PS-92-90_Corr

I
-4-

'

the prbtiution of final
m r t i a n r VD.WS].whlch ma tht
mubject of PR k.
92-a75, I 8 comcled
A-y.

.
I Idlow:

1 . O n p g t 1250. in column 1 in the
Ltndurg tbt lnrtguage '%
h f l a z0.
&and Jbl" is c o r n e d to rerd "a

m,25, wt. and #z".
e On page 1250.column I, in the

~ P A R T Y E WOFT THE m

y

Lntenul Revenue %ni#

AOENcr: Inkrnd Revcnut Seniee.
.
Treasury.
*enow Cornchon to h a 1 regda lions.

pnarnble under tbe heading w ~ M Y ,
h 0. the language "under chspters 1
rrrd tz of the Code. In" i a comctcd to
read 'under chaptern ti and 12 of the
l n m a l Rtvenut C d s . In".
3. On page 4250. column 1,in the
pttlmbit &dm tht herding
m
A
U
V OnrDm&mremove
tht recond wntence In h e Fin1
parapph.
4. On prgc 42% column I, in the
prrrrnble under the herding
ILICRELIPTtW
next to
the lmnt lint of parngrapb 1. the iangungt
"armus1 burden per wupondent i n ten" is
ccmcted ro mad "amual burden per respondent i s 20".
5. On pegt 4250. column 1, in the
preamble under the h e a & q
~
E
M
W1 - m
h e laat
t w o lentencem in paragraph 2 art
c o r n e d Lo rt4d 'They arc based upon
the inlormati~n#veilable i o the Interndl
Rtvenue S ~ M C ~In&\idual
.
mspondenta may =quite mom ot Itsr
time. dcpeodiPg OD their particular
CkumSuncEl.".
a On pagt lZXL column I. in the

Ruler and U @ a l h w

b n o m a l h t mithe larlgnspc
"-a
4 h m aflca minority" b
c o d to rmd " d r p b t 14 dcm nul
sfTed minorlf.
10. On p w USZ dumn 1,in the
p a m b l c under t b t , h e a d q -Indirect
Ownership".lit 5; Ibt language "of
l r ~ n l f t thr!
r
included the lermine tion"
ir comcted t o read "of mamier that
included Q e transfer".
11. On p q e U.d u m n 2 in h e
pmamble under the heading 'Adoption
of Amendments lo h e Regulalions".
liner I and 2 the languagc -Auordingly.
26 CFR partr 20.25 and
arr amended
r l lollowr:" iw carrec~dto wed
"Accordingly. 28 CFR part* 20,25,301.
end 602 am amended as follows:".
9 2l2tol-t 1-1
12.Dn pagc 4256. column Z f 25.2701l ( b ) ( t ) ( i ) [ Cintroductory
]
text lint 3, the
language "8 2527014) kt-" ir corrected
to mad "5 25.ZfUl4) [or a motribution
to capital by M er.tity to the exlent an
iodivihri iadirtc ' v holda an inttmt in

