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CFR Citation: 26 CFR Part 1

NOTICE: RULES

ACTION: Income taxes:

SUBJECT CATEGORY: Corporate Distributions and Adjustments

DOCUMENT SUMMARY: CFR Correction

In Title 26 of the Code of Federal Regulations, part 1 (Sec. Sec. 1.301 to 1.400),
[[Page 38262]]
revised as of April 1, 2006, on page 10, Sec. 1.3011 is corrected by adding paragraph (g) to read as follows:
Sec. 1.3011 Rules applicable with respect to distributions of money and other property.
* * * * *
(g) Reduction for liabilities(1) General rule. For the purpose of section 301, no reduction shall be made for the amount of any liability, unless the liability is assumed by the shareholder within the meaning of section 357(d).
(2) No reduction below zero. Any reduction pursuant to paragraph (g)(1) of this section shall not cause the amount of the distribution to be reduced below zero.
(3) Effective dates(i) In general. This paragraph (g) applies to distributions occurring after January 4, 2001.
(ii) Retroactive application. This paragraph (g) also applies to distributions made on or before January 4, 2001, if the distribution is made as part of a transaction described in, or substantially similar to, the transaction in Notice 9959 (19992 C.B. 761), including transactions designed to reduce gain (see Sec. 601.601(d)(2) of this chapter). For rules for distributions on or before January 4, 2001 (other than distributions on or before that date to which this paragraph (g) applies), see rules in effect on January 4, 2001 (see Sec. 1.3011(g) as contained in 26 CFR part 1 revised April 1, 2001). [FR Doc. 0655522 Filed 7506; 8:45 am]
BILLING CODE 150501D

SUMMARY: Corporate distributions and adjustments; CFR correction,

DOCUMENT BODY 2: CFR Correction

In Title 26 of the Code of Federal Regulations, part 1 (Sec. Sec. 1.301 to 1.400),
[[Page 38262]]
revised as of April 1, 2006, on page 10, Sec. 1.3011 is corrected by adding paragraph (g) to read as follows:
Sec. 1.3011 Rules applicable with respect to distributions of money and other property.
* * * * *
(g) Reduction for liabilities(1) General rule. For the purpose of section 301, no reduction shall be made for the amount of any liability, unless the liability is assumed by the shareholder within the meaning of section 357(d).
(2) No reduction below zero. Any reduction pursuant to paragraph (g)(1) of this section shall not cause the amount of the distribution to be reduced below zero.
(3) Effective dates(i) In general. This paragraph (g) applies to distributions occurring after January 4, 2001.
(ii) Retroactive application. This paragraph (g) also applies to distributions made on or before January 4, 2001, if the distribution is made as part of a transaction described in, or substantially similar to, the transaction in Notice 9959 (19992 C.B. 761), including transactions designed to reduce gain (see Sec. 601.601(d)(2) of this chapter). For rules for distributions on or before January 4, 2001 (other than distributions on or before that date to which this paragraph (g) applies), see rules in effect on January 4, 2001 (see Sec. 1.3011(g) as contained in 26 CFR part 1 revised April 1, 2001). [FR Doc. 0655522 Filed 7506; 8:45 am]
BILLING CODE 150501D