Section 338 of the Internal Revenue Code provides rules under which a qualifying stock acquisition is treated as an asset acquisition (as "deemed asset acquisition") when an appropriate election is made. Section 1060 provides rules for the allocation of consideration when a trade or business is transferred. The collection of information is necessary to make the election, to calculate and collect the appropriate amount of tax liability when a qualifying stock acquisition is made, to determine the person liable for such tax and to determine the bases of assets acquired in the deemed asset acquisition.
US Code:
26 USC 338
Name of Law: Certain stock purchases treated as asset acquisitions
US Code:
26 USC 337
Name of Law: Nonrecognition for property distributed to parent in complete liquidation of subsidiary
US Code:
26 USC 7805
Name of Law: Rules and regulations
US Code:
26 USC 1502
Name of Law: Regulations
US Code:
26 USC 1060
Name of Law: Special allocation rules for certain asset acquisitions
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
REG-107069-97.Sup.doc
REG-107069-97 (Final) Purchase Price Allocations in Deemed Actual Asset Acquisitions