Todd B. Reinstein, a tax partner with Pepper Hamilton, was quoted in the September 19, 2019 Tax Notes Today article, "Proposed Loss Limitation Regs Require Transition Rules."
For companies in bankruptcy proceedings, a similar transition rule allowing reliance on Notice 2003-65 is needed, Todd Reinstein of Pepper Hamilton LLP added.
Bankruptcy proceedings can take a long time, and buyers want to know whether they will be able to use the losses, Reinstein told Tax Notes, adding that many times it's the section 338 method that provides a high enough limitation to assure them that that would be the case.
If taxpayers have done the modeling based on the section 228 method — and relied on that — for a deal or for purposes of bankruptcy proceedings, they should be able to count on it, Reinstein said.
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