[Federal Register Volume 81, Number 81 (Wednesday, April 27, 2016)]
[Rules and Regulations]
[Page 24702]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09697]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9750]
RIN 1545-BM59


Reporting of Original Issue Discount on Tax-Exempt Obligations; 
Basis and Transfer Reporting by Securities Brokers for Debt Instruments 
and Options; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final regulations (TD 
9750) that were published in the Federal Register on Thursday, February 
18, 2016 (81 FR 8149). The final regulations relate to information 
reporting by brokers for transactions involving debt instruments and 
options, including the reporting of original issue discount (OID) on 
tax-exempt obligations, the treatment of certain holder elections for 
reporting a taxpayer's adjusted basis in a debt instrument, and 
transfer reporting for section 1256 options and debt instruments.

DATES: This correction is effective April 27, 2016 and applicable 
February 18, 2016.

FOR FURTHER INFORMATION CONTACT: Pamela Lew at (202) 317-7053 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final regulations (TD 9750) that are the subject of this 
correction are under section 6045, 6045A, and 6049 of the Internal 
Revenue Code.

Need for Correction

    As published, the final regulations (TD 9750) 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:

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 1.6045-1 is amended by revising the third sentence of 
paragraph (n)(4) to read as follows:


Sec.  1.6045-1  Returns of information of brokers and barter exchanges.

* * * * *
    (n) * * *
    (4) * * * See paragraph (n)(11) of this section for the treatment 
of an election described in paragraph (n)(4)(iii) of this section 
(election to accrue market discount based on a constant yield) and an 
election described in paragraph (n)(4)(iv) of this section (election to 
treat all interest as OID).
* * * * *


Sec.  1.6045A-1  [Corrected]

0
Par. 3. Section 1.6045A-1 is amended by removing ``and;'' at the end of 
paragraphs (b)(3)(ix) and (b)(4)(iii) and adding ``; and'' in its 
place.


Sec.  1.6049-9  [Corrected]

0
Par. 4. Section 1.6049-9(c) is amended by revising the citation ``Sec.  
1.6049-10T'' to read ``Sec.  1.6049-10'' in the last sentence.

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2016-09697 Filed 4-26-16; 8:45 am]
 BILLING CODE 4830-01-P