# Methods to determine taxable income in connection with a cost sharing arrangement.
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Correcting amendment.
**SUMMARY:**
This document contains corrections to final regulations and removal of temporary regulations (TD 9630) that were published in the *Federal Register* on Tuesday, August 27, 2013 (78 FR 52854). The final regulations implement the use of the differential income stream as a consideration in assessing the best method in connection with a cost sharing arrangement and as a specified application of the income method.
**DATES:**
This correction is effective October 22, 2013, and is applicable beginning on or after December 19, 2011.
**FOR FURTHER INFORMATION CONTACT:**
Mumal R. Hemrajani, at (202) 622-3800 (not a toll free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The final regulations and removal of temporary regulations (TD 9630) that are the subject of this correction are under section 482 of the Internal Revenue Code.
**Need for Correction**
As published, the final regulations and removal of temporary regulations (TD 9630) contains an error that may prove to be misleading and is 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 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 1.482-7 is amended by revising the last sentence of paragraph (g)(4)(vi)(F)( *2* ) to read as follows:
§ 1.482-7
(g) * * *
(4) * * *
(vi) * * *
(F) * * *
( *2* ) * * * See *Example 8* of paragraph (g)(4)(viii) of this section.
Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).