the entity). if-".
13. On pagc 4256. column L f 25.2701'
1@)(2J(i)~C){Z).
lint 1. the language "If
+vuumr:T h i r document eon taina
the ~tminationim not trrated as" i n
corntiom to Tttarury Dtcimion 839L
comcted to mad "If the ltrminafion (or
which we8 published in tht Federal
contribution) is not treated el".
-sker
for T h w d a y , February 4.1992
14. On page 4% column Z 1 25.2701[56 FR 4m].T h e final tegulationr relate
~ ( b ) [ ~ ) I introduct~v
ii]
text. lint 3. the
to chapter 14 f th f n t t r n ~ Revenue
l
language
"il
tbe
krminrtion
of an
Code ar tnraed in the Omnibus Budget
indimct holding" i s w r r e c t t d to read "if
Rmncilietion A& of 1990, coneerniag
the transfer 01 ra indrrtct holding".
#peedvduation d e r for purports of
p n m b l e undtr the k 4 d q
15. On gage 1258 column 2. f zS.Z?UIfcdcml trtntr and gilt taxer and rulem
m
r
nl w ~ m u * n
the~I ~
r~t
~
(
b ) ( t ) ( i i )h~ ]e, 1,h e language "Lasl
involring impling rigbts and othlrt
five liner DI that column &re ccrmcted to
to any other indirrct holdednl"i a +
urnsaction, thmt are h a t e d a#
wad "the l n t e m d Revenue Senice.
comcted to mrd -Last. lo any other
cornjdetd translerr.
A m : IRS Repom Cleermw Offiw.
indirect holdcds]".
r m m D A ~ E Januvy 28.1992.
T f P , W a s h q t o n DC m m .and to the
f 6.On page 4256,wlumn 3. 1 25.2701Office
o
f
Management
and
Budgel.
m m m I U O R M A ~ D Im
I
*m
l(c)(3),lint 7, the b g u g e "dame i a
Fwd E Gmdcrnaa (2021 53-512 (not Aneahon: M k Officer lor the
D c p a m t n i of Lhr Treasury. Office of
p m p o r l i o ~ to
l the c l a ~ 01
r the" is
r ioU-free number).
krfurmmtion and Rrgulatory M a t = .
comcted to mad "clens i l the lame
SUPCLWLKIMY tWm*IAflOK
Washington. I
X 205133.".
&ss as (or u pmporriona! to the class
hckpurrd
7. On pagc 4 m cblumn 3. in the
00 the".
pmemblc under h e beading "Stop? of
T h e h e 1 regulations lhar are the
17. On page 42SB. calumn 3. 25.2701rubject of b t s e corrections c o n l ~ mthe Section 2701".h e 3 of the fimt MI
'l(c)[3), lint 8, fbt Janguage "identical or
paragmph ofthat column. the l q s g e
r e g d a t i to
~ ~section 2
m through 27tW
ptoponi~aail o the right8 o f ' i s
"temina~ionof an internst held
a1 the lnternal Revenue Code- These
indirectly" is wmaed to tend "hansfcr c o m a e d 1 0 mad 'identical (or
regula~iorupmndc special veluation
proportional) 10 Iht righu of'.
of mn intensf b t l d indimctly".
rules for purpoes of the Federal ?lute
18.
p.gt W .wlr~nn3. 8 ZJ.2TOTa On page 1251, column Z in the
rind a f t b x e a impo~edunder t h a p r m
l(c][3). line 18. the l-age
"be
preamble
under
the
hcodLng
"The
11 and 12 of the Internal Revenue Code.
Internal Rtvmue Codt [e.q.. section" i s
Subhction Melhod of Va:;rarion". fmt
h addition then* regulatinnr provide
c o m c ~ e dto mad -the hterna! Revenue
hA paregraph h m the tap of t h ~ t
i-ufes involving lapsing rightr end olher
Code (c-g, wetion".
cotnext to I.11 he.the language
transattiom h a t arr treated en
19.
T e 5 252512-9[8)[1)(i).The pmpo~ed"
pagc 1256.column 3. 5 23.2701compIttPd tramfen under chapter 14
L wrre~tedlo read "See 1 25Z12l(c)[4]. Lnt 3, thc hrquage "individual
Pied lot C o d n
q a ] [ l ] [ i ) . Ibc pmpoaed".
of equiry intererts to the" i a corrected 10
9. On gnge U S 1 . tolumn L in the
As published. TD.8395 contehs
read 'individual to a member of h e
p m I t vadcr the head* "The
emn which may prove to ti
indiv~dual'mf m i l y o l squity m t e m b to
Subtmmon M e r h d of Voluarion'. 1.11
mjsltsding md nm in Dccd 01
the'..
m p h of tbPt d u m n . h 6 fmm
dar~ficatioa

Fsdord W
f

-1-3

r / Vol. 57. No. H f ThUTPday, April

IccmCtuiJ

20.On page w .column 3, # 25.27013(b]{l), ir mrrocied lo mad followr:

. . . . *
ibj ' '

.inleesf--(i)
11) Step 1-V~luution o j family-held
In geneml. Except a rn

1

provided in paragraph (b)(l)(ii)o l lhir
section determine the fair muket vrlua
of all family-held equiry lnltrtltr in tht
entity immediately aftet the esnnfer.
Thc fair market value i s determined by
w~umingthat the intommu art hrid by
one U v i d u a l wing a marhieat ~ e of
t
sm~umptions.
(ii] Special mle for wnrributionr b
copilal. hi the care of a contribution to
apitnL determine (be fair madrct value
of he contrib~tion.

