[Federal Register Volume 70, Number 106 (Friday, June 3, 2005)]
[Rules and Regulations]
[Pages 32489-32490]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-11029]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 301

[TD 9194]
RIN 1545-BE22


Residence and Source Rules involving U.S. Possessions and Other 
Conforming Changes; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document corrects temporary regulations (TD 9194) that 
were published in the Federal Register on Monday, April 11, 2005 (70 FR 
18920). The temporary regulations provide rules under section 937(a) of 
the Internal Revenue Code (Code) for determining whether an individual 
is a bona fide resident of the following U.S. possessions: American 
Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the United 
States Virgin Islands. The temporary regulations also provide rules 
under section 937(b) for determining whether income is derived from 
sources within a U.S. possession and whether income is effectively 
connected with the conduct of a trade or business within a U.S. 
possession. In addition, the temporary regulations provide updated 
guidance under certain other Code sections to reflect changes made by 
the Tax Reform Act of 1986 and by the American Jobs Creation Act of 
2004.

[[Page 32490]]


DATES: This correction is effective April 11, 2005.

FOR FURTHER INFORMATION CONTACT: J. David Varley (202) 435-5165 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The temporary regulations (TD 9194) that is the subject of this 
correction are under section 937 of the Internal Revenue Code.

Need for Correction

    As published, the temporary regulations (TD 9194) contains errors 
that may prove to be misleading and are in need of clarification.

List of Subjects

26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

Correction of Publication

0
Accordingly, 26 CFR parts 1 and 301 is corrected by making the 
following correcting amendments:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read, in 
part, as follows:

    Authority: 26 U.S.C. 7805 * * *


Sec.  1.934-1T  [Corrected]

0
1. Section 1.934-1T(d), Example 1, paragraph (iii), the formula is 
revised to read as follows: (20,000 + 10,000) x ((45,000 + 15,000) / 
(120,000))-10,000 x ((15,000) / (15,000 + 22,500)) = 30,000 x (.5) -
10,000 x (.4) = 15,000 minus; 4,000 = $11,000


Sec.  1.935-1T  [Corrected]

0
2. Section 1.935-1T(e)(1)(ii) is amended by removing the language 
``election filed'' and adding the language ``election is filed'' in its 
place.


Sec.  1.937-1T  [Corrected]

0
3. Section 1.937-1T(c)(4)(ii)(B) is amended by removing the language 
``(c)(4)(B)'' and adding the language ``(c)(4)(i)(B)'' in its place.


Sec.  1.937-3T  [Corrected]

0
4. Section 1.937-3T(b), second sentence, is amended by removing the 
language ``under the rules of 1.937-2T)'' and adding the language 
``under the rules of Sec.  1.937-2T)'' in its place.

PART 301--PROCEDURE AND ADMINISTRATION

0
Par. 2. The authority citation for part 301 continues to read, in part, 
as follows:

    Authority: 26 U.S.C. 7805 * * *


Sec.  301.7701(b)-1T  [Corrected]

0
5. Section 301.7701(b)-1T is amended by removing the period at the end 
of the section heading and adding the language ``(temporary).'' in its 
place.

Cynthia Grigsby,
 Acting Chief, Publications and Regulations Branch, Legal Processing 
Division, Associate Chief Counsel (Procedures and Administration).
[FR Doc. 05-11029 Filed 6-2-05; 8:45 am]
BILLING CODE 4830-01-P