[Federal Register Volume 70, Number 94 (Tuesday, May 17, 2005)]
[Rules and Regulations]
[Page 28211]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-9615]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9198]
RIN 1545-AY42


Guidance Under Section 355(e); Recognition of Gain on Certain 
Distributions of Stock or Securities in Connection With an Acquisition; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations and removal of temporary 
regulations.

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SUMMARY: This document corrects final regulations and removal of 
temporary regulations (TD 9198), that were published in the Federal 
Register on Tuesday, April 19, 2005 (70 FR 20279) that relate to the 
recognition of gain on certain distributions of stock or securities of 
a controlled corporation in connection with an acquisition.

DATES: This correction is effective April 19, 2005.

FOR FURTHER INFORMATION CONTACT: Amber R. Cook, (202) 622-7530 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations and removal of temporary regulations (TD 
9198), which is the subject of this correction are under section 355(e) 
of the Internal Revenue Code.

Need for Correction

    As published, the final regulations and removal of temporary 
regulations (TD 9198) contain errors that may prove to be misleading 
and are in need of clarification.

Correction of Publication

    Accordingly, the publication of the final regulations and removal 
of temporary regulations (TD 9198), which was the subject of FR. Doc. 
05-7811, is corrected as follows:
    1. On page 20280, column 2, in the preamble, under the paragraph 
heading ``New Safe Harbor for Acquisitions Before a Pro Rata 
Distribution'', line 9, the language ``discussions regarding the 
acquisition'' is corrected to read ``discussions with the acquirer 
regarding a distribution''.
    2. On page 20280, column 2, in the preamble, under the paragraph 
heading ``New Safe Harbor for Acquisitions Before a Pro Rata 
Distribution'', lines 15 and 16, the language ``prior to discussions 
regarding the acquisition and that the acquisition was'' is corrected 
to read ``prior to discussions regarding a distribution and that the 
acquisition was''.

Cynthia E. Grigsby,
Acting Chief, Publications and Regulations Branch, Legal Processing 
Division, Associate Chief Counsel, (Procedures and Administration).
[FR Doc. 05-9615 Filed 5-16-05; 8:45 am]
BILLING CODE 4830-01-P