* . . * .

n.On pagt 42%. m l m
3(b](~).ir comcred to read
*

.
.
[b)' ' *

.

*

3.1 252701follows:

[ z ) Step zSubtmcr the vofue of

senjar equity intems&+i) In geneml. If

the amount determind in Step f of
paragraph (b)[l)of thir rection is not
dttetmintd under the mptciol rule for
contribuliona lo capital h m that v r h e
uubtraci the foUuwing ornounla:
{A] An mount equal to the rum of !he
fait market value of all b d y - h e l d
senior equity inttmrtr, (other than
applicable retained inrerests held by the
trvnsferor or rpplicr ble family
mcmben) and the fair market value of
any family-held equity intmrtr of the
rame drrs or rubofdinrtr drrr to the
tmnrftmd intertats held by pemons

2, 1992

1

Rules md Regulations

-I=
--

Z207lpaec~~lumn2.#~~~~13(b)(3), b e a 6 u d 7, the language
' l r ~ n l i btPUb
d
U L oher
~
fmdlyst. OD p ~ g =I.
c
2 z5mk M rubotdinale qrtity inlimmk If'la
q d ) . Step 3 affiampk 5. liDc 1. the
wmcttd to mad "iranritmdmteerb language "Sfrp3.7he amount s U o a ted
and other rub&rk epuity interelti
l o the" ir wmcted to mad "Sfep3. The

held by the buamfemt, rppliable f
e
w
m e m k m d m e m h of tbt

mount a l l w t e d lo tbt hrufemd".
32mpgem.wlumazitSm-

trmaftmr'r f d y . IT'.
Sid). S&p I offianrple 6, Lbt lart
U.Onp.gc4m.wlumn1.~Uuot.wnttncc of Step 4 i 8 -ted
l o mad
3lb#4l[ii)(A), Jim 3 h m the h t t o m of
'7%h
~e. amount of the gt ir
that pungraph tht I.nguwr ' k h o hrd
sM.007.".
.
.
no otbar lnterert ia tht utity."i~
corrected to rend "whohad no intenrt -j
J-t
in the entity other chm the f d y - h e l d
intcrrsta 01 the rame da~r.".
U.Da~eIzUI.~olumaL~ZS3Hn3(b)[l#iv),l r n t h e of tbrl prnmph,
tbt I~iquage"lection 2mt."n wmcted
[c).
'
to read "=tion
nm except that in the
(81 '
u w of 4 m ~ b u t i o n
to u p i k l , the
[ii]
Scep 4 value of ruch mn interest ir zern.".
25. On page 4column 2 , g 2527Ul[C] * ' '
3(b)(5)[i]. lint b the langulgc ' T d y
(2)
m e ~ b t enx a e d b the famiby"n
[i)For tbc original term of the term
comec~cdto rtad Y n d y mtmben
bolder'. fntemrt: and
(indudkrg my interem! mccivtd rr
(111At the rate wtd in vrfuing the
wnridtrntion for the eaarfer) uwe&
retained interest at the time d the
the family",
brnrfct.
28. On pagt 42Ba column A 4 252701- 01qd),Srep 4 of EKampfe 1, i t comcttd to
r t ~ d i0ll0~8:
34.On p e W Z mlumn I. 5 25.2702.
.
.
I
.
~cl(0)fii)(ClI3l,
iinca 9 &ugh 12 horn
tw d the column. tbe la4griage
"mnvtrriun drtt Over the nmout
Lampie I.
(including
acquirltion m t r ] ttinvestcd
Slep 4 b - u n no mnaidmtion WBD
in Ibe ntw mmidrnes ct expended for
fumhbtd f a tbe h m f e r . kbe rdjuranl
=pain of tbr tdrting nsidenct. and
&S&p1
il limi18d10t)le mmmmtof any
the" L e o m a t d to mad "cewtnion
m p r i r u mimfliy w s i d u di-t
- W o n Lt rppbotion d S e p tbr unwt d date over the fair m u k r t v d u t of the
A'm fl i m
rrrcta mr to whicb tbr b u t mntinuea a r
qualified p c m o d mridcnec b c t md

-

*

.

