[Federal Register Volume 63, Number 62 (Wednesday, April 1, 1998)]
[Rules and Regulations]
[Pages 15760-15761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8321]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 8765]
RIN 1545-AL24; 1545-AS68
Change From Dollar Approximate Separate Transactions Method of
Accounting (DASTM) to the Profit and Loss Method of Accounting/Change
From the Profit and Loss Method to DASTM; Correction
AGENCY: Internal Revenue Service, Treasury.
ACTION: Correction to final regulations.
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SUMMARY: This document contains corrections to final regulations (TD
8765) which were published in the Federal Register on Thursday, March
5, 1998 (63 FR 10772), relating to adjustments required when a
qualified business unit (QBU) that used the profit and loss method of
accounting (P&L) in a post-1986 year begins to use the dollar
approximate separate transaction method of accounting (DASTM) and
adjustments required when a QBU that used DASTM begins using P&L.
DATES: This correction is effective April 6, 1998.
FOR FURTHER INFORMATION CONTACT: Howard Wiener of the Office of Chief
Counsel (International), (202) 622-3870 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the subject of these corrections are
under section 985 of the Internal Revenue Code.
Need for Correction
As published, the final regulations (TD 8765) contain errors which
may prove to be misleading and are in need of clarification.
Correction of Publication
Accordingly, the publication of the final regulations (TD 8765),
which was the subject of FR Doc. 98-5470, is corrected as follows:
Sec. 1.985-1 [Corrected]
1. On page 10774, column 2, amendatory instruction 1. under Par. 2.
is corrected to read ``1. Paragraph (b)(2)(ii)(C) is amended by
designating the text following the heading as paragraph
(b)(2)(ii)(C)(1) and revising it and by adding a new paragraph
(b)(2)(ii)(C)(2).''.
2. On page 10774, column 2, in Sec. 1.985-1, correct paragraph
(b)(2)(ii)(C)
[[Page 15761]]
by adding a paragraph designation and heading for paragraph
(b)(2)(ii)(C)(1) and by adding a new paragraph (b)(2)(ii)(C)(2) to read
as follows:
Sec. 1.985-1 Functional currency.
* * * * *
(b) * * *
(2) * * *
(ii) * * *
(C) * * * (1) In general. * * *
(2) Effective date. This paragraph (b)(2)(ii)(C) applies to taxable
years beginning after April 6, 1998. However, a taxpayer may choose to
apply this paragraph (b)(2)(ii)(C) to all open years after December 31,
1986, provided each person, and each QBU branch of a person, that is
related (within the meaning of Sec. 1.985-2(d)(3)) also applies to this
paragraph (b)(2)(ii)(C).
* * * * *
Sec. 1.985-7 [Corrected]
3. On page 10775, column 2, Sec. 1.985-7 (b)(3), in the last three
lines, the language ``had translated its assets and liabilities under
Sec. 1.985-3 during the look-back period.'' is corrected to read ``had
translated its assets and liabilities acquired and incurred during the
look-back period under Sec. 1.985-3.''.
4. On page 10776, column 2, Sec. 1.985-7 (c)(5), line 17, the
language ``of change.) For purposes of section 960,'' is corrected to
read ``of change). For purposes of section 960,''.
5. On page 10776, column 2, Sec. 1.985-7 (c)(5), the last line, the
language ``section.)'' is corrected to read ``section).''.
6. On page 10776, column 3, Sec. 1.985-7 (d)(5), the last two
lines, the language ``assets and liabilities under Sec. 1.985-3 during
the look-back period.'' is corrected to read ``assets and liabilities
acquired and incurred during the look-back period under Sec. 1.985-
3.''.
Cynthia E. Grigsby,
Chief, Regulations Unit, Assistant Chief Counsel (Corporate).
[FR Doc. 98-8321 Filed 3-31-98; 8:45 am]
BILLING CODE 4830-01-U
