RSM has submitted to the Treasury Department and the Internal Revenue Service comments addressing Proposed Regulation section 1.382-7, which addresses built-in gains and built-in losses under section 382(h).
The Proposed Regulations are taxpayer unfavorable and eliminate the use of the wasting asset concept, which has been available to taxpayers for 15 years through Notice 2003-65. Our comments set forth recommendations regarding these and certain other matters addressed by the Proposed Regulations for the consideration of Treasury and the Service when re-proposing or finalizing the Proposed Regulations or issuing other related guidance.
Our summaries of the proposed regulations and their potential impact can be found in this comment letter:
