[Federal Register Volume 73, Number 181 (Wednesday, September 17, 2008)]
[Proposed Rules]
[Page 53793]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-21005]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

RIN 1545-BB67
[REG-157711-02]


Unified Rule for Loss on Subsidiary Stock

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Partial withdrawal of notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: 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.

FOR FURTHER INFORMATION CONTACT: Marcie P. Barese, (202) 622-7790 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION: 

Background and Explanation of Provisions

    On January 23, 2007, the IRS and Treasury Department published a 
notice of proposed rulemaking in the Federal Register (72 FR 2964) 
under Sec.  1.1502-36 (Unified Loss Rule). The proposed regulations 
provided rules under Sec.  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 Sec.  
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, Sec. Sec.  
1.1502-13(e)(4) and 1.1502-32(c)(1)(ii) of the proposed regulations are 
hereby withdrawn.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Partial Withdrawal of Proposed Regulations

    Accordingly, under the authority of 26 U.S.C. 7805, proposed 
Sec. Sec.  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Federal Register on January 23, 2007 are withdrawn.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,
Deputy Commissioner for Services and Enforcement.
 [FR Doc. E8-21005 Filed 9-9-08; 4:15 pm]
BILLING CODE 4830-01-P