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IRS WILL NOT RULE IN ADVANCE ON WHETHER ACTIVE BUSINESS RULE IS MET WHEN DISTRIBUTING CORP. ACQUIRED CONTROL OF A CORP. IN EXCHANGE FOR CASH OR OTHER LIQUID ASSETS

FEB. 11, 1985

Rev. Proc. 85-9; 1985-1 C.B. 499

DATED FEB. 11, 1985
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference

    Rev. Proc. 84-22, 1984-1 C.B. 449

    Internal Revenue Bulletin, No. 1985-6

  • Code Sections
  • Language
    English
  • Tax Analysts Electronic Citation
    not available
Citations: Rev. Proc. 85-9; 1985-1 C.B. 499

Superseded by Rev. Proc. 85-22

Rev. Proc. 85-9

SECTION 1. BACKGROUND

Rev. Proc. 84-22, 1984-1 C.B. 449, contains in section 4 a list of those areas of the Internal Revenue Code under the jurisdiction of the Associate Chief Council (Technical) in which rulings or determination letters will not ordinarily be issued.

SEC. 2. PROCEDURE

Rev. Proc. 84-22 is amplified by adding the following to section 4.01:

Section 355.--Distribution of Stock and Securities of a Controlled Corporation.--Whether the active business requirement of section 355(b) of the Code is met when, within the 5-year period described in section 355(b)(2)(B), a distributing corporation acquired control of a controlled corporation as a result of the distributing corporation transferring cash or other liquid or inactive assets to the controlled corporation in a transaction in which gain or loss was not recognized as a result of the transfer meeting the requirements of section 351(a) or 368(a)(1)(D).

SEC. 3. EFFECTIVE DATE

This revenue procedure will apply to all ruling requests on hand in the National Office on February 11, 1985, the date of publication of this revenue procedure in the Internal Revenue Bulletin, as well as to requests received thereafter.

SEC. 4. EFFECT ON OTHER REVENUE PROCEDURES

Section 4 of Rev. Proc. 84-22 is amplified.

DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference

    Rev. Proc. 84-22, 1984-1 C.B. 449

    Internal Revenue Bulletin, No. 1985-6

  • Code Sections
  • Language
    English
  • Tax Analysts Electronic Citation
    not available
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