[Federal Register Volume 76, Number 161 (Friday, August 19, 2011)]
[Rules and Regulations]
[Pages 51878-51879]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-21180]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9538]
RIN 1545-BK14


Modifications of Certain Derivative Contracts; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document describes correcting amendments to final and 
temporary regulations (TD 9538) that address when a transfer or 
assignment of certain derivative contracts does not result in an 
exchange to the nonassigning counterparty for purposes.
    These regulations were published in the Federal Register on Friday, 
July 22, 2011.

DATES: This correction is effective on August 19, 2011, and is 
applicable beginning July 22, 2011.

FOR FURTHER INFORMATION CONTACT: Andrea M. Hoffenson, (202) 622-3920 
(not a toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    The final and temporary regulations that are the subject of this 
correction are under section 1001 of the Internal Revenue Code.

Need for Correction

    As published July 22, 2011 (76 FR 43892), the final and temporary 
regulations (TD 9538) contain errors that may prove to be misleading 
and are in need of clarification.

[[Page 51879]]

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 1.1001-4T is amended by revising paragraphs (a)(1), 
(b)(1) and (b)(3) to read as follows:


Sec.  1.1001-4T  Modifications of certain derivative contracts 
(temporary).

* * * * *
    (a) * * *
    (1) Both the party transferring or assigning its rights and 
obligations under the derivative contract and the party to which the 
rights and obligations are transferred or assigned are either a dealer 
or a clearinghouse;
* * * * *
    (b) * * *
    (1) Dealer. For purposes of this section, a dealer is a taxpayer 
who meets the definition of a dealer in securities in section 475(c)(1) 
or is a dealer in commodities derivative contracts.
* * * * *
    (3) Derivative contract. For purposes of this section, a derivative 
contract is a contract described in--
    (i) Section 475(c)(2)(D), 475(c)(2)(E), or 475(c)(2)(F) without 
regard to the last sentence of section 475(c)(2) referencing section 
1256;
    (ii) Section 475(e)(2)(B), 475(e)(2)(C), or 475(e)(2)(D); or
    (iii) Section 1.446-3(c)(1).
* * * * *

LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2011-21180 Filed 8-18-11; 8:45 am]
BILLING CODE 4830-01-P