[Federal Register Volume 76, Number 62 (Thursday, March 31, 2011)]
[Rules and Regulations]
[Pages 17781-17782]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-7506]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9515]
RIN 1545-BH20


Guidance Under Section 1502; Amendment of Matching Rule for 
Certain Gains on Member Stock; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document describes correcting amends to final and 
temporary regulations concerning the treatment of certain intercompany 
gain with respect to stock owned by members of a consolidated group. 
These regulations provide for the redetermination of intercompany gain 
as excluded from gross income in certain transactions involving stock 
transfers between members of a consolidated group. These errors were 
made when the agency published final and temporary regulations (TD 
9515) in the Federal Register on Friday, March 4, 2011 (76 FR 11956).

DATES: This correction is effective on March 31, 2011, and is 
applicable on March 4, 2011.

FOR FURTHER INFORMATION CONTACT: John F. Tarrant, (202) 622-7790 or 
Lawrence M. Axelrod, (202) 622-7713 (not toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Background

    The final and temporary regulations (TD 9515) that are the subject 
of this document are under section 1502 of the Internal Revenue Code.

Need for Correction

    As published, the final and temporary regulations (TD 9515) 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

    Accordingly, 26 CFR part 1 is corrected by making the following 
correcting amendments:

[[Page 17782]]

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 1.1502-13 is amended by revising paragraphs 
(c)(6)(ii)(C)(2) and (c)(6)(ii)(D)(1) to read as follows:


Sec.  1.1502-13  Intercompany transactions.

* * * * *
    (c) * * *
    (6) * * *
    (ii) * * *
    (C) * * *
    (2) Effect on earnings and profits and investment adjustments. Any 
amount excluded from gross income under paragraph (c)(6)(ii)(C)(1) of 
this section shall not be taken into account as earnings and profits of 
any member and shall not be treated as tax-exempt income under Sec.  
1.1502-32(b)(2)(ii).
    (D) Other amounts. (1) The Commissioner may determine that treating 
S's intercompany item as excluded from gross income is consistent with 
the purposes of this section and other applicable provisions of the 
Internal Revenue Code, regulations, and published guidance, if the 
following conditions are met, depending on whether the intercompany 
item is an item of income or an item of gain:
* * * * *

0
Par. 3. Section 1.1502-13T is amended by revising paragraph 
(f)(5)(ii)(F)(2) to read as follows:


Sec.  1.1502-13T  Intercompany transactions (temporary).

* * * * *
    (f) * * *
    (5) * * *
    (ii) * * *
    (F) * * *
    (2) Prior periods. For transactions in which old T's liquidation 
into B occurs before October 25, 2007, see Sec.  1.1502-
13(f)(5)(ii)(B)(1) and (f)(5)(ii)(B)(2) in effect prior to October 25, 
2007, as contained in 26 CFR part 1, revised April 1, 2009.
* * * * *

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2011-7506 Filed 3-30-11; 8:45 am]
BILLING CODE 4830-01-P