Subscribe to the Tax Headline RSS feed | Subscribe to the Tax Headline feed via EmailIRS Unveils Major Guidance on Ownership Changes Under Section 382, Wins Praise
June 14, 2010 in Daily Tax Report · Leave a Comment
The Internal Revenue Service June 11 unveiled major guidance on ownership changes under tax code Section 382 that practitioners said represented significant simplification and could lead to fewer changes that would trigger limitations on the use of losses in reorganizations.
In Notice 2010-49, the agency set out two potential new approaches for the application of Section 382 for small shareholders, including the application of the aggregation and segregation rules to public groups. In Notice 2010-50, IRS provided guidance on how to address fluctuations in stock value in determining owner shifts of loss corporations that have more than one class of stock outstanding.
In a separate development under Section 382, IRS issued final rules (T.D. 9487) holding that prepaid income is not recognized built-in gain for purposes of Section 382(h), which it said were unchanged from rules (REG-144540-06) it proposed in 2007 (114 DTR G-7, 6/14/07).
