# Transfers of subsidiary member stock and deconsolidations of subsidiary members (temporary).
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Correcting amendments.
**SUMMARY:**
This document corrects temporary regulations (TD 9048), which was published in the *Federal Register* on Friday, March 14, 2003 (68 FR 12287). The temporary regulations redetermine the basis of stock of a subsidiary member of a consolidated group immediately prior to certain transfers of such stock and certain deconsolidations of a subsidiary member and also suspend certain losses recognized on the disposition of stock of a subsidiary member.
**DATES:**
This correction is effective on March 14, 2003.
**FOR FURTHER INFORMATION CONTACT:**
Aimee K. Meacham at (202) 622-7530 (not a toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The temporary regulations that are the subject of this correction are under section 1502 of the Internal Revenue Code.
**Need for Correction**
As published, TD 9048 contains an error which may prove to be misleading and is in need of clarification.
**List of Subjects in 26 CFR Part 1**
Income taxes, Reporting and recordkeeping requirements.
**26 CFR Part 1**
**Correction of Publication**
Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments:
**PART 1—INCOME TAXES**
*Paragraph 1.* The authority citation for part 1 continues to read in part as follows:
**Authority:**
26 U.S.C. 7805 * * *
**26 CFR Part 1**
*Par. 2.* Section 1.1502-35T is amended by:
1. Removing the word “or” at the end of paragraph (b)(3)(ii)(B).
2. Removing the word “or” at the end of paragraph (b)(3)(ii)(C).
3. Adding the word “or” at the end of paragraph (b)(3)(ii)(D).
4. Adding new paragraph (b)(3)(ii)(E) to read as follows:
§ 1.1502-35T
(b) * * *
(3) * * *
(ii) * * *
(E) The deconsolidation of the subsidiary member results from a termination of the group.
Cynthia E. Grigsby,
Chief, Regulations Unit, Associate Chief Counsel (Procedure and Administration).