Tax News

CCH (cch.taxgroup.com) reports:

The IRS has provided effective date relief with respect to proposed regulations, issued in January 2007, that provide rules for consolidated group members on the transfer of a loss share of subsidiary stock (NPRM REG-157711-02, TAXDAY, 2007/01/17, I.3). The proposed effective date would have made the regulations applicable to all transfers on or after the date that the regulations are published as final regulations in the Federal Register . Comments received by practitioners regarding the proposed effective date, however, expressed concerns regarding a significant burden on taxpayers attempting to negotiate transactions prior to the publication of the final regulations.
Accordingly, while the regulations will generally apply to transfers on or after the date they are published as final regulations, they will not apply to a transfer to an unrelated party if the transfer is pursuant to an agreement that is binding prior to the date the regulations are published as final regulations and at all times thereafter. The IRS and Treasury Department anticipate that the rule will incorporate the provisions of Code Sec. 267(b) in determining whether parties are related for this purpose.
Notice 2008-9, 2008FED ¶46,217
Other References:
Code Sec. 267
CCH Reference - 2007FED ¶14,161.01
Code Sec. 337
CCH Reference - 2007FED ¶16,242.01
Code Sec. 358
CCH Reference - 2007FED ¶16,553.041
Code Sec. 597
CCH Reference - 2007FED ¶23,811.025
Code Sec. 1502
CCH Reference - 2007FED ¶33,168.0236
Tax Research Consultant
CCH Reference - TRC CCORP: 45,410
CCH Reference - TRC CCORP: 45,414