INTERNAL REVENUE SERVICE ISSUES RULE: NON-APPLICABILITY OF SECTION 357(C) TO CONSOLIDATED GROUPS

WASHINGTON, Oct. 16 -- Internal Revenue Service has issued a rule called: Non-Applicability of Section 357(c) to Consolidated Groups.

The rule was published in the Federal Register on Oct. 16 by Frank J. Bisignano, Chief Executive Officer.

Summary: This document contains final regulations clarifying that, in the case of certain transfers between members of a consolidated group, a transferee's assumption of certain liabilities will not reduce the transferor's basis in the transferee's stock received in the transfer. These final regulations affect consolidated groups and their members.

For more information, contact William W. Burhop at 202/317-5363 (not a toll-free number).

The full text of the rule can be found at: http://www.gpo.gov/fds...