IRS and Treasury finalize section 304 anti-avoidance regulations

December 2012


On December 21, 2012, the IRS and Treasury released final regulations (Treas. Reg. §1.304-4, T.D. 9606) addressing the use of controlled corporations to avoid the application of section 304 (the 'Final Regulation'). The Final Regulation finalizes, without modification, the temporary regulation issued in 2009 (Treas. Reg. §1.304-4T, T.D. 9477) (the '2009 Temporary Regulation') that was scheduled to sunset as of December 28, 2012. The 2009 Temporary Regulation had replaced a temporary regulation originally published June 14, 1988 (the '1988 Temporary Regulation'), which was grandfathered from the three year expiration rule of section 7805(e).

Contact us

Doug McHoney
Co-leader, US Integrated Global Structuring team
Tel: +1 (312) 298 2527

Calum Dewar
Co-leader, US Integrated Global Structuring team
Tel: +1 (646) 471 5254

Follow us