This PDF is the current document as it appeared on Public Inspection on 08/27/2013 at 08:45 am.
Internal Revenue Service (IRS), Treasury.
This document contains amendments to correct errors in final regulations [TD 9619] that provide guidance under section 336(e) of the Internal Revenue Code (CODE), which authorizes the issuance of regulations under which an election may be made to treat sale, exchange or distribution of at least 80 percent of the voting power and value of the stock of a corporation (target) as a sale of all its underlying assets. These regulations were published in the Federal Register on Wednesday, May 15, 2013.
This correction is effective on August 28, 2013, and is applicable beginning May 15, 2013.Start Further Info
FOR FURTHER INFORMATION CONTACT:
Mark J. Weiss, (202) 622-7930 (not a toll-free number).End Further Info End Preamble Start Supplemental Information
The final regulations (TD 9619) that are the subject of this correction are under section 336(e) of the Code.
Need for Correction
As published May 15, 2013 [78 FR 28467] TD 9619 contains errors that may prove to be misleading and is in need of clarification.Start List of Subjects
List of Subjects in 26 CFR Part 1End List of Subjects
Correction of Publication
Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments:Start Part Start Printed Page 53027
PART 1—INCOME TAXESEnd Part Start Amendment Part
End Amendment Part Start Amendment Part
End Amendment Part
(b) * * *
(1) * * *
(i) * * *
(C) Tiered targets. In the case of parent-subsidiary chains of corporations making section 336(e) elections, the deemed asset disposition of a higher-tier subsidiary is considered to precede the deemed asset disposition of a lower-subsidiary.
(h) * * *
(8) * * *
Example 2. * * *
(ii) Making of election for S Corporation Target. Because S Corporation Target is an S Corporation Target, in order to make a section 336(e) election for the qualified stock disposition of S Corporation Target, the requirements of paragraph (h)(3) of this section must be satisfied. On or before the due date of S Corporation Target's Federal income tax return that includes Date 1, A, B, C, and S Corporation Target must enter into a written, binding agreement to make a section 336(e) election; S Corporation Target must retain a copy of the written agreement; and S Corporation Target must attach the section 336(e) election statement to its timely filed Federal income tax return for the taxable year that includes Date 1.
End Amendment Part
(f) * * *
(5) * * *
(ii) * * *
(C) Sections 338(h)(10) and 336(e). * * *
Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration).
[FR Doc. 2013-20491 Filed 8-27-13; 8:45 am]
BILLING CODE 4830-01-P