[Federal Register Volume 67, Number 23 (Monday, February 4, 2002)]
[Rules and Regulations]
[Pages 5061-5062]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-2626]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 8976]
RIN 1545-AX20


Dollar-Value LIFO Regulations; Inventory Price Index Computation 
Method; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Corrections to final regulations.

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[[Page 5062]]

SUMMARY: This document contains corrections to final regulations (TD 
8976) that were published in the Federal Register on Wednesday, January 
9, 2002 (67 FR 1075) providing guidance on methods of valuing dollar-
value LIFO pools under section 472.

DATES: This correction is effective January 9, 2002.

FOR FURTHER INFORMATION CONTACT: Leo F. Nolan II, (202) 622-4970 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of these corrections are 
under section 472 of the Internal Revenue Code.

Need for Correction

    As published, final regulations (TD 8976) contain errors which may 
prove to be misleading and are in need of clarification.

Correction of Publication

    Accordingly, the publication of final regulations (TD 8976), which 
are the subject of FR Doc. 02-184, is corrected as follows:
    1. On page 1075, columns 2 and 3, in the preamble under the 
paragraph heading ``Paperwork Reduction Act'', the existing language is 
removed and the following language is added in its place.
    The collections of information in this final rule have been 
reviewed and, pending receipt and evaluation of public comments, 
approved by the Office of Management and Budget (OMB) under 44 U.S.C. 
3507 and assigned control number 1545-1767.
    The collections of information in this regulation are in 
Sec. 1.472-8(e)(3)(iii)(B)(3) and (e)(3)(iv). To elect the IPIC method, 
a taxpayer must file Form 970, ``Application to Use LIFO Inventory 
Method.'' This information is required to inform the Commissioner 
regarding the taxpayer's elections under the IPIC method. This 
information will be used to determine whether the taxpayer is properly 
accounting for its dollar-value pools under the IPIC method. The 
collections of information are required if the taxpayer wants to obtain 
the tax benefits of the LIFO method. The likely respondents are 
business or other for-profit institutions, and/or small businesses or 
organizations.
    Comments on the collections of information should be sent to the 
Office of Management and Budget, Attn: Desk Officer for the Department 
of the Treasury, Office of Information and Regulatory Affairs, 
Washington, DC 20503, with copies to the Internal Revenue Service, 
Attn: IRS Reports Clearance Officer, W:CAR:MP:FP:S, Washington, DC 
20224. Comments on the collections of information should be received by 
March 20, 2002. Comments are specifically requested concerning:
    Whether the collections of information are necessary for the proper 
performance of the functions of the Internal Revenue Service, including 
whether the information will have practical utility;
    The accuracy of the estimated burden associated with the 
collections of information (see below);
    How the quality, utility, and clarity of the information to be 
collected may be enhanced;
    How the burden of complying with the collections of information may 
be minimized, including through the application of automated collection 
techniques or other forms of information technology; and
    Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of service to provide information.
    The reporting burden contained in Sec. 1.472.-8(e)(3)(iii)(B)(3) 
and (e)(3)(iv) is reflected in the burden of Form 970.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
control number assigned by the Office of Management and Budget.
    Books or records relating to a collection of information must be 
retained as long as their contents may become material in the 
administration of any internal revenue law. Generally, tax returns and 
tax return information are confidential, as required by 26 U.S.C. 6103.


Sec. 1.472-8  [Corrected]

    2. On page 1088, column 3, Sec. 1.472-8(e)(3)(iii)(E)(i), Example 
1., line 21, the language ``items in R's inventories fall within the 2-
digit'' is corrected to read ``items in R's inventory fall within the 
2-digit.''
    3. On page 1094, column 2, Sec. 1.472-8(e)(3)(v)(B), lines 23 and 
24, the language ``year as required by paragraph (e)(3)(iv)(B)(1) of 
this section. Because a'' is corrected to read ``year. See paragraph 
(e)(3)(iv)(B)(1) of this section for an example of this computation. 
Because a.''

LaNita VanDyke,
Acting Chief, Regulations Unit, Associate Chief Counsel (Income Tax and 
Accounting).
[FR Doc. 02-2626 Filed 2-1-02; 8:45 am]
BILLING CODE 4830-01-P