# Reduction of Foreign Tax Credit Limitation Categories Under Section 904(d); Correction
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Correcting amendments
**SUMMARY:**
This document contains corrections to final and temporary regulations (TD 9368) that were published in the *Federal Register* on Friday, December 21, 2007 (72 FR 72582) regarding the reduction of the number of separate foreign tax credit limitation categories under section 904(d) of the Internal Revenue Code. These regulations affect taxpayers claiming foreign tax credits and provide guidance needed to comply with the statutory changes made by the American Jobs Creation Act of 2004 (AJCA).
**DATES:**
The correction is effective March 21, 2008.
**FOR FURTHER INFORMATION CONTACT:**
Jeffrey L. Parry, (202) 622-3850 (not a toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The final and temporary regulations (TD 9368) that are the subject of the correction are under section 904 of the Internal Revenue Code.
**Need for Correction**
As published, final and temporary regulations (TD 9368) contain errors that may prove to be misleading and are in need of clarification.
**List of Subjects in 26 CFR Part 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 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* . Section 1.904-4 is amended as follows:
1. In paragraph (h)(4) *Example 3,* in the first sentence, the language “Example (3)” is removed and the language “Example 2” is added in its place.
2. In paragraph (i), in the last sentence, the language “dividends received or accrued by the taxpayer from each separate noncontrolled section 902 corporation” is removed and the language “income in each separate category” is added in its place.
**26 CFR Part 1**
*Par. 3* . Section 1.904-7T(g) is amended as follows:
3. In paragraph (g)(2), in the last sentence, the language “Similar rules shall apply to characterize any deficits in the pre-2007 pools and previously-taxed earnings and profits described in section 959(c)(1)(A) that are attributable to earnings in the pre-2007 pools.” is removed and the language “Similar rules shall apply to characterize any deficits in the pre-2007 pools and previously-taxed earnings and profits described in section 959(c)(1) and (2) that are attributable to earnings in the pre-2007 pools.” is added in its place.
4. In paragraph (g)(4), in the last sentence, the language “Similar rules shall apply to characterize any deficits or previously-taxed earnings and profits described in section 959(c)(1)(A) that are attributable to pre-1987 accumulated profits.” is removed and the language “Similar rules shall apply to characterize any deficits or previously-taxed earnings and profits described in section 959(c)(1) and (2) that are attributable to pre-1987 accumulated profits.” is added in its place.
LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).