• Many Happy (Consolidated) Returns or ‘Til "DIT" Do Us Part? Final Treasury Regulations Address Intercompany Items of Gain on Member Stock
  • March 10, 2011
  • Law Firm: Sutherland Asbill Brennan LLP - Washington Office
  • On March 3, 2011, the Internal Revenue Service and Treasury issued final Treasury regulations that amend Treasury Regulation § 1.1502-13 with respect to the treatment of certain intercompany items of gain from transactions involving stock of members of a consolidated group (the Final Regulations). The Final Regulations are effective on March 4, 2011, i.e., the date of their publication in the Federal Register. As we discuss in greater detail below, the Final Regulations contain several notable changes (and an important addition) in comparison to the previous temporary Treasury regulations issued in March 2008 as Temporary Treasury Regulation § 1.1502-13T(c)(6)(ii)(C) (the Prior Temporary Regulations). However, the overall approach of the Final Regulations does not diverge significantly from the approach of the Prior Temporary Regulations.