[Federal Register Volume 82, Number 172 (Thursday, September 7, 2017)]
[Rules and Regulations]
[Page 42233]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-18983]

Rules and Regulations
                                                Federal Register

This section of the FEDERAL REGISTER contains regulatory documents 
having general applicability and legal effect, most of which are keyed 
to and codified in the Code of Federal Regulations, which is published 
under 50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by the Superintendent of Documents. 


Federal Register / Vol. 82, No. 172 / Thursday, September 7, 2017 / 
Rules and Regulations

[[Page 42233]]


Internal Revenue Service

26 CFR Part 1

[TD 9812]
RIN 1545-BL00

Guidance for Determining Stock Ownership; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.


SUMMARY: This document contains corrections to the final regulations 
(T.D. 9812) that were published in the Federal Register on Wednesday, 
January 18, 2017. The regulations identify certain stock of a foreign 
corporation that is disregarded in calculating ownership of the foreign 
corporation for purposes of determining whether it is a surrogate 
foreign corporation.

DATES: These corrections are effective on September 7, 2017, and 
applicable beginning January 13, 2017.

FOR FURTHER INFORMATION CONTACT: Joshua G. Rabon, (202) 317-6938 (not a 
toll-free number).



    The final regulations that are the subject of this correction are 
under section 7874 of the Internal Revenue Code.

Need for Correction

    As published, the final regulations contain errors that may prove 
to be misleading and need to be clarified.

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:


Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority:  26 U.S.C. 7805 * * *

Par. 2. Section 1.7874-4 is amended by revising paragraphs 
(i)(2)(iii)(A), (i)(2)(iii)(C) introductory text, and (i)(2)(iii)(C)(2) 
to read as follows:

Sec.  1.7874-4  Disregard of certain stock related to the domestic 
entity acquisition.

* * * * *
    (i) * * *
    (2) * * *
    (iii) * * *
    (A) A member of the expanded affiliated group, unless the holder of 
the obligation immediately before the domestic entity acquisition and 
any related transaction (or its successor) is a member of the expanded 
affiliated group after the domestic entity acquisition and all related 
transactions. See Example 6 of paragraph (j) of this section for an 
illustration of this paragraph (i)(2)(iii)(A).
* * * * *
    (C) A person, other than a member of the expanded affiliated group, 
that, before or after the domestic entity acquisition, either owns 
(applying the attribution rules of section 318(a) with the 
modifications described in section 304(c)(3)(B)) at least five percent 
(by vote or value) of the stock of (or partnership interests in) or is 
related (within the meaning of section 267 or 707(b)) to--
* * * * *
    (2) A person described in paragraph (i)(2)(iii)(B) of this section.
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division 
(Associate Chief Counsel), Procedure and Administration.
[FR Doc. 2017-18983 Filed 9-6-17; 8:45 am]