[Federal Register Volume 61, Number 70 (Wednesday, April 10, 1996)]
[Rules and Regulations]
[Page 15891]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8911]



=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8658]
RIN 1545-AL84


Determination of Interest Expense Deduction of Foreign 
Corporations; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

-----------------------------------------------------------------------

SUMMARY: This document contains corrections to final regulations [TD 
8658] which were published in the Federal Register for Friday, March 8, 
1996 (61 FR 9326). The final regulations relate to the determination of 
the interest expense deduction of foreign corporations and apply to 
foreign corporations engaged in a trade or business within the United 
States.

EFFECTIVE DATE: June 6, 1996.

FOR FURTHER INFORMATION CONTACT: Ahmad Pirasteh or Richard Hoge (202) 
622-3870 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are subject to these corrections are 
under sections 882, 864(e), 988(d), and 7701(l) of the Internal Revenue 
Code.

Need for Correction

    As published, the final regulations [TD 8658] contain errors that 
are in need of clarification.

Correction of Publication

    Accordingly, the publication of final regulations which are the 
subject of FR Doc. 96-5262 is corrected as follows:


Sec. 1.882-0  [Corrected]

    1. On page 9329, column 1, Sec. 1.882-0, the section heading entry 
for Sec. 1.882-1, ``Sec. 1.882-1 Taxation of foreign corporations 
engaged in U.S. business or of foreign corporations treated as having 
effectively connected income.'' is corrected to read


Sec. 1.882-1  Taxation of foreign corporations engaged in U.S. business 
or of foreign corporations treated as having effectively connected 
income.


Sec. 1.882-5  [Corrected]

    2. On page 9330, column 3, Sec. 1.882-5, paragraph (a)(6), line 7 
from the bottom of the paragraph, the language ``respect to U.S.-booked 
liabilities that'' is corrected to read ``respect to U.S. booked 
liabilities that''.
    3. On page 9331, column 1, Sec. 1.882-5, paragraph (a)(8), 
paragraph (ii) of Example 1, line 12, the language ``(c)(2)(vi), and 
(d)(2)(vii) or (e)(1)(ii) this'' is corrected to read ``(c)(2)(vi), and 
(d)(2)(vii) or (e)(1)(ii) of this''.
    4. On page 9332, column 2, Sec. 1.882-5, paragraph (b)(3), last 
four lines of the paragraph, the language ``less frequently than 
monthly by a large bank (as defined in section 585(c)(2)) and semi-
annually by any other taxpayer'' is corrected to read ``less frequently 
than monthly (beginning of taxable year and monthly thereafter) by a 
large bank (as defined in section 585(c)(2)) and semi-annually 
(beginning, middle and end of taxable year) by any other taxpayer''.
    5. On page 9332, column 2, Sec. 1.882-5, paragraph (c)(2)(i), lines 
3 and 2 from the bottom of the paragraph, the language ``annually by a 
large bank (as defined in section 585(c)(2)) and annually by any'' is 
corrected to read ``annually (beginning, middle and end of taxable 
year) by a large bank (as defined in section 585(c)(2)) and annually 
(beginning and end of taxable year) by any''.
    6. On page 9334, column 3, Sec. 1.882-5, paragraph (d)(6), 
paragraph (i) of Example 1, the table

------------------------------------------------------------------------
                                                     Value              
------------------------------------------------------------------------
Asset 1.........................................      $2,000  ..........
Asset 2.........................................       2,500  ..........
Asset 3.........................................       5,500  ..........
                                                    Amount     Interest 
Liability 1.....................................        $800          56
Liability 2.....................................       3,200         256
Capital.........................................       6,000           0
------------------------------------------------------------------------

is corrected to read

------------------------------------------------------------------------
                                                     Value              
------------------------------------------------------------------------
Asset 1.........................................      $2,000  ..........
Asset 2.........................................       2,500  ..........
Asset 3.........................................       5,500  ..........
                                                    Amount     Interest 
                                                                 Expense
Liability 1.....................................        $800          56
Liability 2.....................................       3,200         256
Capital.........................................       6,000           0
------------------------------------------------------------------------

Michael L. Slaughter,
Acting Chief, Regulations Unit Assistant Chief Counsel (Corporate).
[FR Doc. 96-8911 Filed 4-9-96; 8:45 am]
BILLING CODE 4830-01-P