09 September 2019 BREAKING TAX NEWS | Proposed IRC Section 382(h) regulations on built-in gain/loss would significantly alter companies’ calculation of ‘built-in” items The IRS has issued proposed regulations (REG-125710-18) addressing the items of income and deductions that are included in calculating built-in gains and losses under IRC Section 382 and reflecting changes made to the Internal Revenue Code by recent tax legislation. Among other things, the proposed regulations would change how to determine a loss corporation's "built-in" items by following only a modified IRC Section 1374 approach and abandoning the IRC Section 338 approach identified in Notice 2003-65. Taxpayers may, however, continue following the approaches in Notice 2003-65 until the proposed regulations are finalized. A Tax Alert on the proposed regulations is forthcoming Document ID: 2019-9017 |
