[Federal Register Volume 74, Number 58 (Friday, March 27, 2009)]
[Rules and Regulations]
[Pages 13340-13341]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-6871]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9446]
RIN 1545-BGO9


Gain Recognition Agreements With Respect to Certain Transfers of 
Stock or Securities by United States Persons to Foreign Corporations; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

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SUMMARY: This document contains corrections to final regulations (TD 
9446) that were published in the Federal Register on Wednesday, 
February 11, 2009 concerning gain recognition agreements filed by 
United States persons with respect to transfers of stock or securities 
to foreign corporations.

DATES: This correction is effective on March 27, 2009, and is 
applicable on March 13, 2009.

FOR FURTHER INFORMATION CONTACT: S. James Hawes, (202) 622-3860 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final regulations that are the subject of this document are 
under section 367(a) of the Internal Revenue Code.

Need for Correction

    The final regulations (TD 9446) that were published in the Federal 
Register on February 11, 2009 (74 FR 6952), inadvertently removed 
Treas. Reg. Sec.  1.367(a)-3T in its entirety rather than removing 
Sec.  1.367(a)-3T(e), (f)(1), (f)(2), and the second sentence of Sec.  
1.367(a)-3T(f)(3). This document correctly adds the text of Sec.  
1.367(a)-3T back into the Code of Federal Regulations.

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 continues to read in 
part as follows:

    Authority:  26 U.S.C. 7805 * * *


0
Par. 2. Section 1.367(a)-3T is added to read as follows:


Sec.  1.367(a)-3T   Treatment of transfers of stock or securities to 
foreign corporations (temporary).

    (a) through (b)(2)(i)(B) [Reserved]. For further guidance, see 
Sec.  1.367(a)-3(a) through (b)(2)(i)(B).
    (b)(2)(i)(C) If in connection with a transaction described in Sec.  
1.367(b)-14T, one or more U.S. persons transfer stock of T, as defined 
in Sec.  1.358-6(b)(1)(iii), to a corporation in a transfer described 
in section 367(a), and the amount of gain in the T stock that would 
otherwise be recognized under section 367(a) is less than the deemed 
distribution that would result from the adjustments made under Sec.  
1.367(b)-14T and that would be treated as a dividend under section 
301(c)(1), then section 367(b), and not section 367(a), shall apply to 
such transaction. This paragraph (b)(2)(i)(C) applies to transfers 
occurring on or after May 23, 2008.
    (b)(2)(ii) through (f) [Reserved]. For further guidance, see Sec.  
1.367(a)-3(b)(2)(ii) through (f).
    (g) Effective/applicability date. Paragraph (b)(2)(i)(C) of this 
section applies to transfers occurring on or after May 23, 2008.
    (h) Expiration date. The applicability of paragraph (b)(2)(i)(C) of 
this section expires on May 23, 2011.

[[Page 13341]]


0
Par. 3. Section 1.367(a)-8(r)(2) is amended by revising the paragraph 
heading to read as follows:


Sec.  1.367(a)-8  Gain recognition agreement requirements.

* * * * *
    (r) * * *
    (2) Applicability to transfers occurring before March 13, 2009 * * 
*
* * * * *

Robin Jones,
Federal Register Liaison, Publications and Regulations Branch, Legal 
Processing Division, Associate Chief Counsel (Procedure and 
Administration).
[FR Doc. E9-6871 Filed 3-26-09; 8:45 am]
BILLING CODE 4830-01-P