[Federal Register Volume 72, Number 15 (Wednesday, January 24, 2007)]
[Rules and Regulations]
[Pages 3057-3058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-861]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9303]
RIN 1545-BF84


Corporate Reorganizations; Distributions Under Sections 
368(a)(1)(D) and 354(b)(1)(B)

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final and temporary regulations; correction notice.

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SUMMARY: This document contains corrections to temporary regulations 
that was published in the Federal Register on Tuesday, December 19, 
2006 (71 FR 75879) regarding the qualification of certain transactions 
as reorganizations described in section 368(a)(1)(D).

DATES: These corrections are effective December 19, 2006.

[[Page 3058]]


FOR FURTHER INFORMATION CONTACT: Bruce A. Decker at (202) 622-7550 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The temporary regulations (TD 9303) that is the subject of these 
corrections are under sections 368 and 354 of the Internal Revenue 
Code.

Need for Correction

    As published, the temporary regulations (TD 9303) contains errors 
that may prove to be misleading and are in need of correction.

Correction of Publication

    Accordingly, the temporary regulations (TD 9303) that was the 
subject of FR Doc. E6-21565, is corrected as follows:
    1. On page 75879, column 1, in the preamble, under the caption 
``SUMMARY:'', line 9, the language ``securities of the acquiring 
corporation is'' is corrected to read ``securities of the acquiring 
corporation are.''
    2. On page 75880, column 1, in the preamble, under the paragraph 
heading ``Background'', first full paragraph of the column, line 5, the 
language ``its operating assets to Y for $34x dollars,'' is corrected 
to read ``its operating assets to Y for $34x,.''
    3. On page 75880, column 1, in the preamble, under the paragraph 
heading ``Background'', second full paragraph of the column, line 7, 
the language ``requirements of section 354 and 356, is corrected to 
read ``requirements of sections 354 and 356,.''
    4. On page 75881, column 1, in the preamble, under the paragraph 
heading ``Special Analyses'', line 7 from the bottom of the paragraph, 
the language ``published elsewhere in this Federal'' is corrected to 
read ``published elsewhere in this issue of the Federal.''

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

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.  1.368-2T  [Corrected]

0
Par. 2. Section 1.368-2T is amended by revising paragraph (l)(1) to 
read as follows:


Sec.  1.368-2T  Definition of terms (temporary).

* * * * *
    (l) * * *
    (1) General rule. In order to qualify as a reorganization under 
section 368(a)(1)(D), a corporation (transferor corporation) must 
transfer all or part of its assets to another corporation (transferee 
corporation) and immediately after the transfer the transferor 
corporation, or one or more of its shareholders (including persons who 
were shareholders immediately before the transfer), or any combination 
thereof, must be in control of the transferee corporation; but only if, 
in pursuance of the plan, stock or securities of the transferee 
corporation are distributed in a transaction which qualifies under 
section 354, 355, or 356.
* * * * *

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Office of Associate Chief Counsel (Procedure and Administration).
[FR Doc. E7-861 Filed 1-23-07; 8:45 am]
BILLING CODE 4830-01-P