Skip to content
LexBuild

Stock Transfer Rules: Carryover of Earnings and Taxes

---
identifier: "/us/fr/E8-5334"
source: "fr"
legal_status: "authoritative_unofficial"
title: "Stock Transfer Rules: Carryover of Earnings and Taxes"
title_number: 0
title_name: "Federal Register"
section_number: "E8-5334"
section_name: "Stock Transfer Rules: Carryover of Earnings and Taxes"
positive_law: false
currency: "2008-03-18"
last_updated: "2008-03-18"
format_version: "1.1.0"
generator: "[email protected]"
agency: "Treasury Department"
document_number: "E8-5334"
document_type: "rule"
publication_date: "2008-03-18"
agencies:
  - "Treasury Department"
  - "Internal Revenue Service"
cfr_references:
  - "26 CFR Part 1"
rin: "1545-AX65"
fr_citation: "73 FR 14386"
fr_volume: 73
docket_ids:
  - "TD 9273"
effective_date: "2008-03-18"
fr_action: "Correction to final regulations."
---

#  Effective dates and coordination rules.

**AGENCY:**

Internal Revenue Service (IRS), Treasury.

**ACTION:**

Correction to final regulations.

**SUMMARY:**

This document contains a correction to final regulations (TD 9273) that were published in the *Federal Register* on Tuesday, August 8, 2006 (71 FR 44887) addressing the carryover of certain tax attributes, such as earnings and profits and foreign income tax accounts, when two corporations combine in a corporate reorganization or liquidation that is described in both sections 367(b) and 381 of the Internal Revenue Code.

**DATES:**

This correction is effective March 18, 2008.

**FOR FURTHER INFORMATION CONTACT:**

Jeffrey L. Parry at (202) 622-3050 (not a toll-free number).

**SUPPLEMENTARY INFORMATION:**

**Background**

The final regulations (TD 9273) that are the subject of this correction are under section 367(b) of the Internal Revenue Code.

**Need for Correction**

As published, final regulations (TD 9273) contain errors that may prove to be misleading and are in need of clarification.

**List of Subjects in 26 CFR Part 1**

Income taxes, Reporting and recordkeeping requirements.

**26 CFR Part 1**

**Correction of Publication**

Accordingly, 26 CFR part 1 is corrected by making the following correcting amendment:

**PART 1—INCOME TAXES**

*Paragraph 1* . The authority citation for part 1 continues to read, in part, as follows:

**Authority:**

26 U.S.C. 7805. * * *

**26 CFR Part 1**

*Par. 2* . Section 1.367(b)-6 is amended by revising paragraph (a)(1) to read as follows:

§ 1.367(b)-6

(a) *Effective date.* (1) *In general.* Except as otherwise provided in this paragraph (a)(1), §§ 1.367(b)-1 through 1.367(b)-5, and this section, apply to section 367(b) exchanges that occur on or after February 23, 2000. The rules of §§ 1.367(b)-3 and 1.367(b)-4, as they apply to reorganizations described in section 368(a)(1)(A) (including reorganizations described in section 368(a)(2)(D) or (E)) involving a foreign acquiring or foreign acquired corporation, apply only to transfers occurring on or after January 23, 2006. Section 1.367(b)-4(b)(1)(ii) applies to all triangular reorganizations and reorganizations described in section 368(a)(1)(G) and (a)(2)(D) occurring on or after January 23, 2006, although taxpayers may apply § 1.367(b)-4(b)(1)(ii) to triangular B reorganizations occurring on or after February 23, 2000, in a taxable year that is not closed by the period of limitations if done consistently with respect to all such triangular B reorganizations. The second sentence of paragraph (a) in § 1.367(b)-4 shall apply to section 304(a)(1) transactions occurring on or after February 23, 2006; however, taxpayers may rely on this sentence for all section 304(a)(1) transactions occurring in open taxable years. Section 1.367(b)-1(c)(2)(v), (c)(3)(ii)(A), (c)(4)(iv), (c)(4)(v), 1.367(b)-2(j)(1)(i), (l), and 1.367(b)-3(e) and (f), apply to section 367(b) exchanges that occur on or after November 6, 2006. For guidance with respect to § 1.367(b)-1(c)(3)(ii)(A) and (c)(4)(iv) and (v) and § 1.367(b)-2(j)(1)(i) for exchanges that occur before November 6, 2006, see 26 CFR part 1 revised as of April 1, 2006.

La Nita VanDyke,

Branch Chief, Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration).