# 1374(d)( 8) 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). The document contains temporary regulations providing 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.
**SUPPLEMENTARY INFORMATION:**
**Background**
The temporary regulations (TD 9170) that is the subject of this correction are under section 1374 of the Internal Revenue Code.
**Need for Correction**
As published, the temporary regulations (TD 9170) contain errors that may prove to be misleading and are in need of clarification.
**List of Subjects 26 CFR Part 1**
Income taxes, Reporting and recordkeeping requirements.
**Correction of Publication**
**26 CFR Part 1**
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.* The section heading and text of § 1.1374-8T is revised to read as follows:
§ 1.1374-8T
(a)(1) [Reserved]. For further guidance, see § 1.1374-8(a).
(2) Section 1374(d)(8) applies to any section 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.
(b) through (d) [Reserved]. For further guidance, see § 1.1374-8(b) through (d).
Cynthia Grigsby,
Acting Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedures and Administration).