# Effective dates and transitional rules.
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Correcting amendment.
**SUMMARY:**
This document contains corrections to final regulations (TD 9787) that were published in the *Federal Register* on Wednesday, October 5, 2016. The final regulations are under sections 707 and 752 of the Internal Revenue Code.
**DATES:**
This correction is effective October 5, 2018 and is applicable on and after October 5, 2016.
**FOR FURTHER INFORMATION CONTACT:**
Deane M. Burke or Caroline E. Hay at (202) 317-5279 (not a toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The final regulations (TD 9787), published October 5, 2016 (81 FR 69291), that are the subject of this correction are under sections 707 and 752 of the Internal Revenue Code.
**Need for Correction**
As published, the final regulations (TD 9787) 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**
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 * * *
§ 1.707-9
**26 CFR Part 1**
*Par. 2.* Section 1.707-9 is amended by revising the second sentence in paragraph (a)(1) to read as follows:
§ 1.707-9
(a) * * *
(1) * * * For any transaction with respect to which all transfers that are part of a sale of an item of property occur after April 24, 1991, and any of such transfers occurs before October 5, 2016, §§ 1.707-3 through 1.707-6 as contained in 26 CFR part 1 revised as of April 1, 2016, apply.
Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).