[Federal Register Volume 66, Number 48 (Monday, March 12, 2001)]
[Proposed Rules]
[Pages 14350-14351]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-5284]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-116050-99]
RIN 1545-AX65


Stock Transfer Rules: Carryover of Earnings and Taxes; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to notice of proposed rulemaking and notice of 
public hearing.

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SUMMARY: This document contains corrections to a notice of proposed 
rulemaking and notice of public hearing that was published in the 
Federal Register on Wednesday, November 15, 2000 (65 FR 69138), 
relating to the carryover of certain tax attributes, such as earnings 
and profits and foreign income tax accounts, when two

[[Page 14351]]

corporations combine in a section 367(b) transaction.

FOR FURTHER INFORMATION CONTACT: Anne O'Connell Devereaux (202) 622-
3850 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The notice of proposed rulemaking and notice of public hearing 
(REG-116050-99) that is the subject of these corrections is under 
section 367 of the Internal Revenue Code.

Need for Correction

    As published the notice of proposed rulemaking and notice of public 
hearing (REG-116050-99), contains errors that may prove to be 
misleading and are in need of clarification.

Correction of Publication

    Accordingly, the publication of the notice of proposed rulemaking 
and notice of public hearing (REG-116050-99), which was the subject of 
FR Doc. 00-28950, is corrected as follows:
    1. On page 69139, column 3, in the preamble under the paragraph 
heading C. Specific Policies Related to Foreign 381 Transactions (Prop. 
Reg. Sec. 1.367(b)-7), first full paragraph in the column, line 6, the 
language ``corporation as defined in section 957'' is corrected to read 
``corporation as defined in section 953 or 957''.
    2. On page 69140, column 3, in the preamble under the paragraph 
heading C. Specific Policies Related to Foreign 381 Transactions (Prop. 
Reg. Sec. 1.367(b)-7), the first full paragraph, the last 2 lines, the 
language ``opportunities to traffic in foreign tax credits.'' is 
corrected to read ``opportunities to traffic in foreign taxes.''.

PART 1--INCOME TAXES


Sec. 1.367(b)-3  [Corrected]

    3. On page 69149, column 3, Sec. 1.367(b)-3(f), last line in the 
column, the language ``specifically provided (see, e.g., 89-79'' is 
corrected to read ``specifically provided (see, e.g., Notice 89-79''.


Sec. 1.367(b)-8  [Corrected]

    4. On page 69176, Sec. 1.367(b)-8(d)(6), paragraph (ii)(D) of 
Example 3, the table is corrected to read as follows:


Sec. 1.367(b)-8  Allocation of earnings and profits and foreign income 
taxes in certain foreign corporate separations.

* * * * *
    (d) * * *
    (6) * * *
    Example 3. * * *
    (ii) * * *
    (D) * * *

------------------------------------------------------------------------
                                                                Foreign
                 Separate category                     E&P       taxes
------------------------------------------------------------------------
General...........................................       150u        $30
Shipping..........................................       100u         40
                                                   ---------------------
                                                         250u         70
------------------------------------------------------------------------

* * * * *
    5. On page 69176, column 1, Sec. 1.367(b)-8(d)(6), paragraph 
(ii)(E) of Example 3, line 12, the language ``stock to $525. Because 
the fair market value'' is corrected to read ``stock to $425. Because 
the fair market value''.
    6. On page 69176, column 1, Sec. 1.367(b)-8(d)(6), paragraph 
(ii)(E) of Example 3, the last line in the column preceding the second 
table, the language ``$75. See also paragraph (d)(2)(iii)(C) of this'' 
is corrected to read ``$175. See also paragraph (d)(2)(iii)(C) of 
this''.
    7. On page 69178. column 3, Sec. 1.367(b)-8(e)(6), paragraph 
(ii)(B) of Example 2, lines 5 through 9 from the bottom of the 
paragraph, the language ``shipping separate category (along with $50 of 
foreign income taxes) and 166.67u (200u-(100u  x  (200u  
600u))) of available earnings in the section 904(d)(1)(D) shipping 
separate category (along with $80 of foreign income'' is corrected to 
read ``shipping separate category (along with $80 of foreign income''.

Cynthia E. Grigsby,
Chief, Regulations Unit, Office of Special Counsel (Modernization & 
Strategic Planning).
[FR Doc. 01-5284 Filed 3-9-01; 8:45 am]
BILLING CODE 4830-01-P