[Federal Register Volume 72, Number 205 (Wednesday, October 24, 2007)]
[Rules and Regulations]
[Pages 60250-60251]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-20859]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9339]
RIN 1545-BG44


Qualified Zone Academy Bonds; Obligations of States and Political 
Subdivisions; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains a correction to final and temporary 
regulations (TD 9339) that were published in the Federal Register on 
Friday, September 14, 2007 (72 FR 52470) providing guidance to state 
and local governments that issue qualified zone academy bonds and to 
banks, insurance companies, and other taxpayers that hold those bonds 
on the program requirements for qualified zone academy bonds.

DATES: The correction is effective October 24, 2007.

FOR FURTHER INFORMATION CONTACT: Timothy L. Jones or Zoran Stojanovic, 
(202) 622-3980 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final and temporary regulations (TD 9339) that are the subject 
of this correction are under section 1397E of the Internal Revenue 
Code.

Need for Correction

    As published, final and temporary regulations (TD 9339) contain an 
error that may prove to be misleading and are in need of clarification.

List of Subject 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 
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 1.1397E-1T is amended by revising paragraph (i)(6) to 
read as follows:


Sec.  1.1397E-1T  Qualified zone academy bonds (temporary).

* * * * *

[[Page 60251]]

    (i) * * *
    (6) Certain defeasance escrow earnings. With respect to a 
defeasance escrow established in a remedial action for an issue of 
QZABs that meets the special rebate requirement under paragraph 
(h)(7)(ii)(C)(2) of this section, the QZAB issuer is treated as 
ineligible for the small issuer exception to arbitrage rebate under 
section 148(f)(4)(D) and paragraph (i)(5) of this section and 
compliance with that special rebate requirement is treated as 
satisfying applicable arbitrage investment restrictions under section 
148 for that defeasance escrow.
* * * * *

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
 [FR Doc. E7-20859 Filed 10-23-07; 8:45 am]
BILLING CODE 4830-01-P