[Federal Register Volume 65, Number 116 (Thursday, June 15, 2000)]
[Rules and Regulations]
[Pages 37481-37482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-15036]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8883]
RIN 1545-AW53


Guidance Under Section 1032 Relating to the Treatment of a 
Disposition by an Acquiring Entity of the Stock of a Corporation in a 
Taxable Transaction; 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 8883, 
which was published in the Federal Register on Tuesday, May 16, 2000 
(65 FR 31073), which provides guidance under section 1032 of the 
Internal Revenue Code, relating to the treatment of a disposition by an 
acquiring entity of the stock of a corporation in a taxable 
transaction.

EFFECTIVE DATE: This correction is effective May 16, 2000.

FOR FURTHER INFORMATION CONTACT: Filiz Serbes at (202) 622-7550 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject to correction are under 
section 1032 of the Internal Revenue Code.

Need for Correction

    As published, Treasury Decision 8883 contains an error which may 
prove to be misleading and is in need of clarification.

Correction of Publication

    Accordingly, the publication of the final regulations (TD 8883), 
which was the subject of FR Doc. 00-11900, is corrected as follows:


Sec. 1.1032-3  [Corrected]

    On page 31076, column 3, Sec. 1.1032-3(c)(1), is corrected to read 
as follows:

[[Page 37482]]

Sec. 1.1032-3  Disposition of stock or stock options in certain 
transactions not qualifying under any other nonrecognition provision.

* * * * *
    (c) * * *
    (1) The acquiring entity acquires stock of the issuing corporation 
directly or indirectly from the issuing corporation in a transaction in 
which, but for this section, the basis of the stock of the issuing 
corporation in the hands of the acquiring entity would be determined, 
in whole or in part, with respect to the issuing corporation's basis in 
the issuing corporation's stock under section 362(a) or 723 (provided 
that, in the case of an indirect acquisition by the acquiring entity, 
the transfers of issuing corporation stock through intermediate 
entities occur immediately after one another);
* * * * *

Cynthia E. Grigsby,
Chief, Regulations Unit, Assistant Chief Counsel (Corporate).
[FR Doc. 00-15036 Filed 6-14-00; 8:45 am]
BILLING CODE 4830-01-U