2019-08285. Guidance Under Section 851 Relating to Investments in Stock and Securities; Correction  

  • Start Preamble

    AGENCY:

    Internal Revenue Service (IRS), Treasury.

    ACTION:

    Correcting amendments.

    SUMMARY:

    This document contains corrections to final regulations (TD 9851) that were published in the Federal Register on Tuesday, March 19, 2019. The final regulations provide guidance relating to the income test used to determine whether a corporation may qualify as a regulated investment company (RIC) for Federal income tax purposes.

    DATES:

    This correction is effective on April 24, 2019 and is applicable to taxable years that begin after June 17, 2019.

    Start Further Info

    FOR FURTHER INFORMATION CONTACT:

    Matthew Howard at (202) 317-7053 (not a toll-free number).

    End Further Info End Preamble Start Supplemental Information

    SUPPLEMENTARY INFORMATION:

    Background

    The final regulations (TD 9851) published on March 19, 2019 (84 FR 9959) that are the subject of this correction are issued under section 851 of the Internal Revenue Code.

    Need for Correction

    As published, the final regulations (TD 9851) contain errors that need to be corrected.

    Start List of Subjects

    List of Subjects in 26 CFR Part 1

    • Income taxes
    • Reporting and recordkeeping requirements
    End List of Subjects

    Correction of Publication

    Accordingly, 26 CFR part 1 is amended by making the following correcting amendments:

    Start Part

    PART 1—INCOME TAXES

    End Part Start Amendment Part

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

    End Amendment Part Start Authority

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

    End Authority Start Amendment Part

    Par. 2. Section 1.851-2 is amended by revising paragraph (b)(1)(i)(F) and the first sentence of paragraph (b)(2)(iii) to read as follows:

    End Amendment Part
    Limitations.
    * * * * *

    (b) * * *

    (1) * * *

    (i) * * *

    (F) Other income (including but not limited to gains from options, futures, or forward contracts) derived with respect to the corporation's business of investing in such stock, securities, or currencies.

    * * * * *

    (2) * * *

    (iii) If an amount is included in gross income of the corporation referred to in paragraph (b)(1) of this section under section 951(a)(1) or 1293(a) and is derived with respect to that corporation's business of investing in stock, securities, or currencies, then the amount is other income described in section 851(b)(2)(A) and paragraph (b)(1)(i)(F) of this section. * * *

    * * * * *
    Start Signature

    Martin V. Franks,

    Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).

    End Signature End Supplemental Information

    [FR Doc. 2019-08285 Filed 4-23-19; 8:45 am]

    BILLING CODE 4830-01-P

Document Information

Effective Date:
4/24/2019
Published:
04/24/2019
Department:
Treasury Department
Agency:
Internal Revenue Service
EntryType:
Rule
Action:
Correcting amendments.
Document Number:
2019-08285
Dates:
This correction is effective on April 24, 2019 and is applicable to taxable years that begin after June 17, 2019.
Pages:
17082-17082 (1 pages)
Docket Numbers:
TD 9851
RIN:
1545-BN55: Guidance Under Section 851 Relating to Investments in Stock and Securities
RINLinks:
https://www.federalregister.gov/regulations/1545-BN55/guidance-under-section-851-relating-to-investments-in-stock-and-securities
SectionNoes:
1.851-2
Topics:
Income taxes, Reporting and recordkeeping requirements
PDF File:
2019-08285.pdf
CFR: (1)
26 CFR 1.851-2