[Federal Register Volume 77, Number 30 (Tuesday, February 14, 2012)]
[Rules and Regulations]
[Pages 8143-8144]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-3351]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9568]
RIN 1545-BI47


Section 482; Methods To Determine Taxable Income in Connection 
With a Cost Sharing Arrangement; Correction

AGENCY: Internal Revenue Service (IRS).

[[Page 8144]]


ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final regulations (TD 
9568), which were published in the Federal Register on Thursday, 
December 22, 2011 (76 FR 80082), relating to section 482 and methods to 
determine taxable income in connection with a cost sharing arrangement.

DATES: This correction is effective on February 14, 2012 and is 
applicable beginning December 22, 2011.

FOR FURTHER INFORMATION CONTACT: Joseph L. Tobin at (202) 435-5265 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final regulations that is the subject of these corrections are 
under section 482 of the Internal Revenue Code.

Need for Correction

    As published, final regulations (TD 9568), contains errors which 
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, the final regulations (TD 9568) that was the subject 
of FR Doc. 2012-895 is corrected to read as follows:

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 * * *

PART 1--[Corrected]

0
Par. 2. Section 1.482-7 is amended by:
    1. Revising the title of the table of paragraph (g)(4)(viii), 
Example 2 (ii).
    2. Revising the fourth sentence of paragraph (g)(4)(viii), Example 
3 (ii).
    The revisions read as follows:


Sec.  1.482-7  Methods to determine taxable income in connection with a 
cost sharing arrangement.

* * * * *
    (g) * * *
    (4) * * *
    (viii) Examples. * * *
    Example 2. * * *

    (ii) * * *
    ``INCOME METHOD APPLICATION NUMBER:''
* * * * *
    Example 3. * * *
    (ii) * * * FS determines that the discount rate that would be 
applied to determine the present value of income and costs 
attributable to its participation in the licensing alternative would 
be 12.5% as compared to the 15% discount rate that would be 
applicable in determining the present value of the net income 
attributable to its participation in the CSA (reflecting the 
increased risk borne by FS in bearing a share of the R & D costs in 
the cost sharing alternative). * * *
* * * * *

Guy R. Traynor,
Federal Register Liaison, Legal Processing Division, Publication & 
Regulation Branch, Associate Chief Counsel (Procedure and 
Administration).
[FR Doc. 2012-3351 Filed 2-13-12; 8:45 am]
BILLING CODE 4830-01-P