[Federal Register Volume 75, Number 177 (Tuesday, September 14, 2010)]
[Rules and Regulations]
[Page 55677]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-22792]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9497]
RIN 1545-BI97


Guidance Regarding Deferred Discharge of Indebtedness Income of 
Corporations and Deferred Original Issue Discount Deductions; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains correcting amends to temporary 
regulations under section 108(i) of the Internal Revenue Code. These 
regulations primarily affect C corporations regarding the acceleration 
of deferred discharge of indebtedness (COD) income (deferred COD 
income) and deferred original issue discount (OID) deductions (deferred 
OID deductions) under section 108(i)(5)(D), and the calculation of 
earnings and profits as a result of an election under section 108(i). 
These errors were made when the agency published temporary regulations 
(TD 9497) in the Federal Register on Friday, August 13, 2010 (75 FR 
49394).

DATES: This correction is effective on September 14, 2010, and is 
applicable on August 13, 2010.

FOR FURTHER INFORMATION CONTACT: Concerning the acceleration rules for 
deferred COD income and deferred OID deductions, and the rules for 
earnings and profits, Robert M. Rhyne at (202) 622-7790; and concerning 
the rules for deferred OID deductions, Rubin B. Ranat at (202) 622-7530 
(not toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Background

    The temporary regulations (TD 9497) that are the subject of this 
document are under section 108 of the Internal Revenue Code.

Need for Correction

    As published, the temporary regulations (TD 9497) 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 1.108(i)-1T is amended by revising the fifth sentence 
of paragraph (b)(2)(iii)(A) and the fifth sentence of paragraph 
(b)(2)(iii)(D) to read as follows:


Sec.  1.108(i)-1T  Deferred discharge of indebtedness income and 
deferred original issue discount deductions of C corporations 
(temporary).

* * * * *
    (b) * * *
    (2) * * *
    (iii) * * *
    (A) * * * For purposes of determining an electing corporation's 
gross asset value, the amount of any distribution that is not treated 
as an impairment transaction under paragraph (b)(2)(iii)(D) of this 
section (distributions and charitable contributions consistent with 
historical practice) or under paragraph (b)(2)(iii)(E) of this section 
(special rules for RICs and REITs) is treated as an asset of the 
electing corporation. * * *
* * * * *
    (D) * * * If an electing corporation has been in existence for less 
than three years, the period during which the electing corporation has 
been in existence is substituted for the preceding three taxable years. 
* * *
* * * * *

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2010-22792 Filed 9-13-10; 8:45 am]
BILLING CODE 4830-01-P