# [Corrected]
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Correction to notice of proposed rulemaking and notice of public hearing.
**SUMMARY:**
This document contains corrections to proposed regulations that were published in the *Federal Register* on February 26, 2004 (69 FR 8886) that relate to the inclusion into income or deduction of a contingent nonperiodic payment provided for under a notional principal contract (NPC).
**FOR FURTHER INFORMATION CONTACT:**
Kate Sleeth, (202) 622-3920 (not toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The notice of proposed rulemaking and notice of public hearing that are the subject of these corrections are under section 446 of the Internal Revenue Code.
**Need for Correction**
As published, the notice of proposed rulemaking and notice of public hearing (REG-166012-02) contain errors that may prove to be misleading and are in need of clarification.
**Correction of Publication**
Accordingly, the publication of the notice of proposed rulemaking and notice of public hearing (REG-166012-02), which were the subject of FR Doc. 04-4151, is corrected as follows:
1. On page 8886, column 1, in the heading, the subject line “National Principle Contracts; Contingent Nonperiodic Payments” is corrected to read “Notional Principle Contracts; Contingent Nonperiodic Payments”.
§ 1.446-3
2. On page 8897, column 1, § 1.446-3 (g)(7)(v), *Example 8,* line 7, the language “($734,347-363,693), the difference between” is corrected to read “($734,347-$363,693), the difference between”.
3. On page 8897, column 1, § 1.446-3 (g)(7)(viii), *Example 8,* line 3, the language “at 11.0% times $5,000,000, or $5,500,000. W” is corrected to read “at 11.0% times $50,000,000, or $5,500,000. W”.
Cynthia E. Grigsby,
Acting Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedures and Administration).