IRS WILL NOT RULE IN ADVANCE ON LIQUIDATIONS FOLLOWED BY REINCORPORATION OR SALE WHERE SAME SHAREHOLDERS OWN MORE THAN 20 PERCENT OF BOTH CORPS

Rev. Proc. 84-75

SECTION 1. BACKGROUND

Rev. Proc. 84-22, 1984-13 I.R.B. 18, contains in section 3 a list of those areas of the Internal Revenue Code under the jurisdiction of the Associate Chief Counsel (Technical) in which rulings or determination letters will not be issued. Section 4 of Rev. Proc. 84-22 contains a list of those areas of the Internal Revenue Code under the jurisdiction of the Associate Chief Counsel (Technical) in which rulings or determination letters will not ordinarily be issued.

SEC. 2. PROCEDURE

Rev. Proc. 84-22 is modified to delete sections 3.0123 and 3.0124 and include the identical provisions under section 4 as follows:

Sections 302(b)(4) and (e) (pre-TEFRA section 346(a)(2) and (b)), 331, 332, 333 and 346(a) (pre-TEFRA section 346(a)(1)).--Effects on Recipients of Distributions in Corporate Liquidations. The tax effect of the liquidation of a corporation preceded or followed by the reincorporation of all or a part of the business and assets when more than a nominal amount of the stock (that is, more than 20 percent in value) of both the liquidating corporation and the transferee corporation is owned by the same shareholders; or when a liquidation is followed by the sales of the corporate assets by the shareholders to another corporation in which such shareholders own more than a nominal amount of the stock (that is, more than 20 percent in value).

Section 337.--Gain or Loss; Certain Liquidations.--The application of this section to a corporation upon the sale of property, in connection with its liquidation, to another corporation, when more than a nominal amount of the stock (that is, more than 20 percent in value) of both the selling corporation and the purchasing corporation is owned by the same persons.

SEC. 3. EFFECT ON OTHER REVENUE PROCEDURES

Section 3 of Rev. Proc. 83-22 is modified and section 4 of Rev. Proc. 84-22 is amplified.

SEC. 4. EFFECTIVE DATE

This revenue procedure will apply to all ruling requests on hand in the National Office on November 13, 1984, the date of publication of this revenue procedure in the Internal Revenue Bulletin, as well as to any requests received thereafter.