[Federal Register Volume 66, Number 67 (Friday, April 6, 2001)]
[Rules and Regulations]
[Pages 18190-18191]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-8135]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8929]
RIN 1545-AQ30


Accounting for Long-Term Contracts; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

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SUMMARY: This document contains corrections to final regulations (TD 
8929) which were published in the Federal Register on Thursday, January 
11, 2001 (66 FR 2219). The final regulations provide guidance on 
methods of accounting for long-term contracts.

DATES: This correction is effective January 11, 2001.

FOR FURTHER INFORMATION CONTACT: Leo F. Nolan II (202) 622-4960 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are subject to these corrections are 
under section 460 of the Internal Revenue Code.

Need for Correction

    As published, final regulations (TD 8929) contain errors that may 
prove to be misleading and are in need of clarification.

Correction of Publication

    Accordingly, the publication of final regulations (TD 8929), which 
were the subject of FR Doc. 01-6, is corrected as follows:
    1. On page 2222, column 1, in the preamble under the paragraph 
heading ``Unique Items'', first paragraph, last 3 lines of the 
paragraph, the language ``taxpayer must allocate all

[[Page 18191]]

customization costs to the first unit manufactured under the 
contract.'' is corrected to read ``taxpayer must allocate all 
customization costs necessary to manufacture the first unit 
manufactured under the contract to that first unit.''.


Sec. 1.460-2  [Corrected]

    2. On page 2230, column 2, Sec. 1.460-2(b)(2)(ii), second line from 
the bottom of the paragraph, the language ``the item must be allocated 
to the first'' is corrected to read ``the first unit of the item must 
be allocated to that first''.

    3. On page 2230, column 2, Sec. 1.460-2(c)(1), fourth line from the 
bottom of the column, the language ``time required to design and'' is 
corrected to read ``time normally required to design and''.


Sec. 1.460-4  [Corrected]

    4. On page 2232, column 2, Sec. 1.460-4(b)(3), line 9, the language 
``the treatment of post-completion costs,'' is corrected to read ``the 
treatment of post-completion-year costs,''.
    5. On page 2235, column 2, Sec. 1.460-4(g), lines 2 through 5, the 
language ``that uses the PCM, EPCM, CCM, PCCM, or elects the 10-percent 
method or special AMTI method (or changes to another method of 
accounting with the Commissioner's consent) must apply the'' is 
corrected to read ``that uses the PCM, EPCM, CCM, or PCCM, or elects 
the 10-percent method or special AMTI method (or changes to another 
method of accounting with the Commissioner's consent) must apply the''.

LaNita VanDyke,
Acting Chief, Regulations Unit, Office of Special Counsel 
(Modernization & Strategic Planning).
[FR Doc. 01-8135 Filed 4-5-01; 8:45 am]
BILLING CODE 4830-01-P