This document withdraws proposed regulations relating to the application of section 362(e)(2) to intercompany transactions and to certain modifications to the investment adjustment rules.
On January 23, 2007, the IRS and Treasury Department published a notice of proposed rulemaking in the Federal Register (REG-157711-02, 2007-8 I.R.B. 537 [72 FR 2964]) under §1.1502-36 (Unified Loss Rule). The proposed regulations provided rules under §1.1502-13(e)(4) that would suspend the application of section 362(e)(2) in the case of intercompany transactions. The proposed regulations also provided rules under §1.1502-32(c)(1)(ii) relating to the treatment of items attributable to property transferred in an intercompany section 362(e)(2) transaction.
After consideration of the comments received responding to the notice of proposed rulemaking, the IRS and Treasury Department have concluded that the proposed rules would not be promulgated and, instead, that final regulations would make section 362(e)(2) generally inapplicable to intercompany transactions. Accordingly, §§1.1502-13(e)(4) and 1.1502-32(c)(1)(ii) of the proposed regulations are hereby withdrawn.
* * * * *
Accordingly, under the authority of 26 U.S.C. 7805, proposed §§1.1502-13(e)(4) and 1.1502-32(c)(1)(ii) published in the Federal Register on January 23, 2007 are withdrawn.
Linda E. Stiff,The Internal Revenue Bulletin is produced and published by the Internal Revenue Service and contains IRS pronouncements affecting tax analysis under the Code and the Regulations, including but not limited to Revenue Procedures, Revenue Rulings, Notices and Announcements. Access the IRS site at https://www.irs.gov/help/irsgov-accessibility for information concerning accessibility of IRS materials. While every effort has been made to ensure that the IRB database files available through the TouchTax application are accurate, those using TouchTax for legal research should verify their results against the printed versions of the IRBs available from the IRS.