[Federal Register Volume 72, Number 139 (Friday, July 20, 2007)]
[Proposed Rules]
[Pages 39770-39771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-14080]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-103842-07]
RIN 1545-BG33


Qualified Films Under Section 199; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to notice of proposed rulemaking.

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SUMMARY: This document contains corrections to a notice of proposed 
rulemaking that was published in the Federal Register on Thursday, June 
7, 2007 (72 FR 31478). These regulations involve the deduction for 
income attributable to domestic production activities under section 199 
and affect taxpayers who produce qualified films under section 
199(c)(4)(A)(i)(II) and (c)(6) and taxpayers who are members of an 
expanded affiliated group under section 199(d)(4).

FOR FURTHER INFORMATION CONTACT: Concerning Sec.  1.199-3(k) of the 
proposed regulations, David McDonnell at (202) 622-3040; Concerning 
Sec.  1.199-7 of the proposed regulations, Ken Cohen (202) 622-7790 
(not toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Background

    The notice of proposed rulemaking (REG-103842-07) that is the 
subject of

[[Page 39771]]

the correction is under section 199 of the Internal Revenue Code.

Need for Correction

    As published, the notice of proposed rulemaking (REG-103842-07) 
contains errors that may prove to be misleading and are in need of 
clarification.

Correction of Publication

    Accordingly, the publication of the notice of proposed rulemaking 
(REG-103842-07), that is the subject of FR Doc. E7-10821, is corrected 
as follows:
    1. On page 31480, column 2, in the preamble, under the paragraph 
heading ``Expanded Affiliated Groups'', second paragraph of the column, 
lines 25 through 28, the language ``assume that X and Y each have $60 
of taxable income and QPAI in 2007, Z has $170 of taxable income and 
QPAI in 2008, and that X, Y, and Z each have'' is corrected to read 
``assume that X and Y each has $60 of taxable income and QPAI in 2007, 
Z has $170 of taxable income and QPAI in 2008, and that X, Y, and Z 
each has''.


Sec.  1.199-3  [Corrected]

    2. On page 31482, column 1, Sec.  1.199-3(k)(7)(i), line 2 from the 
bottom of the paragraph, the language ``Paragraph (g)(4)(ii)(A) of this 
section'' is corrected to read ``Paragraph (g)(3)(ii)(A) of this 
section''.


Sec.  1.199-7  [Corrected]

    3. On page 31482, column 3, Sec.  1.199-7(e) Example 10. paragraph 
(i), line 5 of the paragraph, the language ``B each use the section 861 
method for'' is corrected to read ``B each uses the section 861 method 
for''.
    4. On page 31482, column 3, Sec.  1.199-7(e) Example 10. paragraph 
(iii), line 8 of the paragraph, the language ``B becomes a non-member 
of the consolidated'' is corrected to read ``B becomes a nonmember of 
the consolidated''.
    5. On page 31483, column 1, Sec.  1.199-7(g)(3) Example. paragraph 
(i), lines 9 through 11 of the paragraph, the language ``year, neither 
X, Y, nor Z join in the filing of a consolidated Federal income tax 
return. Assume that X, Y, and Z each have W-2'' is corrected to read 
``year, neither X, Y, nor Z joins in the filing of a consolidated 
Federal income tax return. Assume that X, Y, and Z each has W-2''.
    6. On page 31483, column 1, Sec.  1.199-7(g)(3) Example. paragraph 
(ii), line 5 from the bottom of the column, the language ``allocated 
$96 of the deduction. For the'' is corrected to read ``allocated $96 of 
the EAG's section 199 deduction. For the''.

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. E7-14080 Filed 7-19-07; 8:45 am]
BILLING CODE 4830-01-P