[Federal Register Volume 76, Number 179 (Thursday, September 15, 2011)]
[Rules and Regulations]
[Page 56973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-23598]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9542]
RIN 1545-BE77


Elections Regarding Start-Up Expenditures, Corporation 
Organizational Expenditures, and Partnership Organizational Expenses; 
Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

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SUMMARY: This document contains corrections to final regulations and 
removal of temporary regulations (TD 9542) that were published in the 
Federal Register on Wednesday, August 17, 2011 (76 FR 50887) relating 
to elections to deduct start-up expenditures, organizational 
expenditures of corporations, and organizational expenses of 
partnerships. The American Jobs Creation Act of 2004 amended the 
Internal Revenue Code to permit the optional deduction of a limited 
amount of these types of expenses that are paid or incurred after 
October 22, 2004.

DATES: This correction is effective on September 15, 2011 and is 
applicable August 16, 2011.

FOR FURTHER INFORMATION CONTACT: R. Matthew Kelley, (202) 622-7900 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations and removal of temporary regulations that are 
the subject of this document are under sections 195, 248, and 709 of 
the Internal Revenue Code.

Need for Correction

    As published, the final regulations and removal of temporary 
regulations (TD 9542) 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 1.709-1 is amended by revising the last sentences of 
paragraphs (b)(4) Example 2, Example 5, and Example 6 to read as 
follows:


Sec.  1.709-1  Treatment of organization and syndication costs.

* * * * *
    (b) * * *
    (4) * * *
* * * * *
    Example 2. * * * Partnership X may amortize the remaining 
$34,800 ($36,000 - $1,200 = $34,800) ratably over the remaining 174 
months.
* * * * *
    Example 5. * * * Partnership X may amortize the remaining 
$52,200 ($54,000 - $1,800 = $ 52,200) ratably over the remaining 174 
months.
    Example 6. * * * Partnership X may amortize the remaining 
$435,000 ($450,000 - $15,000 = $435,000) ratably over the remaining 
174 months.
* * * * *

Diane Williams,
Federal Register Liaison, Publications and Regulations Branch, Legal 
Processing Division, Associate Chief Counsel (Procedure and 
Administration).
[FR Doc. 2011-23598 Filed 9-14-11; 8:45 am]
BILLING CODE 4830-01-P