[Federal Register Volume 71, Number 129 (Thursday, July 6, 2006)]
[Proposed Rules]
[Pages 38322-38323]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-10132]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-139059-02]
RIN 1545-BB86


Expenses for Household and Dependent Care Services Necessary for 
Gainful Employment; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to notice of proposed rulemaking.

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SUMMARY: This document contains a correction to notice of proposed 
rulemaking that was published in the Federal Register on Wednesday, May 
24, 2006 (71 FR 29847) regarding the credit for expenses for household 
and dependent care services necessary for gainful employment.

FOR FURTHER INFORMATION CONTACT: Sara Shepherd, (202) 622-4960 (not a 
toll-free call).

SUPPLEMENTARY INFORMATION:

Background

    The notice of proposed rulemaking (REG-139059-02) that is the 
subject of this correction is under section 21 of the Internal Revenue 
Code.

Need for Correction

    As published, the notice of proposed rulemaking (REG-139059-02) 
contains an error that may prove to be misleading and is in need of 
correction.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

    Accordingly, the notice of proposed rulemaking (REG-139059-02), 
that was the subject of FR Doc. E6-7390, is corrected as follows:

PART 1--INCOME TAXES

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

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

[[Page 38323]]

Sec.  1.21-1  [Corrected]

    Par. 2. On page 29851, column 1, Sec.  1.21-1 is amended by 
revising paragraph (b)(5)(ii) to read as follows:


Sec.  1.21-1  Expenses for household and dependent care services 
necessary for gainful employment.

* * * * *
    (b) * * *
    (5) * * *
    (ii) Custodial parent allowed the credit. A child to whom this 
paragraph (b)(5) applies is the qualifying individual of only one 
parent in any taxable year and is the qualifying child of the custodial 
parent even if the noncustodial parent may claim the dependency 
exemption for that child for that taxable year. See section 152(e). The 
custodial parent is the parent with whom a child shared the same 
principal place of abode the greater portion of the calendar year. See 
section 152(e)(4)(A).
* * * * *

Guy R. Traynor,
Branch Chief, Publications and Regulations Branch, Legal Processing 
Division, Associate Chief Counsel (Procedure and Administration).
 [FR Doc. E6-10132 Filed 7-5-06; 8:45 am]
BILLING CODE 4830-01-P