[Federal Register Volume 74, Number 244 (Tuesday, December 22, 2009)]
[Rules and Regulations]
[Page 67973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-30350]



[[Page 67973]]

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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9471]
RIN 1545-BH68


Employee Stock Purchase Plans Under Internal Revenue Code Section 
423; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

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SUMMARY: This document contains corrections to final regulations (TD 
9471) that were published in the Federal Register on Tuesday, November 
17, 2009 (74 FR 59074) providing guidance to assist taxpayers in 
complying with section 423 in addition to clarifying certain rules 
regarding options granted under an employee stock purchase plan.

DATES: This correction is effective on December 22, 2009, and is 
applicable on November 17, 2009.

FOR FURTHER INFORMATION CONTACT: Thomas Scholz or Ilya Enkishev, (202) 
622-6030 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9471) that are the subject of this 
document are under sections 421, 422, 423, and 424 of the Internal 
Revenue Code.

Need for Correction

    As published, the final regulations (TD 9471) 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 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 1.423-2 is amended by:

0
1. Revising the first sentence of paragraph (a)(1).

0
2. Revising the paragraph (d)(3).

0
3. Revising the last sentence of paragraph (i)(5) Example 5.
    The revisions read as follows:


Sec.  1.423-2  Employee stock purchase plan defined.

* * * * *
    (a) * * * (1) The term ``employee stock purchase plan'' means a 
plan that meets the requirements of paragraphs (a)(2) and (a)(3) of 
this section. * * *
* * * * *
    (d) * * *
    (3) Examples. The following examples illustrate the principles of 
this paragraph (d):
* * * * *
    (i) * * *
    (5) * * *
    Example 5. * * * On August 31, 2012, Q may purchase under the 
option an amount of FF stock equal to the difference between $75,000 
in fair market value of FF stock (determined at the time the option 
was granted) and the fair market value of FF stock (determined at 
the time of grant of the option) purchased during year 2011.
* * * * *

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. E9-30350 Filed 12-21-09; 8:45 am]
BILLING CODE 4830-01-P