[Federal Register Volume 88, Number 146 (Tuesday, August 1, 2023)]
[Rules and Regulations]
[Pages 50041-50042]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-16225]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9515]
RIN 1545-BH20


Guidance Under Section 1502; Amendment of Matching Rule for 
Certain Gains on Member Stock; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains a correction to Treasury Decision 9515, 
which was published in the Federal Register for Friday, March 4, 2011.

[[Page 50042]]

Treasury Decision 9515 issued final and temporary regulations relating 
to the redetermination of intercompany gain as excluded from gross 
income in certain transactions involving stock transfers between 
members of a consolidated group. Treasury Decision 9515 was corrected 
on March 31, 2011; however, the corrections included an erroneous 
amendatory instruction that incorrectly removed two paragraphs from the 
Code of Federal Regulations. This document restores the two removed 
paragraphs.

DATES: This correction is effective on August 1, 2023 and is applicable 
on March 4, 2011.

FOR FURTHER INFORMATION CONTACT: Jeremy Aron-Dine at (202) 317-6847 
(not a toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final regulations (TD 9515) that are the subject of this 
correction are under section 1502 of the Code. Treasury Decision 9515 
was corrected at 76 CFR 17781; however, the correction included an 
erroneous amendatory instruction. The instruction was intended to 
revise only the introductory text of Sec.  1.1502-13(c)(6)(ii)(D)(1), 
but it inadvertently removed Sec.  1.1502-13(c)(6)(ii)(D)(1)(i) and 
(ii). This correction restores the two deleted paragraphs as they 
existed prior to the correcting amendment.

Need for Correction

    As published March 4, 2011 (76 CFR 11956), the final regulations 
(TD 9515, FR Doc. 2011-4846) contain errors that needed to be 
corrected. Treasury Decision 9515 was corrected at 76 FR 17781, March 
31, 2011; however, the correcting amendment contained an erroneous 
amendatory instruction, and two paragraphs (26 CFR 1.1502-
13(c)(6)(ii)(D)(1)(i) and (ii)) were incorrectly removed from the Code 
of Federal Regulations.

Applicability of Correction

    Generally, the amendments to TD 9515 apply with respect to items 
taken into account on or after March 4, 2011. Section 1.1502-
13(c)(6)(ii)(D), the regulatory provision corrected in this amendment, 
only applies to taxpayers that receive a determination from the 
Commissioner in the form of a private letter ruling. Taxpayers and the 
Internal Revenue Service have consistently applied Sec.  1.1502-
13(c)(6)(ii)(D) as if the incorrectly deleted paragraphs had not been 
deleted.

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 * * *
* * * * *
    Section 1.1502-13 is also issued under 26 U.S.C. 1502.
* * * * *

0
Par. 2. Section 1.1502-13 is amended by adding paragraphs 
(c)(6)(ii)(D)(1)(i) and (ii) to read as follows:


Sec.  1.1502-13  Intercompany transactions.

* * * * *
    (c) * * *
    (6) * * *
    (ii) * * *
    (D) * * *
    (1) * * *
    (i) In the case of an intercompany item of income, the 
corresponding item is permanently disallowed; or
    (ii) If the intercompany item constitutes gain, the conditions 
described in paragraphs (c)(6)(ii)(C)(1)(iv) and (c)(6)(ii)(C)(1)(v) of 
this section are satisfied.
* * * * *

Oluwafunmilayo A. Taylor,
Chief, Publications and Regulations Branch, Associate Chief Counsel 
(Procedure and Administration).
[FR Doc. 2023-16225 Filed 7-31-23; 8:45 am]
BILLING CODE 4830-01-P