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Significant recent corporate developments.(C corporations and consolidated returns)

This article summarizes significant current developments affecting C corporations and consolidated returns. It covers new final, temporary, and proposed regulations and other noteworthy IRS guidance and case law.

EXECUTIVE SUMMARY

* The IRS finalized regulations under Sec. 1502 that cover basis determinations For subsidiary stock in certain transactions involving consolidated group members and when subsidiary stock becomes worthless.

* Temporary regulations provide guidance on the distribution requirement in all-cash D reorganizations, the continuity of interest requirement For Sec. 368 reorganizations, and the treatment of prepaid income under the built-in gain ...

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