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Prohibited Allocations of Securities in an S Corporation; Correction

---
identifier: "/us/fr/05-4506"
source: "fr"
legal_status: "authoritative_unofficial"
title: "Prohibited Allocations of Securities in an S Corporation; Correction"
title_number: 0
title_name: "Federal Register"
section_number: "05-4506"
section_name: "Prohibited Allocations of Securities in an S Corporation; Correction"
positive_law: false
currency: "2005-03-08"
last_updated: "2005-03-08"
format_version: "1.1.0"
generator: "[email protected]"
agency: "Treasury Department"
document_number: "05-4506"
document_type: "rule"
publication_date: "2005-03-08"
agencies:
  - "Treasury Department"
  - "Internal Revenue Service"
cfr_references:
  - "26 CFR Part 1"
rin: "1545-BC33"
fr_citation: "70 FR 11121"
fr_volume: 70
docket_ids:
  - "TD 9164"
effective_date: "2004-12-17"
fr_action: "Correcting amendment."
---

#  [Corrected]

**AGENCY:**

Internal Revenue Service (IRS), Treasury.

**ACTION:**

Correcting amendment.

**SUMMARY:**

This document corrects temporary regulations (TD 9164) that were published in the *Federal Register* on Friday, December 17, 2004 (69 FR 75455) concerning requirements for employee stock ownership plans (ESOPs) holding stock of Subchapter S corporations.

**DATES:**

This document is effective on December 17, 2004.

**FOR FURTHER INFORMATION CONTACT:**

John T. Ricotta, (202) 622-6060 (not a toll-free number).

**SUPPLEMENTARY INFORMATION:**

**Background**

The temporary regulations (TD 9164) that is the subject of this correction are under section 409(p).

**Need for Correction**

As published, the temporary regulations (TD 9164) contain errors that may prove to be misleading and are in need of clarification.

**List of Subjects in 26 CFR Parts 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 amendment:

**PART 1—INCOME TAXES**

*Paragraph 1.* The authority citation for part 1 and continues to read in part as follows:

**Authority:**

26 U.S.C. 7805 * * *.

**26 CFR Part 1**

§ 1.409(p)-1T

Section 1.409(p)-1T(d)(2)(iv), is removed.

Cynthia E. Grigsby,

Acting Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedures and Administration).