Internal Revenue Service (IRS), Treasury.
This document contains correcting amends to temporary regulations under section 108(i) of the Internal Revenue Code. These regulations primarily affect C corporations regarding the acceleration of deferred discharge of indebtedness (COD) income (deferred COD income) and deferred original issue discount (OID) deductions (deferred OID deductions) under section 108(i)(5)(D), and the calculation of earnings and profits as a result of an election under section 108(i). These errors were made when the agency published temporary regulations (TD 9497) in the Federal Register on Friday, August 13, 2010 (75 FR 49394).
This correction is effective on September 14, 2010, and is applicable on August 13, 2010.Start Further Info
FOR FURTHER INFORMATION CONTACT:
Concerning the acceleration rules for deferred COD income and deferred OID deductions, and the rules for earnings and profits, Robert M. Rhyne at (202) 622-7790; and concerning the rules for deferred OID deductions, Rubin B. Ranat at (202) 622-7530 (not toll-free numbers).End Further Info End Preamble Start Supplemental Information
The temporary regulations (TD 9497) that are the subject of this document are under section 108 of the Internal Revenue Code.
Need for Correction
As published, the temporary regulations (TD 9497) contain errors that may prove to be misleading and are in need of clarification.Start List of Subjects
List of Subjects in 26 CFR Part 1End List of Subjects
Correction of PublicationStart Amendment Part
Accordingly,End Amendment Part Start Part
PART 1—INCOME TAXESEnd Part Start Amendment Part
End Amendment Part Start Amendment Part
End Amendment Part
(b) * * *
(2) * * *
(iii) * * *
(A) * * * For purposes of determining an electing corporation's gross asset value, the amount of any distribution that is not treated as an impairment transaction under paragraph (b)(2)(iii)(D) of this section (distributions and charitable contributions consistent with historical practice) or under paragraph (b)(2)(iii)(E) of this section (special rules for RICs and REITs) is treated as an asset of the electing corporation. * * *
(D) * * * If an electing corporation has been in existence for less than three years, the period during which the electing corporation has been in existence is substituted for the preceding three taxable years. * * *
LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2010-22792 Filed 9-13-10; 8:45 am]
BILLING CODE 4830-01-P