This PDF is the current document as it appeared on Public Inspection on 10/04/2016 at 08:45 am.
Internal Revenue Service (IRS), Treasury.
This document contains corrections to final regulations (TD 9784) that were published in the Federal Register on Wednesday, August 31, 2016 (81 FR 59849). The final regulations that clarify the definition of real property for purposes of real estate investment trust provisions of the Internal Revenue Code (Code).
This correction is effective October 5, 2016 and is applicable on or after August 31, 2016.Start Further Info
FOR FURTHER INFORMATION CONTACT:
Julanne Allen of the Office of Associate Chief Counsel (Financial Institutions and Products) at (202) 317-6945 (not a toll-free number).End Further Info End Preamble Start Supplemental Information
The final regulations (TD 9784) that are the subject of this correction are under section 856 of the Internal Revenue Code.
Need for Correction
As published, the final regulations (TD 9784) 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 1
- Income taxes
- Reporting and recordkeeping requirements
Correction of Publication
Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments:Start Part
PART 1—INCOME TAXESEnd Part Start Amendment Part
Paragraph 1. The authority citation for part 1 continues to read in part as follows:End Amendment Part Start Amendment Part
Par. 2. Section 1.856-10(g) is amended by revising the first sentence of Example 10 paragraph (iv) and revising the fourth sentence of Example 10 paragraph (v) to read as follows:End Amendment Part
(g) * * *
* * *
(iv) The factors described in this paragraph (g) Example 10 (iii)(A) through (C) and (iii)(E) through (H) support the conclusion that the isolation valves and vents and pressure control and relief valves are structural components of REIT J's pipelines within the meaning of paragraph (d)(3) of this section and, therefore, are real property. * * *
(v) * * * The meters and compressors do not serve the pipelines in their passive function of providing a conduit for the natural gas, and are used in connection with the production of income from the sale and transportation of natural gas, rather than as consideration for the use or occupancy of space within the pipelines.
Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2016-23991 Filed 10-4-16; 8:45 am]
BILLING CODE 4830-01-P