# Source of income from a qualified fails charge (temporary).
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Correcting amendment.
**SUMMARY:**
This document contains a correction to temporary regulations (TD 9508) that were published in the *Federal Register* on Wednesday, December 8, 2010 (75 FR 76262)providing guidance about the treatment of fails charges for purposes of sections 871 and 881, which generally require gross-basis taxation of foreign persons not otherwise subject to U.S. net-basis taxation and the withholding of such tax under sections 1441 and 1442.
**DATES:**
This correction is effective on December 28, 2010, and is applicable beginning December 8, 2010.
**FOR FURTHER INFORMATION CONTACT:**
Sheila Ramaswamy or Anthony J. Marra at (202) 622-3870 (not a toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The temporary regulations (TD 9508) that are the subject of this document are under section 863 of the Internal Revenue Code.
**Need for Correction**
As published, the temporary regulations (TD 9508) contain an error that may prove to be misleading and is in need of clarification.
**List of Subject in 26 CFR Part 1**
Income taxes, Reporting and recordkeeping requirements.
**Correction of Publication**
Accordingly, 26 CFR part 1 is corrected by making the following correcting amendment:
**26 CFR Part 1**
**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 1.863-10T is amended by revising the paragraph (f) to read as follows:
§ 1.863-10T
(f) *Expiration date.* This section expires on December 6, 2013.
Guy R. Traynor,
Acting Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel, Procedure and Administration.