[Federal Register Volume 67, Number 118 (Wednesday, June 19, 2002)]
[Proposed Rules]
[Page 41653]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15353]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-248110-96]
RIN 1545-AY48


Guidance Under Section 817A Regarding Modified Guaranteed 
Contracts; 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 a correction to a notice of proposed 
rulemaking and notice of public hearing (REG-248110-96) that was 
published in the Federal Register on Monday, June 3, 2002 (67 FR 
38214). These regulations affect insurance companies that define the 
interest rate to be used with respect to certain insurance contracts 
that guarantee higher returns for an initial, temporary period.

FOR FURTHER INFORMATION CONTACT: Ann H. Logan, (202) 622-3970 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The notice of proposed rulemaking and notice of public hearing that 
is the subject of this correction is under section 817A of the Internal 
Revenue Code.

Need for Correction

    As published REG-248110-96 contains an error which may prove to be 
misleading and is in need of clarification.

Correction of Publication

    Accordingly, the publication of the notice of proposed rulemaking 
and notice of public hearing (REG-248110-96), which is the subject of 
FR Doc. 02-13848, is corrected as follows:
    On page 38215, column 2, in the preamble under the paragraph 
heading ``Interest Rates Affecting Modified Guaranteed Contracts'' 
first paragraph, lines twelve through fifteen, the language ``The 
temporary guarantee may be a fixed rate (non-equity indexed modified 
guaranteed contracts) or a rate based on bond or equity yields (equity-
indexed'' is corrected to read ``The temporary guarantee may be a rate 
based on stocks, other equity instruments, or equity-based derivatives 
(equity-indexed modified guaranteed contracts) or a rate that is not 
related to equity performance (non-equity-indexed modified guaranteed 
contracts).''.

Cynthia Grigsby,
Chief, Regulations Unit, Associate Chief Counsel (Income Tax and 
Accounting).
[FR Doc. 02-15353 Filed 6-18-02; 8:45 am]
BILLING CODE 4830-01-P