[Federal Register Volume 79, Number 163 (Friday, August 22, 2014)]
[Rules and Regulations]
[Pages 49682-49683]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-19873]



Internal Revenue Service

26 CFR Part 1

[TD 9676]
RIN 1545-BJ59

Allocation and Apportionment of Interest Expense; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.


SUMMARY: This document contains corrections to final regulations (TD 
9676) that were published in the Federal Register on Wednesday, July 
16, 2014 (79 FR 41424) providing guidance concerning the allocation and 
apportionment of interest expense by corporations owning a 10 percent 
or greater interest in a partnership, as well as the allocation and 
apportionment of interest expense using the fair market value method. 
These regulations also update the interest allocation regulations to 
conform to the statutory changes made by section 216 of the legislation 
commonly referred to as the Education Jobs and Medicaid Assistance Act 
(EJMAA), enacted on August 10, 2010, affecting the affiliation of 
certain foreign corporations for purposes of section 864(e). These 
regulations affect taxpayers that allocate and apportion interest 

DATES: This correction is effective on August 22, 2014, and is 
applicable July 16, 2014.

FOR FURTHER INFORMATION CONTACT: Jeffrey L. Parry at (202) 317-6936 
(not a toll-free number).


Background and Explanation of Provisions

    The final regulations that are the subject of this document are 
under section 864(e) of the Internal Revenue Code.

Need for Correction

    As published, final regulations (TD 9676) contain errors that may 
prove to be misleading and are in need of clarification.

[[Page 49683]]

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:


Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority:  26 U.S.C. 7805 * * *

Par. 2. Section 1.861-9 is amended by revising the third to the last 
sentence of paragraph (h)(4)(iii)(A) to read as follows:

Sec.  1.861-9  Allocation and apportionment of interest expense.

    (h) * * *
    (4) * * *
    (iii) * * *
    (A) * * * The value of these assets has been determined using 
generally accepted valuation techniques, as required by Sec.  1.861-
9T(h)(1)(ii). * * *
* * * * *

Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, 
Associate Chief Counsel (Procedure and Administration).
[FR Doc. 2014-19873 Filed 8-21-14; 8:45 am]