[Federal Register Volume 71, Number 89 (Tuesday, May 9, 2006)]
[Rules and Regulations]
[Page 26826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-4272]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9257]
RIN 1545-AY49


Application of Section 338 to Insurance Companies; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document corrects final and temporary regulations (TD 
9257) that were published in the Federal Register on Monday, April 10, 
2006 (71 FR 17990) applying to a deemed sale or acquisition of an 
insurance company's assets pursuant to an election under section 338 of 
the Internal Revenue Code, to a sale or acquisition of an insurance 
trade or business subject to section 1060, and to the acquisition of 
insurance contracts through assumption reinsurance.

DATES: This correction is effective April 10, 2006.

FOR FURTHER INFORMATION CONTACT: Mark Weiss, (202) 622-7790 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final and temporary regulations (TD 9257) that are the subjects 
of this correction are under sections 197, 338, 381, and 1060 of the 
Internal Revenue Code.

Need for Correction

    As published, TD 9257 contains an error that may prove to be 
misleading and is in need of clarification.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

0
Accordingly, 26 CFR part 1 is corrected by making the following 
correcting amendment:

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 * * *


0
Par. 2. Section 1.338.11T is corrected by revising paragraph 
(d)(3)(ii)(2) to read as follows:


Sec.  1.338-11T  Effect of section 338 election on insurance company 
targets (temporary).

* * * * *
    (d) * * *
    (3) * * *
    (ii) * * *
    (2) B equals old target's undiscounted unpaid losses (determined 
under section 846(b)(1) as of the close of the acquisition date;
* * * * *

Guy R. Traynor,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 06-4272 Filed 5-8-06; 8:45 am]
BILLING CODE 4830-01-P