[Federal Register Volume 65, Number 60 (Tuesday, March 28, 2000)]
[Rules and Regulations]
[Page 16318]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-5246]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8865]
RIN 1545-AS77


Amortization of Intangible Property; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction of final regulations.

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SUMMARY: This document contains corrections to final regulations which 
were published in the Federal Register on Tuesday, January 25, 2000 (65 
FR 3820), relating to the amortization of certain intangible property.

DATES: This correction is effective January 25, 2000.

FOR FURTHER INFORMATION CONTACT: John Huffman at (202) 622-3110 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:  

Background

    The final regulations that are subject to these corrections are 
under sections 167 and 197 of the Internal Revenue Code.

Need for Correction

    As published, the final regulations (TD 8865) 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 8865), 
which were the subject of FR Doc. 00-1380, is corrected as follows:


Sec. 1.197-2  [Corrected]

    1. On page 3834, column 3, Sec. 1.197-2(g)(3), line 22, the 
language, ``increase. The provisions of paragraph'' is corrected to 
read ``increase, except as provided in Sec. 1.743-1(j)(f)(i)(B)(2). The 
provisions of paragraph''.
    2. On page 3834, column 3, Sec. 1.197-2(g)(4)(i), lines 10 through 
13, the language, ``either the curative or remedial allocation methods 
described in the regulations under section 704(c). See Sec. 1.704-3(c) 
and (d)'' is corrected to read ``any of the permissible methods 
described in the regulations under section 704(c). See Sec. 1.704-3''.
    3. On page 3834, column 1, Sec. 1.197-2(g)(4)(ii), line 6, the 
language, ``the intangible is not amortizable by the'' is corrected to 
read ``the intangible is not amortizable under section 197 by the ''.
    4. On page 3839, column 3, Sec. 1.197-2(k) Example 6(i), third line 
from the top of the column, the language ``consideration paid for all 
assets acquired in'' is corrected to read ``consideration paid 
excluding any amount treated as interest or original issue discount 
under applicable provisions of the Internal Revenue Code, for all 
assets acquired in''.
    5. On page 3839, column 3, Sec. 1.197-2(k) Example 6(ii), lines 15 
through 18, the language, ``Although the payments under the agreement 
($270,000) exceed the amount allocated to the covenant by $45,000, all 
of the remaining consideration ($50,000) is allocated to Class'' is 
corrected to read ``All of the remaining consideration after allocation 
to the covenant and other Class VI assets, ($50,000) is allocated to 
Class''.
    6. On page 3839, column 3, Sec. 1.197-2(k) Example 7(ii), line 7, 
the language, ``amecause it does not have a term of less than'' is 
corrected to read ``amount because it does not have a term of less 
than''.
    7. On page 3843, column 1, Sec. 1.197-2(k) Example 27(i), lines 3 
and 4, the language, ``which A owns a 60-percent, and B owns a 40-
percent, interest in profits and capital. A'' is corrected to read 
``which A owns a 40-percent, and B owns a 60-percent, interest in 
profits and capital. A''.
    8. On page 3843, column 2, Sec. 1.197-2(l)(4)(iii), line 14, the 
language, ``before a federal court, the taxpayer must'' is corrected to 
read ``before a Federal court, the taxpayer must''.

Dale D. Goode,
Federal Register Liaison, Assistant Chief Counsel (Corporate).
[FR Doc. 00-5246 Filed 3-27-00; 8:45 am]
BILLING CODE 4830-01-U