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IRS Issues Guidance On Application Of NOL Carryover Rules To Banks.

SEP. 30, 2008

Notice 2008-83; 2008-42 I.R.B. 905

DATED SEP. 30, 2008
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Areas/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2008-20957
  • Tax Analysts Electronic Citation
    2008 TNT 191-3
Citations: Notice 2008-83; 2008-42 I.R.B. 905
APPLICATION OF SECTION 382(h) TO BANKS

Editor's Note: Notice 2008-83 is generally applicable to ownership changes occurring before January 1, 2009. See Special Note in Code Section 382 concerning limitations on built-in losses following an ownership change in Act Section 1261(b) of P.L. 111-5, the American Recovery and Reinvestment Act of 2009.

 

Part III -- Administrative, Procedural, and Miscellaneous

 

 

SECTION 1. OVERVIEW

The Internal Revenue Service and Treasury Department are studying the proper treatment under section 382(h) of the Internal Revenue Code (Code) of certain items of deduction or loss allowed after an ownership change to a corporation that is a bank (as defined in section 581) both immediately before and after the change date (as defined in section 382(j)). As described below under the heading Reliance on Notice, such banks may rely upon this guidance unless and until there is additional guidance.

SECTION 2. TREATMENT OF DEDUCTIONS UNDER SECTION 382(h)

For purposes of section 382(h), any deduction properly allowed after an ownership change (as defined in section 382(g)) to a bank with respect to losses on loans or bad debts (including any deduction for a reasonable addition to a reserve for bad debts) shall not be treated as a built-in loss or a deduction that is attributable to periods before the change date.

SECTION 3. RELIANCE ON NOTICE

Corporations described in section 1 of this notice may rely on the treatment set forth in this notice, unless and until there is additional guidance.

SECTION 4. SCOPE

This notice does not address the application of any provision of the Code other than section 382.

The principal author of this notice is Mark S. Jennings of the Office of Associate Chief Counsel (Corporate). For further information regarding this notice contact Mark S. Jennings on (202) 622-7750 (not a toll-free call).

DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Areas/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2008-20957
  • Tax Analysts Electronic Citation
    2008 TNT 191-3
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