[Federal Register Volume 61, Number 240 (Thursday, December 12, 1996)]
[Rules and Regulations]
[Page 65323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31717]


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DEPARTMENT OF THE TREASURY
26 CFR Parts 1 and 602

[TD 8687]
RIN 1545-AT92


Source of Income From Sales of Inventory and Natural Resources 
Produced in One Jurisdiction and Sold in Another Jurisdiction; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final and temporary regulations.

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SUMMARY: This document contains corrections to final and temporary 
regulations (TD 8687), which were published in the Federal Register on 
Friday, November 29, 1996 (61 FR 60540) governing the source of income 
from sales of natural resources or other inventory produced in the 
United States and sold outside the United States or produced outside 
the United States and sold in the United States.

EFFECTIVE DATE: December 30, 1996.

FOR FURTHER INFORMATION CONTACT: Anne Shelburne (202) 622-3880, (not a 
toll-free number).
SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of these corrections are 
under section 863 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 8687), 
which are the subject of FR Doc. 96-30617, is corrected as follows:
    1. On page 60540, column 3, in the preamble, under the caption 
DATES, line 3, the language ``Applicability: Taxpayers may apply'' is 
corrected to read ``Applicability: These regulations apply to taxable 
years beginning after December 30, 1996. However, taxpayers may 
apply''.


Sec. 1.863-1  [Corrected]

    2. On page 60546, column 3, Sec. 1.863-1 (e), is corrected to read 
as follows:


Sec. 1.863-1  Allocation of gross income.

* * * * *
    (e) Effective dates. The rules of paragraphs (a), (b) and (c) of 
this section will apply to taxable years beginning after December 30, 
1996. However, taxpayers may apply the rules of this section for 
taxable years beginning after July 11, 1995, and on or before December 
30, 1996. For years beginning before December 30, 1996, see Sec. 1.863-
1 (as contained in 26 CFR part 1 revised as of April 1, 1996).
* * * * *


Sec. 1.863-2  [Corrected]

    3. On page 60547, column 1, Sec. 1.863-2 (c), line 2, the language 
``apply to taxable years beginning'' is corrected to read ``apply to 
taxable years beginning after''.
    4. On page 60547, column 2, Sec. 1.863-2 (c), line 2 from the top 
of the column, the language ``1995, and before December 30, 1996.'' is 
corrected to read ``1995, and on or before December 30, 1996.''.


Sec. 1.863-3  [Corrected]

    5. On page 60550, column 3, Sec. 1.863-3 (h), is corrected to read 
as follows:


Sec. 1.863-3   Allocation and apportionment of income from certain 
sales of inventory.

* * * * *
    (h) Effective dates. The rules of this section apply to taxable 
years beginning after December 30, 1996. However, taxpayers may apply 
these regulations for taxable years beginning after July 11, 1995, and 
on or before December 30, 1996. For years beginning before December 30, 
1996, see Secs. 1.863-3A and 1.863-3AT.
* * * * *
Cynthia E. Grigsby,
Chief, Regulations Unit, Assistant Chief Counsel (Corporate).
[FR Doc. 96-31717 Filed 12-10-96; 2:21 pm]
BILLING CODE 4830-01-U