Daily Tax Update - June 4, 2015: Treasury, IRS Issue Final Regulations Preventing Sales of Securities by Treasury From Triggering Loss Limitations

Treasury, IRS Issue Final Regulations Preventing Sales of Securities by Treasury From Triggering Loss Limitations:  Today, Treasury and the IRS issued final regulations (T.D. 9721) under section 382 that adopt, without substantive change, temporary and proposed regulations published in 2014.  The final regulations affect corporations whose stock is or was acquired by Treasury pursuant to certain programs under the Emergency Economic Stabilization Act of 2008.  The final regulations provide that changes made to the section 382 segregation rules under the 2013 regulations do not apply to the sale of a program instrument by Treasury to public shareholders.  In doing so, the final regulations seek to prevent companies whose stock was acquired by Treasury from having a change in ownership when Treasury sells its holdings to public shareholders. 

OECD Releases Discussion Draft on Pricing of Hard-to-Value Intangibles:  Today, the OECD released a discussion draft on the arm’s-length pricing of intangibles where valuation is highly uncertain at the time of the transaction.  The discussion draft responds to the requirement under Action 8 of the Base Erosion and Profit Shifting Action Plan to develop an approach to pricing hard-to-value intangibles.  The discussion draft, which proposes revisions to the OECD’s existing guidance, “includes an approach based on the determination of the arm’s length pricing arrangements, including any contingent pricing arrangements, that would have been made between independent enterprises at the time of the transaction.”  

Miscellaneous Guidance:
Revenue Ruling 2015-12 provides the rates for interest on tax overpayments and underpayments for the calendar quarter beginning July 1, 2015.

T.D. 9713 contains amendments to temporary regulations, issued in March 2015, relating to information reporting by brokers of debt instruments.  The amendments change the applicability date of the temporary regulations for reporting certain information on a transfer statement from June 30, 2015 to January 1, 2016.