81 FR 46832 - Inversions and Related Transactions; Correction

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 81, Issue 138 (July 19, 2016)

This document contains corrections to a correction document for final and temporary regulations (TD 9761) that was published in the Federal Register on June 23, 2016 (81 FR 40810).

[Federal Register Volume 81, Number 138 (Tuesday, July 19, 2016)]
[Rules and Regulations]
[Pages 46832-46833]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-16470]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9761]
RIN 1545-BM88


Inversions and Related Transactions; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final and temporary regulations; correcting amendment.

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SUMMARY: This document contains corrections to a correction document 
for final and temporary regulations (TD 9761) that was published in the 
Federal Register on June 23, 2016 (81 FR 40810).

DATES: This correction is effective on July 19, 2016 and applicable on 
June 23, 2016.

FOR FURTHER INFORMATION CONTACT: Rose E. Jenkins at (202) 317-6934 (not 
a toll free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final and temporary regulations (TD 9761) that are the subject 
of this correction are under sections 304, 367, 956, 7701(l), and 7874 
of the Internal Revenue Code.

Correction of Publication

    In correcting amendment FR Doc. 2016-14649, published in the issue 
of Thursday, June 23, 2016 (81 FR 40810), make the following 
correction:
    On page 40811, in the first column, remove amendatory instruction 
6.

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

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


[[Page 46833]]


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


0
Par. 2. Section 1.956-2T is amended by revising the first sentence of 
paragraph (a)(4)(iv) Example 3.(A), the second sentence of paragraph 
(a)(4)(iv) Example 3.(B), and the third sentence of paragraph 
(a)(4)(iv) Example 4.(B) to read as follows:


Sec.  1.956-2T  Definition of United States property (temporary).

* * * * *
    (a) * * *
    (4) * * *
    (iv) * * *
    Example 3. (A) Facts. Before the inversion transaction, FA also 
wholly owns USP, a domestic corporation, which, in turn, wholly owns, 
LFS, a foreign corporation that is a controlled foreign corporation. * 
* *
    (B) * * * Because LFS was a controlled foreign corporation and a 
member of the EAG with respect to the inversion transaction on the 
completion date, and DT was not a United States shareholder with 
respect to LFS on or before the completion date, LFS is excluded from 
the definition of expatriated foreign subsidiary pursuant to Sec.  
1.7874-12T(a)(9)(ii). * * *
    Example 4. * * *
    (B) * * * Because LFSS was not a member of the EAG with respect to 
the inversion transaction on the completion date, LFSS is not excluded 
from the definition of expatriated foreign subsidiary pursuant to Sec.  
1.7874-12T(a)(9)(ii). * * *
* * * * *

0
Par. 3. Section 1.7874-8T is amended by revising the ninth sentence of 
paragraph (h) Example 3.(ii) to read as follows:


Sec.  1.7874-8T  Disregard of certain stock attributable to multiple 
domestic entity acquisitions (temporary).

* * * * *
    (h) * * *
    Example 3. * * *
    (ii) * * * Accordingly, the excluded amount is $112.50x calculated 
as 150 (200, the total number of prior acquisition shares, less 50, the 
allocable redeemed shares) multiplied by $0.75x (the fair market value 
of a single share of FA stock on the completion date with respect to 
the DT2 acquisition). * * *
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2016-16470 Filed 7-18-16; 8:45 am]
 BILLING CODE 4830-01-P