The final and temporary regulations (T.D. 9368) that are the subject of the correction are under section 904 of the Internal Revenue Code.

As published, final and temporary regulations (T.D. 9368) contain errors that may prove to be misleading and are in need of clarification.

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Accordingly, 26 CFR part 1 is corrected by making the following amendments:

Paragraph 1. The authority citation for part 1 continues to read, in part, as follows:

Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 1.904-4 is amended as follows:

1. In paragraph (h)(4) Example 3, in the first sentence, the language “Example (3)” is removed and the language “Example 2” is added in its place.

2. In paragraph (i), in the last sentence, the language “dividends received or accrued by the taxpayer from each separate noncontrolled section 902 corporation” is removed and the language “income in each separate category” is added in its place.

Par. 3. Section 1.904-7T(g) is amended as follows:

3. In paragraph (2), in the last sentence, the language “Similar rules shall apply to characterize any deficits in the pre-2007 pools and previously-taxed earnings and profits described in section 959(c)(1)(A) that are attributable to earnings in the pre-2007 pools.” is removed and the language “Similar rules shall apply to characterize any deficits in the pre-2007 pools and previously-taxed earnings and profits described in section 959(c)(1) and (2) that are attributable to earnings in the pre-2007 pools.” is added in its place.

4. In paragraph (4), in the last sentence, the language “Similar rules shall apply to characterize any deficits or previously-taxed earnings and profits described in section 959(c)(1)(A) that are attributable to pre-1987 accumulated profits.” is removed and the language “Similar rules shall apply to characterize any deficits or previously-taxed earnings and profits described in section 959(c)(1) and (2) that are attributable to pre-1987 accumulated profits.” is added in its place.

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