# Prop. Treas. Reg. § 301.7701-2: Business entities; definitions.

Proposed regulation, not in force. REG-252487-96, 62 FR 30785, published 1997-06-05 <https://www.federalregister.gov/documents/1997/06/05/97-14735/inbound-grantor-trusts-with-foreign-grantors>. Interprets 26 U.S.C. § 7701.

8. Section 301.7701-2(c)(2)(iii): Special Rule for Business Entities That Make Purported Gifts

Par. 6. Section 301.7701-2 is amended by adding paragraph (c)(2)(iii) to read as follows:

* * * * *

(c) * * *

(2) * * *

(iii) Special rule for foreign business entities that make purported gifts. For the purposes of applying the rules of section 672(f)(4), a wholly owned business entity shall be treated as a corporation, separate from its single owner.

* * * * * Michael P. Dolan, Acting Commissioner of Internal Revenue.