 2, 
the language ``by revising the last sentence of'' is corrected to read 
``by revising the fourth sentence of''.


Sec. 1.263(a)-1  [Corrected]

    4. On page 42207, column 1, Sec. 1.263(a)-1(b), last line, the 
language ``similar properties.'' is corrected to read ``similar 
properties. * * *''.


Sec. 1.263A-2  [Corrected]

    5. On page 42221, column 1, Sec. 1.263A-2(b)(3)(ii)(B), lines 3 and 
4, the language ``remaining on hand at year end are generally means the 
section 471 costs,'' is corrected to read ``remaining on hand at year 
end means the section 471 costs,''.
    6. On page 42221, column 3, Sec. 1.263A-2(b)(3)(v), paragraph (ii) 
of Example 2, lines 4 and 5, the language ``($1,000,000 additional 
section 263A costs divided by $10,000,000 section 471 costs) by'' is 
corrected to read ``($1,000,000 of additional section 263A costs 
divided by $10,000,000 of section 471 costs) by''.
    7. On page 42222, Sec. 1.263A-2(b)(3)(v), paragraph (i) of Example 
3, in the chart in the middle of the page, last line in the chart, the 
language 

``1994 Ending                                                           
 inventory..........       $3,300       $1,760         $660       $880''
    Is corrected to                                                     
     read:                                                              
``1994 ending                                                           
 inventory..........       $3,300       $1,760         $660       $880''
                                                                        


    8. On page 42222, Sec. 1.263A-2(b)(3)(v), in paragraph (ii) of 
Example 3, in the chart in the middle of the page, fourth line under 
the heading ``1995:'', the language 

``1995 Ending                                                           
 Section 471 costs..       $4,000       $2,800         $600       $600''
    Is corrected to                                                     
     read:                                                              
``1995 ending                                                           
 section 471 costs..       $4,000       $2,800         $600      $600'' 
                                                                        


Sec. 1.263A-3  [Corrected]

    9. On page 42228, column 2, Sec. 1.263A-3(d)(3)(i)(C)(2), lines 3 
and 4, the language ``remaining on hand at year end are generally mean 
the section 471 costs, as'' is corrected to read ``remaining on hand at 
year end mean the section 471 costs, as''.
    10. On page 42230, column 3, Sec. 1.263A-3(d)(3)(iv), in Example 3, 
line 1, the language ``Example 3. LIFO Pools. (i) Taxpayer U'' is 
corrected to read ``Example 3. LIFO pools. (i) Taxpayer U''.


Sec. 602.101  [Corrected]

    11. On page 42234, beginning at the bottom of column 2 and continue 
to the top of column 3, Sec. 602.101(c), the entries in the table are 
corrected to read as follows:

------------------------------------------------------------------------
                                                            Current OMB 
   CFR part or section where identified and described       control No. 
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                                  *****                                 
1.263A-1................................................       1545-0987
                                                                        
                                  *****                                 
1.263A-2................................................       1545-0987
1.263A-3................................................       1545-0987
                                                                        
                                 *****                                  
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Jacquelyn B. Burgess,
Alternate Federal Register Liaison Officer, Assistant Chief Counsel 
(Corporate).
[FR Doc. 94-1427 Filed 1-19-94; 4:15 pm]
BILLING CODE 4830-01-U