[Federal Register Volume 65, Number 47 (Thursday, March 9, 2000)]
[Rules and Regulations]
[Page 12471]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-5244]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8852]
RIN 1545-AT52


Passthrough of Items of an S Corporation to its Shareholders; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

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SUMMARY: This document contains corrections to final regulations which 
were published in the Federal Register on Wednesday, December 22, 1999 
(64 FR 71641), relating to the passthrough of items of an S corporation 
to its shareholders, the adjustments to the basis of stock of the 
shareholders, and the treatment of distributions by an S corporation.

DATES: This correction is effective December 22, 1999.

FOR FURTHER INFORMATION CONTACT: Martin Schaffer, Deane Burke, or David 
Shulman at (202) 622-3070, or Brenda Stewart at (202) 622-3120 (not 
toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are subject to these corrections are 
under sections 1366, 1367, and 1368 of the Internal Revenue Code.

Need for Correction

    As published, the final regulations (TD 8852) contain errors that 
may prove to be misleading and are in need of clarification.

Correction of Publication

    Accordingly, the publication of the final regulations (TD 8852), 
which were the subject of FR Doc. 99-32697, is corrected as follows:


Sec. 1.1366-4  [Corrected]

    1. On page 71648, column 3, Sec. 1.1366-4(c), third line from the 
bottom of the paragraph, the language, ``the amount of the tax as the 
amount of'' is corrected to read ``the amount of the tax as the net 
amount of''.


Sec. 1.1367-1  [Corrected]

    2. On page 71649, column 2, Sec. 1.1367-1(h) Example 5.(i), lines 7 
through 11, the language, ``section 1377(a)(2)(B) and Sec. 1.1377-
1(b)(2), B and C are affected shareholders because B has transferred 
shares to Corporation S. Pursuant to section 1377(a)(2)(A) and 
Sec. 1.1377-1(b)(1), B and C, the affected'' is corrected to read 
``section 1377(a)(2)(B) and Sec. 1.1377-1(b)(2), B, C, and D are 
affected shareholders because B has transferred shares to Corporations 
S and D. Pursuant to section 1377(a)(2)(A) and Sec. 1.1377(b)(1), B, C, 
and D, the affected''.

Dale D. Goode,
Federal Register Liaison, Assistant Chief Counsel (Corporate).
[FR Doc. 00-5244 Filed 3-8-00; 8:45 am]
BILLING CODE 4830-01-U