# transactions (temporary).
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Correcting amendment.
**SUMMARY:**
This document corrects temporary regulations (TD 9170) that were published in the *Federal Register* on Wednesday, December 22, 2004 (69 FR 76612), that provide guidance concerning the applicability of section 1374 to S corporations that acquire assets in carryover basis transactions from C corporations on or after December 27, 1994, and to certain corporations that terminate S corporation status and later elect again to become S corporations.
**DATES:**
This document is effective on December 22, 2004.
**FOR FURTHER INFORMATION CONTACT:**
Stephen R. Cleary, (202) 622-7750 (not a toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The final and temporary regulations (TD 9170) that is the subject of this correction are under 1374 of the Internal Revenue Code.
**Need for Correction**
As published, the final and temporary regulations (TD 9170) contains an error that may prove to be misleading and are in need of clarification.
**List of Subjects in 26 CFR Parts 1**
Income Tax, Reporting and recordkeeping requirements.
**Correction of Publication**
**26 CFR Part 1**
Accordingly, 26 CFR Part 1 is corrected by making the following correcting amendment:
**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**
2. In § 1.1374-8T, the section heading, and paragraphs (a)(1) and (a)(2) are revised to read as follows:
§ 1.1374-8T 1374(d)(8)
(a)(1) (Reserved) For further guidance see § 1.1374-8(a).
(2) Section 1374(d)(8) applies to any § 1.1374(d)(8) transaction, as defined in paragraph (a)(1) of this section, that occurs on or after December 27, 1994, without regard to the date of the corporation's election to be an S corporation under section 1362.
Cynthia E. Grigsby,
Acting Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedures and Administration).