Rules and Regulations. Reduction of tax attributes due to discharge of indebtedness

Agency: Internal Revenue Service (IRS), Treasury
Action: Reduction of tax attributes due to discharge of indebtedness
Citation: FR Doc. 03-24912 · RIN 1545-BC47 · TD 9080 · 26 CFR 1

Summary

This document contains corrections to temporary regulations that were published in the Federal Register on July 18, 2003 (68 FR 42590). These regulations relate to the reduction of tax attributes under sections 108 and 1017 of the Internal Revenue Code. EFFECTIVE DATE: This correction is effective July 18, 2003.

Supplementary Information

Background The temporary regulations that are the subject of these corrections are under sections 108 and 1017 of the Internal Revenue Code. Need for Correction As published, the temporary regulations (TD 9080) contain errors that may prove to be misleading and are in need of clarification. Correction of Publication Accordingly, the publication of the temporary regulations (TD 9080) which are the subject of FR Doc. 03-18145, is corrected as follows: § 1.108-7T [Corrected] 1. On page 42592, column 3, § 1.108-7T, paragraph (a)(2), line 2 thru 7, the language “section 108(b)(5), however, to reduce first the basis of depreciable property to the extent of the excluded COD income. If the basis of depreciable property is insufficient to offset the entire amount of the excluded COD income, the” is corrected to read “section 108(b)(5), however, to apply any portion of the excluded COD income to reduce first the basis of depreciable property. To the extent the excluded COD income is not so applied, the”. 2. On page 42593, column 1, § 1.108-7T(d), paragraph (i) of Example 3 , line 3, the language “trade debts of $200,000 and a depreciable” is corrected to read “debts of $200,000 and a depreciable”. 3. On page 42593, column 1, § 1.108-7T(d), paragraph (i) of Example 3 , line 14, the language “trade creditors in exchange for release of” is corrected to read “creditors in exchange for release of”. 4. On page 42593, column 1, § 1.108-7T(d), paragraph (ii) of Example 3 , line 19, the language “requirements of section 354(a)(1)(A) and (B).” is corrected to read “requirements of section 354(b)(1) (A) and (B).”. 5. On page 42593, column 1, § 1.108-7T(d), paragraph (ii) of Example 3 , line 2, the language “to X's trade creditors, under section” is corrected to read “to X's creditors, under section”. 6. On page 42593, column 1, § 1.108-7T(d), paragraph (ii) of Example 3 , line 7, the language “owed the trade creditors for $100,000, the fair” is corrected to read “owed the creditors for $100,000, the fair”. 7 . On page 42593, column 2, § 1.108-7T(d), paragraph (ii) of Example 4 , line 2, the language “distribution of Y stock to X's trade creditors,” is corrected to read “distribution of Y stock to X's creditors,”. Cynthia E. Grigsby, Acting Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration). [FR Doc. 03-24912 Filed 9-30-03; 8:45 am]