[Federal Register Volume 73, Number 186 (Wednesday, September 24, 2008)]
[Rules and Regulations]
[Pages 54945-54946]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-22381]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9422]
RIN 1545-BE95


S Corporation Guidance Under AJCA of 2004 and GOZA of 2005; 
Correction

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 
9422) that were published in the Federal Register on Thursday, August 
14, 2008 (73 FR 47526) providing guidance

[[Page 54946]]

regarding certain changes made to the rules governing S corporations 
under the American Jobs Creation Act of 2004 and the Gulf Opportunity 
Zone Act of 2005. The final regulations replace obsolete references in 
the current regulations and allow taxpayers to make proper use of the 
provisions that made changes to prior law. The final regulations 
include guidance on the S corporation family shareholder rules, the 
definitions of ``powers of appointment'' and ``potential current 
beneficiaries'' (PCBs) with regard to electing small business trusts 
(ESBTs), the allowance of suspended losses to the spouse or former 
spouse of an S corporation shareholder, and relief for inadvertently 
terminated or invalid qualified subchapter S subsidiary (QSub) 
elections. The final regulations affect S corporations and their 
shareholders.

DATES: The correction is effective September 24, 2008, and is 
applicable on August 14, 2008.

FOR FURTHER INFORMATION CONTACT: Charles J. Langley, Jr., (202) 622-
3060, (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9422) that are the subject of this 
correction are under sections 1361, 1362, and 1366 of the Internal 
Revenue Code.

Need for Correction

    As published, the final regulations (TD 9422) 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 9422), 
which was the subject of FR Doc. E8-18782, is corrected as follows:
    On page 47527, column 3, in the preamble, under the paragraph 
heading ``Drafting Information'', line 2, the language ``proposed 
regulations is Charles J.'' is corrected to read ``regulations is 
Charles J.''.

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. E8-22381 Filed 9-23-08; 8:45 am]
BILLING CODE 4830-01-P