[Federal Register Volume 84, Number 79 (Wednesday, April 24, 2019)]
[Rules and Regulations]
[Page 17082]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08285]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9851]
RIN 1545-BN55


Guidance Under Section 851 Relating to Investments in Stock and 
Securities; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

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SUMMARY: This document contains corrections to final regulations (TD 
9851) that were published in the Federal Register on Tuesday, March 19, 
2019. The final regulations provide guidance relating to the income 
test used to determine whether a corporation may qualify as a regulated 
investment company (RIC) for Federal income tax purposes.

DATES: This correction is effective on April 24, 2019 and is applicable 
to taxable years that begin after June 17, 2019.

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

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9851) published on March 19, 2019 (84 FR 
9959) that are the subject of this correction are issued under section 
851 of the Internal Revenue Code.

Need for Correction

    As published, the final regulations (TD 9851) contain errors that 
need to be corrected.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

    Accordingly, 26 CFR part 1 is amended 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 1.851-2 is amended by revising paragraph (b)(1)(i)(F) 
and the first sentence of paragraph (b)(2)(iii) to read as follows:


Sec.  1.851-2  Limitations.

* * * * *
    (b) * * *
    (1) * * *
    (i) * * *
    (F) Other income (including but not limited to gains from options, 
futures, or forward contracts) derived with respect to the 
corporation's business of investing in such stock, securities, or 
currencies.
* * * * *
    (2) * * *
    (iii) If an amount is included in gross income of the corporation 
referred to in paragraph (b)(1) of this section under section 951(a)(1) 
or 1293(a) and is derived with respect to that corporation's business 
of investing in stock, securities, or currencies, then the amount is 
other income described in section 851(b)(2)(A) and paragraph 
(b)(1)(i)(F) of this section. * * *
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2019-08285 Filed 4-23-19; 8:45 am]
BILLING CODE 4830-01-P