Use of Controlled Corporations To Avoid the Application of Section 304; Correction

---
identifier: "/us/fr/2010-3927"
source: "fr"
legal_status: "authoritative_unofficial"
title: "Use of Controlled Corporations To Avoid the Application of Section 304; Correction"
title_number: 0
title_name: "Federal Register"
section_number: "2010-3927"
section_name: "Use of Controlled Corporations To Avoid the Application of Section 304; Correction"
positive_law: false
currency: "2010-02-26"
last_updated: "2010-02-26"
format_version: "1.1.0"
generator: "[email protected]"
agency: "Treasury Department"
document_number: "2010-3927"
document_type: "rule"
publication_date: "2010-02-26"
agencies:
  - "Treasury Department"
  - "Internal Revenue Service"
cfr_references:
  - "26 CFR Part 1"
rin: "1545-BI14"
fr_citation: "75 FR 8796"
fr_volume: 75
docket_ids:
  - "TD 9477"
effective_date: "2010-02-26"
fr_action: "Correcting amendment."
---


#  Special rule for the use of related corporations to avoid the application of section 304 (temporary).

**AGENCY:**

Internal Revenue Service (IRS), Treasury.

**ACTION:**

Correcting amendment.

**SUMMARY:**

This document contains corrections to final and temporary regulations (TD 9477) that were published in the *Federal Register* on Wednesday, December 30, 2009 (74 FR 69021) regarding certain transactions that are subject to section 304 but that are entered into with a principal purpose of avoiding the application of section 304 to a corporation that is controlled by the issuing corporation in the transaction, or with a principal purpose of avoiding the application of section 304 to a corporation that controls the acquiring corporation in the transaction.

**DATES:**

These corrections are effective on February 26, 2010 and are applicable on or after December 29, 2009.

**FOR FURTHER INFORMATION CONTACT:**

Sean W. Mullaney, (202) 622-3860 (not a toll free number).

**SUPPLEMENTARY INFORMATION:**

**Background**

The final and temporary regulations (TD 9477) that are the subject of these corrections are under section 304 of the Internal Revenue Code.

**Need for Correction**

As published, the final and temporary regulations (TD 9477) contain an error 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.

**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.* Section 1.304-4T is amended by revising paragraph (e) to read as follows:

§ 1.304-4T

(e) *Expiration date.* This section expires on or before December 28, 2012.

Diane Williams,

Federal Register Liaison, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).