Section 482; Methods To Determine Taxable Income in Connection With a Cost Sharing Arrangement; Correction

Document Headings Document headings vary by document type but may contain the following: the agency or agencies that issued and signed a document the number of the CFR title and the number of each part the document amends, proposes to amend, or is directly related to the agency docket number / agency internal file number the RIN which identifies each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions See the Document Drafting Handbook for more details. Department of the Treasury Internal Revenue Service 26 CFR Part 1 [TD 9568] RIN 1545-BI47 AGENCY: Internal Revenue Service (IRS). ACTION: Correcting amendment. SUMMARY: This document contains corrections to final regulations (TD 9568), which were published in the Federal Register on Thursday, December 22, 2011 ( 76 FR 80082 ), Relating to section 482 and methods to determine taxable income in connection with a cost sharing arrangement. DATES: Effective January 25, 2012, and applicable beginning December 22, 2011. FOR FURTHER INFORMATION CONTACT: Joseph L. Tobin at (202) 435-5265 (not a toll-free number). SUPPLEMENTARY INFORMATION: Background The final regulations that are the subject of these corrections are under section 482 of the Internal Revenue Code. Need for Correction As published, final regulations (TD 9568), contains errors which 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 Accordingly, 26 CFR Parts 1 and 301 are corrected by making the following correcting amendments: PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 continues to read in part as follows: Authority: 26 U.S.C. 7805 * * * PART 1—[CORRECTED] Par. 2. Section 1.482-1 is amended by revising the first and second sentences of paragraph (b)(2)(i) to read as follows: § 1.482-1 Allocation of income and deductions among taxpayers. * * * * * (b) * * * (2) * * * (i) Metho…