I

*

.

. . . * .

other than the trmnrlemr. mtmben of
the transfemr'rn Iamily. md applicable
he".
family membtn a1 the ban~femr.Tbc
fair market value d an internst ir iu pm 3(d], Step2 offiomple R liam 2 and 3
i a u z o c 2 1-4
rats chuc of the fair market vdut of all the Iaqumgc "StepI, n u b m a m W O
35. On pagc 4270. column 2. 8 15270C
family-held senior equity inltmrts of the (
m
.
0
0
thc
0
.
fair muket vdue of X#
2Ibl. h e 24 the languasc "See
lame d r s r ( d t ~ e r m i a t dimmtdietely
rhuea of A'. p ~ I t m d "L ~xrrrrettdto
aftet the tranaler. e l ir d family-held
read " S ~ e pI . rubtmer m
o
a
,
(WM.#XL 5 252?%lIe)[l)IB) for r discursion" is
benior tquity i n t e r e b b were held by one the value of 500
af A'r pmftmd". corrected to mad "Scr f UPl[c)[l)(B)for dircurrion".
individual): rnd
za. on ppse utll. cot1. I z 5 z m p]The value of aH mpplic~blt
3(d). S ~ e p
4 d f i a m p l e 2. '.lines 1 md f
I1-1
mtained interests held by the t m l e m r the lenguagc "Step 4: No mdjurmn! ir
or mpplicablc family m c m h m (other
made under Sfep 4 for Ibt hame rtasonr . 3& On pagc 4277.urIumrr I. 8 2 5 . 2 7 ~
3. lint 2 the language
after
than an interent w i v e d .a
ret i o d in Example I.". u m c t e d to
considerr tion lor tbe e w f e r ]
*ad " S ~ ek
p The adjulment under Step jmuary 28.1992 of &la" i n comcied
to mad "m
aher lanuay 28.1992.
determined undtt i 23-4
-I
4 i m the u m e n8 i
n b a n p i e 1.".
into ewount tbc mdiustmmi d t s d h d in
a. page -1. wlurnn 1.4 Z L n O f - of rightam.
~aragraph(b)[S) of h r lion.
37. On psgt 4zn. column I, 4 25.273(d), Step 3 of Examp/e 4, hm 1. tht
[ii) Spec~olrdle for wnZrjbutiunc &
language "Step 3. T h e mount allouted 3, line 5, tht knguage "aher January ZB.
caprtol. If the velue d e l e m i a d ip Step 1 to tht" i a comcttd to mad "Step 3. The 1892 of pmptrty" is comcttd tu read
of peragraph @](l) of thir btction ir
"mher lmuary Z& 1992 of pmptn
amount alloaled to the bantfcmd.".
- . -y".
delermined under Uw apccial rule for
30.
page 4 a . column L 4 am- m145Ql(ck,I-adl
contributions to capitsl. rubimci tbt
3Idl. Step 4 of E*umple 4. the lart thnx
value nf any eppliable rttaihcd inicmst h e r of Srep r m r t comaed to e n d , "ia
38.On page 4277. column 3. after
received in exchange lor h e
I 3 0 I . m ( c ) - l ( e ) ( 3 )and preced~ngthe
~83.333.Lf tbc M e o n pm value of Iht
contribution to mpital dettrmintd under applicable retained Intemsted w e n
r i p a b "Fred T. Coldberg. Jr."The
0 ZS.27Cn-2.
f o u o m p l a w a g e ahodd have
fiw,
h e S k p I sdjumment would
rpptated:
have been W-333reduction lor
'

"m

. . . . .

PART P Q t a m
m
WMR M E PAPERWORK

m

o

wU

T

Pa. IL r)lt ;uthorfty citation Tot part

.

a cmrrirmmto read a8 bl~ows:
-awms

hr.s'lbrtnldedMCDatmt
N u m b m In f 602.101fe) b uaeDdsdby

-

sMmgbeCo~atnlionrtorudu

followa:

Fcdcmi Regirtcr Limson oflicer. .4ssirk?l

Chief Coun~el
(CopmHrl.

Im Doc E-rpa
---I

Filed

a:uam]