Rev. Proc. 82-23

Rev. Proc. 77-37, 1977-2 C.B. 568, contains rules for the issuance of advance rulings as to matters within the jurisdiction of the Reorganization Branch of the Internal Revenue Service. Rev. Proc. 77-37 is amplified to include the following:

Solely for purposes of a reorganization otherwise qualifying under sections 368(a)(1)(G) and 368(a)(3)(D)(ii) of the Code the "continuity of business enterprise" requirement of section 1.368-1(d)(4) of the regulations is satisfied if (1) the acquiring corporation assumes all of the deposits of the acquired corporation and (2) the acquiring corporation will continue to hold at least one-half of the fair market value of the assets, including mortgage and other loans, held by the acquired corporation at the time of the adoption of the plan of reorganization. The disposition of assets by the acquiring corporation in the ordinary course of business will not be taken into account for this purpose.

EFFECT ON OTHER DOCUMENTS

Rev. Proc. 77-37 is amplified.

¹ Also released as News Release IR-82-36, dated March 10, 1982.