skip to content »

G reit liquidating trust

g reit liquidating trust-41

The IRS has revoked its determination that Community Child Care of Portland, OR; Camp Meeting of the Assoc. of the Methodist Episcopal Church of Mount Tabor, NJ; Berryessa PAL Youth Football Club, Inc., of San Jose, CA; Rape Survivors Anonymous World Services, Inc., of Oswego, IL; and Round Rock Band Boosters, Inc., of Round Rock, TX, qualify as organizations described in sections 501(c)(3) and 170(c)(2) of the Code.

The existing final regulations under §1.367(b)-2 are revised to clarify that the definition of earnings and profits in §1.367(b)-2(l)(8) applies only for purposes of §§1.367(b)-7 and 1.367(b)-9.On May 31, 2007, the IRS and Treasury Department issued Notice 2007-48, 2007-25 I. Each notice describes transactions the IRS and Treasury Department believe raise significant policy concerns.Notice 2006-85 describes triangular reorganizations in which a subsidiary (S) purchases stock of its parent corporation (P) from P in exchange for property, and then exchanges the P stock for the stock or assets of a target corporation (T), but only if P or S (or both) is foreign. It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. Bulletin contents are compiled semiannually into Cumulative Bulletins, which are sold on a single-copy basis.Section 367(b) was enacted to ensure that international tax considerations are adequately addressed when the nonrecognition provisions of subchapter C of the Code apply to certain exchanges involving foreign corporations. For example, the temporary regulations apply to a triangular reorganization regardless of whether P controls S (within the meaning of section 368(c)) when S acquires the P stock that is used in the reorganization.

Congress further noted that “it is essential to protect against tax avoidance in transfers to foreign corporations and upon the repatriation of previously untaxed foreign earnings....” H. In a triangular reorganization subject to the temporary regulations, adjustments shall be made that have the effect of a distribution of property from S to P under section 301.

The last Bulletin for each month includes a cumulative index for the matters published during the preceding months.

These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period.

The text of the temporary regulations serves as the text of the proposed regulations (REG-136020-07) set forth in the notice of proposed rulemaking on this subject published in this issue of the Bulletin.

On September 22, 2006, the IRS and Treasury Department issued Notice 2006-85, 2006-2 C. 677, which announced that regulations would be issued under section 367(b) to address certain triangular reorganizations under section 368(a) involving one or more foreign corporations. 1428, which amplified Notice 2006-85 and announced that additional regulations would be issued under section 367(b).

The notices announced that Treasury and the IRS would issue regulations under section 367(b) to address transactions where either a parent corporation (P) or its subsidiary (S) (or both) are foreign, and the corporations seek to avoid treating as a distribution the amount of property that S transfers to P or P’s shareholders in exchange for P stock, which S then uses to acquire the stock or assets of another corporation (T) in a triangular reorganization. It is published weekly and may be obtained from the Superintendent of Documents on a subscription basis.