FROM THE OFFICE OF PUBLIC AFFAIRS
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March 2, 2005
JS-2284
Treasury and IRS Issue Regulations
on Subsidiary Stock Losses
WASHINGTON, DC-- Today the Treasury Department and the IRS released final regulations disallowing certain losses recognized on sales of stock of a member of a consolidated group. The final regulations are similar to temporary regulations that were issued in March, 2002, after the Federal Circuit's decision in Rite Aid Corp. v. United States, 255 F.3d 1357 (Fed. Cir. 2001).
Additionally, the Treasury Department and the IRS intend to publish within the near term proposed regulations with an alternative approach to the problem addressed by these regulations.
REPORTS