# Yield on an issue of bonds.
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Correcting amendment.
**SUMMARY:**
This document contains corrections to final regulations (TD 9777) that were published in the *Federal Register* on Monday, July 18, 2016. The final regulations are related to arbitrage restrictions under section 148 of the Internal Revenue Code applicable to tax-exempt bonds and other tax-advantaged bonds issued by State and local governments.
**DATES:**
This correction is effective on *April 3, 2018* and is applicable on or after July 18, 2016.
**FOR FURTHER INFORMATION CONTACT:**
Spence Hanemann at (202) 317-6980 (not a toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The final regulations (TD 9777) that are the subject of this correction are issued under section 148 of the Internal Revenue Code.
**Need for Correction**
As published July 18, 2016 (81 FR 46582), the final regulations (TD 9777) contain an error that needs to be corrected.
**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:
**PART 1—INCOME TAXES**
**26 CFR Part 1**
*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 1.148-4 is amended by revising the paragraph heading for paragraph (h)(3)(iv) to read as follows:
§ 1.148-4
(h) * * *
(3) * * *
(iv) *Accounting for modifications and terminations* —* * *
Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).