[Federal Register Volume 64, Number 62 (Thursday, April 1, 1999)]
[Rules and Regulations]
[Pages 15686-15687]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-7793]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8817]
RIN 1545-AV70


Notice of Certain Transfers to Foreign Partnerships and 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 income tax 
regulations that were published in the Federal Register on Friday, 
February 5, 1999 (64 FR 5713) relating to certain transfers to foreign 
partnerships and corporations by U.S. persons.

DATES: This correction is effective February 5, 1999.

FOR FURTHER INFORMATION CONTACT: Eliana Dolgoff (202)622-3860 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of this correction are 
under section 6038B of the Internal Revenue Code.

Need for Correction

    As published, the final regulations contain errors that may prove 
to be misleading and are in need of clarification.

Correction of Publication

    Accordingly, the publication of the final regulations (TD 8817), 
that were the subject of FR Doc. 99-2798, is corrected as follows:


Sec. 1.6038B-1  [Corrected]

    1. On page 5715, column 1, amendatory instruction Par. 2, 
instruction 2. is corrected to read ``2. In paragraph (b)(1)(i), the 
first sentence is removed and two new sentences are added in its 
place.''.
    1a. On page 5715, column 1, Sec. 1.6038B-1(b)(1)(i), lines 4 
through 7, the language ``paragraph (b)(2) of this section, or cash, 
which is subject to special rules contained in paragraph (b)(3) of this 
section, any U.S. person that makes a'' is corrected to read 
``paragraph (b)(2) of this section, any U.S. person that makes a''. 1b. 
On page 5715, column 1, in Sec. 1.6038B-1(b)(1)(i), a new sentence is 
added after the first sentence to read ``For special rules regarding 
cash transfers made in tax years beginning after February 5, 1999, see 
paragraphs (b)(3) and (g) of this section.''.
    2. On page 5715, column 1, Sec. 1.6038B-1(b)(3) introductory text, 
line 2, the language ``foreign corporation must report the'' is 
corrected to read ``foreign corporation in a transfer described in 
section 6038B(a)(1)(A) must report the''.
    3. On page 5715, column 2, Sec. 1.6038B-1(c), line 6, the language 
``section 6038B(a)(1)(A) (including cash'' is corrected to read 
``section 6038B(a)(1)(A) (including cash transferred in taxable years 
beginning after February 5, 1999,''.
    4. On page 5715, column 2, Sec. 1.6038B-1(g), lines 3 through 8, 
the language ``July 20, 1998, except that the first sentence of 
paragraph (b)(1)(i), paragraph (b)(3), and the first sentence of 
paragraph (c) apply to transfers occurring in taxable years beginning 
after February 5, 1999. See Sec. 1.6038B-'' is corrected to read ``July 
20, 1998, except that transfers of cash made in taxable years beginning 
on or before February 5, 1999 are not required to be reported under 
section 6038B. See Sec. 1.6038B-''.


Sec. 1.6038B-2  [Corrected]

    5. On page 5717, column 2, Sec. 1.6038B-2(j)(1)(ii) line 1, the 
language, ``Filing a Form 926 with the'' is corrected to read ``Filing 
a Form 926 (modified to reflect that the transferee is

[[Page 15687]]

a partnership, not a corporation) with the''.
Cynthia E. Grigsby,
Chief, Regulations Unit, Assistant Chief Counsel (Corporate).
[FR Doc. 99-7793 Filed 3-31-99; 8:45 am]
BILLING CODE 4830-01-U