[Federal Register Volume 60, Number 61 (Thursday, March 30, 1995)]
[Rules and Regulations]
[Pages 16381-16382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7858]
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DEPARTMENT OF THE TREASURY
26 CFR Part 1
[TD 8552]
RIN 1545-AL80
Intercompany Transfer Pricing Regulations Under Section 482;
Correction
AGENCY: Internal Revenue Service, Treasury.
ACTION: Correction to final regulations.
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SUMMARY: This document contains corrections to final regulations (TD
8552), which were published in the Federal Register for Friday, July 8,
1994, (59 FR 34971) relating to intercompany transfer pricing.
EFFECTIVE DATE: July 8, 1994.
FOR FURTHER INFORMATION CONTACT: Sim Seo at (202) 622-3840, (not a
toll-free call).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the subject of these corrections
contains changes made to section 482 of the Internal Revenue Code.
Need for Correction
As published, the final regulations contain errors which may prove
to be misleading and are in need of clarification.
Correction of Publication
Accordingly, the publication of the final regulations (TD 8552),
which are the subject of FR Doc. 94-16456, is corrected as follows:
Sec. 1.482-2 [Corrected]
1. On page 35002, column 2, Sec. 1.482-2 (a)(1)(ii)(A),
introductory text, line 2, the language ``indebtedness. Paragraph (e)
of this'' is corrected to read ``indebtedness. Paragraph (a) of this''.
2. On page 35002, column 2, Sec. 1.482-2 (a)(1)(ii)(B), line 2, the
language ``paragraph (e) does not apply to so much'' is corrected to
read ``paragraph (a) does not apply to so much''.
3. On page 35005, columns 2 and 3, the undesignated paragraph
following Sec. 1.482-2(a)(3)(iv) is removed and Sec. 1.482-2 (a)(3)(iv)
is corrected to read as follows: [[Page 16382]]
Sec. 1.482-2 Determination of taxable income in specific situations.
(a) * * *
(3) * * *
(iv) Fourth, section 482 and paragraphs (b) through (d) of this
section and Secs. 1.482-3 through 1.482-7, if applicable, may be
applied by the district director to make any appropriate allocations,
other than an interest rate adjustment, to reflect an arm's length
transaction based upon the principal amount of the loan or advance and
the interest rate as adjusted under paragraph (a)(3) (i), (ii) or (iii)
of this section. For example, assume that two commonly controlled
taxpayers enter into a deferred payment sale of tangible property and
no interest is provided, and assume also that section 483 is applied to
treat a portion of the stated sales price as interest, thereby reducing
the stated sales price. If after this recharacterization of a portion
of the stated sales price as interest, the recomputed sales price does
not reflect an arm's length sales price under the principles of
Sec. 1.482-3, the district director may make other appropriate
allocations (other than an interest rate adjustment) to reflect an
arm's length sales price.
* * * * *
4. On page 35008, column 2, Sec. 1.482-2 (b)(7)(ii)(C), line 14
from the top of the column, the language ``subdivision (c). For
purposes of this'' is corrected to read ``paragraph (b)(7)(ii)(C). For
purposes of this''.
5. On page 35008, column 2, Sec. 1.482-2 (b)(7)(iv), line 7, the
language ``For purposes of this subdivision,'' is corrected to read
``For purposes of this paragraph (b)(7)(iv),''.
6. On page 35008, column 3, Sec. 1.482-2 (b)(7)(v), Example 1, the
last two lines, the language ``of X as described in subdivision (i) of
this subparagraph.'' is corrected to read ``of X as described in
paragraph (b)(7)(i) of this section.''.
7. On page 35008, column 3, Sec. 1.482-2 (b)(7)(v), Example 2, the
last two lines, the language ``activities within the meaning of
subdivision (ii) of this subparagraph.'' is corrected to read
``activities within the meaning of paragraph (b)(7)(ii) of this
section.''.
8. On page 35010, column 1, Sec. 1.482-2 (b)(7)(v), Example 13,
line 6, the language ``meaning of paragraph (d)(4) of this section).''
is corrected to read ``meaning of Sec. 1.482-7T).''.
Sec. 1.482-3 [Corrected]
9. On page 35012, column 1, Sec. 1.482-3 (b)(4), Example 4, lines
20 and 21, the language ``arms's length range pursuant to Sec. 1.482-
1(e)(iii)(A). If the effects of the geographic'' is corrected to read
``arm's length range pursuant to Sec. 1.482-1(e)(2)(iii)(A). If the
effects of the geographic''.
10. On page 35012, column 1, Sec. 1.482-3 (b)(4), Example 4, last
line, the language ``pursuant to Sec. 1.482-1(e)(iii)(B).'' is
corrected to read ``pursuant to Sec. 1.482-1(e)(2)(iii)(B).''.
11. On page 35014, column 1, Sec. 1.482-3 (c)(4), Example 4, line
1, the paragraph designation (i) is removed, and Example 4, line 15,
the language ``to Sec. 1.482-3(c)(iii)(B), must be made to'' is
corrected to read ``to Sec. 1.482-3(c)(3)(iii)(B), must be made to''.
12. On page 35015, column 1, Sec. 1.482-3 (d)(3)(iii)(B), line 6,
the language ``gross profit margin affects the reliability'' is
corrected to read ``gross profit markup affects the reliability''.
Sec. 1.482-6 [Corrected]
13. On page 35027, column 2, Sec. 1.482-6 (c)(3)(ii)(C)(1), line 3,
the language ``paragraph (c)(2)(ii)(C)(1);'' is corrected to read
``paragraph (c)(2)(ii)(C)(1) of this section;''.
Cynthia E. Grigsby,
Chief, Regulations Unit, Assistant Chief Counsel (Corporate).
[FR Doc. 95-7858 Filed 3-29-95; 8:45 am]
BILLING CODE 4830-01-P