[Federal Register Volume 74, Number 12 (Wednesday, January 21, 2009)]
[Rules and Regulations]
[Page 3420]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-1120]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9435]
RIN 1545-BH61


Guidance Regarding the Treatment of Stock of a Controlled 
Corporation Under Section 355(a)(3)(B); Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final and temporary 
regulations (TD 9435) that were published in the Federal Register on 
Monday, December 15, 2008 (73 FR 75946) providing guidance regarding 
the distribution of stock of a controlled corporation acquired in a 
transaction described in section 355(a)(3)(B) of the Internal Revenue 
Code. This action is necessary in light of amendments to section 
355(b). These temporary regulations will affect corporations and their 
shareholders. The text of these temporary regulations also serves as 
the text of the proposed regulations set forth in the notice of 
proposed rulemaking on this subject in the Proposed Rules section in 
this issue of the Federal Register.

DATES: Effective Date: This correction is effective January 21, 2009, 
and is applicable on December 15, 2008.

FOR FURTHER INFORMATION CONTACT: Russell P. Subin, (202) 622-7790 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final and temporary regulations that are the subject of this 
document are under section 355 of the Internal Revenue Code.

Need for Correction

    As published, final and temporary regulations (TD 9435) contains 
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 amendments:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 is amended by revising 
the entries to read as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 1.355-2T(g) and (i) are also issued under 26 U.S.C. 
355(b)(3)(D). * * *

0
Par. 2. Section 1.355-1 is amended by revising the last two sentences 
of paragraph (a) to read as follows:


Sec.  1.355-1  Distribution of stock and securities of a controlled 
corporation.

    (a) * * * This section and Sec. Sec.  1.355-2 through 1.355-4, 
other than Sec.  1.355-2(g) and (i) and Sec.  1.355-2T, do not reflect 
the amendments to section 355 made by the Revenue Act of 1987, the 
Technical and Miscellaneous Revenue Act of 1988, and the Tax Technical 
Corrections Act of 2007. For the applicability date of Sec. Sec.  
1.355-2T(g), 1.355-5, 1.355-6, and 1.355-7, see Sec. Sec.  1.355-2T(i), 
1.355-5(e), 1.355-6(g), and 1.355-7(k), respectively.
* * * * *
0
Par. 3. Section 1.355-2T is amended by revising the last sentence of 
paragraph (i)(1) to read as follows:


Sec.  1.355-2T  Limitations (temporary).

* * * * *
    (i) * * *
    (1) * * * However, except as provided in paragraph (i)(2) of this 
section, paragraphs (g)(1) through (g)(5) of this section do not apply 
to any distribution occurring after December 15, 2008, that is pursuant 
to a transaction which is--
* * * * *

 LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
 [FR Doc. E9-1120 Filed 1-16-09; 8:45 am]
BILLING CODE 4830-01-P