Corporations & Shareholders: Significant Recent Developments — footnotes

¹ See Bakke and Zaitzeff, “Corporations & Shareholders: Significant Current Developments,” 37 The Tax Adviser 100 (February 2006).

²The IRS has defined “substantially all” as 90% of the fair market value (FMV) of the gross assets; see Rev. Procs. 77-37, 1977-2 CB 568, Section 3.04, and 96-30, 1996-1 CB 696, Section 4.03(5).

³Notice 2006-81, IRB 2006-40, 595, provides guidance on Sec. 355(b)(3), addressing the continuing applicability of Sec. 355(b)(2)(A), as well as the transition rule.

⁴TD 9271 (7/10/06).

⁵TD 9071 and REG-143679-02 (both dated 7/9/03).

⁶Rev. Rul. 2001-46, 2001-2 CB 321.

⁷TD 9254 (3/13/06).

⁸TD 9048 (3/14/03).

⁹TD 9187 (3/22/05). For a summary, see Bakke and Zaitzeff, note 1 supra, at pp. 102–103.

¹⁰See General Utilities & Operating Co., 296 US 200 (1935). Under the General Utilities doctrine, a corporation could distribute appreciated property to its shareholders without recognizing gain. The Tax Reform Act of 1986 repealed this holding to require corporate-level gain recognition on the corporation’s sale or distribution of appreciated property.

¹¹TD 9244 (1/26/06).

¹²REG-138879-05 (1/26/06).

¹³REG-116564-03 (5/03/04).

¹⁴See Regs. Sec. 1.358-2(a)(2)(iii).

¹⁵TD 9242 (1/26/06).

¹⁶REG-117969-00 (1/5/05). For a summary; see Bakke and Zaitzeff, note 1 supra, at p. 104.

¹⁷See Sec. 368(b).

¹⁸Rev. Rul. 99-6, IRB 1996-1, 6.

¹⁹TD 9250 (2/17/06).

²⁰REG-127740-04 (5/25/05).

²¹TD 9264 and REG-134317-05 (both dated 5/30/06).

²²Rev. Proc. 2006-21, IRB 2006-24, 1050.

²³Rev. Proc. 89-56, 1989-2 CB 643.

²⁴Rev. Proc. 90-39, 1990-2 CB 365.

²⁵Rev. Proc. 2002-32, 2002-1 CB 959.

²⁶Ann. 2006-30, IRB 2006-19, 879.

²⁷REG-150313-01 (10/18/02).

²⁸See note 19, supra.

²⁹Notice 2006-85, IRB 2006-19, 879.

³⁰Coltec Industries, Inc., 454 F3d 1340 (Fed. Cir. 2006).