View Rule
View EO 12866 Meetings | Printer-Friendly Version Download RIN Data in XML |
TREAS/IRS | RIN: 1545-BI31 | Publication ID: Spring 2009 |
Title: ●Modification to Consolidated Return Regulation Permitting an Election to Treat a Liquidation of a Target, Followed by a Recontribution to a New Target, as a Cross-Chain Reorganization | |
Abstract: This change to the regulations under Treasury Regulations section 1.1502-13(f)(5) is a modification that has been made necessary in light of the regulations under Treasury Regulations section 1.368-2(k) that were issued in October 2007. The existing section 1.1502-13(f)(5) election envisions that, when the election under that section is made, there is a cross-chain reorganization resulting in stock in a new corporation being a successor asset to the stock of a corporation that was previously liquidated. Under the section 1.368-2(k) regulations now in effect, the liquidation of a corporation followed by the transfer of the liquidated corporations assets to a new controlled corporation by the parent of the liquidated corporation would be an upstream reorganization followed by a drop of assets to a controlled corporation (the stock of the new corporation would not be a successor asset in this case). The modification will clarify that, when the election is made, the reorganization will be viewed as a cross-chain reorganization, rather than an upstream reorganization followed by a drop of assets, as it would be viewed under section 1.368-2(k). | |
Agency: Department of the Treasury(TREAS) | Priority: Substantive, Nonsignificant |
RIN Status: First time published in the Unified Agenda | Agenda Stage of Rulemaking: Proposed Rule Stage |
Major: No | Unfunded Mandates: Undetermined |
CFR Citation: 26 CFR 1.1502-13 | |
Legal Authority: 26 USC 7805 26 USC 1502 |
Legal Deadline:
None |
||||||
Timetable:
|
Additional Information: REG-139068-08 Drafting attorney: Mary W. Lyons (202) 622-7056 Reviewing attorney: Kenneth E. Cohen (202) 622-3494 Treasury attorney: Donald Bakke (202) 622-0865 CC: CORP | |
Regulatory Flexibility Analysis Required: No | Government Levels Affected: None |
Federalism: No | |
Included in the Regulatory Plan: No | |
RIN Data Printed in the FR: No | |
Agency Contact: Mary W. Lyons Attorney Department of the Treasury Internal Revenue Service 1111 Constitution Avenue NW., Washington, DC 20224 Phone:202 622-3860 Fax:202 622-6298 Email: mary.w.lyons@irscounsel.treas.gov |