95-7969. Income Tax; Taxable Years Beginning After December 31, 1953; Treatment of Losses on Small Business Stock; Correction

[Federal Register Volume 60, Number 62 (Friday, March 31, 1995)]
[Rules and Regulations]
[Page 16575]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7969]



-----------------------------------------------------------------------


DEPARTMENT OF THE TREASURY
26 CFR Part 1

[TD 7837]


Income Tax; Taxable Years Beginning After December 31, 1953; 
Treatment of Losses on Small Business Stock; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

-----------------------------------------------------------------------

SUMMARY: This document contains a correction to final regulations [TD 
7837] which were published in the Federal Register for Wednesday, 
September 29, 1982 (47 FR 42728). The final regulations restate and 
clarify a formula relating to the computation of the amount received 
for designated stock by a small business corporation.

EFFECTIVE DATE: March 31, 1995.

FOR FURTHER INFORMATION CONTACT: Christina Vasquez, [phone] (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of these correcting 
amendments are under section 1244 of the Internal Revenue Code of 1954.

Need for Correction

    As published, the final regulations contains an error that is 
misleading and in need of correction.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

    Accordingly, 26 CFR Part 1 is corrected by making the following 
correcting amendments:

PART 1--INCOME TAXES

    Paragraph 1. The authority citation for Part 1 continues to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *.

    Par. 2. Section 1.1244(c)-2(b)(2)(i) is amended by revising the 
last sentence as follows:


Sec. 1.1244(c)-2  Small business corporation defined.

* * * * *
    (b) * * *
    (2) * * *
    (i) * * * The amount received for designated stock shall not exceed 
$1,000,000 less amounts received--
    (A) In exchange for stock in years prior to the transitional year;
    (B) As contributions to capital in years prior to the transitional 
year; and
    (C) As paid-in surplus in years prior to the transitional year.
* * * * *
Cynthia E. Grigsby,
Chief, Regulations Unit, Assistant Chief Counsel (Corporate).
[FR Doc. 95-7969 Filed 3-30-95; 8:45 am]
BILLING CODE 4830-01-P