[Federal Register Volume 85, Number 52 (Tuesday, March 17, 2020)]
[Rules and Regulations]
[Pages 15060-15061]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05040]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9888]
RIN 1545-BN18


Guidance Under Section 355(e) Regarding Predecessors, Successors, 
and Limitation on Gain Recognition; Guidance Under Section 355(f); 
Correcting Amendment

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains a correction to Treasury Decision 9888, 
which was published in the Federal Register on Wednesday, December 18, 
2019. Treasury Decision 9888 contained final regulations providing 
guidance regarding the distribution by a distributing corporation of 
stock or securities of a controlled corporation without the recognition 
of income, gain, or loss.

DATES: This correction is effective on March 17, 2020. For dates of 
applicability, see Sec.  1.355-8(i).

FOR FURTHER INFORMATION CONTACT: W. Reid Thompson, (202) 317-5024, or 
Richard K. Passales, (202) 317-5024 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations (TD 9888) that are the subject of this 
correction are issued under section 355 of the Internal Revenue Code.

Need for Correction

    As published December 18, 2019 (84 FR 69308), the final regulations 
(TD 9888; FR Doc. 2019-27110) contained an error that needs 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 corrected by making the following 
correcting amendment:

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 1.355-8 is amended by revising the seventh sentence of 
paragraph (h)(8)(ii)(A) to read as follows:

[[Page 15061]]

Sec.  1.355-8   Definition of predecessor and successor and limitations 
on gain recognition under section 355(e) and section 355(f).

* * * * *
    (h) * * *
    (8) * * *
    (ii) * * *
    (A) * * * The Reflection of Basis Requirement is satisfied because 
that C stock had a basis prior to the Distribution that was determined 
in whole or in part by reference to the basis of Separated Property 
(Asset 1 and Asset 2, respectively), and was neither distributed in a 
distribution to which section 355(e) applied nor transferred in a 
transaction in which the gain on that C stock was recognized in full 
during the Plan Period prior to the Distribution. * * *
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2020-05040 Filed 3-16-20; 8:45 am]
 BILLING CODE 4830-01-P