80 FR 38940 - Partnership Transactions Involving Equity Interests of a Partner; Correction

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 80, Issue 130 (July 8, 2015)

This document contains corrections to final and temporary regulations (TD 9722) that were published in the Federal Register on June 12, 2015 (80 FR 33402). The final and temporary regulations prevent a corporate partner from avoiding corporate-level gain through transactions with a partnership involving equity interests of the partner.

[Federal Register Volume 80, Number 130 (Wednesday, July 8, 2015)]
[Rules and Regulations]
[Pages 38940-38941]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-16674]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9722]
RIN 1545-BM35


Partnership Transactions Involving Equity Interests of a Partner; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

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SUMMARY: This document contains corrections to final and temporary 
regulations (TD 9722) that were published in the Federal Register on 
June 12, 2015 (80 FR 33402). The final and temporary regulations 
prevent a corporate partner from avoiding corporate-level gain through 
transactions with a partnership involving equity interests of the 
partner.

DATES: This correction is effective on July 2, 2015 and applicable 
beginning June 12, 2015.

FOR FURTHER INFORMATION CONTACT: Kevin I. Babitz at (202) 317-6852 (not 
a toll free number).

SUPPLEMENTARY INFORMATION:

Background

    The final and temporary regulations (TD 9722) that are the subject 
of this correction are under sections 311(b), 336(a), and 337(d) of the 
Internal Revenue Code.

Need for Correction

    As published, the final and temporary regulations (TD 9722) contain 
errors that may prove to be misleading and are in need of 
clarification.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Correction of Publication

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

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

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


0
Par. 2. Section 1.337(d)-3T is amended by revising paragraphs (c)(2)(i) 
and (f)(2)(ii) to read as follows:

[[Page 38941]]

Sec.  1.337(d)-3T  Gain recognition upon certain partnership 
transactions involving a partner's stock (temporary).

* * * * *
    (c) * * *
    (2) * * * (i) In general. With respect to a Corporate Partner, 
Stock of the Corporate Partner includes the Corporate Partner's stock, 
or other equity interests, including options, warrants, and similar 
interests, in the Corporate Partner or a corporation that controls the 
Corporate Partner within the meaning of section 304(c), except that 
section 318(a)(1) and (3) shall not apply. Stock of the Corporate 
Partner also includes interests in any entity to the extent that the 
value of the interest is attributable to Stock of the Corporate 
Partner.
    (f) * * *
    (2) * * *
    (ii) Is not distributed to the Corporate Partner or a corporation 
that controls the Corporate Partner within the meaning of section 
304(c), except that section 318(a)(1) and (3) shall not apply.
* * * * *


Sec.  1.732-1T  [Amended]

0
Par 3. Section 1.732-1T paragraph (c)(5)(ii) is amended by removing the 
word ``Nothwithstanding'' and adding in its place the word 
``Notwithstanding''.

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2015-16674 Filed 7-2-15; 4:15 pm]
 BILLING CODE 4830-01-P