Federal Register: November 5, 2009 (Volume 74, Number 213)
DOCID: fr05no09-6 FR Doc E9-26274
DEPARTMENT OF THE TREASURY
Internal Revenue Service
CFR Citation: 26 CFR Part 1
RIN ID: RIN 1545-BF71
TD ID: [TD 9465]
NOTICE: RULES
DOCID: fr05no09-6
DOCUMENT ACTION: Correcting amendments.
SUBJECT CATEGORY:
Determination of Interest Expense Deduction of Foreign Corporations; Correction
DATES: This correction is effective on November 5, 2009], and is applicable on September 28, 2009.
DOCUMENT SUMMARY:
This document contains corrections to final regulations (TD 9465) that were published in the Federal Register on Monday, September 28, 2009 (74 FR 49315) concerning the determination of the interest expense deduction of foreign corporations engaged in a trade or business within the United States. These final regulations conform the interest expense rules to recent U.S. Income Tax Treaty agreements and adopt other changes to improve compliance.
SUMMARY:
Determination of Interest Expense Deduction of Foreign Corporations; Correction
SUPPLEMENTAL INFORMATION
Background
The final regulations (TD 9465) that are the subject of this document are under sections 882 and 884 of the Internal Revenue Code. Need for Correction
As published, the final regulations (TD 9465) contain errors that may prove
[[Page 57252]]
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 1INCOME TAXES
Paragraph 1. The authority citation for part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.8825 is amended by revising the first sentence of paragraph (f)(1) to read as follows:
Sec. 1.8825 Determination of interest deduction.
* * * * *
(f) Effective/applicability date. (1) This section is applicable
for taxable years ending on or after August 15, 2009. * * * * * * * *
Par. 3. Section 1.8841 is amended by revising the fifth sentence of paragraph (e)(5) Example 2. (i) to read as follows:
Sec. 1.8841 Branch profits tax.
* * * * *
(e) * * *
(5) * * *
Example 2. (i) * * * As a result of the election, assuming A's
U.S. assets and U.S. liabilities would otherwise have remained
constant, A's U.S. net equity as of the close of 2007 will increase
by the amount of the decrease in liabilities ($60) from $200 to $260 and its ECEP will be reduced to zero. * * *
* * * * *
LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, (Procedure and Administration).
[FR Doc. E926274 Filed 11409; 8:45 am]
BILLING CODE 483001P
FOR FURTHER INFORMATION CONTACT
Anthony J. Marra, (202) 622-3870 (not a tollfree number).