This document corrects final regulations and removal of temporary regulations (T.D. 9198, 2005-18 I.R.B. 972), that were published in the Federal Register on Tuesday, April 19, 2005 (70 FR 20279) that relate to the recognition of gain on certain distributions of stock or securities of a controlled corporation in connection with an acquisition.
The final regulations and removal of temporary regulations (T.D. 9198), which is the subject of this correction are under section 355(e) of the Internal Revenue Code.
As published, the final regulations and removal of temporary regulations (T.D. 9198) contain errors that may prove to be misleading and are in need of clarification.
Accordingly, the publication of the final regulations and removal of temporary regulations (T.D. 9198), which was the subject of FR. Doc. 05-7811, is corrected as follows:
1. On page 20280, column 2, in the preamble, under the paragraph heading “New Safe Harbor for Acquisitions Before a Pro Rata Distribution”, line 9, the language “discussions regarding the acquisition” is corrected to read “discussions with the acquirer regarding a distribution”.
2. On page 20280, column 2, in the preamble, under the paragraph heading “New Safe Harbor for Acquisitions Before a Pro Rata Distribution”, lines 15 and 16, the language “prior to discussions regarding the acquisition and that the acquisition was” is corrected to read “prior to discussions regarding a distribution and that the acquisition was”.
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.