# Net operating losses (temporary).
**AGENCY:**
Internal Revenue Service (IRS), Treasury.
**ACTION:**
Correcting amendments.
**SUMMARY:**
This document contains corrections to Treasury Decision 9900, which was published in the *Federal Register* on Wednesday, July 8, 2020. Treasury Decision 9900 contained temporary regulations that permit consolidated groups that acquire new members that were members of another consolidated group to elect in a year subsequent to the year of acquisition to waive all or part of the pre-acquisition portion of an extended carryback period under section 172 of the Internal Revenue Code (Code) for certain losses attributable to the acquired members if there is a retroactive statutory extension of the NOL carryback period under section 172.
**DATES:**
*Effective date:* These corrections are effective on August 28, 2020.
*Applicability date:* For the date of applicability, see § 1.1502-21T(h)(9).
**FOR FURTHER INFORMATION CONTACT:**
Jonathan R. Neuville, at (202) 317-5363 (not a toll-free number).
**SUPPLEMENTARY INFORMATION:**
**Background**
The temporary regulations (TD 9900) that are the subject of this correction are issued under section 1502 of the Code.
**Need for Correction**
As published July 8, 2020 (85 FR 40892), the temporary regulations (TD 9900; FR Doc. 2020-14426) contained errors that need 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 1.1502-21T is amended by revising the second sentence of paragraph (b)(3)(ii)(C)( *1* ), the first sentence of paragraph (b)(3)(ii)(C)( *5* )( *i* ), the first sentence of paragraph (b)(3)(ii)(C)( *5* )( *ii* ), the third sentence of paragraph (b)(3)(ii)(D)( *2* )( *ii* ), and the second sentence of paragraph (b)(3)(ii)(D)( *4* )( *ii* ) to read as follows:
§ 1.1502-21T
(b) * * *
(3) * * *
(ii) * * *
(C) * * *
( *1* ) * * * (See paragraph (b)(3)(ii)(C)( *2* ) of this section for definitions of terms used in this paragraph (b)(3)(ii)(C) and paragraph (b)(3)(ii)(D) of this section.)
( *5* ) * * *
( *i* ) * * * An amended statute split-waiver election must be made in a separate statement entitled “THIS IS AN ELECTION UNDER SECTION 1.1502-21T(b)(3)(ii)(C)( *1* ) TO WAIVE THE PRE-[insert first day of the first taxable year for which the acquired member was a member of the acquiring group] CARRYBACK PERIOD FOR THE CNOLS ATTRIBUTABLE TO THE [insert taxable year of losses] TAXABLE YEAR(S) OF [insert names and employer identification numbers of members]” (amended statute split-waiver election statement).
( *ii* ) * * * An extended split-waiver election must be made in a separate statement entitled “THIS IS AN ELECTION UNDER SECTION 1.1502-21T(b)(3)(iii)(C)( *1* ) TO WAIVE THE PRE-[insert first day of the first taxable year for which the acquired member was a member of the acquiring group] EXTENDED CARRYBACK PERIOD FOR THE CNOLS ATTRIBUTABLE TO THE [insert taxable year of losses] TAXABLE YEAR(S) OF [insert names and employer identification numbers of members]” (extended split-waiver election statement).
(D) * * *
( *2* ) * * *
( *ii* ) * * * See paragraph (b)(3)(ii)(C)( *2* )( *v* ) of this section. * * *
( *4* ) * * *
( *ii* ) * * * See paragraph (b)(3)(ii)(C)( *2* )( *ix* ) of this section.
Martin V. Franks,
Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).