[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] ======================================================================= ----------------------------------------------------------------------- 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
------------------------------------------------------------------------ Value ------------------------------------------------------------------------ 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 ------------------------------------------------------------------------
is corrected to read
------------------------------------------------------------------------ Value ------------------------------------------------------------------------ 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 ------------------------------------------------------------------------
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