Tax
7/14/2009 10:08:56 AM EST
IRS Issues Advice Affecting The Ability to Use Losses
In the current business environment taxpayers are looking to fortify their cash position and reduce their overall tax burden. Identifying available losses is one way to achieve these goals. This article discusses three recent forms of guidance in which the Internal Revenue Service (IRS or the Service) addresses the use of losses and a taxpayer’s ability or inability to use them.
IRS uses “As the Context May Require” to turn off the SRLY Successor and Predecessor Rules.
In a somewhat results-oriented manner the Service finds against a taxpayer (Taxpayer) by its interpretation of the language of Treas. Reg. Section 1.1502-21(f)(1) that provides, for purposes of Section 1.1502-21, any reference to a corporation, member, common parent, or subsidiary, that includes, as the context may require, a reference to an successor or predecessor, as defined in Section 1.1502-1(f)(4) (italics added).
Annette M. Ahlers’ IRS Issues Advice Affecting The Ability to Use Losses can be read in its entirety at the Tax Law Center. | Rate this article: |
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