Service Corrects Cash Receipts Reporting Regs.

The Service has issued a correction to final regulations (T.D. 8098) under 6050I relating to the reporting requirements arising when cash payments in excess of $10,000 are received in a trade or business. (For a summary of the regs, see Tax Notes, Sept. 8, 1986, p. 949.)

In section 1.6050I-1(d)(4)(i), the sentence: "An entire transaction consists of both the transaction as defined in paragraph (c)(3)(i) of this section and the receipt of cash by the recipient." is corrected to read: "An entire transaction consists of both the transaction as defined in paragraph (c)(7)(i) of this section and the receipt of cash by the recipient.".

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[4830-01]

DEPARTMENT OF THE TREASURY

[T.D. 8098]

RIN 1545-AG97

AGENCY: Internal Revenue Service, Treasury.

ACTION: Correcting Amendment.

SUMMARY: This document contains a correction to final regulations (T.D. 8098), which were published in the Federal Register for Thursday, September 4, 1986 (51 FR 31610). The final regulations related to the requirement of reporting cash in excess of $10,000 received in a trade or business.

EFFECTIVE DATE: September 4, 1986.

FOR FURTHER INFORMATION CONTACT: Philip Scott, (202) 622-4960 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

BACKGROUND

The final regulations that are the subject of this correcting amendment were added to part 1 of title 26 of the Code of Federal Regulations under section 6050I of the Internal Revenue Code.

NEED FOR CORRECTION

As published, T.D. 8098 contained an error which may prove to be misleading and is in need of clarification.

LIST OF SUBJECTS IN 26 CFR 1.6031-1 THROUGH 1.6060-1

Income taxes, Reporting and recordkeeping requirements. Accordingly, 26 CFR part 1 is corrected by making the following correcting amendment:

PART 1 -- INCOME TAX; TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 1953

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

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

Par. 2. In section 1.6050I-1(d)(4)(i), the second sentence is revised to read as follows:

SECTION 1.6050I-1 RETURNS RELATING TO CASH IN EXCESS OF $10,000

* * * * *

(d) * * *

(4) * * * (i) * * * An entire transaction consists of both the transaction as defined in paragraph (c)(7)(i) of this section and the receipt of cash by the recipient. * * * * * * * *

Dale D. Goode