[Federal Register Volume 88, Number 233 (Wednesday, December 6, 2023)]
[Proposed Rules]
[Pages 84770-84771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26601]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1, 5, 301, and 602

[REG-134420-10]
RIN 1545-BJ87


Revising Consolidated Return Regulations To Reflect Statutory 
Changes, Modernize Language, and Enhance Clarity; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking; correction.

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SUMMARY: This document corrects a notice of proposed rulemaking (REG-
134420-10) published in the Federal Register on August 7, 2023, 
modifying regulations applicable to affiliated and controlled groups of 
corporations in order to reflect statutory changes, update language to 
remove antiquated or regressive terminology, and enhance clarity. The 
correction makes parallel amendments to similar regulations applicable 
to controlled groups of corporations.

DATES: The comment period for REG-134420-10 (88 FR 52057, August 7, 
2023) is reopened, and additional written or electronic comments and 
requests for a public hearing must be received by February 5, 2024.

ADDRESSES: Commenters are strongly encouraged to submit public comments 
electronically. Submit electronic submissions via the Federal 
eRulemaking Portal at https://www.regulations.gov (indicate IRS and 
REG-134420-10). Once submitted to the Federal eRulemaking Portal, 
comments cannot be edited or withdrawn. The Department of the Treasury 
(the Treasury Department) and the IRS will publish for public 
availability any comment submitted to its public docket. Send paper 
submissions to:

[[Page 84771]]

CC:PA:01:PR (REG-134420-10), Room 5203, Internal Revenue Service, P.O. 
Box 7604, Ben Franklin Station, Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations 
under section 52, Kari DiCecco of the Office of Associate Chief Counsel 
(Employee Benefits, Exempt Organizations, and Employment Taxes) at 
(202) 317-5500; concerning the proposed regulations under section 414, 
Jessica Weinberger of the Office of Associate Chief Counsel (Employee 
Benefits, Exempt Organizations, and Employment Taxes) at (202) 317-4148 
(not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    The notice of proposed rulemaking (REG-134420-10) that is the 
subject of this correction is under sections 1502, 1503, 1552, and 
1563. The regulations under sections 52 and 414 provide rules similar 
to the rules under section 1563. An amendment to the regulations under 
section 1563 without parallel amendments to the regulations under 
sections 52 and 414 would create inconsistencies. This correction would 
make parallel changes to the regulations under sections 52 and 414.

Need for Correction

    As published, REG-134420-10 created inconsistencies by revising 
Sec.  1.1563-1 without revising parallel language in two additional 
regulations.

Correction of Publication

    Accordingly, the publication of the proposed regulations (REG-
134420-10), which was the subject of FR Doc. 2023-14098, is corrected 
as follows:
    1. On page 52062, the second column, after the first full 
paragraph, the following language is added:
    ``Sections 52(a) and 414(b) provide rules for controlled groups of 
corporations that incorporate section 1563(a), with modifications. 
Sections 52(b) and 414(c)(1) authorize regulations applying the 
principles of 52(a) and 414(b) to trades or businesses under common 
control. The regulations under sections 52(b) and 414(c)(1) include 
constructive ownership rules that mirror the rules under section 1563. 
Accordingly, the proposed regulations would revise Sec. Sec.  1.52-
1(c)(1) and 1.414(c)-2(b)(1) in the same way as they revise Sec.  
1.1563-1(a)(2).''.
    2. In the Proposed Amendments to the Regulations, pages 52069 
through 52082, ``Par. 6. through Par. 57.'' is redesignated as ``Par. 
8. through Par. 59.'' respectively, ``Par. 2. through Par. 5.'' is 
redesignated as ``Par. 3. through Par. 6.'' respectively, and new 
``Par. 2. and Par. 7.'' are added in numerical order.

Sec.  1.52-1 [Amended]

    3. Newly added Par. 2. should read as ``Par. 2. Section 1.52-1 is 
amended by removing the text ``(directly and with the application of 
Sec.  1.414(c)-4(b)(1), relating to options)'' from paragraph (c)(1) 
wherever it appears and adding the text ``(directly and with the 
application of Sec.  1.414(c)-4(b)(1), (2), and (3))'' in its place.''.

Sec.  1.414(c)-2 [Amended]

    4. Newly added Par. 7. should read as ``Par. 7. Section 1.414(c)-2 
is amended by removing the text ``(directly and with the application of 
Sec.  1.414(c)-4(b)(1), relating to options)'' from paragraph (b)(1) 
wherever it appears and adding the text ``(directly and with the 
application of Sec.  1.414(c)-4(b)(1), (2), and (3))'' in its place.''.

Oluwafunmilayo A. Taylor,
Section Chief, Publications and Regulations Section, Associate Chief 
Counsel, (Procedure and Administration).
[FR Doc. 2023-26601 Filed 12-5-23; 8:45 am]
BILLING CODE 4830-01-P