# [Corrected]
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Correction to final regulations.
**SUMMARY:**
This document contains a correction to final regulations relating to deemed and actual asset acquisitions under sections 338 and 1060. The final regulations that were published in the *Federal Register* on Tuesday, February 13, 2001 (66 FR 9925).
**DATES:**
This correction is effective March 16, 2001.
**FOR FURTHER INFORMATION CONTACT:**
Richard Starke (202) 622-7790 (not a toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The final regulations that are the subject of these corrections are under sections 338 and1060 of the Internal Revenue Code.
**Need for Correction**
As published, the final regulations contain an error that may prove to be misleading and is in need of clarification.
**26 CFR Part 1**
**Correction of Publication**
Accordingly, the publication of the final regulations (TD 8940), that were the subject of FR Doc. 01-981 is corrected as follows:
1. On page 9929, in the table, the entry for § 1.197-2(k), *Example 23* is corrected to read as follows:
| Section | Remove | Add |
| --- | --- | --- |
| | | |
| * * * * * * * | | |
| 1.197-2(k),
paragraph (iv), first sentence | (as these terms are defined in § 1.338-1(c)(13)) | (as these terms are defined in § 1.338&ndas-2(c)(17)) |
| | | |
| * * * * * * * | | |
**26 CFR Part 1**
§ 1.338-3
2. On page 9935, column 3, § 1.338-3, paragraph (b)(3)(iv), paragraph (ii) of *Example 1., * line 9 from the bottom of the paragraph, the language “338(h)(3)(A)(iii). See § 1.338-2(b)(3)(ii)(C).” is corrected to read “338(h)(3)(A)(iii). See § 1.338-3(b)(3)(ii)(C).”.
**26 CFR Part 1**
§ 1.338-6
3. On page 9944, column 3, § 1.338-6, paragraph (d), paragraph (ix) of *Example 1* line 1, the language “The liabilities of T as of the beginning” is corrected to read “ The liabilities of T1 as of the beginning”.
Cynthia E. Grigsby,
Chief, Regulations Unit, Office of Special Counsel (Modernization and Strategic Planning).