This document contains corrections to proposed regulations (REG-166012-02, 2004-13 I.R.B. 655) that were published in the Federal Register on February 26, 2004 (69 FR 8886) that relate to the inclusion into income or deduction of a contingent nonperiodic payment provided for under a notional principal contract (NPC).
The notice of proposed rulemaking and notice of public hearing that are the subject of these corrections are under section 446 of the Internal Revenue Code.
As published, the notice of proposed rulemaking and notice of public hearing (REG-166012-02) contain errors that may prove to be misleading and are in need of clarification.
Accordingly, the publication of the notice of proposed rulemaking and notice of public hearing (REG-166012-02), which were the subject of FR Doc. 04-4151, are corrected as follows:
1. On page 8886, column 1, in the heading, the subject line “National Principle Contracts; Contingent Nonperiodic Payments” is corrected to read “Notional Principle Contracts; Contingent Nonperiodic Payments”.
2. On page 8897, column 1, paragraph (v) of §1.446-3(g)(7), Example 8, line 7, the language “($734,347-363,693), the difference between” is corrected to read “($734,347-$363,693), the difference between”.
3. On page 8897, column 1, paragraph (viii) of §1.446-3(g)(7), Example 8, line 3, the language “at 11.0% times $5,000,000, or $5,500,000. W” is corrected to read “at 11.0% times $50,000,000, or $5,500,000. W”.
Cynthia E. Grigsby,The Internal Revenue Bulletin is produced and published by the Internal Revenue Service and contains IRS pronouncements affecting tax analysis under the Code and the Regulations, including but not limited to Revenue Procedures, Revenue Rulings, Notices and Announcements. Access the IRS site at https://www.irs.gov/help/irsgov-accessibility for information concerning accessibility of IRS materials. While every effort has been made to ensure that the IRB database files available through the TouchTax application are accurate, those using TouchTax for legal research should verify their results against the printed versions of the IRBs available from the IRS.