Article: IRS Guidance Limits Future Rulings on Tax-Free Spin-Off Transactions

Posted by Sam Merrill, Lee Meyercord, and David Wheat                 In the Fall 2015 issue of the Texas Tax Lawyer, Sam Merrill, Lee Meyercord, and David Wheat published an article entitled “New IRS Guidance Limits Future Rulings on Tax-Free Spin-Off Transactions”.  The article discusses the IRS’s issuance of Notice 2015-59 and Revenue Procedure 2015-43, which limit the circumstances in which the IRS will issue private letter rulings relating to spin-off transactions in which either the distributing corporation or the controlled corporation owns relatively large amounts of cash, securities, and other investment assets. The new guidance also significantly circumscribes the issuance of private letter rulings where the spin-off involves a real estate investment trust or a regulated investment company.A link to the article is available here.  If you have any questions regarding the article or the recent IRS guidance, please contact one of us or another tax lawyer at Thompson and Knight.