[Federal Register Volume 61, Number 70 (Wednesday, April 10, 1996)]
[Rules and Regulations]
[Page 15891]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-8911]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TD 8658]
RIN 1545-AL84
Determination of Interest Expense Deduction of Foreign
Corporations; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correction to final regulations.
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SUMMARY: This document contains corrections to final regulations [TD
8658] which were published in the Federal Register for Friday, March 8,
1996 (61 FR 9326). The final regulations relate to the determination of
the interest expense deduction of foreign corporations and apply to
foreign corporations engaged in a trade or business within the United
States.
EFFECTIVE DATE: June 6, 1996.
FOR FURTHER INFORMATION CONTACT: Ahmad Pirasteh or Richard Hoge (202)
622-3870 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are subject to these corrections are
under sections 882, 864(e), 988(d), and 7701(l) of the Internal Revenue
Code.
Need for Correction
As published, the final regulations [TD 8658] contain errors that
are in need of clarification.
Correction of Publication
Accordingly, the publication of final regulations which are the
subject of FR Doc. 96-5262 is corrected as follows:
Sec. 1.882-0 [Corrected]
1. On page 9329, column 1, Sec. 1.882-0, the section heading entry
for Sec. 1.882-1, ``Sec. 1.882-1 Taxation of foreign corporations
engaged in U.S. business or of foreign corporations treated as having
effectively connected income.'' is corrected to read
Sec. 1.882-1 Taxation of foreign corporations engaged in U.S. business
or of foreign corporations treated as having effectively connected
income.
Sec. 1.882-5 [Corrected]
2. On page 9330, column 3, Sec. 1.882-5, paragraph (a)(6), line 7
from the bottom of the paragraph, the language ``respect to U.S.-booked
liabilities that'' is corrected to read ``respect to U.S. booked
liabilities that''.
3. On page 9331, column 1, Sec. 1.882-5, paragraph (a)(8),
paragraph (ii) of Example 1, line 12, the language ``(c)(2)(vi), and
(d)(2)(vii) or (e)(1)(ii) this'' is corrected to read ``(c)(2)(vi), and
(d)(2)(vii) or (e)(1)(ii) of this''.
4. On page 9332, column 2, Sec. 1.882-5, paragraph (b)(3), last
four lines of the paragraph, the language ``less frequently than
monthly by a large bank (as defined in section 585(c)(2)) and semi-
annually by any other taxpayer'' is corrected to read ``less frequently
than monthly (beginning of taxable year and monthly thereafter) by a
large bank (as defined in section 585(c)(2)) and semi-annually
(beginning, middle and end of taxable year) by any other taxpayer''.
5. On page 9332, column 2, Sec. 1.882-5, paragraph (c)(2)(i), lines
3 and 2 from the bottom of the paragraph, the language ``annually by a
large bank (as defined in section 585(c)(2)) and annually by any'' is
corrected to read ``annually (beginning, middle and end of taxable
year) by a large bank (as defined in section 585(c)(2)) and annually
(beginning and end of taxable year) by any''.
6. On page 9334, column 3, Sec. 1.882-5, paragraph (d)(6),
paragraph (i) of Example 1, the table
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Value
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Asset 1......................................... $2,000 ..........
Asset 2......................................... 2,500 ..........
Asset 3......................................... 5,500 ..........
Amount Interest
Liability 1..................................... $800 56
Liability 2..................................... 3,200 256
Capital......................................... 6,000 0
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is corrected to read
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Value
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Asset 1......................................... $2,000 ..........
Asset 2......................................... 2,500 ..........
Asset 3......................................... 5,500 ..........
Amount Interest
Expense
Liability 1..................................... $800 56
Liability 2..................................... 3,200 256
Capital......................................... 6,000 0
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Michael L. Slaughter,
Acting Chief, Regulations Unit Assistant Chief Counsel (Corporate).
[FR Doc. 96-8911 Filed 4-9-96; 8:45 am]
BILLING CODE 4830-01-P
