CFR > Title 26 - Internal Revenue > CHAPTER I—INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY > SUBCHAPTER A—INCOME TAX (Parts 1–19) > PART 1—INCOME TAXES > 1.367(a)-3T—Treatment of transfers of stock or securities to foreign corporations (temporary).

1.367(a)-3T—Treatment of transfers of stock or securities to foreign corporations (temporary).

(a) through (b)(2)(i)(B) [Reserved] For further guidance, see § 1.367(a)-3(a) through (b)(2)(i)(B).
(b) (2) (C) If in connection with a transaction described in § 1.367(b)-1 4T, one or more U.S. persons transfer stock of T, as defined in § 1.358-6(b)(1)(iii), to a corporation in a transfer described in section 367(a), and the amount of gain in the T stock that would otherwise be recognized under section 367(a) is less than the deemed distribution that would result from the adjustments made under § 1.367(b)-1 4T and that would be treated as a dividend under section 301(c)(1), then section 367(b), and not section 367(a), shall apply to such transaction. This paragraph (b)(2)(i)(C) applies to transfers occurring on or after May 23, 2008.
(b) (2) through (f) [Reserved] For further guidance, see § 1.367(a)-3(b)(2)(ii) through (f).
(g) Effective/applicability date. Paragraph (b)(2)(i)(C) of this section applies to transfers occurring on or after May 23, 2008.
(h) Expiration date. The applicability of paragraph (b)(2)(i)(C) of this section expires on May 23, 2011.

Code of Federal Regulations

[T.D. 9446, 74 FR 13340, Mar. 27, 2009]