[Federal Register Volume 63, Number 226 (Tuesday, November 24, 1998)]
[Rules and Regulations]
[Page 64868]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31285]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8785]
RIN 1545-AU70


Classification of Certain Transactions Involving Computer 
Programs; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

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SUMMARY: This document contains a correction to Treasury Decision 8785, 
which was published in the Federal Register on Friday, October 2, 1998 
(63 FR 52971) relating to the tax treatment of certain transactions 
involving the transfer of computer programs.

DATES: This correction is effective October 2, 1998.

FOR FURTHER INFORMATION CONTACT: Anne Shelburne, (202) 874-1305 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of this correction are 
under section 861 of the Internal Revenue Code.

Need for Correction

    As published, TD 8785 contains errors which may prove to be 
misleading and are in need of clarification.

Correction of Publication

    Accordingly, the publication of the final regulations (TD 8785), 
which were the subject of FR Doc. 98-26475, is corrected as follows:
    1. On page 52971, column 1, in the preamble under the caption 
heading FOR FURTHER INFORMATION CONTACT, line 1, the language ``Anne 
Shelburne, (202) 622-3880 (not a'' is corrected to read ``Anne 
Shelburne, (202) 874-1305 (not a''.
    2. On page 52975, column 3, in the preamble under the paragraph 
heading ``8. Services and Know-How '', second paragraph, lines 21 
through 25, the language ``secret protection. Know-how is considered a 
property interest under applicable law, and only if the know-how is 
specifically contracted for between the parties. These additional'' is 
corrected to read ``secret protection. These additional''.


Sec. 1.861-18  [Corrected]

    3. On page 52982, column 1, Sec. 1.861-18(i)(4) Example 1, line 
three from the bottom of the paragraph, the language ``A is not 
required to change from its accrual'' is corrected to read ``A is not 
required to change from its''.
    4. On page 52982, column 2, Sec. 1.861-18(i)(4) Example 2, line 
five from the bottom of the paragraph, the language ``A is not required 
to change from its accrual'' is corrected to read ``A is not required 
to change from its''.
Cynthia E. Grigsby,
Chief, Regulations Unit, Assistant Chief Counsel (Corporate).
[FR Doc. 98-31285 Filed 11-23-98; 8:45 am]
BILLING CODE 4830-01-U