Rev. Proc. 83-42

SECTION 1. Background

Rev. Proc. 83-22, page 680, this Bulletin, provides a list of those areas of the Internal Revenue Code under the jurisdiction of the Associate Chief Counsel (Technical) which are under extensive study and in which ruling or determination letters will not be issued until the Service resolves the issue through publication of a revenue ruling, revenue procedure, regulations, or otherwise. A list of those areas is set forth in section 5 of the Rev. Proc.

Sec. 2. Procedure

Rev. Proc. 83-22 is hereby modified by deleting from section 5 the following subsection:

".08 Section 304.--Redemption Through Use of Related Corporations.--Whether section 304, 351(a) or 351(b) of the Code applies to the transferors' receipt of property from an existing or newly formed transferee corporation in a transaction described in both sections 304 and 351. Property, for this purpose, is defined in section 317(a) and, in general, includes securities and short-term debt instruments of the transferee, and the assumption of liabilities, but excludes stock of the transferee."

Sec. 3. Effective Date

For transactions described in section 5.08 of Rev. Proc. 83-22, this revenue procedure will apply to all ruling requests that pertain to transactions occurring after August 31, 1982, in taxable years ending after that date. New section 304(b)(3) of the Code, added by section 226(a)(1)(A) of the Tax Equity and Fiscal Responsibility Act of 1982, provides that section 304(a) will apply to any property received in a distribution described in section 304(a). Accordingly, the effective date of this revenue procedure is the same as the effective date of the Act. The Service will continue not to issue rulings or determination letters on transactions described in section 508 of Rev. Proc. 83-22 that occurred prior to September 1, 1982.

Sec. 4. Effect on Other Revenue Procedures

Rev. Proc. 83-22 is modified.