Overview
Proposed ‘No Net Value’ Regulations Withdrawn: The IRS and Treasury withdrew
proposed regulations under sections 332, 351, and 368 that were issued in 2005. The proposed regulations generally would have provided that the non-recognition rules in subchapter C do not apply unless there is an exchange (or, in the case of section 332, a distribution) of net value.
Lisa Zarlenga, a partner in Steptoe’s Washington office, stated: “Although the proposed regulations would have confirmed the current law treatment of tax-free liquidations, they would have overruled caselaw permitting reorganizations of insolvent corporations. As a result, withdrawing the proposed regulations may provide greater flexibility in reorganizing financially troubled corporations.”
Ways and Means, Finance Committees Announce Tax Reform Hearings: Senate Finance Committee Chairman Orrin Hatch (R-UT) announced that the committee will hold a hearing titled “Comprehensive Tax Reform: Prospects and Challenges,” on July 17 at 9 a.m.
House Ways and Means Tax Policy Subcommittee Chairman Peter Roskam (R-IL) announced that the subcommittee will hold a hearing titled “How Tax Reform Will Simplify Our Broken Tax Code and Help Individuals and Families” on July 19 at 2:00 p.m.
The Tax Policy Subcommittee also announced the witness list for a hearing titled “How Tax Reform Will Help America’s Small Businesses Grow and Create New Jobs” on July 13 at 10:00 a.m.:
- Teresa Meares
President, DGG Uniform and Work Apparel - Scott E. VanderWal
Owner, VanderWal Farms - Rebecca Boenigk
Chief Executive Officer, Neutral Posture - Chye-Ching Huang
Deputy Director – Federal Tax Policy, Center on Budget and Policy Priorities
Miscellaneous Guidance Released: Revenue Procedure 2017-43 contains revised procedures for applications for a suspension of benefits under a multiemployer defined benefit pension plan that is in critical and declining status under section 432(e)(9).