# Treatment of organization and syndication costs.
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Correcting amendment.
**SUMMARY:**
This document contains corrections to final regulations and removal of temporary regulations (TD 9542) that were published in the *Federal Register* on Wednesday, August 17, 2011 (76 FR 50887) relating to elections to deduct start-up expenditures, organizational expenditures of corporations, and organizational expenses of partnerships. The American Jobs Creation Act of 2004 amended the Internal Revenue Code to permit the optional deduction of a limited amount of these types of expenses that are paid or incurred after October 22, 2004.
**DATES:**
This correction is effective on September 15, 2011 and is applicable August 16, 2011.
**FOR FURTHER INFORMATION CONTACT:**
R. Matthew Kelley, (202) 622-7900 (not a toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The final regulations and removal of temporary regulations that are the subject of this document are under sections 195, 248, and 709 of the Internal Revenue Code.
**Need for Correction**
As published, the final regulations and removal of temporary regulations (TD 9542) 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.
**Correction of Publication**
Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments:
**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 1.709-1 is amended by revising the last sentences of paragraphs (b)(4) *Example 2, Example 5,* and *Example 6* to read as follows:
§ 1.709-1
(b) * * *
(4) * * *
**Example 2. * * * Partnership X may amortize the remaining $34,800**
($36,000 − $1,200 = $34,800) ratably over the remaining 174 months.
**Example 5. * * * Partnership X may amortize the remaining $52,200**
($54,000 − $1,800 = $ 52,200) ratably over the remaining 174 months.
**Example 6. * * * Partnership X may amortize the remaining $435,000**
($450,000 − $15,000 = $435,000) ratably over the remaining 174 months.
Diane Williams,
Federal Register Liaison, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).