[Federal Register Volume 85, Number 168 (Friday, August 28, 2020)]
[Rules and Regulations]
[Pages 53162-53163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-16985]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9900]
RIN 1545-BP84


Carryback of Consolidated Net Operating Losses; Correcting 
Amendment

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

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SUMMARY: This document contains corrections to Treasury Decision 9900, 
which was published in the Federal Register on Wednesday, July 8, 2020. 
Treasury Decision 9900 contained temporary regulations that permit 
consolidated groups that acquire new members that were members of 
another consolidated group to elect in a year subsequent to the year of 
acquisition to waive all or part of the pre-acquisition portion of an 
extended carryback period under section 172 of the Internal Revenue 
Code (Code) for certain losses attributable to the acquired members if 
there is a retroactive statutory extension of the NOL carryback period 
under section 172.

DATES: Effective date: These corrections are effective on August 28, 
2020.
    Applicability date: For the date of applicability, see Sec.  
1.1502-21T(h)(9).

FOR FURTHER INFORMATION CONTACT: Jonathan R. Neuville, at (202) 317-
5363 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The temporary regulations (TD 9900) that are the subject of this 
correction are issued under section 1502 of the Code.

Need for Correction

    As published July 8, 2020 (85 FR 40892), the temporary regulations 
(TD 9900; FR Doc. 2020-14426) contained 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 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 1.1502-21T is amended by revising the second sentence 
of paragraph (b)(3)(ii)(C)(1), the first sentence of paragraph 
(b)(3)(ii)(C)(5)(i), the first sentence of paragraph 
(b)(3)(ii)(C)(5)(ii), the third sentence of paragraph 
(b)(3)(ii)(D)(2)(ii), and the second sentence of paragraph 
(b)(3)(ii)(D)(4)(ii) to read as follows:


Sec.  1.1502-21T  Net operating losses (temporary).

    (b) * * *
    (3) * * *
    (ii) * * *
    (C) * * *
    (1) * * * (See paragraph (b)(3)(ii)(C)(2) of this section for

[[Page 53163]]

definitions of terms used in this paragraph (b)(3)(ii)(C) and paragraph 
(b)(3)(ii)(D) of this section.)
* * * * *
    (5) * * *
    (i) * * * An amended statute split-waiver election must be made in 
a separate statement entitled ``THIS IS AN ELECTION UNDER SECTION 
1.1502-21T(b)(3)(ii)(C)(1) TO WAIVE THE PRE-[insert first day of the 
first taxable year for which the acquired member was a member of the 
acquiring group] CARRYBACK PERIOD FOR THE CNOLS ATTRIBUTABLE TO THE 
[insert taxable year of losses] TAXABLE YEAR(S) OF [insert names and 
employer identification numbers of members]'' (amended statute split-
waiver election statement).
* * * * *
    (ii) * * * An extended split-waiver election must be made in a 
separate statement entitled ``THIS IS AN ELECTION UNDER SECTION 1.1502-
21T(b)(3)(iii)(C)(1) TO WAIVE THE PRE-[insert first day of the first 
taxable year for which the acquired member was a member of the 
acquiring group] EXTENDED CARRYBACK PERIOD FOR THE CNOLS ATTRIBUTABLE 
TO THE [insert taxable year of losses] TAXABLE YEAR(S) OF [insert names 
and employer identification numbers of members]'' (extended split-
waiver election statement).
* * * * *
    (D) * * *
    (2) * * *
    (ii) * * * See paragraph (b)(3)(ii)(C)(2)(v) of this section. * * *
* * * * *
    (4) * * *
    (ii) * * * See paragraph (b)(3)(ii)(C)(2)(ix) of this section.
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2020-16985 Filed 8-27-20; 8:45 am]
BILLING CODE 4830-01-P