M&A tax recent guidance

February 2014

This month features:

  • Proposed regulations address the determination of partners' shares of liabilities under Section 752 and certain deficiencies and technical ambiguities under Section 707 regulations (REG-119305-11)
  • Proposed regulations subject tiered partnerships to mandatory basis adjustment rules, modify basis adjustment allocations, disallow Section 734 adjustments to corporate partner stock, adopt Sections 743(e) and 743(f), provide guidance for Section 704(c)(1)(C) application, and mandate Section 704(c) layers (REG-144468-05)
  • Temporary regulations identify some stock of a foreign corporation that is disregarded in calculating ownership of the corporation when determing whether it is a surrogate foreign corporation under Section 7874 (TD 9654)
  • Revenue procedures governing letter rulings updated (Rev. Procs. 2014-1, 2014-2, 2014-3)
  • IRS applies discretionary rule to exclude intercompany gain from gross income (PLR 201402001)
  • IRS underscores significance of SEC filings for Section 382 purposes (PLR 201403007)
  • Redemption of hook stock in split-down transaction qualifies under Section 355 (PLR 201404002)

This Month in M&A archive

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Mark Boyer
Global M&A Tax Leader – WNTS Mergers & Acquisitions Tax
Tel: +1 (202) 414 1629

Tim Lohnes
Partner, M&A Tax
Tel: +1 (202) 414 1686

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