[Federal Register Volume 73, Number 53 (Tuesday, March 18, 2008)]
[Rules and Regulations]
[Page 14386]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-5334]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9273]
RIN 1545-AX65


Stock Transfer Rules: Carryover of Earnings and Taxes

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

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SUMMARY: This document contains a correction to final regulations (TD 
9273) that were published in the Federal Register on Tuesday, August 8, 
2006 (71 FR 44887) addressing the carryover of certain tax attributes, 
such as earnings and profits and foreign income tax accounts, when two 
corporations combine in a corporate reorganization or liquidation that 
is described in both sections 367(b) and 381 of the Internal Revenue 
Code.

DATES: This correction is effective March 18, 2008.

FOR FURTHER INFORMATION CONTACT: Jeffrey L. Parry at (202) 622-3050 
(not a toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final regulations (TD 9273) that are the subject of this 
correction are under section 367(b) of the Internal Revenue Code.

Need for Correction

    As published, final regulations (TD 9273) contain errors that may 
prove to be misleading and are 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 1.367(b)-6 is amended by revising paragraph (a)(1) to 
read as follows:


Sec.  1.367(b)-6  Effective dates and coordination rules.

    (a) Effective date. (1) In general. Except as otherwise provided in 
this paragraph (a)(1), Sec. Sec.  1.367(b)-1 through 1.367(b)-5, and 
this section, apply to section 367(b) exchanges that occur on or after 
February 23, 2000. The rules of Sec. Sec.  1.367(b)-3 and 1.367(b)-4, 
as they apply to reorganizations described in section 368(a)(1)(A) 
(including reorganizations described in section 368(a)(2)(D) or (E)) 
involving a foreign acquiring or foreign acquired corporation, apply 
only to transfers occurring on or after January 23, 2006. Section 
1.367(b)-4(b)(1)(ii) applies to all triangular reorganizations and 
reorganizations described in section 368(a)(1)(G) and (a)(2)(D) 
occurring on or after January 23, 2006, although taxpayers may apply 
Sec.  1.367(b)-4(b)(1)(ii) to triangular B reorganizations occurring on 
or after February 23, 2000, in a taxable year that is not closed by the 
period of limitations if done consistently with respect to all such 
triangular B reorganizations. The second sentence of paragraph (a) in 
Sec.  1.367(b)-4 shall apply to section 304(a)(1) transactions 
occurring on or after February 23, 2006; however, taxpayers may rely on 
this sentence for all section 304(a)(1) transactions occurring in open 
taxable years. Section 1.367(b)-1(c)(2)(v), (c)(3)(ii)(A), (c)(4)(iv), 
(c)(4)(v), 1.367(b)-2(j)(1)(i), (l), and 1.367(b)-3(e) and (f), apply 
to section 367(b) exchanges that occur on or after November 6, 2006. 
For guidance with respect to Sec.  1.367(b)-1(c)(3)(ii)(A) and 
(c)(4)(iv) and (v) and Sec.  1.367(b)-2(j)(1)(i) for exchanges that 
occur before November 6, 2006, see 26 CFR part 1 revised as of April 1, 
2006.
* * * * *

La Nita VanDyke,
Branch Chief, Publications and Regulations Branch, Legal Processing 
Division, Associate Chief Counsel (Procedure and Administration).
 [FR Doc. E8-5334 Filed 3-17-08; 8:45 am]
BILLING CODE 4830-01-P