Announcement 2008-92

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Announcement 2008-92 Powered By Docstoc
					Treasury decision adopting these rules as          Par. 5. Section 1.338–5 is amended                        2008 (73 FR 42522) relating to the averag-
final regulations in the Federal Register.      by revising the first sentence in paragraph                  ing of farm and fishing income in comput-
   Par. 3. Section 1.338–0 is amended           (d)(3)(ii) and by adding a new paragraph                     ing income tax liability.
by adding entries for §§1.338–1(e) and          (h) to read as follows:
1.338–5(h) to read as follows:                                                                               FOR    FURTHER           INFORMATION
                                                §1.338–5. Adjusted grossed-up basis.                         CONTACT: Amy Pfalzgraf, (202)
§1.338–0. Outline of topics.                                                                                 622–4960 (not a toll-free number).
*****                                               (d) * * *                                                SUPPLEMENTARY INFORMATION:
                                                    (3) * * *
§1.338–1 General principles; status of old          (ii) Basis amount. The basis amount is                   Background
target and new target.                          equal to the amount determined by apply-                        The final and temporary regulations
                                                ing paragraphs (c)(1) and (2) of this section                (T.D. 9417) that are the subject of this
*****                                           (the purchasing corporation’s grossed-up
 (e) Effective/applicability date.                                                                           correction are under section 1301 of the
                                                basis in recently purchased target stock at                  Internal Revenue Code.
*****                                           the beginning of the day after the acqui-
                                                sition date determined without regard to                     Need for Correction
§1.338–5 Adjusted grossed-up basis.             the acquisition costs taken into account in
                                                paragraph (c)(3) of this section) multiplied                    As published, T.D. 9417 contains an er-
*****                                           by a fraction the numerator of which is the                  ror that may prove to be misleading and is
   (h) Effective/applicability date.            percentage of target stock (by value, de-                    in need of clarification.
   Par. 4. Section 1.338–1 is amended by        termined on the acquisition date) attribut-
adding two new sentences after the paren-       able to the purchasing corporation’s non-                    Correction of Publication
thetical that follows the third sentence of     recently purchased target stock and the de-
paragraph (a)(1), by revising the first sen-                                                                     Accordingly, the publication of the
                                                nominator of which is 100 percent minus                      final and temporary regulations (T.D.
tence in paragraph (c)(1), and adding a new     the numerator amount. * * *
paragraph (e) to read as follows:                                                                            9417), which were the subject of FR. Doc.
                                                *****                                                        E8–16665, is corrected as follows:
§1.338–1. General principles; status of            (h) Effective/applicability date. Para-                       On page 42522, column 2, in the pre-
old target and new target.                      graph (d)(3)(ii) of this section is applica-                 amble, under the caption “For Further In-
                                                ble to any qualified stock disposition for                   formation Contact”, line 2, the language
   (a) * * *                                    which the disposition date is on or after                    “Amy Pfalzgraf, (202) 622–4950 (not a”
   (1) * * * However, if, as a result of        the date of publication of the Treasury de-                  is corrected to read “Amy Pfalzgraf (202)
the deemed purchase of old target’s as-         cision adopting these rules as final regula-                 622–4960 (not a”.
sets pursuant to a section 336(e) election,     tions in the Federal Register.
there would be both a qualified stock pur-                                                                                            LaNita Van Dyke,
chase and a qualified stock disposition of                                     Linda E. Stiff,                                   Chief, Publications and
the stock of a subsidiary of the target, nei-                       Deputy Commissioner for                                          Regulations Branch,
ther a section 338(g) election nor a section                        Services and Enforcement.                                  Legal Processing Division,
338(h)(10) election may be made with re-                                                                                         Associate Chief Counsel
                                                (Filed by the Office of the Federal Register on August 22,                (Procedure and Administration).
spect to the qualified stock purchase of the    2008, 8:45 a.m., and published in the issue of the Federal
subsidiary. Instead, a section 336(e) elec-     Register for August 25, 2008, 73 
Description: Announcement 2008-92 contains a correction to REG-161695-04 relating to the averaging of farm and fishing income in computing income tax liability.
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