SECTION 1. BACKGROUND

On November 18, 2002, the Internal Revenue Service issued temporary regulations under section 6043(c) and 6045 (T.D. 9022, 2002–48 I.R.B. 909 [67 FR 69468]). These regulations require information reporting if a domestic corporation undergoes an acquisition of control or a substantial change in capital structure after December 31, 2001, and gain (if any) is required to be recognized due to the application of section 367(a) as a result of the transaction. In such case, the regulations require the corporation to file Form 8806 (or

February 10, 2003 450 2003–6 I.R.B.

FOR FURTHER INFORMATION CONTACT: Gerald B. Fleming, (202) 622– 7770, or George R. Johnson, (202) 622– 7930 (not a toll-free number).

SUPPLEMENTARY INFROMATION:

Background

The final regulations that are the subject of these corrections are under sections 1502 and 6402(j) of the Internal Revenue Code.

Need for Correction

As published, the final regulations contain errors that may prove to be misleading and are in need of clarification.

Correction of Publication

Accordingly, the publication of the final regulations (T.D. 9002), that were the subject of FR Doc. 02–16399, is corrected as follows:

§ 1.1502–77T [Corrected]

1. On page 43544, column 3, § 1.1502– 77T [Removed], line 7, the language “year (or agent designated under” is corrected to read “year (or substitute agent designated under”.

§ 602.101 [Corrected]

2. On page 43545, column 1, the amendatory language for paragraph 12 and § 602.101(b) is corrected to read as follows:

3. Section 602.101(b) is amended by removing the entries “1.1502–77.............. 1545–0123” and “1.1502–77T............ 1545– 1046” and adding new entries for §§ 1.1502–77 and 1.1502–77A in numerical order to the table to read as follows:

§ 602.101 OMB Control numbers.

* * * * * (b) * * *

individual circumstances, you may be required to report any gain from the exchange on your federal income tax return. You had gain from the exchange if [the cash and] the fair market value on [the date of the exchange] of the new shares [and any other property] you received exceeded your basis in the shares of [name of corporation] that you gave up in the exchange. You are not permitted to claim a loss on your tax return with respect to the exchange. The legend “Important Tax Return Document Enclosed” must appear in a bold and conspicuous manner on the outside of the envelope containing the letter. The letter must be furnished to the shareholder on or before February 15, 2003.

.02 The corporation is required to file an interim statement with the Service in accordance with section 1.6043–4T(a).

.03 Upon inquiry by a shareholder of record on the date of the transaction (including any clearing organization or broker), the corporation must identify itself as a corporation described in section 3.01 of this announcement.

.04 For transactions occurring in 2002, provided the requirements of this section are satisfied, the corporation is not required to file Form 1099–CAP with the Service with respect to its shareholders, or Form 1096 transmitting Form 1099–CAP. In addition, the corporation is not required to furnish Form 1099–CAP to any of its shareholders.