Source: https://www.currentfederaltaxdevelopments.com/blog/2015/9/25/final-regulations-revising-the-definition-of-an-f-reorganization-published?format=amp
Timestamp: 2018-02-18 10:27:13
Document Index: 201594122

Matched Legal Cases: ['§368', '§368', '§1', '§368', '§1', '§1']

Final Regulations Revising the Definition of an F Reorganization Published
Final regulations (TD 9739) have been published by the IRS detailing the requirements for a transaction to be deemed a tax free F reorganization under the provisions found at IRC §368(a)(1)(F).
An “F” reorganization is defined as “a mere change in identity, form, or place of organization of one corporation, however effected.” [IRC §368(a)(1)(F)] A corporation that is the survivor of an F reorganization takes over all of the attributes of its predecessor and is, for all practical purposes, treated as the same corporation as the predecessor for federal tax purposes.
Under the final regulations a transaction being tested to see if it will qualify as an F reorganization must pass tests. These tests, found at Reg. §1.368-2(m)(1), are:
If a transaction meets these requirements but also meets the requirement to be treated as a reorganization under another provision found in IRC §368(a)(1), the following rules are applied to “break the tie” and determine how the transaction will be classified [Reg. §1.368-2(m)(3)(iv):
If the potential F reorganization or a step thereof qualifies as a reorganization or part of a reorganization under another provision of section 368(a)(1), and if a corporation in control (within the meaning of section 368(c)) of the resulting corporation is a party to such other reorganization (within the meaning of section 368(b)), the potential F reorganization will not qualify as a reorganization under section 368(a)(1)(F).
Except as provided in paragraph (m)(3)(iv)(A) of this section, if, but for this paragraph (m)(3)(iv)(B), the potential F reorganization would qualify as a reorganization under both section 368(a)(1)(F) and one or more of sections 368(a)(1)(A), 368(a)(1)(C), or 368(a)(1)(D), then for all federal income tax purposes the potential F reorganization will qualify as a reorganization only under section 368(a)(1)(F).
The final regulations contain 13 examples of the application of these new rules, found at Reg. §1.368-2(m)(4).