Daily Tax Update - June 11, 2007

IRS FINAL RULES SET SAFE HARBOR FOR VALUATION UNDER SECTION 475: Today, the IRS issued final regulations (TD-9328) which set forth an elective safe harbor that permits dealers in securities and dealers in commodities to elect to use the values of positions reported on certain financial statements as the fair market values of those positions for purposes of section 475.  According to the IRS, “This safe harbor is intended to reduce the compliance burden on taxpayers and to improve the administrability of the valuation requirement of section 475 for the IRS.”  These regulations are effective on June 12, 2007.

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