[Federal Register Volume 66, Number 42 (Friday, March 2, 2001)]
[Rules and Regulations]
[Pages 13012-13013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-4923]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8921]
RIN 1545-AY23


Tax Treatment of Cafeteria Plans; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Corrections to final regulations.

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[[Page 13013]]

SUMMARY: This document contains corrections to final regulations that 
were published in the Federal Register on Wednesday, January 10, 2001 
(66 FR 1837), relating to section 125 cafeteria plans.

DATES: This correction is effective January 10, 2001.

FOR FURTHER INFORMATION CONTACT: Christine L. Keller (202) 622-6080 
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of these corrections are 
under section 125 of the Internal Revenue Code.

Need for Correction

    As published, final regulations (TD 8921) 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 8921), 
which were the subject of FR Doc. 01-258, is corrected as follows:
    1. On page 1838, column 1, in the preamble under the paragraph 
heading 1. Changes in the March 2000 Final Regulations, line 3 of the 
first paragraph, the language ``final regulations issued earlier this 
year'' is corrected to read ``final regulations issued in March 2000''.

    2. On page 1838, column 3, under the paragraph heading 2. Changes 
From the March 2000 Proposed Regulations, line 4, the language 
``earlier this year, but include various'' is corrected to read ``in 
March 2000, but include various''.

    3. On page 1840, column 1, amendatory instruction Par. 2. is 
corrected by adding a new instruction ``3a.'' following item 3 to read 
as follows:
    3a. Revising paragraph (c)(3)(ii).


Sec. 1.125-4  [Corrected]

    4. On page 1840, column 2, Sec. 1.125-4 is corrected by removing 
the 5 asterisks following paragraph (c)(1)(ii).

    5. On page 1840, column 2, Sec. 1.125-4 is corrected by removing 
the 5 asterisks following paragraph (c)(3)(i) and adding the text of 
revised paragraph (c)(3)(ii) in their place to read as follows:


Sec. 1.125-4  Permitted election changes.

* * * * *
    (c) * * *
    (3) * * *
    (ii) Application to other qualified benefits. An election change 
satisfies the requirements of this paragraph (c)(3) with respect to 
other qualified benefits if the election change is on account of and 
corresponds with a change in status that affects eligibility for 
coverage under an employer's plan. An election change also satisfies 
the requirements of this paragraph (c)(3) if the election change is on 
account of and corresponds with a change in status that effects 
expenses described in section 129 (including employment-related 
expenses as defined in section 21(b)(2)) with respect to dependent care 
assistance, or expenses described in section 137 (including qualified 
adoption expenses as defined in section 137(d)) with respect to 
adoption assistance.
* * * * *

    6. On page 1841, column 3, Sec. 1.125-4(f)(5)(ii), line 4, the 
language ``Service, or a tribal organization'' is corrected to read 
``Service, or a tribal organization;''.

Cynthia E. Grigsby,
Chief, Regulations Unit, Office of Special Counsel (Modernization and 
Strategic Planning).
[FR Doc. 01-4923 Filed 3-1-01; 8:45 am]
BILLING CODE 4830-01-P