[Federal Register Volume 65, Number 37 (Thursday, February 24, 2000)]
[Rules and Regulations]
[Page 9220]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-4169]



[[Page 9220]]

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

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 8847]
RIN 1545-AS39


Adjustments Following Sales of Partnership Interests; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

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

SUMMARY: This document contains corrections to Treasury Decision 8847, 
which was published in the Federal Register on Wednesday, December 15, 
1999 (64 FR 69903), relating to adjustments following the sale of 
partnership interests.

DATES: These corrections are effective December 15, 1999.

FOR FURTHER INFORMATION CONTACT: Matthew Lay, (202) 622-3050 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of these corrections are 
under sections 743, 754, and 755 of the Internal Revenue Code.

Need for Correction

    As published, TD 8847 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 8847), 
which were the subject of FR Doc. 99-32400, is corrected as follows:
    1. On page 69904, column 1, in the preamble under the paragraph 
heading ``Explanation of Revisions and Summary of Contents'', paragraph 
1.(c), the last line, the language ``after December 15, 1999.'' is 
corrected to read ``on or after December 15, 1999.''.
    2. On page 69905, column 2, in the preamble under the paragraph 
heading ``4. Elections Under Section 754'', lines 9 and 10, the 
language ``previously were made, the IRS and Treasury believe that it 
is appropriate to'' is corrected to read ``previously were made, the 
IRS and the Treasury Department believe that it is appropriate to''.
    3. On page 69906, column 2, in the preamble under the paragraph 
heading ``Special Analyses'', the paragraph is corrected to read as 
follows:
    ``It has been determined that these final regulations are not a 
significant regulatory action as defined in Executive Order 12866. 
Therefore, a regulatory assessment is not required. It has been 
determined that a final regulatory flexibility analysis is required for 
the collection of information in this Treasury decision under 5 U.S.C. 
604. This analysis is set forth below under the heading ``Final 
Regulatory Flexibility Act Analysis.'' Pursuant to section 7805(f) of 
the Internal Revenue Code, the notice of proposed rulemaking preceding 
these regulations was submitted to the Chief Counsel for Advocacy of 
the Small Business Administration for comment on their impact on small 
business. No comments were received regarding the impact of the 
regulations on small business.''
    4. On page 69906, column 2, in the preamble, the paragraph heading 
``Summary of Final Regulatory Flexibility Act Analysis'' is corrected 
to read ``Final Regulatory Flexibility Act Analysis''.


Sec. 1.743-1  [Corrected]

    5. On page 69912, column 1, Sec. 1.743-1(h)(2)(iv), line 3 of the 
introductory text, the language ``paragraph (h):'' is corrected to read 
``paragraph (h)(2):''.
    6. On page 69912, column 1, Sec. 1.743-1(h)(2)(iv), the last 
sentence of paragraph (ii) in the Example is corrected to read as 
follows:


Sec. 1.743-1  Optional adjustment to basis of partnership property.

* * * * *
    (h) * * *
    (2) * * *
    (iv) * * *
    Example. * * *
    (ii) * * * Under paragraph (h)(2)(i) of this section, X's basis 
in Asset 1 equals $90 (PRS's common basis in the asset, $60, plus 
the gain recognized by PRS under section 351(b)(1), $15, plus A's 
basis adjustment under section 743(b), $20, less the portion of the 
adjustment which reduced A's gain, $5).
* * * * *


Sec. 1.754-1  [Corrected]

    7. On page 69916, column 2, Sec. 1.754-1(c)(2), the paragraph 
heading ``Revocations made for first taxable year ending after December 
15, 1999.'' is corrected to read ``Revocations effective on December 
15, 1999.''.
    8. On page 69916, column 2, Sec. 1.754-1(c)(2), line 7, the 
language ``15, 1999, may revoke such election by'' is corrected to read 
``15, 1999, may revoke such election effective for transfers or 
distributions occurring on or after December 15, 1999, by''.


Sec. 1.755-1  [Corrected]

    9. On page 69917, column 2, Sec. 1.755-1(b)(2)(ii) Example 2. 
(iii), the third line from the bottom of the column, the language 
``743(b), less ($125), amount of the basis'' is corrected to read 
``743(b), less ($125), the amount of the basis''.

Cynthia E. Grigsby,
Chief, Regulations Unit, Assistant Chief Counsel (Corporate).
[FR Doc. 00-4169 Filed 2-23-00; 8:45 am]
BILLING CODE 4830-01-P