Rev. Rul. 65-30

Advice has been requested whether a corporation which has otherwise complied with the requirements of section 337 of the Internal Revenue Code of 1954 should be denied the benefits of that section as a result of its failure to report certain information required by section 1.337-6 of the Income Tax Regulations.

Section 337(a) of the Code states as follows:

(a) General Rule .-If-

(1) a corporation adopts a plan of complete liquidation on or after June 22, 1954, and

(2) within the 12-month period beginning on the date of the adoption of such plan, all of the assets of the corporation are distributed in complete liquidation, less assets retained to meet claims, then no gain or loss shall be recognized to such corporation from the sale or exchange by it of property within such 12-month period.

Section 1.337-6 of the regulations provides that certain information must be attached to the return of the liquidating corporation in cases to which section 337(a) of the Code applies.

Since section 337 of the Code is not elective, its application is mandatory to any transaction fitting the fact situation described in section 337(a) of the Code, and section 1.337-6 of the regulations was not intended to impose a further condition upon its applicability.

Accordingly, it is held that a corporation will not be denied the benefits of section 337 of the Code for failure to report the information required by section 1.337-6 of the regulations.

However, under certain circumstances, failure to furnish the information required by section 1.337-6 of the regulations may subject the taxpayer to the provisions of section 7203 of the Code, pertaining to criminal penalties for willful failure to supply information required by the regulations.