Guidance Under Section 355(e); Recognition of Gain on Certain Distributions of Stock or Securities in Connection With an Acquisition; Correction

---
identifier: "/us/fr/05-9615"
source: "fr"
legal_status: "authoritative_unofficial"
title: "Guidance Under Section 355(e); Recognition of Gain on Certain Distributions of Stock or Securities in Connection With an Acquisition; Correction"
title_number: 0
title_name: "Federal Register"
section_number: "05-9615"
section_name: "Guidance Under Section 355(e); Recognition of Gain on Certain Distributions of Stock or Securities in Connection With an Acquisition; Correction"
positive_law: false
currency: "2005-05-17"
last_updated: "2005-05-17"
format_version: "1.1.0"
generator: "[email protected]"
agency: "Treasury Department"
document_number: "05-9615"
document_type: "rule"
publication_date: "2005-05-17"
agencies:
  - "Treasury Department"
  - "Internal Revenue Service"
cfr_references:
  - "26 CFR Part 1"
rin: "1545-AY42"
fr_citation: "70 FR 28211"
fr_volume: 70
docket_ids:
  - "TD 9198"
effective_date: "2005-04-19"
fr_action: "Correction to final regulations and removal of temporary regulations."
---


#  Guidance Under Section 355(e); Recognition of Gain on Certain Distributions of Stock or Securities in Connection With an Acquisition; Correction

**AGENCY:**

Internal Revenue Service (IRS), Treasury.

**ACTION:**

Correction to final regulations and removal of temporary regulations.

**SUMMARY:**

This document corrects final regulations and removal of temporary regulations (TD 9198), that were published in the *Federal Register* on Tuesday, April 19, 2005 (70 FR 20279) that relate to the recognition of gain on certain distributions of stock or securities of a controlled corporation in connection with an acquisition.

**DATES:**

This correction is effective April 19, 2005.

**FOR FURTHER INFORMATION CONTACT:**

Amber R. Cook, (202) 622-7530 (not a toll-free number).

**SUPPLEMENTARY INFORMATION:**

**Background**

The final regulations and removal of temporary regulations (TD 9198), which is the subject of this correction are under section 355(e) of the Internal Revenue Code.

**Need for Correction**

As published, the final regulations and removal of temporary regulations (TD 9198) contain errors that may prove to be misleading and are in need of clarification.

**Correction of Publication**

Accordingly, the publication of the final regulations and removal of temporary regulations (TD 9198), which was the subject of FR. Doc. 05-7811, is corrected as follows:

1. On page 20280, column 2, in the preamble, under the paragraph heading “New Safe Harbor for Acquisitions Before a Pro Rata Distribution”, line 9, the language “discussions regarding the acquisition” is corrected to read “discussions with the acquirer regarding a distribution”.

2. On page 20280, column 2, in the preamble, under the paragraph heading “New Safe Harbor for Acquisitions Before a Pro Rata Distribution”, lines 15 and 16, the language “prior to discussions regarding the acquisition and that the acquisition was” is corrected to read “prior to discussions regarding a distribution and that the acquisition was”.

Cynthia E. Grigsby,

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