[Federal Register Volume 73, Number 58 (Tuesday, March 25, 2008)]
[Rules and Regulations]
[Page 15668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-6038]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9386]
RIN 1545-BE80


Abandonment of Stock or Other Securities; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations; correction.

-----------------------------------------------------------------------

SUMMARY: This document contains a correction to final regulations (TD 
9386) that were published in the Federal Register on Wednesday, March 
12, 2008 (73 FR 13124) concerning the availability and character of a 
loss deduction under section 165 of the Internal Revenue Code for 
losses sustained from abandoned stock or other securities. These 
regulations clarify the tax treatment of losses from abandoned 
securities, and affect any taxpayer claiming a deduction for a loss 
from abandoned securities.

DATES: The correction is effective March 25, 2008.

FOR FURTHER INFORMATION CONTACT: Sean M. Dwyer at (202) 622-5020 or 
Peter C. Meisel at (202) 622-7750 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9386) that are the subject of the 
correction are under section 165 of the Internal Revenue Code.

Need for Correction

    As published, final regulations (TD 9386) contain an error that may 
prove to be misleading and is in need of clarification.

Correction of Publication

    Accordingly, the publication of the final regulations (TD 9386), 
which were the subject of FR Doc. E8-4862, is corrected as follows:
    On page 13124, column 2, in the preamble, under the paragraph 
heading ``Background'', the language ``A statement in the preamble to 
the proposed regulations requires clarification. The preamble described 
section 165(g)(3) as providing an exception from capital loss treatment 
for certain worthless securities in a domestic corporation affiliated 
with the taxpayer. Section 165(g)(3) provides an exception from capital 
loss treatment for a taxpayer that is a domestic corporation that owns 
certain worthless securities of a domestic or foreign corporation 
affiliated with the taxpayer. See Sec.  1.165-5(d)(1) of the Income Tax 
Regulations.'' is inserted as a second paragraph.

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
 [FR Doc. E8-6038 Filed 3-24-08; 8:45 am]
BILLING CODE 4830-01-P