This document corrects final regulations (T.D. 9207, 2005-26 I.R.B. 1344) that were published in the Federal Register on Thursday, May 26, 2005 (70 FR 30334). The final regulation relates to the definition of liabilities under section 752 of the Internal Revenue Code.
The final regulations (T.D. 9207) that are the subject of this correction are under sections 358, 704, 705, 737 and 752 of the Internal Revenue Code.
As published, T.D. 9207 contains an error that may prove to be misleading and is in need of clarification.
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Accordingly, 26 CFR Part 1 is corrected by making the following correcting amendment:
Paragraph 1. The authority citation for part 1 continues to read, in part, as follows:
Authority: 26 U.S.C. 7805 * * *
In §1.752-7(g)(5), paragraph (iii) of the Example, the table is revised as follows:
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(g) * * *
(5) Examples (i) * * *
(iii) * * *
| B’s Basis in Property 1 after Satisfaction of Liability (in millions) | |||||
| 1. Basis in Property 1 after distribution | $3 | ||||
| 2. Plus lesser of remaining built-in loss | ($2) | ||||
| or amount paid to satisfy liability | ($1) | 1 | |||
| 3. Basis in Property 1 after satisfaction of liability | $4 | ||||
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Cynthia 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.